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My firm has recently been asked by a law firm representing a land owner along a thoroughfare that is in the process of being widened for an appraisal/consult. The original appraisal was performed in 2002, so alot of the data has changed since then. If we were to perform another appraisal on the property would we have to do a retrospective effective date of value?

Also, as a result of the on-going construction, two of the tenants in the building have moved. I've read that business loss is typically non-compensable. Is that the case in Louisiana?

The property is a strip center with good visible frontage along a heavily traversed thoroughfare. They are losing parking that will result in too little parking to continue operation for the entire facility. Damages were originally calculated by determining the percentage of the building that will be un-leaseable as a result of the taking and capitalizing the attributable net income.

The effective date of valuation should be the date the acquiring agency filed and recorded the claim on the property. The market data utilized in the appraisal should be relative to that timeframe.

A while ago, I posted that exact question, asking what areas of the Country recognized "loss of business" in this forum. I do not believe Louisiana was mentioned. You can double check that topic and reply posted.

The concepts originally utilized appear sound and supportable to calculate damages. However, it seems like there may be some misplaced improvements in the "after" situation to address.

Aside from the appraisal, if Federal money was involved, tenants may have or had relocation benefits, due to the acquisition.

Anyway, it should not make any difference which side you get your appraisal assignment from, applicable appraisal concepts should be utilized in the same manner, and completely unbiased.

It sounds like a great assignment. I just noticed the date of your post and hope you took it!

Rico

After looking at that loss of business topic, it appears that Louisiana does recognize it to some degree.

Again, good luck.