Nation Law Blog

Maximizing Recoveries for Strip Mall Owners and Tenants in Eminent Domain

Strip malls are the backbone of local commerce. Whether you own the center or operate a business inside it, any government taking—large or small—can disrupt income, foot traffic, tenant stability, and long-term property value. And if you’re facing a taking, you already know: the government’s “initial offer” rarely comes close to covering the real losses.

Strip malls have unique vulnerabilities that many agencies overlook. I don’t.

For more than 35 years, I’ve handled complex eminent domain, business-damage, and relocation cases. I’ve seen firsthand how improperly handled takings destroy revenue streams, destabilize tenant mix, and permanently reduce the economic engine of a shopping center.

This blog explains how strip mall owners and tenants can protect themselves and maximize their financial recovery.

 

How Eminent Domain Impacts Strip Malls

Strip malls are fragile ecosystems. One change—access, parking, traffic flow, signage visibility—can ripple through the entire center.

1. Loss of Parking

Losing even a few spaces can:

       •       Reduce customer convenience

       •       Eliminate ADA spots

       •       Force tenants to violate lease parkingminimums

       •       Collapse anchor-tenant foot traffic

       •       Trigger co-tenancy clauses

 

Parking reductions are among the most common—and most disputed—sources of severe business damages.

 

2. Loss or Relocation of Driveways

If the government moves your entrance 100 feet… or makes it right-turn only… or eliminates it entirely… your tenants will feel the impact immediately.

Reduced visibility + harder access = lost sales, lost leases, lost stability.

 

3. Signage and Visibility Losses

For strip malls, signage is survival. Anything that blocks or reduces visibility—utility installations, roadway re-alignment, median construction—can destroy tenant traffic.

These losses are compensable, but only if someone knows how to document and prove them.

 

4. Partial Takings and “Remainder Damages”

When only part of a strip mall is taken, the remaining center frequently drops in value. This is called severance damages, and in many cases, these damages are far larger than the portion actually taken.

 

Examples include:

       •       Parking ratios dropping below code

       •       Required stormwater or retention loss

       •       Setback violations

       •       Loading zone elimination

       •       Reduced rentable square footage

       •       Disturbed tenant mix

 Without an experienced eminent domain lawyer, these damages go unnoticed—and unpaid.

 

5. Tenant Business Damages

Tenants in strip malls have some of the strongest business-damage claims in Florida, but only in partial takings and only if properly documented.

 These losses often include:

       •       Reduced foot traffic

       •       Reduced visibility

       •       Loss of access

       •       Loss of signage

       •       Construction impacts

       •       Lost customers or contracts

       •       Increased costs to operate or relocate

I work closely with business-valuation experts to calculate and defend these claims.

 

Unique Considerations for Strip Mall Owners

Owning a strip mall means juggling:

       •       Multiple tenants

       •       Rent rolls

       •       CAM charges

       •       Long-term leases

       •       Anchor-tenant dependencies

 

A taking can trigger:

       •       Rent reductions

       •       Vacancies

       •       Lease defaults

       •       Increased cap rates

       •       Reduced property value

       •       Difficulty refinancing or selling

 

The government rarely acknowledges these ripple effects. I make sure they are accounted for and paid.

 

Unique Considerations for Tenants

Most tenants don’t realize they have compensable rights—even if they don’t own the building.

 

Tenants may recover for:

       •       Business damages

       •       Loss of goodwill

       •       Relocation expenses

       •       Cost to rebuild improvements they paidfor

       •       Specialized buildouts (kitchens, salons, medical rooms, retail configurations)

 

And importantly:

 The government often must pay BOTH the strip mall owner and the tenant.

But only if claims are properly filed and supported.

 

How I Maximize Recoveries for Strip Mall Owners and Tenants

I approach each strip mall case with the same intensity and preparation I’ve brought to every major eminent domain and trial case for decades.

Judges have said:

       •       “Mr. Nation has an impeccable reputationfor competence, diligence, and professionalism.”  

       •       “The Court is aware of Mr. Nation’sreputation for competence, diligence, and professionalism in the legalcommunity.”  

       •       “The skill, expertise and efficiency…was exceptional… clearly within the top five percent of all attorneys thisCourt has ever had before it.”  

       •       “A high degree of skill was required…Mr. Nation’s significant and particular skills were necessary to properlypresent and try this case.”  

       •       “He was presented with a sow’s ear andmade it into a silk purse.”  

 

Those observations matter, because strip mall cases require:

1. A coordinated team approach

 I bring in:

       •       Eminent domain appraisers

       •       Business-damage experts

       •       Traffic engineers

       •       Land-use planners

       •       Construction-cost consultants

       •       Relocation specialists

 Strip mall claims are complex. The government is counting on you not having the right team. My job is to flip that imbalance.

 

2. Aggressive valuation of remainder damages

Most of your compensation will NOT come from what they take, but from what the taking does to what you still own.

I measure:

       •       Value loss

       •       Parking/code deficiencies

       •       Rental impairments

       •       Increased cap rates

       •       Lease instability

       •       Anchor-tenant risks

       •       Long-term redevelopment limitations

These numbers often dwarf the value of the land taken.

 

3. Full documentation of tenant losses

I work directly with tenants to preserve:

       •       Revenue patterns

       •       Foot-traffic data

       •       Advertising/marketing impacts

       •       Lease provisions

       •       Co-tenancy triggers

       •       Relocation buildout costs

 Without fast action, these claims evaporate. I make sure they are protected from day one.

 

4. Protection from government strategies

Agencies often:

       •       Downplay business impacts

       •       Use relocation “advisors” who hurtclaims

       •       Tell tenants they have no rights

       •       Push owners to accept partial payments

       •       Pretend construction impacts are “not compensable”

 

I shut that down immediately.

 

How I Am Paid

This is simple—and important.

 

In almost all eminent domain cases, the government must pay your attorney’s fees and costs.

You do not pay me out of your recovery.

That means:

       •       No hourly fees

       •       No contingency fee taken from your compensation

       •       No financial risk to you for hiring an experienced lawyer

 

The law is designed to make sure property owners—large or small—can stand on equal ground with the government.

 

Why You Need an Experienced Eminent Domain Attorney

Strip malls involve one of the most complex combinations of issues in eminent domain:

       •       Multi-tenant occupancy

       •       Business damages

       •       Access changes

       •       Parking deficits

       •       Traffic engineering

       •       Signage

       •       Remainder-value impairment

       •       Tenant and landlord claims runningsimultaneously

 

This is not a situation where you “call the number on the notice” and trust the government to do the right thing.

 

You need someone who:

       •       Has handled these cases for decades

       •       Knows how Florida law actually works

       •       Knows how agencies think and negotiate

       •       Has a track record judges openlyrecognize as exceptional

 

And as one judge put it:

“Someone of Mr. Nation’s reputation and abilities is especially required when you’re going to the mat in a particular case.”  

 

Your property, your tenants, and your financial future are worth that level of advocacy.

If You Own or Lease Space in a Strip Mall and Received a Notice — Call Me

Don’t guess. Don’t wait. And don’t let the government dictate what happens next.

I’ll walk you through your rights, your options, and a strategy to recover everything the law allows.

I’m here to protect you, your tenants, and the investment you’ve worked hard to build.

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