Transmission Line Proximity Damages -- Real or Just Perceived?
Posted in Valuation

Having recently worked on a number of pipeline and transmission line projects, I find the issue of proximity damages to be fascinating.  Does being adjacent to gas pipelines or electrical transmission lines diminish the value of an owner's remaining property?  I have seen studies suggesting nearly every possible conclusion.  If you're interested in this subject, there's a great article that was recently published in the Appraisal Institute's Appraisal Journal, Summer 2017 edition, titled The Effect of High-Voltage Overhead Transmission Lines on Property Values:  A Review of the Literature Since 2010.

The article, written by Orell Anderson, MAI, Jack Williamson, PhD, and Alexander Wohl, provides an excellent overview of a number of studies that have been prepared on this subject, and what the recent market data suggests.  While every situation will differ depending on a number of factors, such as geographic location, distance/proximity, size of transmission lines, pre-existing conditions, and view impacts, the general consensus seems to be that while the public has an adverse perception and general dislike for transmission lines, the market data reveals little to no diminution in property values.  In other words, while market participants may generally prefer to not be adjacent to transmission lines, such preferences do not translate into noticeable price differences in the market data.

If you're interested in learning more about this topic, I highly recommend you spend some time with the article.

  • Partner

    Brad Kuhn serves as Chair of Nossaman's Eminent Domain & Valuation Group, likely the largest group of skilled eminent domain attorneys in California and the United States.  Brad is a real estate and business litigation attorney, with ...

California Eminent Domain Report is a one-stop resource for everything new and noteworthy in eminent domain in California. We cover all aspects of eminent domain in California, including condemnation, inverse condemnation, and regulatory takings. We also keep track of current cases, project announcements, budget issues, legislative reform efforts, and report on all major California eminent domain conferences and seminars.

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