Florida’s New Eminent Domain Rules: What Business Owners Need to Know

One of the many bills passed during Florida’s 2025 legislative session was SB 462, a transportation bill that covered a lot of ground (pun intended). Unanimously passing both chambers, the key provisions of SB 462 aimed to update county reporting requirements, amend some aviation and airport programs, revise the contracting process for road construction and maintenance projects and more. However, one clause tucked into the bill changed the way the Florida Department of Transportation (FDOT) may acquire property via eminent domain, giving the agency even more power to do so.

Originally filed in the House by Rep. Fiona McFarland of District 73 as HB 567 back in February 2025, the bill sought to (among other provisions) expand FDOT’s ability to acquire land by claiming eminent domain. HB 567 was added to SB 462 at the last hour and passed by both chambers. The new law will take effect in Florida on July 1, 2025.

What’s Eminent Domain?

Eminent domain is the government’s power to take private property for public use, provided the owner receives just compensation. Florida law also recognizes that taking real estate alone may not fully compensate a business. Under Section 73.071(3)(b), Florida Statutes, business owners can recover business damages—such as lost profits or increased operating expenses—when a partial taking negatively affects an established business. This ensures that owners are compensated not only for their property, but also for the economic impact a taking may have on their operations.

FDOT has the authority to acquire property through eminent domain for necessary transportation projects, including rights-of-way and designated transportation corridors. A “transportation corridor” is defined as property needed for future transportation facilities and rights-of-way.

Who Qualifies for Business Damages—and What Can Be Claimed?

Not every business affected by an eminent domain taking will qualify for compensation beyond the property value. Under Florida law, specific criteria must be met to claim business damages, and only certain types of losses are eligible.

Types of Compensable Business Damages

If a business qualifies, it may be entitled to recover various types of economic damages, such as:

• Lost Profits: Reduction in revenue or business value due to the loss of part of the property.
• Relocation Costs: Expenses for moving the business and any increase in rent or mortgage payments at the new site.
• Renovation Expenses: Costs to reconfigure or adapt business operations to fit the altered property layout.
• Goodwill Diminution: Loss of customer base or community recognition tied to the original location.
• Increased Operating Costs: Extra costs or reduced efficiency in operations caused specifically by the loss of property.

Eligibility Requirements

To qualify for business damages under Section 73.071(3)(b), Florida Statutes, a business must meet all the following conditions:

• Partial Taking: The government must acquire only a portion of the property.
• Established Business: The business must have operated on the property for at least five years.
• Direct Damages: The damages must stem directly from the loss of the specific portion of property being taken, not from general construction-related disruptions.
• Right-of-Way Purpose: The taking must be for a right-of-way project carried out by FDOT, a municipality, county, board, district, or another qualifying public entity.

For more details, visit our blog on business damages in eminent domain.

What’s Changing?

This new bill significantly expands FDOT’s authority by allowing the agency to acquire land in advance of immediate need. Traditionally, FDOT would begin acquiring property only when a transportation project was imminent—typically after receiving full funding and securing construction permits. Under the newly passed, SB 462 (2025), however, FDOT is now empowered to proactively purchase land years ahead of schedule to preserve essential corridors for future road and infrastructure development.

The key shift is that these acquisitions can now happen even when construction is not expected to begin for several years. While this change supports long-term infrastructure planning, it also introduces new dynamics for property owners and businesses located along potential future corridors. Businesses may face earlier condemnation notices, disruption to expansion plans, or uncertainty about their long-term location—even in the absence of an active construction project.

Ultimately, the new law reflects a shift from a reactive to a proactive model of transportation planning, prioritizing efficiency and future-readiness—but not without potential consequences for those in its path.

Key Takeaways for Business Owners

As a business owner, it’s important to consider how future development could impact your plans. Land you’re eyeing for expansion might be included in a state project, potentially affecting your growth strategy. On the other hand, proximity to future infrastructure improvements could offer significant opportunities. If leveraged strategically, it could boost foot traffic, improve accessibility, and increase the value of your property.

Looking Ahead

As Florida continues to invest in long-term infrastructure, changes to eminent domain laws—like those passed in SB 462 (2025)—could reshape the landscape for business owners across the state. Whether you own commercial property, lease space, or are planning future development, it’s essential to stay informed and proactive.

Understanding how these changes could affect your property rights, expansion plans, or business value can help you navigate the evolving environment with confidence. If your business is located near a transportation corridor or major roadway, now is the time to start evaluating potential impacts. To stay informed on active construction projects managed by FDOT, you can explore their interactive project map. This resource provides real-time updates on ongoing construction contracts across the state, helping you stay ahead of any developments that may affect your business.

At Jimerson Birr, we help business owners protect their interests when faced with eminent domain actions. If you’re unsure how this legislation could impact your property or business, feel free to contact us for guidance. Our team is here to help you understand your rights and explore your options.