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above, Phase 5’s accessibility is unclear. Even assuming
arguendo that Phase 5 had superior accessibility, this would not
offset the other three factors. Additionally, comparable 2-11
was zoned light industrial instead of retail-commercial.
However, given the fact that comparable 2-11 was sold to Home
Depot for the construction of a Home Depot store, we find that
its zoning did not have a significant impact on the ability to
develop the property. Thus, comparable 2-11, at $7.51 per square
foot, is a high indicator of value.
c. Fair Market Value of Phase 5
Due to the importance of the traffic count, we find that
location and exposure are the most significant factors in
determining Phase 5’s fair market value. In 2000, Pacific
Highway had an average daily traffic count of 37,800, while T-S
Road had an average daily traffic count of only 22,946. Because
of their location on Pacific Highway, comparables 1-10 and 2-11
had superior location and exposure to Phase 5. Additionally,
Phase 5 was less suitable for commercial development due to its
awkward configuration. To take these factors into consideration,
we find that a 25-percent discount from the average sales price
per square foot of the comparables is appropriate. We conclude
that Phase 5 had a value of $5.52 per square foot on the date of
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