Highest and Best Use

Highest and Best Use refers to the most valuable use of a property or asset that is legally permissible, physically possible, financially feasible, and maximally productive. In simpler terms, it’s about determining the best way to use a piece of land or a building to generate the most income or value. For example, a vacant lot might be best used for a commercial building rather than a park if doing so would yield more financial benefit. This concept is essential in real estate and urban planning for making informed decisions about property development and investment.