Highest and Best Use Analysis

Highest and Best Use Analysis is a process used in real estate to determine the most valuable and practical way a property can be used or developed. It considers what use will generate the greatest return on investment, is legally permissible, physically feasible, financially viable, and suitable for the area. This analysis helps investors, developers, and appraisers identify the optimal purpose for a property to maximize its value, whether that’s for residential, commercial, industrial, or other uses. Essentially, it finds the best, most efficient use that aligns with market demand and regulatory conditions.