Highest and Best Use

The highest and best use is the reasonable and probable use that results in the highest present value of a property after considering all legally permissible, physically possible, maximally productive and financially feasible uses.

It is essentially a series of feasibility studies for different use scenarios for a property, both for the land as if vacant and for the property as if improved. This analysis uses the results of market studies, marketability studies and feasibility studies to arrive at a conclusion regarding the highest and best use of the property.