Highest and best use analysis can assist an owner in maximizing return. Highest and best use analysis can be performed for acreage, site development, and for improved properties. Research and planning can substantially increase investment returns.
Highest and Best Use Analysis
Highest and best use analysis can assist an owner in maximizing return. Highest and best use analysis can be performed for acreage, site development, and for improved properties. Research and planning can substantially increase investment returns.
If in a metropolitan area, highest and best use is likely a combination of uses including single-family, multifamily, and commercial. Mixture of uses and timing of development are both critical factors. Commercial and multifamily land will yield a higher value, but artificially calling a use commercial will result in an excessive holding period. Ultimately the use may still be single-family.
Highest and best use for a single site may seem intuitive. For example: 1.) this is clearly an industrial site since it is in an industrial park or 2.) this is clearly a strip center site since it is on a major thoroughfare at the corner of a street which enters a subdivision. However, an appropriate highest and best use study will be detailed and precise. For the industrial property consider the following issues:
For an existing building on two acres, the following should be addressed:
Consider the following examples:
Research and analysis by seasoned real estate professionals can help identify highest and best use to maximize returns. The old bromide of measure twice and cut once fits highest and best use analysis.
O’Connor & Associates’ staff complement of over 50 real estate professionals includes 12-15 senior staff member who can complete an expedited highest and best use analysis for your property. They can also handle other due diligence tasks. These professionals are supported by an experienced staff of over 100 who are accustomed to complex assignments. Our team has experience in all aspects of real estate including acquisitions, due diligence, ownership, appraisal, property tax appeals and dispositions. Reduce your risk and stress by utilizing O’Connor & Associates’ breadth and depth of experience to evaluate real estate investments.
To obtain more information on O’Connor & Associates highest and best use analysis services, call or email Larry'>mailto:lbrewster@poconnor.com">Larry Brewster at 713-686-9955.
O'Connor & Associates is a national provider of commercial property real estate consulting services including cost segregation studies, property'>http://www.galvestoncentral-appraisaldistrict.com/Property_Tax/index.cfm">property tax, market'>http://www.galvestoncentral-appraisaldistrict.com/Market_Research/index.cfm">market research, highest'>http://www.galvestoncentral-appraisaldistrict.com/Articles/highestandbestuse.cfm">highest and best use analysis, commercial'>http://www.galvestoncentral-appraisaldistrict.com/Articles/commercial_real_estate_appraisal.cfm">commercial real estate appraisal, due diligence, insurance valuations, abandonment studies, business personal property valuations, commercial appraisals, financial modeling, highest and best use analyses, and lease audits. Our services benefit owners of all commercial property types including multi-family housing, retail stores, hospitals, hotels, industrial properties, manufacturing facilities, medical offices, commercial offices, restaurants, self-storage units, shopping malls, shopping plazas and warehouse/distribution centers.
