A vacant site is zoned for either a small retail building or a mid-rise apartment project. Both uses are physically possible, but only the apartment project would support the land and development cost while producing the stronger return. Under highest and best use analysis, which use should the appraiser favor?
Correct Answer
D) The apartment project, because it is feasible and more productive
Highest and best use is the use that is legally permissible, physically possible, financially feasible, and maximally productive. Because both uses are possible but only the apartment project supports cost and yields the superior return, the apartment project should be favored.
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Appraiser Nina Patel is screening alternative uses for a corner parcel before concluding its highest and best use. Which of the following is NOT one of the accepted tests for highest and best use?
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