Highest and best use (HBU) is a concept in real estate which refers to the most value added use for a property, regardless of its actual and current use. It refers to what is physically possible and financially feasible.
ValuStrat is well rehearsed in undertaking highest and best use studies that focus on four key factors: legal permissibility, physical possibility, financial feasibility and maximum productive use. We understand that the value of a property and its use are closely linked so its highest and best use is that which results in the highest present value and brings in the greatest net return over a given period or for the foreseeable future. We consider also the impact of the surrounding environment, local competitive and political forces and the timing of potential property development.
A large number of our clients, especially real estate developers and family businesses with inherited lands and under-utilised buildings benefit from our highest and best use studies.