Commercial Appraisals

Highest and Best Use in Commercial Real Estate

Highest and Best Use in Commercial Real Estate

In commercial real estate appraisal and valuation, the highest and best use of a property is the use a property that will bring the highest value to stakeholders. When an appraiser attempts to determine the highest and best use of a property, they must not only examine its current use, but must also look into potential alternative uses. In regards to commercial real estate investing, the highest and best use typically means the use with the highest risk-adjusted returns