Highest and best use

CFA Level II Alternative Investments
#1

What is the highest and best use of a property

#2

The one that makes the most money.

#3

Thanks. Is there a formula regarding this

#4

Sort of.

Figure out what it will cost to modify the property for each use, and what the value of the property will be for each use. Subtract the cost from the value, and pick the use that has the biggest difference.

#5

Thanks

#6

You’re welcome.