Contact Us
Home Appraisal Consulting AZ County Links

Highest & Best Use

Cash Flow Analysis
Purchase / Sell Analysis
Lease / Purchase Decision
Highest & Best use
Market Studies

Highest and best use analysis comprises the cornerstone or foundation for appraisals of proposed developments. A planned project may be both physically doable and permissible, but lack the necessary market support to achieve financial feasibility.

Moreover, a proposed project may be able to attain financial feasibility, but still fail with respect to maximal productivity or making full use of the underlying site’s potential to generate income.

Development timing is an all important factor within the highest and best analysis of a proposed project. This is because the supply and demand for commercial real estate is rarely in equilibrium. Markets are usually characterized by either robust demand or excess supply, but not at the same time.

Commercial real estate markets are of course cyclical, with sub-cycle variations for different property types and/or geographical areas. Additionally, real estate market cycles are also directly influenced by the larger general business or economic cycle.

As a result, planned projects can shift from feasibility to non-feasibility, or the reverse; according to cyclical changes in supply and demand (the physical real estate cycle). Likewise, the cost and availability of third-party financing also has a direct effect on the feasibility of a proposed development (the capital market real estate cycle).

Investors and potential lenders prefer that market-support projections and forecasts for a proposed project be obtained from the analyses of market facts by third-party professionals, such as New West Consulting. We can also assist in the re-targeting of existing properties or help with site redevelopment planning.

  Client Log-In | Regulatory Compliance | Privacy Policy | Terms of Use
New West Consulting, Inc. © 2015