Call it HBU as is or interim use?

[Fred]

I thought the definition of highest and best use is the economically correct thing. Of those things that are permissible legally and possible physically, it is the one that is most correct economically.

And here I always thought it was that use that returned the highest value to the land.

I did mention in that same post there are problems of semantics. Do you mean to indicate that there is a difference between 1) return to the land and 2) return to the landowner?

You could easily have say a cabin in an outer area of a metro complex that is currently vacant and not being used much at all- let's say you can rent it out weekly for $100. Not much, but while one is waiting for the market to deem the land more valuable under an alternate use, how would it make economic sense to attribute no value to it. the economic reality is to leave it alone, and get what you can while you wait.

I can’t imagine what I wrote that would cause you to think I said one should attribute no value to improvements that help generate $100/week rent. Is there anything in my “common sense” approach to indicate that given two otherwise equal sites, that the market would not prefer the one with the cabin that rents for $100/week is worth more than the vacant one that would rent for $10/week?

I didn’t post anything to indicate that Greg’s subject would not be more valuable than an otherwise equal, but vacant site.

 

[Fred]

FWIW, just because a property allows commercial uses, it does not mean that the property has an HBU as a commercial use. As an example in my neck of the woods: Properties in the village that are located in the Office District, and especially the Medical Districts, can have much higher values as residential uses.

That's because you work, people have their own helicopter to take them to their own plane, and on to the Mayo Clinic. No need for local doctors. Now, physical therapist, that's another story.

 

[The Warrior Monk]

That's because you work, people have their own helicopter to take them to their own plane, and on to the Mayo Clinic. No need for local doctors. Now, physical therapist, that's another story.

There's a Medical District, and another district that is more restrictive abutting it. These districts are located in the estate area. A doctor purchased a property for $1,850,000 last year with a 5,000 +/- sq.ft medical building last year. Rumor has it is under contract for $4,000,000, so that the guy with estate property across the street can discontinue its use and have a buffer from the rest of the medial district.

Who says external obsolescence can't be cured?