What characteristic distinguishes a property’s highest and best use from other uses?

The highest and best use of a property is defined primarily by its legal acceptance and the maximization of financial return. This concept encompasses not only the use that is legally permissible, but also one that is both physically possible and financially feasible. By identifying the use that generates the greatest net return on investment, the highest and best use emphasizes economic viability as a crucial factor.

This differs from other uses that may be sustainable, minimize environmental impact, or be simpler forms of development, as those factors may not necessarily translate into the best financial outcomes for the property. While sustainability and environmental considerations are becoming increasingly important, the core principle of highest and best use remains rooted in the potential for optimal financial return within legal parameters.