What does the phrase 'highest and best use analysis' typically examine?

The phrase 'highest and best use analysis' refers to the process of determining the most profitable, legal, and physically possible use of a property at a given time. This analysis takes into account various factors, including market conditions, financial feasibility, and the property’s potential for generating income or value. By focusing on the most lucrative use, the analysis helps assess the property’s value in relation to its best use scenario.

While current market trends are important in evaluating the context for potential uses, they do not solely define the highest and best use. Similarly, potential zoning changes and the physical condition of the property are relevant considerations, but they serve as supporting factors rather than the core focus of the analysis. Ultimately, the aim is to identify the use that provides the greatest return while complying with land use regulations and existing property constraints.