Highest and best use: what to build and why

Highest and best use: what to build and why

We compare the legally permissible, physically possible, market-supported and financially feasible alternatives for a site to identify the use that creates the most defensible value.

Team experience since 2011Proprietary field researchMexico-wide assignments
A decision framework

What the analysis covers

Zoning indicates what may be permitted; highest and best use determines which alternative should actually be pursued. They are not synonymous. Permitted density may lack demand or destroy value through cost, phasing or sell-out speed.

INMO1 frames and compares alternatives: sell, hold, develop a single product, combine uses or execute in phases. Each option is tested against market, planning, physical capacity and financial returns.

01

Legally permissible

Uses, density, floor-area and site-coverage ratios, height, constraints and applicable approvals.

02

Physically possible

Net usable area, geometry, topography, access, infrastructure and development capacity.

03

Market supported

Demand, competition, price, absorption, scale and depth of each target market.

04

Financially feasible

Residual land value, investment, schedule, cash flow, returns, sensitivity and execution risk.

INMO1 · Method

How we work

Understand the site

We gather planning, physical and infrastructure conditions and the owner’s objectives.

Frame alternatives

We create comparable development programs rather than relying on one preconceived idea.

Test the market

We measure size, pricing, inventory, absorption and competition for each option.

Rank

We compare value, return, timing, complexity and risk to recommend a route.

Decision

A recommendation that can be defended

The outcome may recommend a combination of residential, retail, hospitality, industrial, office, community use or conservation, provided the evidence and planning framework support it.

It also identifies information gaps and the conditions that must be resolved before increasing the investment.

FAQ

Frequently asked questions

How is highest and best use different from zoning?

Zoning is regulatory; highest and best use compares which permitted, possible and feasible alternative creates the greatest value.

Is it useful before buying land?

Yes. It is particularly valuable for validating the acquisition price and avoiding payment for capacity the market cannot absorb.

Which alternatives are compared?

Those that are plausible for the site: residential, serviced land, retail, industrial, office, hospitality, healthcare, mixed use or an undeveloped sale.

Does the study define the architectural design?

It defines the program, scale, mix and criteria; detailed architectural design follows in a later stage.

Can it recommend not developing?

Yes. Holding, selling, partnering or waiting may be superior when current conditions do not support development.

Discuss your real estate decision with INMO1

An initial session helps define the asset, question, geography, timing and the most efficient scope.

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