New Search
i . <br /> development options are available. The current legal uses are severely limited; <br /> IP however, potential uses once the UGB is expanded are unknown. When considering <br /> the maximally productive option, or the option that would yield the highest return on <br /> the land, holding the site for future development is considered the best and most <br /> monetarily productive option. <br /> Therefore, the financially feasible and maximally productive use of the site is to hold <br /> for future development. <br /> Marketability - Because of the subject's size, location on the cusp of development and <br /> close proximity to the UGB and other commercial oriented development (Lane <br /> Community College) , we anticipate a marketing period of less than one year, if <br /> listed at or near market value. This is consistent with marketing periods of similar <br /> investment properties. <br /> HIGHEST AND BEST USE CONCLUSION — NORTH PORTION — As VACANT <br /> Based upon past, present and prospective market activity in the subject's market area, <br /> Lane County and the State of Oregon, it is our opinion that holding the property for <br /> future development, is an adequate expression of the highest and best use of the <br /> vacant site. <br /> HIGHEST AND BEST USE — SOUTH PORTION <br /> Introduction <br /> Highest and best use is a market driven concept which identifies the most profitable <br /> and competitive use to which a property can be put. It is further defined as follows: <br /> "The reasonably probable and legal use of vacant land or an improved <br /> property, which is physically possible, appropriately supported, financially <br /> feasible, and that results in the highest value. The four criteria the highest and <br /> best use must meet are legal permissibility, physical possibility, financial <br /> I feasibility, and maximum profitability. "6 <br /> The concept of highest and best use is fundamental to real property value. In one <br /> application of the concept, a site is valued as though vacant and available for <br /> development to its highest and best use. In another application, the highest and best <br /> use of the property as improved is estimated. A site may have one highest and best use <br /> as though vacant, while the improved site may have another optimal use. <br /> 1 Highest and best use is essentially a market driven concept which identifies the ideal <br /> use(s) of a property which follow logical market criteria. It attempts to mirror the thinking <br /> I of a buyer in the marketplace. Analysis pertaining to the legal, physical, financial and <br /> most productive uses of the site, both as though vacant and as improved narrows, <br /> development options to those best fitting the demand for the property. Once highest <br /> and best use is established, the appraisal process focuses on the identified sub - market, <br /> 1 selecting parameters for meaningful analyses. <br /> The highest and best use of the subject land and improvements has been tested <br /> separately against the four criteria in the following analysis. <br /> 6 The Dictionary of Real Estate Appraisal, Fourth Edition. Chicago: Appraisal Institute, 2002. <br /> i 7 The Appraisal of Real Estate, Eleventh Edition. Chicago: Appraisal Institute, 1996. Page 297. <br />