highest and best use

Highest and best use, explained for leasing brokers.

It is the use of a property that is legal, physically possible, financially feasible, and produces the most value. For a vacancy, it tells you which kind of tenant to call first.

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1 · Legally permissible

Zoning has to allow the use, or allow it with a permit you can realistically get. A use the code prohibits is out before anything else is tested. Check the district and its permitted-use table for the exact parcel.

2 · Physically possible

The building has to fit the user. Clear height, dock-high doors, power, yard, parking, and floor plate decide whether a distributor, a showroom, or a clinic can operate there.

3 · Financially feasible

The rent a user can pay has to cover the cost to occupy and, where needed, convert the space. A use that fits the building but cannot pay the asking rate does not fill the vacancy.

4 · Maximally productive

Of the uses that pass the first three tests, the highest and best use is the one that returns the most value. That is the user to call first.

Why it matters to a leasing broker

Ranking the likely uses before you pick up the phone puts your first calls on the kinds of business that fit the building.

What TenantScout does with it

Upload the offering memorandum, a listing URL, or a property profile. TenantScout ranks the property's highest and best uses, up to three, against the building, zoning signals, and local demand, and explains its rationale. It then builds a call list of real nearby businesses for each use it can source.

What you still review

TenantScout ranks uses and shows its reasoning. It does not make the final decision. Review zoning, permitted uses, and property conditions before you advise a client.

See it on real buildings

Browse the briefs on TenantScout Spaces to see how ranked uses read for real buildings. Or run your own listing through the free report.

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