How do you assess the highest and best use of a real estate site?

2 Market analysis

Market analysis is the process of collecting and analyzing data on the current and future conditions of the market, such as demographics, trends, competition, demand, supply, and prices. It helps you identify the opportunities and challenges for your proposed use, and the optimal size, mix, and design of your project. Market analysis also helps you estimate the market value of your site and the expected income and expenses of your project.

4 Site analysis

Site analysis is the process of examining the physical characteristics and constraints of your site, such as location, size, shape, topography, access, utilities, zoning, and environmental issues. It helps you understand the strengths and weaknesses of your site, and how they affect the highest and best use and the feasibility of your project. Site analysis also helps you plan the layout, orientation, and landscaping of your project.

5 Marketability analysis

Marketability analysis is the process of assessing the attractiveness and competitiveness of your project in the market, based on the market analysis and your marketing strategy. It helps you determine the target market, the unique selling proposition, the pricing strategy, and the promotion and distribution channels of your project. Marketability analysis also helps you measure the customer satisfaction, loyalty, and referrals of your project.

6 Risk analysis

Risk analysis is the process of identifying and quantifying the potential risks and uncertainties that may affect the success of your project, such as market fluctuations, cost overruns, delays, legal disputes, and environmental impacts. It helps you mitigate and manage the risks, and prepare contingency plans and exit strategies for your project. Risk analysis also helps you evaluate the trade-offs between risk and return, and the optimal level of leverage and diversification for your project.