In Real Estate the concept of highest and best use is often constantly under debate. Let us be clear that the utility of any given parcel of land is dependent upon an individual’s or party’s intentions. With that in mind and in compliance with any given zoning ordinance the present highest and best use can be conceived of. In terms of economics, the highest and best use of a piece of land will ultimately preserve the land’s utility, provide the greatest present value, and provide the greatest net income.
This notion of use applies to all areas of Real Estate; understanding and achieving it will yield the highest monetary gains for your clients. Vital to the comprehension of this notion is the phenomenon of syndication. In order to truly achieve anything, whether in Real Estate or not, one must be open to syndication. The syndication may involve joining funds, resources, and forming partnerships. This process allows greater goals to be achieved and it allows operations to be conducted more seamlessly. Risk must always be calculated into any investment especially when striving towards the concept of highest and best use. Because most syndication intends to make a profit for many from the efforts of a few, they must comply with the rules and regulations of the Securities and Exchange Commission. Syndication is typically used in cases of multiple, continuing projects that require the investment of substantial amounts of money from many different sources. Never the less, syndication occurs on all levels and should be aimed towards achieving the goals of what the concept of highest and best use entails.