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AEC Technology Glossary

Planning & Development

What is Highest and Best Use?

Highest and best use is the legally permissible, physically possible, and financially optimal use of a parcel — the development scenario that maximizes value. It is the core question behind site acquisition: not just what can be built, but what should be.

In practice

Analysts compare scenarios — multifamily vs office vs mixed-use, more units vs larger units — under the same zoning envelope. AI feasibility tools automate the scenario generation and financial comparison.

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