Which set of criteria defines Highest and Best Use?

• A. Legally permissible, physically possible, financially feasible, aesthetically pleasing
• B. Legally permissible, physically possible, financially feasible, socially acceptable
• C. Legally permissible, physically possible, financially feasible, environmentally friendly
• D. Legally permissible, physically possible, financially feasible, maximally productive

Answer: (D)

Highest and Best Use is determined by evaluating a property against four criteria that must be met for a use to be considered optimal. First, the use must be legally permissible, meaning it complies with zoning, land-use regulations, and any deed or covenant restrictions. Second, it must be physically possible, so the site’s physical characteristics and constraints allow that use to be developed or maintained. Third, it must be financially feasible, meaning the use can be developed and operated in a way that provides an acceptable return after costs. Among uses that satisfy those first three tests, the highest and best use is the one that is maximally productive—it yields the greatest net return or value given current market conditions.

Other factors like aesthetics, social acceptability, or environmental friendliness may influence planning decisions, but they do not define highest and best use. They are important considerations, yet the determining criterion is maximizing net benefit within what is legally permissible, physically possible, and financially feasible.