A Highest and Best Use (HBU) analysis is an analytical study that evaluates a property to determine the single most profitable, physically possible, legally permissible, and financially feasible use for the land. Performing an HBU analysis ensures a developer does not build an asset class underperforming for that submarket (e.g., building an office park where there is an intense structural deficit and higher return profile for a grocery-anchored retail center).


