Highest & Best Use Always
Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization.
The above statement is borrowed from the preamble of the National Association of Realtor’s Code of Ethics. I have tried long and hard to find words to better describe the ethos of this business of Commercial and Investment Real Estate and have failed. A statement this powerful and encapsulating brings with it responsibility, opportunity, vision, diversity and above all, the land with it’s finite supply is the best leading indicator we have of the state of our economy.
What we use the land for matters little in the long term. The life of improvements or utility are temporary and whomever has the best idea for generating cash flow from the piece of land is holding what we call the “highest and best use” utility as long as the stream continues. When the stream begins to dry up, a new idea or utility will replace the old one and we will again have a new “highest and best use” utility. Therein lies the the real estate cycle that brings opportunity and wealth to the investors and serves the community by its use.
There are many different uses for real estate and the opportunities are in abundance. The purpose of this blog is look at some of these commercial uses and point out the opportunity or reveal the risks of others. We are located in Orange County, California and have a birds eye view of our Southern California Commercial and Investment Property Market and our network of CCIM practitioners all over the country provide us the eyes and ears of what’s happening in their markets.
My reason for starting this blog, is to provide a source of information that will at least enable the reader to form a list of questions for their advisers, that will assist them or help them in getting the answers they need instead of looking for the, “how do we get out of this mess” solutions. Shortly, I will be adding a facility to this blog where you can ask your most burning question and get an answer either in the blog or directly through your email.
The information contained in the blog is purely my opinion, and in some cases its the experiences from deals and transactions I’ve learned a lot from. I share this information, in the hope that it will help other investors and their advisers, or at least raise enough of the right questions to get good answers.
Nothing contained herein, should be considered investment legal or tax advice. Before making decisions or changing your investment strategies, you should consult a professional who is competent in that area, so you can get the information that will enable you to make the correct decision. Everyone’s situation is different and there is seldom a one fits all answer. Get the answers that apply to you and your situation only by consulting with the appropriate professional!
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