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.
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