land-residual-hbu-analyzer

Residual land value is the maximum affordable land price, found by subtracting total development costs from stabilized property value. This analysis applies the Linneman land-to-TDC threshold and entitlement probability adjustments to generate a risk-adjusted land value.

The highest-and-best-use framework evaluates parcels across four tests: legally permissible, physically possible, financially feasible, and maximally productive. It generates a feasibility verdict by comparing density-normalized comps across uses like multifamily, office, and industrial.

Determining the highest and best use for an R-5 zoned parcel requires comparing uses like garden apartments, townhomes, and senior living. The analysis applies as-of-right density inputs and entitlement probability adjustments to identify the maximally productive use.

Yes, the Linneman test assesses land-to-TDC risk across mixed-use developments. The analysis applies Linneman land-to-TDC thresholds to evaluate financial feasibility and output a risk-adjusted land value for decision-making.

Running a residual land value analysis requires site address, site area, zoning, as-of-right density, market rents, and development costs. These inputs generate a feasibility verdict and normalized comps for negotiations.

A highest-and-best-use analysis may fail to produce a clear feasibility verdict if entitlement probability is too low or Linneman land-to-TDC thresholds are exceeded. Adjusting market rents or comparing density-normalized comps can resolve the ambiguity.