land-residual-hbu-analyzer

Residual land value is calculated by computing the supportable land price across multiple feasible use types and selecting the highest-and-best-use. This requires site area, zoning, market rents, cap rates, and development costs to generate a risk-adjusted land price.

The Linneman land-as-percentage-of-TDC test evaluates feasibility by measuring land value as a percentage of total development cost. This Skill applies the Linneman test to adjust land value and risk, ensuring the residual land price remains defensible.

Entitlement probability discounts adjust the residual land value based on the likelihood of securing zoning approvals. This analysis applies probability adjustments across multiple candidate uses to produce a risk-adjusted maximum supportable land price and feasibility verdict.

Running a residual land value analysis requires the site address, site area, zoning, as-of-right density, market rents, cap rates, and hard and soft development costs. These inputs generate a defensible land value normalized to price per buildable square foot.

Yes, residual land value is normalized to price per buildable square foot and validated against comparable land sales. This normalization produces a defensible value and feasibility verdict with recommended actions for the highest-and-best-use candidate.

Residual land value analysis relies on accurate market rents, cap rates, and development cost assumptions. Feasibility verdicts are constrained by entitlement probability accuracy and the availability of comparable land sales data to properly normalize the risk-adjusted land price.