What must be true for a tract of land to achieve the highest and best use?

For a tract of land to achieve its highest and best use, it must be competitive in the market. This means that the use of the land should not only fulfill demand but also be a viable option compared to other uses in terms of profitability and practicality. The concept of highest and best use incorporates both market demand and economic feasibility—essentially, it is about finding a use that generates the highest return on investment relative to risks and costs.

When land is competitive in the market, it indicates that it can provide benefits and returns that are superior to alternative uses. This competitiveness must take into account the current market trends, zoning laws, and the needs of potential buyers or tenants. Without market competitiveness, any potential use of the land may not realize its full economic potential, thus failing to reach the definition of highest and best use.

While affordability, desirable location, and versatility for various uses also play crucial roles in evaluating a piece of land, they don’t directly define its highest and best use in the context of achieving optimal market value. A tract may be affordable but still not the best use if it does not compete well within the market environment. Similarly, being located in a desirable neighborhood or being versatile does not guarantee an advantageous position in the marketplace if there