Brévanne's land is used as an industrial depot, with a value of 1,200,000. Market participants could use it for residential purposes: market value of that use 1,850,000, before deducting conversion costs of 420,000. The three conditions (physically possible, legally permissible, financially feasible) are met for both uses (case data). Compute the net value of the residential use and then the value under the highest and best use.
- Value under current industrial use
- 1,200,000
- Market value of residential use
- 1,850,000
- Conversion costs
- 420,000