Physically Possible
The second test in highest and best use analysis: a use must be physically achievable given the property's size, shape, topography, soil conditions, access, and available utilities.
Physical possibility examines whether the site can physically support the proposed use. Factors include lot size and dimensions (can the building footprint fit with required setbacks?), topography (steep slopes may limit development), soil bearing capacity (can it support the foundation?), access (adequate road frontage and ingress/egress), utility availability (water, sewer, gas, electric), and environmental constraints (wetlands, flood hazard areas). A use may be legally permissible but physically impossible — for example, a high-rise building on a small lot with poor soil.
Related Terms
Highest and Best Use
HBUThe reasonably probable use of a property that results in the highest value, considering uses that are legally permissible, physically possible, financially feasible, and maximally productive..
Legally Permissible
The first test in highest and best use analysis: a use must be allowed under current zoning, building codes, environmental regulations, deed restrictions, and other legal constraints to be considered..
Financially Feasible
The third test in highest and best use analysis: a use must generate sufficient income or value to justify the cost of development, including land cost, construction costs, and a market rate of return..
Site Value
The market value of the land as if vacant and available for development to its highest and best use.
More in Highest & Best Use
View allMaximally Productive
The fourth and final test in highest and best use analysis: among all financially feasible uses, the maximally productive use is the one that produces the highest residual land value (or highest property value for improved properties)..
Interim Use
A temporary use of a property that is expected to change in the foreseeable future as market conditions evolve or when the property becomes ripe for development to a higher use..
Conforming Use
A property use that complies with current zoning regulations and is consistent with the predominant land use pattern in the neighborhood.
Feasibility Analysis
The study of whether a proposed project's value upon completion exceeds its total cost, including profit.