Property Valuation
A Portland office building's highest and best use is to be determined. The four criteria for highest and best use are:
AMost profitable, most sustainable, most attractive, and most popular
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CZoned for commercial, accessible by transit, within urban growth boundary, and within city limits
DSupported by market data, approved by the city, environmentally clean, and structurally sound
Explanation
The four criteria for highest and best use (HABU) — the use that results in the highest value — are: (1) Legally permissible: allowed by zoning, deed restrictions, etc.; (2) Physically possible: supported by the site's size, shape, topography; (3) Financially feasible: the use must generate adequate returns; (4) Maximally productive: among feasible uses, the one producing the highest value. All four tests must be met.
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