written by: andrel
In the first post I made on this blog, I went over a bit of my background and highlighted that I work in the Commercial Real Estate Valuation field. As I continue to learn new things daily about the business, I've found there is a significant amount of crossover between the concepts I'm learning in my line of work and just everyday living. Figuring out the crossovers and making the connections help simplify concepts when I'm explaining them to those outside of my work (especially Kryzia). One of the concepts that I love to connect is the principle of Highest and Best Use (HABU). This week's post is a bit short, but it gets straight to the point.
Put simply, the principle of Highest and Best Use (HABU) in my field simply looks at a piece of land in a hundred different ways to figure out what should be done to get the maximum potential out of a particular site. Here's the perfect example: Imagine you are in the heart of downtown Toronto at the intersection of Yonge and Dundas. Once you hear the word "downtown", what immediately pops into your mind? You must be picturing a bunch of buildings. For those of you who aren't natives of the Greater Toronto Area, the intersection of Yonge and Dundas features one of the city's most prestigious malls: the Eaton Centre. Surrounding the mall is a large number of high rise condominiums and office towers. If you take a good look around that intersection, everything there seems to fit. It's the principle of HABU in practice.
But then imagine if in the midst of the big mall, the condos, and the office towers, you find a one-storey home right in the middle of it all. Immediately, your face frowns: Something clearly doesn't fit, right? Having a one-storey home in the midst of a busy intersection filled with a mall, condos, and office towers isn't the best practice of HABU.