Highest and best use

When appraising real estate, valuers must value a property according to its highest and best use – which may be different to the current use of the property.

The highest and best use mantra is why the same property can spike in value overnight whenever there is a change in zoning laws – typically when these changes allow higher density development.

In a similar way, the Connection Economy has changed the underlying laws of business worldwide – allowing higher ‘density’ relationships.

We may run a good business, that once did well by all Industrial Economy measures, but in this new connected environment is now no longer operating (or being valued by the market) at its new highest and best use.

Today, the highest and best use of the web is to bring relationship to art.

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