Highest and Best Use Studies
A plot of land can hold many futures: offices, homes, a hotel, a retail destination or a mix of them. Only one gives the strongest result for its owner. A highest and best use study finds it, for vacant land, underused buildings and redevelopment sites in Riyadh, Jeddah and across the Kingdom.
We test each possible use against what planning allows on the site, what the market will absorb and what the numbers return. The study ends with one recommended path, and the reasons behind it.
01
Site analysis
We start with the site itself: location, frontage, road and public transport access, plot shape and the permitted building ratio and coverage. We map the developments around it, existing and forthcoming, and study the corridor it sits on. A SWOT analysis sets out the site’s strengths, its weaknesses, the opportunities around it and the threats to watch.
02
Market context and demand
We place the site in its market: the economic outlook, the city’s growth, its master plans and major projects, and the demand generators that bring residents, workers and visitors to the area. Sector studies for residential, office, retail and hospitality show where demand is growing and where supply is already heavy. See our real estate market studies.
03
Benchmarking
We study comparable projects, in Saudi Arabia and abroad, to see which concepts succeed, at what prices and with what occupancy. Benchmarks keep the options grounded in what the market has already proven.
Development options and scoring
We develop alternative scenarios for the site, from a single use to a full mixed-use scheme. Each scenario is set out with its strengths, its weaknesses, its critical success factors and its indicative investment. We then score every scenario against weighted criteria:
- Financial performance: capital required, revenue diversity, cash flow stability, time to return, exit flexibility and access to finance.
- Market demand: current demand, future growth, competition and absorption.
- Policy alignment: fit with Vision 2030 and the approvals the scheme needs.
- Operation: management complexity, synergies between uses and staffing.
- Risk: market, development and operating risk.
04
Financial testing
The leading options are modelled financially: development cost, revenue, cash flow and returns. You see the trade-off between a simpler, lower-risk scheme and a richer one with higher returns, and choose with the full picture. See our real estate feasibility studies.
05
The recommendation
The study closes with a primary recommendation, an alternative and a conservative option, with the development mix, the area programme, the phasing and the critical requirements for success, such as the right operator for a hotel component.
What’s included
Site
location and access, surrounding developments, corridor study and SWOT.
Market
economic and city context, demand generators and sector studies.
Benchmarks
comparable projects, local and international.
Options
development scenarios and weighted scoring.
Finance
financial testing of the leading options.
Recommendation
recommended use, development mix, area programme and phasing.
Frequently asked questions
When do we need a highest and best use study?
Before you buy land, before you develop it, and when an existing building no longer performs as it should.
Does the study cover existing buildings?
Yes. We study underused assets and redevelopment sites as well as vacant land, and compare keeping, repositioning or redeveloping the property.
What do you need from us?
The title deed, the plot survey, the permitted building ratio, any planning correspondence and access to the site.
What about industrial land?
Our industrial advisory team runs highest and best use studies for industrial land and logistics sites, and our build-to-suit team can deliver the result.