Highest And Best Use Uplift Calculator

HBU analysis reveals hidden value.

Current use value

Proposed use value

Conversion cost

Approval probability %

Net uplift (expected)

$1,200,000

Gross uplift if approved

$10,500,000

Net if approved

$2,000,000

How the math works

Gross uplift = proposed − current. Net if approved = gross − conversion cost. Expected = net × probability.

$14M − $3.5M = $10.5M gross. − $8.5M cost = $2M net if approved. × 60% = $1.2M expected.

How to Use

Enter current use value.
Enter proposed use value.
Enter conversion cost.
Enter probability of approval %.
Read net uplift.

Frequently Asked Questions

HBU analysis?

Appraisal test for value: 'highest and best use' is the legally permissible, physically possible, financially feasible, and maximally productive use. Often different from current use. Common: industrial to mixed-use, single-family to multi-family, low-density to high-density.

Typical uplifts?

Industrial (20-30/SF land) to mixed-use ($80-200/SF): 3-7x. Single-family lot ($200k) to 4-plex ($600k): 3x. Low-density retail to high-density residential: 2-4x. Strip center to mixed-use TOD: 4-10x in transit corridors.

Realization?

Requires rezoning, entitlement, development. Not always captured at sale — buyer often takes uplift. Sellers who secure entitlement before sale capture more value. Multi-year process; financing creative to bridge current use to future use.