Preliminary Property Feasibility and Best-Use Report

What a good one includes

• A detailed zoning and regulatory summary that identifies current land-use designations, overlay districts, and any imminent code changes.
• A physical site analysis outlining development constraints like setbacks, height limits, floor area ratios, and easement impacts.
• A highest-and-best-use evaluation that tests multiple development scenarios against legal, physical, and financial feasibility.
• Preliminary financial modeling including estimated development costs, projected revenues, and potential return on investment for the top scenarios.
• Infrastructure and environmental assessments highlighting utility availability, access issues, and obvious topographical or soil challenges.
• A clear roadmap of next steps, specifying required municipal approvals, necessary site studies, and estimated timelines to break ground.

Common mistakes to avoid

• Relying on base zoning rules while overlooking restrictive overlay districts, historic preservation guidelines, or local setbacks that drastically reduce buildable area.
• Assuming maximum allowable density is achievable without calculating the space required for mandatory off-street parking, stormwater management, and utility easements.
• Presenting a theoretically legal development concept that is financially unviable due to current local construction costs and market rent caps.
• Failing to verify the capacity and connection fees of existing municipal utilities, which can add unexpected six-figure costs to a project.

Frequently asked questions