Are you saying that the current use of the property is not the highest and best use of the site? I am assuming that you are suggesting that the property value if it were a vacant site exceeds the attributable value as it is currently developed. I think your DCF analysis may reveal that the current use does not meet the "highest and best use" definition. I guess this is a good thing if you are buying the property, but not so much if you are selling. If you are selling the property and trying to justify the price, I think that you can support the value through other means. A DCF analysis would not be appropriate in this case, in my opinion.
Mar 23, 2009