What is excess land?

Excess land refers to property that is beyond what is needed for the highest and best use of a specific site. In the context of real estate, the "highest and best use" is the most profitable legal use of the land that is physically possible, financially feasible, and maximally productive. Therefore, any land that exceeds this requirement is designated as excess land.

This concept is significant in real estate valuation and development because excess land can potentially be sold, leased, or developed for additional uses, which may generate extra income. Understanding what constitutes excess land is crucial for real estate professionals, as it can impact financial analysis, investment decisions, and property development strategies.

The other options do not accurately describe excess land; for instance, land that cannot be developed or is involved with pending zoning changes relate to limitations rather than an identification of surplus property. The definition of excess land specifically ties to its abundant availability beyond what is necessary for optimal use, making the correct choice clear.