underimprovement

underimprovement

A structure that is less than the highest and best use for a property. A residence sitting on 1 acre of land on a major retail street is an underimprovement;the property would be more valuable with a fast-food restaurant.

References in periodicals archive ?
Where the livestock ranch has become a recreation ranch in the past decade, the residence may have become an underimprovement. Such a change could result in functional obsolescence, which would relegate the residence to a secondary use as a residence for a hired livestock manager or as a guesthouse.
Recreation ranch appraisal
However, this building then suffers from additional obsolescence because it becomes an underimprovement to the site.
Appraisal issues in the valuation of extremely large buildings
Existing density may exceed that currently allowed (a factor that tends to extend remaining economic life) or represent an underimprovement (a factor that tends to shorten remaining life) to the site.
Appraising low-investment-grade apartments
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