What is the key difference between surplus land and excess land?

The key difference between surplus land and excess land is rooted in their contributions to the highest and best use of a property. Surplus land refers to parcels that are not currently needed for the existing use of the property and have the potential for independent use. However, this land may not contribute directly to the highest and best use of the entire property and is often viewed as an ancillary piece that could be developed or sold separately.

Excess land, on the other hand, is the portion of a property that is beyond what is necessary for the current use but has a potential for development. While it may have some residual value, it is closely tied to the highest and best use for the overall property.

Thus, the assertion that surplus land cannot contribute to the highest and best use is accurate because, while it might be a valuable asset, its benefits are not necessarily integral to the primary operations or use of the property itself. This distinction is essential for appraisers evaluating property value and potential land use development.