Real Estate Principles 3rd Edition by David Ling,Wayne Archer

Exercise 22

Demolition of an existing property on an urban site will likely occur:
A) After the building has been abandoned for a reasonable period of time.
B) When the highest and best use of the property is a taxpayer use, such as a parking lot or recreational park.
C) When the site value, assuming a new use, exceeds the value of the site under its existing use, plus the cost of demolition.
D) When the site value, under its existing use, exceeds the cost of demolition.