Which term refers to the most profitable use of a property that adheres to legal and economic standards?

The term that refers to the most profitable use of a property, adhering to both legal and economic standards, is "highest and best use." This concept is fundamental in real estate as it assesses the viability of a property by considering what use would produce the greatest return on investment.

Determining the highest and best use involves evaluating how the property can be utilized in a way that maximizes its potential while complying with zoning laws and market conditions. This means looking at not only immediate financial benefits but also considering factors such as location, demand, and overall economic trends in the area.

In contrast, the other terms provided focus on different aspects of real estate valuation or property use. "Objective value" refers to a value that is not influenced by personal opinion, "progression" involves the increase in value of a lower-value property due to the presence of higher-value properties nearby, and "substitution" pertains to the principle that a buyer will not pay more for a property than it would cost to purchase an equally desirable substitute. While relevant in real estate discussions, these concepts do not encapsulate the idea of identifying the most efficient and economically beneficial use of a property in the way that "highest and best use" does.