What term describes an existing but temporary use of a property?

The term "interim use" specifically refers to a situation in which a property is being utilized in a manner that is temporary and may not reflect its highest and best use in the long term. This concept is vital in real estate appraisal as it helps in understanding the current state of a property and its potential future value.

For instance, an old warehouse might be leased temporarily for a pop-up retail store while it awaits redevelopment into residential units. This usage, although not permanent, allows the property owner to generate income as they await the property's transition to a more effective use.

Recognizing interim use is crucial for appraisers because it can influence the valuation of the property in the current market. If a property has an interim use that is generating income, this can lead to a higher valuation compared to a property that is simply sitting vacant. Understanding this concept helps distinguish between different phases of property utilization and their implications for value assessments.