Measuring Land Productivity for Stakeholder Decision to Get the Best Use in Property Development

Economic development in the industrial and trade sectors and opening access to the Surabaya–Gempol–Pasuruan Toll Road directly to the Pasuruan PIER Industrial area opens opportunities for regional development. Along with this, commercial and residential properties are also developed. The need for land is increasing and is in demand by investors, including a 4000 m2 land area approximately 4 km from the PIER area. The land is in the development plan as a housing support facility located behind it and generates optimal financially profitable value. Based on this, it is necessary to conduct studies to optimize land use and utilization that can provide the highest land value using the Highest and Best Use (HBU) method. HBU and multi-criteria models can be used as stakeholder decisions. Four HBU criteria are used in this study: legally permissible, physically possible, financially feasible, and producing maximum productivity. From the financial aspect, the development of alternative shophouses has a maximum land value and Internal Rate of Return (IRR) of 13%.