These three hypothetical development scenarios follow to illustrate the test of maximally productive use. Price of Site: $100,000 (remains unchanged in all three examples)  Cost to construct industrial warehouse: $750,000  Market Value of industrial warehouse: $910,000  Profit for industrial development: 7%  Cost to construct retail strip center: $1,500,000  Market Value of retail strip center: $1,840,000  Profit for retail development: 15%  Cost to construct of residential condominiums: $1,200,000  Market Value of of residential condominiums: $1,534,000  Profit for residential development: 18%  As the examples illustrate, even though the retail development results in the overall highest market value for the development, the residential development scenario results in the highest net return to the developer and this makes it the maximally productive use. In reality, short term constraints on availability of capital and labour, inevitable conflicts between the other key factors, as well as the predisposition and experience of the developers, often lead to developments that are not maximally productive, but are a compromise. They are productive enough and safe enough that the developer proceeds, but they are not maximally productive. James Graaskamp fully developed a model that reflects this reality more clearly, and termed it most probable use. The Test of Highest and Best Use is applied to an improved property both "as improved" and "as if vacant". Vacant properties are generally only given the "as vacant" test. The Highest and Best Use as vacant may be the same or different as the Highest and Best use as improved. For improved properties, the first analysis applied is the use of the property based on the assumption that the parcel is vacant. Then, the analysis focuses on the use that should be made of the property as it is currently improved. The extent to which the existing improvements differ from the highest and best use as-if vacant, reveals the extent of any functional obsolescence. Further, there are three potential actions that can be undertaken regarding the existing improvements: Retention of the existing improvements, modification of the improvements or the development scheme of the site, or demolition and removal of the improvements. For example, house A in an area zoned for residential use may have a highest and best use as vacant and a highest and best use as improved that are both residential. A similar house B in a commercially zoned area may have a "highest and best use as vacant" as development to a commercial development, and the "highest and best use as improved" may be for continued use as a single family residence.