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III. MOST PROBABLE USE 
        Having completed an inventory of the positive and negative attri-
butes of the property, the significant limitations on future use, and the
immediate linkages of the location, the appraiser must identify possible
uses. Each use must exploit the marketable attributes of the property, 
neutralize its negative characteristics, and operate within the limits of
justified, prudent investment. 
A.  General Market Characteristics 
        The search for a use should begin with the possibility of extend-
ing the past use of the structure as a single retail unit of more than 
7,000 square feet of first-floor retail space. Unfortunately, in the past
five years several such retailers have left the Square, and none has taken
their place. The Wolff-Kubly Building and Manchester's Home Store have both
been vacant for nearly two years and offer superior space for the large 
retailer. Current retail vacancies on the Square can be seen in Exhibit 
17. However, there has been a slow but steady demand for the smaller 
retail unit at rents ranging from $4.50-$5.50 per square feet (Exhibit 18).
Therefore, a retail use strategy should assume subdivision of the subject
property, probably into three retail units, the subdivision being consist-
ent with existing fire walls, marketable layout, and provision of rest- 
rooms accessible to the handicapped at the center rear. A recognized need
on the Pinckney side of the Square is a coffee shop, luncheonette, or 
restaurant facility at street level. However, state fire codes shift to 
highly stringent regulations where space might house one hundred persons
or more (State Building Code 55.01), and so only a small restaurant 
consistent with the 75' x 20' retail bays above could be considered within
acceptable renovation costs. Development of the second and third levels 
of the building would require use as either office or residential space.
        The office rental space market for Class B or C space has been 
soft, particularly on the northeast side of the Square. For current 
office vacancies and quoted rents, see Exhibit 19. Although the Jackson 
Building on Pinckney and Mifflin offers elevatored space of minimum 
quality standards and overlooks Lake Mendota, it has been vacant for two
years. The Tenney Building, with elevators, views, and established office
building identity, has major vacancies at $6.25/sq. ft. Additional space
of Class B standards might become available if the State of Wisconsin 
decides to build 150,000 sq. ft. or more on a site three blocks from the
subject property. The State would relocate agencies in leased quarters 
near the Square to the new building. The State presently occupies a 
significant portion of the Tenney Building, 30 On-the-Square, the former
Loraine Hotel, and other Class B office buildings so that State construc-
tion would return significant amounts of Class B office space with 
elevators to the Square.   The subject property could not compete with 
these conveniences. 
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