plottage

The term denotes the increase in value realized by combining two or more adjacent parcels of land into one larger parcel. This value enhancement typically occurs because a single, larger tract can be utilized more effectively than the individual, smaller lots. An example would be assembling several residential lots to construct a larger apartment building or commercial development.

The significance of this concept lies in its potential to unlock greater economic utility and profitability from real estate. Historically, shrewd land acquisition and consolidation have been key strategies for developers seeking to maximize returns on investment. The resultant aggregated property often permits development options not viable on the separate, smaller holdings, thereby driving up the overall worth beyond the sum of its parts. This strategy is used to re-zone for better use than smaller lots.

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The assemblage of two or more contiguous land parcels under single ownership to create a larger, more valuable property is a key concept in real estate. This process, often resulting in an increase in the combined property’s worth exceeding the sum of the individual parcels’ values, exemplifies synergy in land development. For example, acquiring adjacent residential lots to construct a multi-unit dwelling or consolidating smaller commercial properties to build a shopping center can unlock significant potential.

The increase in value stems from factors like economies of scale, enhanced development opportunities, and improved access. Larger parcels often attract developers and investors seeking to undertake substantial projects. Historically, this strategy has been employed to optimize land use, adapt to changing market demands, and facilitate urban growth. The ability to consolidate smaller holdings into a single, more marketable asset is a powerful tool for landowners and real estate professionals.

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