Plottage

Plottage is the increment of value realized when two or more adjacent parcels of land are combined into a single, larger parcel. The process of acquiring and combining the individual parcels is called assemblage. The core principle of plottage is that the unified parcel commands a value greater than the arithmetic sum of the individual parcels valued separately — a form of synergy applied to real property. Plottage value arises because larger unified parcels enable development opportunities — higher-density construction, larger building footprints, or more economically viable project sizes — that are not available to the smaller individual lots. The concept is central to real estate appraisal, real estate development, and urban planning.

Plottage is the increment of value realized when two or more adjacent parcels of land are combined into a single, larger parcel. The process of acquiring and combining the individual parcels is called assemblage. The core principle of plottage is that the unified parcel commands a value greater than the arithmetic sum of the individual parcels valued separately — a form of synergy applied to real property. Plottage value arises because larger unified parcels enable development opportunities — higher-density construction, larger building footprints, or more economically viable project sizes — that are not available to the smaller individual lots. The concept is central to real estate appraisal, real estate development, and urban planning. \text{Plottage Value} = V_{\text{assembled}} - \sum_{i=1}^{n} V_i where V_{\text{assembled}} is the value of the unified parcel and V_i is the individual appraised value of each component parcel.

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