What advantage does plottage provide in real estate?

Plottage refers to the added value that is achieved when two or more adjacent parcels of land are combined into a single larger parcel. This concept is significant in real estate because when properties are assembled in this way, they often can be developed more effectively or used for more profitable purposes than they could individually.

The increase in overall value that comes from land assembly typically arises from benefits such as more efficient use of space, improved accessibility, and the potential for more extensive development options. For example, when smaller lots are combined, they might qualify for zoning upgrades or better development rights, significantly enhancing their marketability and worth. This increased value is a direct result of the plottage process, making it a powerful concept in real estate development and investment.

Other choices do not effectively relate to the concept of plottage. For instance, decreased property taxes, increased maintenance expenses, and reduction in legal documentation do not capture the essence of how property value is enhanced through the combination of land parcels.