Plottage is the increase in value realized by combining adjacent parcels of land into one

larger parcel. The process of combining the parcels is known as assemblage. Generally, the
value of the whole parcel will be greater than the sum of the individual smaller parcels.

Plottage
Steve is a real estate investor in a town where single-family homes are being torn down and
replaced with multi-family duplexes, triplexes, and even small apartment complexes to satisfy the
growing population. He would like to build an apartment, but is running into a small problem. While
there are plenty of lots for sale, most of them don't have enough space for what he'd like to build.
Plottage presents a possible solution to his problem. Let's see what this means and how Steve can
use it to meet his investment goals.

Definition
Plottage occurs when two pieces of land that are adjacent to each other are combined to form a
single, larger parcel of real estate. Of course, if Steve owned multiple lots right next to each other, he
could combine more than two together into a single lot. You may also hear the concept referred to
as assemblage. The plottage increment refers to the value gained by combining the lots. For
example, Steve owns two plots that are right next to each other. Each one is worth $40,000. When
combined into a single property, the total value is now $90,000 and the increment is $10,000.
Usually plottage results in a value increase, but it isn't guaranteed.

Assemblage vs. Plottage

Assemblage is the process of joining several parcels to form a larger parcel; the resulting
increase in value is called plottage.

Assemblage — The combining of two or more adjoining lots into one large tract. This is
usually done to increase the value of the individual lots because a larger building
capable of producing a larger net return may be erected on the larger parcel. The
resulting added value is called plottage value. The developer often makes use of option
contracts to tie up the right to purchase the desired adjacent parcels. Care must be
taken through exact surveys to avoid the creation of gaps or strips between the
acquired parcels through faulty legal descriptions.

Plottage value — The increased usability and value resulting from the combining or
consolidating of adjacent lots into one larger lot. Plottage is also referred to as
assemblage, although the latter is more often used to describe the process of
consolidation. The term is often used in eminent domain matters to designate the added
value given to lots that are contiguous.
Assemblage VS Plottage

Assemblage is the process of joining several parcels to form a larger parcel;

the resulting increase in value is called plottage.

Assemblage

The combining of two or more adjoining lots into one large tract. This is
usually done to increase the value of the individual lots because a larger
building capable of producing a larger net return may be erected on the larger
parcel. The resulting added value is called plottage value. The developer often
makes use of option contracts to tie up the right to purchase the desired
adjacent parcels. Care must be taken through exact surveys to avoid the
creation of gaps or strips between the acquired parcels through faulty legal
descriptions.

Plottage Value

The increased usability and value resulting from the combining or

consolidating of adjacent lots into one larger lot. Plottage is also referred to as
assemblage, although the latter is more often used to describe the process of
consolidation. The term is often used in eminent domain matters to designate
the added value given to lots that are contiguous.