Assemblage
The process of combining two or more adjacent parcels of land into a single ownership for a unified use. The value increment resulting from successful assemblage is called plottage value.
Assemblage is the physical act of acquiring and merging parcels, while plottage is the resulting value increase. Assemblage is common in commercial and multifamily development where larger sites are needed. The process can be complex, involving multiple property owners, holdouts, and timing challenges. In appraisal, the appraiser may need to value a property considering its assemblage potential — a small parcel adjacent to a developer-owned site may have value beyond its standalone worth if the developer needs it to complete an assemblage.
Related Terms
Plottage
The increase in value that results from combining two or more adjacent parcels into a single, larger parcel.
Land Value
The market value of a parcel of land as if vacant and available for development to its highest and best use.
Highest and Best Use
HBUThe reasonably probable use of a property that results in the highest value, considering uses that are legally permissible, physically possible, financially feasible, and maximally productive..
Site Value
The market value of the land as if vacant and available for development to its highest and best use.
More in Land & Site Valuation
View allAllocation Method
A land valuation technique that estimates land value by applying the typical ratio of land value to total property value observed in the market.
Extraction Method
A land valuation technique that estimates land value by subtracting the depreciated cost of improvements from the total sale price of an improved property.
Land Residual Technique
A land valuation method that estimates land value by capitalizing the net income remaining after deducting the return attributable to the improvements from the property's total net operating income..
Ground Rent Capitalization
A land valuation method that estimates land value by capitalizing the ground rent (the rent paid for the use of land only, without improvements) at an appropriate capitalization rate..