What does the term Plottage Value indicate about the parcels of land involved?

Plottage Value refers to the increased value that arises when multiple parcels of land are combined into a single larger parcel. This concept is based on the idea that the combined utility and potential uses of the larger parcel can enhance its overall value compared to the individual parcels when sold separately. The greater combined utility can result from various factors, such as increased developable space, better zoning options, more efficient land use, or better access, which might not be possible with the smaller, separate parcels.

Therefore, choosing to consolidate smaller parcels can realize a higher overall market value, illustrating the principle that the whole can be worth more than the sum of its parts. This principle is critical in real estate transactions, as it encourages developers and investors to consider the potential benefits of acquiring adjacent or neighboring properties to maximize value.