What Is Plottage?
Plottage is the increase in value that results from combining (assembling) two or more adjoining parcels under single ownership, when the combined site is worth more than the sum of the individual parcels' values.
Example
Two adjacent quarter-acre lots worth $150,000 each might be worth $400,000 combined as a single half-acre site suitable for a larger development.
Why It Matters
Plottage is the economic driver behind land assemblage — a developer may pay a premium for a small parcel simply because it unlocks value in a larger site they already control.