Question 1

What is plottage in real estate?

Accepted Answer

Plottage (also called assemblage value) is the increase in value that results from combining two or more adjacent parcels of land into a single, larger parcel. The combined parcel is worth more than the sum of the individual parcels because: larger parcels can accommodate larger developments (commercial buildings, subdivisions, or multi-family projects), larger parcels may qualify for different zoning (allowing higher-value uses), and larger parcels provide more design flexibility (better site planning, more parking, and more efficient building layouts).

Question 2

How is plottage value calculated?

Accepted Answer

Calculation: plottage value = value of combined parcel - sum of individual parcel values. Example: Parcel A: $200,000, Parcel B: $200,000, combined parcel: $500,000, plottage value: $500,000 - $400,000 = $100,000. The plottage value depends on: the zoning and potential use of the combined parcel, the location and market conditions, and the development potential (a larger parcel in a commercial area may have significantly more plottage value than a larger parcel in a residential area).

Question 3

How is plottage relevant in Florida real estate?

Accepted Answer

FL relevance: land assemblage (developers frequently assemble adjacent parcels to create development sites; this is common in: downtown areas, commercial corridors, and waterfront properties), condemnation (when the government takes a portion of a larger parcel, the owner may be entitled to compensation for the loss of plottage value), and appraisal (appraisers consider plottage when valuing larger parcels that were created by combining smaller ones). Florida-specific considerations: coastal development restrictions may increase plottage value for parcels that can be combined to meet minimum lot sizes, and impact fee calculations may be based on the development potential of the combined parcel.

Plottage Value

Plottage Value (Assemblage) in Real Estate

Concept

Calculation

FL Relevance

Related Terms

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