Definition of "Assemblage in real estate"
Assemblage in real estate is the process of combining multiple small plots of land into one larger plot. This is accompanied by plottage, which is the increase in value that occurs when assemblage is carried out. Assemblage can occur under a number of different circumstances and in a variety of different ways. Let’s look at an example or two.
Examples of assemblage in real estate
Let’s say a developer wants to build a shopping mall in a developing urban center near a major city. Before construction can begin, the developers will, of course, have to find property to construct on. However, in densely populated areas, finding a plot of land this large is often difficult if not impossible.
To remedy this dilemma, prospective builders use assemblage. With the capital from their investors, the developers will buy up as much area as they need in small immediately adjacent plots of land in the area they want to build in. The developers will then combine the plots into a single large plot, after which construction can begin.
Another example of assemblage often occurs in agriculture. Let’s take a large farming operation in North Florida. Farms in North Florida grow four main crops: watermelons, corn, peanuts and cattle, in yearly rotations. As an operation grows, it will require more land to expand its operations and increase its output.
When this is the case, farming operations often buy up plots of land adjacent to theirs, in order to increase the amount of space available for livestock and crops. Assemblage provides an easy way for farming operations to expand while keeping their properties cohesive and singular.
Of course, there are sometimes obstacles that make assemblage difficult or impossible. It is not uncommon for property owners to show reluctance to assemblage, as they are not willing to part with their property. This can sometimes be solved by negotiating with the owners, but sometimes it can present an impassable obstruction to which the only solution is to find another direction in which to expand.
Have a question or comment? We're here to help.