Plottage In Real Estate
The definition of plottage in real estate is simple. When you combine multiple pieces of land into one large parcel, the plot appreciates in value. This is not to be confused with the process of combining multiple plots of land into a single larger plot, which is known as assemblage in real estate.
Plottage in real estate is very common in urban areas that have large areas areas covered with small, undeveloped, individually owned parcels of land. Firms will buy up large quantities of these individually owned plots and combine them into large plots perfect for the development of condominium complexes or other types of real estate developments. This is what plottage in real estate development means.
Examples of plottage in real estate
Plottage in real estate can occur in a variety of different scenarios. As previously shown, plottage is most common where there are large areas of undeveloped land in close proximity to urban population centers, but it occurs under other scenarios as well.
Another common instance of plottage in real estate is that of suburban areas transitioning into larger commercial holdings. Firms buy up plots of land in suburban areas to make way for the growth of cities in order to construct larger commercial complexes, such as shopping malls or office spaces.
An additional example of plottage in real estate often occurs with the expansion of agricultural firms, where expanding farming operations require more land on which to grow crops or livestock. Expanding farming operations will buy up plots of land surrounding theirs and construct the necessary structures and install the necessary machinery for their agricultural operations.
These are just a few of the many examples of plottage in real estate. Plottage is very common in quickly developing cities and other fast-growing areas of the country, and its occurrence and effects can be observed throughout the entire country.
Popular Real Estate Terms
The portion of a structure providing the primary ground support. Foundations have a foundation wall forming a permanent below grade retaining wall. All modern foundations rely on concrete ...
What does Act of God mean? Acts of God or “force majeure” is typically how an insurance policy classifies peril situations that could not be prevented or defended by men. ...
A cooperating broker or agent defines a real estate broker who helps another broker in a private property transaction. Typically, the cooperating broker represents the seller and is ...
Land located next to water that has and will continue to experience water damage. The land generally is not suitable to build a structure on. In some cases, federal or local government may ...
Gift of real property as stipulated in a will. ...
An official indicating intensity of land use in a zoned urban area. ...
Typically, a general contractor or GC in the real estate industry defines a person who signs a contract with a property owner or developer. Thus, they assume full responsibility for ...
City apartment building that is overcrowded, poorly constructed or maintained, and generally part of a slum. In law, a tenement also refers to possessions of an individual that are ...
Measurement of investment return that relates current income to the investment cost. Example: Brian Whyke bought a parking lot for $150,000, which generates annual revenue of $90,000, ...
Have a question or comment?
We're here to help.