What does the term plottage refer to in real estate?

Plottage is a key concept in real estate that pertains specifically to the increase in value that can occur when multiple adjacent parcels of land are combined into a single larger parcel. This increase is often a result of several factors, including the enhanced utility of the now larger piece of land, greater development potential, and the ability to use the land more efficiently compared to smaller, individual parcels.

When landowners or developers assemble multiple lots, they often realize a synergistic effect that leads to a higher total value than if the parcels were sold separately. This principle underlies many real estate development strategies, as the added value can help justify the costs associated with purchasing multiple parcels.

The other options fail to capture the essence of plottage, focusing instead on different aspects of land value and development that do not specifically relate to the concept of assembling parcels to create value.