Plottage Increment

Plottage Increment Definition

A plottage increment is the increase in property value achieved from combining adjacent land parcels.

Explanation

A plottage increment refers to the additional value gained beyond the combined value of two properties that have been joined to create one larger property.

When two (or more) smaller lots are combined, their collective value can exceed the sum of their individual values, creating what is known as a plottage increment.

This increase in value comes from the augmented development potential. This increase in value arises from the newfound potential and opportunities afforded by a larger, consolidated tract of land.

Developers and investors strategically leverage plottage increments to optimize the use and profitability of land.

The consolidated property often becomes more attractive to potential buyers or tenants due to increased utility, better zoning possibilities, or enhanced development potential.

Understanding plottage increments is essential to real estate valuation and investment strategies.

 

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