What does the term 'assemblage' refer to in real estate?

The term 'assemblage' in real estate specifically refers to the merging of adjacent properties to create a larger parcel of land. This process can lead to an increase in value for the combined property due to various factors, such as higher potential usage, development opportunities, or improved marketability. When properties are assembled, they can be more valuable as a collective whole compared to their individual values, facilitating better space utilization and possibly attracting larger investments.

The merging of properties allows the new owner to develop a more substantial project than what each piece could accommodate alone. This is a strategic move often used in real estate development to enhance the economic potential of the land. Thus, the understanding of assemblage is crucial for appraisers and real estate professionals who assess property values and investment opportunities.