What is Assemblage in real estate?

Assemblage in real estate refers specifically to the combining of two or more parcels of land into a single larger parcel. This process is often undertaken to enhance the value of the land, either for development or investment purposes. By merging smaller parcels into one larger parcel, property owners may be able to increase the marketability and income potential of the land. This process can lead to a more efficient use of the land and might provide new opportunities for development that were not feasible with the smaller plots individually.

When parcels are combined through assemblage, it often results in a more significant financial return compared to selling the individual parcels separately, as the consolidated land may be more desirable for developers seeking larger sites for commercial, residential, or mixed-use projects. This principle is an essential concept in real estate development and investment strategy.