What does assemblage refer to in real estate?

Assemblage in real estate refers specifically to the process of combining two or more adjacent parcels of land into one larger parcel, primarily to enhance the overall value or potential use of that combined property. This concept is crucial in real estate development and investment as it can create opportunities for larger projects that may be more economically viable than smaller, separate parcels.

When landowners or developers engage in assemblage, they usually aim to develop the consolidated property for a more extensive project than would have been feasible with the individual parcels. This could increase the potential for higher returns on investment due to economies of scale, improved site layout, and the possibility of zoning changes that come with larger lots.

The focus is on taking separate entities and merging them to create a single asset with enhanced value, which aligns with the broader goal of property development. Thus, the correct understanding of assemblage includes a recognition of this strategic consolidation strategy in real estate practices.