Assemblage is the combining of two or more parcels, usually but not necessarily contiguous, into one ownership or use; [it is] the process that creates plottage value
Applied to a corridor, plottage value
is measured by the enhancement or corridor factor.
Furthermore, it can often be contended that plottage value derives from an easily envisioned assemblage.
1) The most interesting part of the definition may be that plottage value must result from the combination or an assemblage has not taken place.
Other similar assemblages have taken place in the city with significant plottage value resulting when at least half of the contiguous lots are joined together.
16) As the assemblage becomes more speculative, the minimum rate of return should increase and a larger discount from the ultimate plottage value should be warranted.
Plottage is a recognized concept in the field of eminent domain, referring to an added increment of value which may accrue to two or mote vacant and unimproved contiguous parcels of land held in one ownership because of their potentially enhanced marketability by reason of their greater use adaptability as a single unit; simplistically stated, an assemblage of vacant and unimproved contiguous parcels held in one ownership may have a greater value as a whole than the sum of their values as separate constituent parcels and, hence, plottage value
may be considered in determining fair market value.
Examples might include knowledge of particular buyer or seller motivations, including plottage value
, financial pressure, special financing available, announcement of a major infrastructure (like a new highway) and so on.
This potential inaccuracy may result from the variations of highest and best uses along the use-value continuum (causing an inconsistent unit price pattern), plottage value
influence,(27) and the inexact nature of real estate markets.