Combining three lots into one larger parcel for development is an example of what?

Combining three lots into one larger parcel for development is an example of assemblage. Assemblage refers to the process of taking two or more properties and combining them into a single larger property, which can increase the property’s overall value and marketability. This practice is often employed in real estate to facilitate more impactful development opportunities, as larger parcels can support a greater scope of projects than smaller, individual lots.

In this context, the rationale behind assemblage highlights its potential to create efficiencies and economies of scale in development. When multiple smaller parcels are combined, it can lead to a cohesive project that may benefit from zoning advantages or enhanced accessibility.

The other options relate to different concepts in real estate: the principle of progression involves how improvements in surrounding properties can increase the value of a subject property, while the principle of substitution suggests that a buyer will not pay more for a property than the cost of purchasing a similar substitute property. Plottage value pertains specifically to the increase in value that can result from assemblage but does not define the act of combining lots itself. Hence, assemblage is the most accurate term to describe the act of joining the three lots into one larger parcel.