What does plottage value signify?

Plottage value refers to the increase in the value of land that results from the consolidation of two or more adjacent parcels into a single larger parcel. This phenomenon occurs because the combined property can be used more efficiently or effectively than the individual parcels could be on their own, leading to enhanced development potential or improved usability. For example, combining two small lots into one larger lot can provide opportunities for more significant construction projects, better layout designs, or increased marketability, all of which contribute to a boost in overall property value.

The other options describe different concepts related to property valuation and ownership but do not capture what plottage value is. For instance, depreciation is a distinct concept concerning the reduction in value of an asset over time, while the legal use of a property pertains to zoning regulations and permitted land uses. The value of a property to its current owner reflects subjective value or personal opinion rather than the objective increase in worth derived from combining properties.