What does "assemblage" refer to in appraisal?

Assemblage refers to the process of combining adjacent parcels of land into a larger single property. This practice is often undertaken to increase the overall value of the land, as the newly formed larger parcel can be more desirable for development or investment purposes than the smaller, individual parcels. By bringing together multiple properties, an appraiser recognizes that the aggregate value may exceed the sum of the individual values due to potential uses that can only be achieved with the larger parcel, such as commercial development or more extensive residential projects. This concept highlights the economic principle of highest and best use, where the value derived from the combined properties may provide greater opportunities for development or investment than the properties would have yielded individually.

The other options do not accurately define assemblage: breaking down properties refers to subdivision, which is the opposite process of assemblage, while buying properties with existing tenants and appraising solely based on size do not relate to the concept of combining parcels for enhanced value.