An increase in value created by joining smaller parcels into one large single parcel is referred to as:

The concept of an increase in value created by combining smaller parcels into a larger single parcel is known as assemblage. This process often occurs in real estate when multiple adjacent lots are purchased and consolidated into one larger property, which can lead to a higher overall value due to several factors.

For example, when smaller parcels are combined, they often have a greater potential for development or use, which can enhance their marketability. This increased utility and flexibility can make the larger parcel more valuable than the sum of its individual parts. Additionally, the efficiency of land use, zoning advantages, and the potential for more significant economic development all contribute to this increased value.

The other terms refer to different concepts in real estate. Substitution pertains to the principle that a buyer would not pay more for a property than the cost to acquire an equally desirable substitute, which doesn't relate to combining parcels. Functional obsolescence refers to a decrease in a property’s value due to outdated features or poor design rather than combining smaller lots. Market value is a general term used to describe the expected price a property would sell for in an open and competitive market, without specifically addressing the effects of assemblage. Understanding these distinctions helps clarify why assemblage is the correct choice in this context.