The process of combining multiple parcels of land into one larger parcel to increase overall value is referred to as:

The correct answer is plottage, which refers to the economic principle that indicates how combining multiple smaller parcels of land into one larger parcel can lead to an increase in value. This increase occurs due to several factors such as enhanced usability, potential for larger developments, and more efficient land use. When land is aggregated, it may allow for more extensive construction projects or better overall land planning, which can significantly enhance the market value of the newly formed larger parcel.

Other terms mentioned, while they relate to real estate concepts, do not specifically address the process of combining land parcels. Substituting generally refers to the replacement of one property for another but doesn’t pertain to combining land. Progression typically describes the phenomenon where a lesser-valued property gains value from its location near higher-valued properties. Parcel aggregation, while suggesting the idea of combining parcels, is not the widely recognized term used in real estate to denote the enhancement of value gained from such a combination. Thus, plottage is the most accurate and commonly accepted term that applies to this scenario.