What are contiguous lots?
Contiguous lots are pieces of real estate that are adjoined or adjacent to each other. Contiguous lots share a common boundary, so parcels of land separated by a public street or other lots are not considered contiguous even if they are owned by the same entity.
In real estate, a lot is a piece of land, or parcel, owned by one or more people or organizations. When these lots are adjacent to each other, they’re considered contiguous. Commercial developers often develop on contiguous lots in order to create a single large complex.
Often, a lot is worth more than the structures on it. Some investors acquire these properties and demolish the old structures in order to put up new, more valuable structures. A structure on a lot will be designated for principle use, making any buildings on contiguous lots accessories to the principle building.
Various states and local authorities have regulations governing the development of contiguous lots. All lots in the parcel can be developed on, but how a parcel is defined depends on local laws. For instance, the properties have to be rezoned for the intended use. Likewise, the developer should work with the planning department to ensure that the intended structure meets all applicable regulations.
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Contiguous lots example
Danny, a developer, is considering developing a new office park on a large section of land made up of three rows of three parcels each. He can only purchase four lots, which means he needs to choose carefully if he wishes for them to be contiguous. He decides to buy the northwestern corner lot, as well as both lots to that one’s west, and one lot to the northwestern one’s south. He effectively makes contiguous lots out of the land that form an L shape.