What does a subdivision in real estate development refer to?

A subdivision in real estate development refers to the division of a larger parcel of land into smaller lots for sale or development. This process involves creating distinct parcels that can be sold individually, often with the intention of developing residential or commercial properties. Subdivision is a common practice in real estate that allows developers to maximize land use and create new properties within a designated area.

When land is subdivided, it typically goes through a formal process that involves surveys, site plans, and local governmental approvals to ensure compliance with zoning laws and other regulations. This is essential for maintaining order in land use and helping to develop community infrastructure.

Other options describe different concepts within real estate. For example, merging multiple properties pertains to consolidation rather than subdivision, while renovating a property for resale focuses on improvements to a single lot rather than the division of land. Leasing land to multiple tenants relates to property management rather than the subdivision process. Understanding these distinctions is crucial for navigating the various aspects of real estate practice.