Comment by llamaimperative

Correct, which increases the land value even further.

Trivially: If you imagine a plot of land next to One World Trade Center in Lower Manhattan that for some soil/geological region can't sustain a building taller than 2 stories, that lot will be worth far, far less than the lot upon which One World Trade Center was built.

Another example: If you imagine that elevators were outlawed for some reason, suddenly the value of all high-density developable land would fall.