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Real Estate Glossary

Absorption

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Richard Wilson
Written by Richard Wilson

Absorption is a method which real estate investors use to determine tenant demand. It is measured by square footage. There are two types, the first one being gross absorption or the total amount of space occupied over a given time frame without subtracting the amount of space vacated. Net absorption, on the other hand, is the amount occupied at the end of a period subtracted from the amount occupied at the beginning of a period.

Absorption is a method which real estate investors use to determine tenant demand. It is measured by square footage. There are two types, the first one being gross absorption or the total amount of space occupied over a given time frame without subtracting the amount of space vacated. Net absorption, on the other hand, is the amount occupied at the end of a period subtracted from the amount occupied at the beginning of a period.

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Richard Wilson

Richard Wilson

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