Glossary of Terms

Net Absorption 2015-11-11 08:00:00

Net Absorption

The amount of occupied space at the end of a period less the amount of space occupied at the beginning of the same period. Net absorption accounts for space vacated during the period as well as new additions (ex. new construction) over the applicable period.

Net absorption is calculated by using the formula of total vacant square footage at the start of a time period plus square feet constructed (or “brought online”) during the period, less square feet demolished or otherwise removed during the period less square feet vacant at the end of the time period.  For example, if a market has 1,000,000 square feet of space and 50,000 square feet are leased while 20,000 square feet are vacated during the period and there is no new construction or demolition of existing properties, then the net absorption rate would equal 3.0% (50,000 sf leased less 20,000 vacated equals 30,000 sf net absorption divided by 1,000,000 sf total space).

Co-Investment DST Opportunity

Walmart Supercenter

READ MORE

What is a 1031 Exchange? eBook
Download

Download the Realized Ebook - What Is A 1031 Exchange?

1031 Exchange Calculator
Download

Download the Realized 1031 Calculator

Filter by

Fractional 1031 Investing 1031 Exchange Capital Gains on Real Estate Capital Gains Tax General Real Estate Investing