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Housing Market

Absorption Rate

Definition

The pace at which available properties or space are leased or sold in a market over a period.

Example

Net absorption of 420,000 square feet indicated demand exceeded new deliveries that quarter.

Frequently asked questions

What does Absorption Rate mean in real estate?

The pace at which available properties or space are leased or sold in a market over a period.

How is Absorption Rate used in practice?

Net absorption of 420,000 square feet indicated demand exceeded new deliveries that quarter.

This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.