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Commercial

Net Absorption

Definition

The change in occupied space over a period, accounting for both move-ins and move-outs.

Example

Negative net absorption of 310,000 square feet reflected tenants downsizing at renewal.

Frequently asked questions

What does Net Absorption mean in real estate?

The change in occupied space over a period, accounting for both move-ins and move-outs.

How is Net Absorption used in practice?

Negative net absorption of 310,000 square feet reflected tenants downsizing at renewal.

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.