Thus inferences from that metric are not widely understood yet.Even now, we have a much lower absorption rate into housing for newly graduated students and younger generations.

They should give you a rental absorption timeline to stabilize the center fully for the market.Have they performed a VOID ANALYSIS for your remaining units to see what Is missing for the area or companies expanding that would go there??

You've got to know your market and what the absorption potential is for your product.

The average DOM (days on market) is a key indicator as well as absorption rates.

.- Knowing our market trends, as well as the area cap rate, rental rates, absorption rate, and operating expenses, makes underwriting more efficient.- With the right system and the right team on the ground, we have added this strategy of buying 2–20 units (mostly vacant), fully rehabbing, renting, and selling as one of our primary niches for 2021.- Relatively smaller deals can be done in a shorter period and can produce great profits for both investors and us.

Now before we all get too excited the lumber jumped as we all know.. so while not all profit still a nice bump.. the original appraiser had tagged absorption at 2 a month we are basically sold out in 7 months..

We were trying to clarify how to calculate the absorption rate for a market and looking through the forum for some guidance and found this old post by Robert Autorino seven years ago that did not get answered.

That should give you a pretty good snapshot of vacancy (total amount of available inventory) and absorption(how fast it leases up) rates. 

First, however, great list @Rick Martin.Here are a few additional and specific market metrics I'm using right now given the current economic conditions: Year over year job growth >-3%  Population >100,000Year over year market rent growth >3%12 Months Unit Absorption >200 unitsMarket average cap rate >5.5%The YOY job growth is obviously specific to the current recession.

However, I would really look at how long it could take to lease up, absorption rates, office demand with WFH still going strong, etc.