Our KC builders are busy and new developments are filling up, as old developments are being completed.The absorption rate based on closed sales is currently at 79.1% and 78.9% for pended sales.

What is the absorption rate they used in the model?

I love how your visual includes absorption rate- such a great metric that isn't used often enough!

A more important metric is the construction/absorption ratio.

@Dennis RogovCheck your MLS or Realtor Association sites for market statistics and specifically absorption rate, which reflects the number of months of inventory available.  

As an investor I like to see a proforma that breaks out the revenue, expenses and provides a NOI.There were no costs for marketing, the absorption rate (it’s not occupied day 1), how do you get around potential zoning issues with it as a long term rental.

Then you factor in an absorption rate for how long to get leased up and determine what IRR you want and price it accordinglyNo similar to if it was new construction / they don’t have tenants but our values.This is where garbage in equals garbage out - if you have solid numbers in proforma things will work it - if not and bad assumptions = bad outcomes

Net-absorption rate4.

Some markets will be awash in new construction and struggle with absorption.  

You need to know what the absorption and demand is for medical spaces in your immediate area.