Keep in mind that over 4.8 msf of newly constructed office space was added to the market over the past 12 months indicating that absorption rates are still very high. 

In the old days you built a park and a MH dealer would fill it with models  and then sell those units in place.but with todays land prices and prices to develop the absorption is simply to slow to make them financially viable.. 250 spaced could take 10 plus years to fill.Financing for MH in parks is not what it used to be either. and cities basically do not like them either form a land planning standpointunless your going to develop with cash there is no financing either for this.

This way you can look at absorption levels and see if your market for office for example is overbuilt, under built, just right.

There are many factors that will affect the absorption and buildout of this project that can either slow down or speed up the time frames.

Of course somewhere with a good jobs outlook and high absorption. 

So absorption rate becomes very important.You need to know who else is building and where and you need to know the supply and demand of the market.You also need to know where the market is heading because if you build too late in the market cycle you can be left with an empty building...

You can have an agent pull absorption rates for you.3.

When forecasting income in the early period, you are growing it as you project absorption of the vacant units so you'll see a rapid climb of gross income in the beginning which then levels off to just basic rent growth after the units are absorbed.Once you calculate IRR, you are just solving back for the purchase price that delivers the IRR you are seeking. 

Absorption is key to look at if you think the market is being overbuilt. 

Rents have continued to increase at a pretty good clip and while there is a ton of newer inventory coming online we are still well below absorption overall, though I would caution you on a few sub markets, including close to downtown.