Property ManagementIntermediateDelaware Exam

What is 'gross absorption' in a Delaware commercial real estate market?

AThe total square footage of space leased during a period, without deducting for space vacatedCorrect
BThe net amount of space leased after accounting for vacated space
CThe total amount of new construction completed during a period
DThe percentage of existing space occupied at a given time

Why The total square footage of space leased during a period, without deducting for space vacated Is Correct

Answer A: The total square footage of space leased during a period, without deducting for space vacated

Gross absorption is the total amount of space that is leased or occupied during a given period, without subtracting space that has been vacated. Net absorption subtracts vacated space, providing a better indication of net demand.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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