Property Management
What is 'net absorption' in commercial real estate market analysis for Delaware?
AThe total amount of space leased minus space vacated in a specific period✓ Correct
BThe total new commercial construction completed during the year
CThe average time a commercial space sits vacant
DThe percentage of total space occupied versus total space available
Explanation
Net absorption is the change in occupancy — the amount of space leased minus the amount vacated — over a specific period. Positive net absorption indicates the market is absorbing space faster than it is becoming available.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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