Property Valuation
In Kansas commercial real estate, 'absorption rate' refers to:
AHow quickly a building absorbs natural light
BThe rate at which available space in a market is leased or sold over a specified time period✓ Correct
CThe rate at which a building depreciates
DThe rate at which a landlord absorbs operating costs
Explanation
Absorption rate measures how quickly available space is taken up (leased or sold) in a market. It helps gauge supply and demand dynamics and is used in feasibility studies and market analysis.
Related Kansas Property Valuation Questions
- In Kansas, the 'band of investment' technique is used to derive a capitalization rate from:
- In the income approach, what does the capitalization rate (cap rate) represent?
- A Kansas appraiser finds three comparable sales. After adjustments, the value indications are $185,000, $192,000, and $188,000. The appraiser weights the best comparable at 60% and the others equally. What is the reconciled value?
- In Kansas, a 'before and after' appraisal is used in eminent domain cases to:
- The economic principle of 'supply and demand' in Kansas real estate means that:
- When using the cost approach, functional obsolescence refers to:
- A Kansas property's 'potential gross income' (PGI) is defined as:
- Economic obsolescence (external obsolescence) is caused by:
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