Property Management

A Washington commercial property manager calculates 'absorption rate' for office space in their market. This metric tells them:

AHow much water the building absorbs from rain
BThe net change in occupied office space over a period, indicating market demand and supply conditions✓ Correct
CHow quickly new office buildings are constructed
DThe percentage of operating expenses absorbed by tenant income

Explanation

Absorption rate for commercial office space measures the net change in occupied space over a period. Positive absorption means more space is being leased than vacated, indicating strong demand. Negative absorption indicates the market is losing tenants.

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