Real Estate Glossary

Net Absorption

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Glossaries

Term Main definition
Net Absorption

Net Absorption is the net change in physically occupied space between the current measurement period and the last measurement period taking into consideration office space vacated and newly constructed office space in the same area during the same period. See also: "Gross Absorption". Net absorption can be either positive or negative. Pre-leasing activity is NOT included in net absorption calculations because pre-leasing does not involve any change in occupancy. Net absorption is calculated when the pre-leasing tenant moves into its new space (positive absorption) and vacates its former space (negative absorption). The calculation of net absorption includes transactions that occur in sublease space as well as direct lease space.

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