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Absorption Rate

Absorption Rate 

The estimates annual sales of new occupancy or a particular type of land use.

For instance, a market area shows a demand for new homes at the rate of 250 per year.  A new development built by John is expected to capture 10% of that market.  The new development then has an expected absorption rate of 25 homes annually (10% of 250=25).  

 

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Real estate investing is not complicated.  A few simple steps can help you build a $1,000,000 dollar real estate empire.   

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