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Absorption Rate

The rate at which available space is sold in a specific real estate market during a given time period. It is calculated by dividing the total number of available space by the average number of sales per month. The figure shows how many months it will take to exhaust the supply of space on the market. A high absorption rate may indicate that the supply of available space will shrink rapidly, increasing the odds that a property owner will sell a piece of property in a shorter period of time.