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This episode is a business coaching course that teaches real estate lingo that is important.

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Featured Coaching Excerpt - Notes & Transcript, Part 1
  • Absorption: The amount of inventory or units of a specific commercial property type that becomes occupied during a specified time period in a market, usually reported as the absorption rate.
  • Lesson Nugget: If you are looking to invest in real estate you should look for positive absorption, meaning vacancy rates in the area have dropped in a recent time period.

for real estate

-Michael Burer. How are you, my friend? All right. We are here with Michael, and there is no real estate topic too obscure Burer, and we are talking today about absorption. Now, Michael, we're in San Diego and you could be out long boarding or surfing or whatever it is that you guys do here. But instead, you're going to talk about absorption. So I'm going to read the definition. And I want to get some examples from you. So here we go.

Absorption is the amount of inventory or units of a specific commercial property type that becomes occupied during a specified time period in a market, usually reported as the absorption rate. Michael, what does this mean in layman's terms that my third grade mind can handle?

-So this will be comparing the occupancy of a set area, geographical area usually, compared to a previous period. So if more space was leased that went vacant in that market during that specified time, there would be positive absorption. If the amount of vacancy increased during that time period, then the absorption would be negative.

Then we have time to fly in this plane in perfect lanes, and continue this [INAUDIBLE]. Was that your jet?

-That was my jet, yes. I'll be, I'm a little late. I've got to get back.

-All right. When would you actually, in context, like when would you typically talk about this? Like what time, when would you normally have this, when would this kind of term be brought up in the office?

-So if you're a real estate investor, you're thinking about going into a specific market, you would want to see positive absorption usually. And that's a sign that the market's healthy, that there's more people wanting to lease space in that area than are vacating at the end of their lease.

-Awesome. Well, Michael, I appreciate you more than I can, really that I can verbally express. So I appreciate you so much. Thank you, my

friend.

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