Define the occupancy measure

Define your absorption measure before collecting numbers. Net rental absorption generally tracks the change in occupied units within a consistent inventory. Gross leases signed are different: a replacement tenant can generate a lease without increasing occupied stock. For sales, reservations, contracts and closed transactions describe different stages. Ask whether cancellations and returned units are included before comparing reports from different providers.

Reconcile leasing with occupancy

Imagine a fictional apartment community celebrating strong leasing activity while many existing residents leave. Review move-ins and move-outs for the same period, then reconcile the result to beginning and ending occupancy. Investigate transfers within the property separately. Next examine whether neighboring buildings also gained occupied units. A relocation between nearby properties can improve one owner's leasing report without expanding occupied inventory across the entire competitive market.

Match absorption to the product

Population data can explain a possible source of demand, but it cannot substitute for this reconciliation. Inventory additions, demolitions and changes in the reporting sample require explicit treatment. Do not annualize a short leasing burst without examining seasonality and concessions. Continue with the product-specific absorption guide to define the unit type, price band and delivery window that the development decision actually requires.

Take the next step

Continue with the related guide

General information—not personalized legal, tax, investment, engineering or architectural advice.