Absorption Rate

The rate at which available homes are sold in a specific real estate market during a given time period. It
is calculated by dividing the total number of available homes by the average number of sales per month.
The figure shows how many months it will take to exhaust the supply of homes on the market. A high
absorption rate may indicate that the supply of available homes will shrink rapidly, increasing the odds
that a homeowner will sell a piece of property in a shorter period of time.
For existing buildings, the measure of total square feet occupied (indicated as a Move-In) less the total
space vacated (indicated as a Move-Out) over a given period of time. Sublet space and lease renewals
are not factored into net absorption. However, in a lease renewal that includes the leasing of additional
space, that additional space is counted in net absorption. Pre-leasing of space in non-existing buildings
(Planned, Under Construction or Under Renovation) is not counted in net absorption until actual move
in, which by definition may not be any earlier than the delivery date. - See more at:
http://blog.dicksoncommercial.com/tag/net-absorption/#sthash.ADSasYZi.dpuf
Sublet vacancy
A sublet vacancy is an open opportunity to take over a portion of another party's lease on some piece of
property. This type of arrangement is known as a "sublease." Party rights in a sublease differ from those
in a normal lease.
1. What is the supply/demand out there?
2. Who are the tenant drivers? Government and professional services
3. What is the work/space ratio like?
4. Rent levels likely to remain stable
5. Vacancy rates ~ 2-10%

Questions :
1. Who are the target investors? What are their main concerns?
2. Is it likely that the tenant default or is it a relatively stable tenant? Feel that the powerpoint
presentation is too wordy
3. Are the lease terms more favorable to the lessor or the lessee?
4. Why not show the fund level to the investor?
5. Shouldnt the pitch book contain recent deals that?