Market Research Terms

Vacancy Rate

What is Vacancy Rate

The vacancy rate measures the percentage of unoccupied rental space within a specific market or property type. It’s a key indicator of supply, demand, and market health, helping investors assess competition and pricing trends.

Market Value

What is Market Value

Market value represents the most probable price a property would sell for under current market conditions. It’s a core valuation metric used by investors, appraisers, and financial institutions to determine fair pricing and investment potential.

Price Per Square Foot (PPSF)

What is Price Per Square Foot (PPSF)

Price Per Square Foot (PPSF) calculates the cost of a property divided by its total square footage. It’s widely used to compare pricing across different assets, neighborhoods, and markets.

Prime Rent

What is Prime Rent

Prime rent represents the highest achievable market rent for top‑tier properties in the most desirable locations. It is used as a benchmark to understand market pricing, investment potential, and rental growth trends.

Pipeline

What is Pipeline

In real estate, the pipeline refers to all upcoming supply, including projects under construction, permitted, or in advanced planning. It helps forecast future inventory levels, competition, and delivery timelines within a market.

Absorption Rate / Net Absorption

What is Absorption Rate / Net Absorption

The absorption rate (or net absorption) tracks how much commercial or residential space becomes newly leased or occupied over a given period. It reflects market momentum and the level of tenant demand.

Net Take‑Up

What is Net Take‑Up

Net take‑up measures the total amount of newly occupied commercial space in a market, excluding renewals and lease extensions. It reflects true tenant expansion and new demand, making it a key indicator of market activity and business growth.

Demographic Analysis

What is Demographic Analysis

Demographic analysis evaluates key population factors such as age, income, workforce composition, and migration patterns. It helps forecast market demand, tenant profiles, and the long‑term viability of a location.

Population Growth Trends

What are Population Growth Trends

Population growth trends measure how a region’s population increases or decreases over time. These trends are essential for predicting future housing demand, labor availability, and long‑term market stability.

Economic Indicators

What are Economic Indicators

Economic indicators include metrics like GDP growth, employment levels, interest rates, and sector performance. These indicators help forecast real estate cycles, investment risks, and overall market direction.

Rental Supply / Inventory Levels

What are Rental Supply / Inventory Levels

Rental supply or inventory levels represent the amount of available rental space in a specific market. They are critical for understanding market saturation, pricing pressure, and future development needs.