Why is it important to calculate gross and net absorption correctly?

Gross absorption refers to the total square footage occupied during a specific time period, while net absorption is the difference between the occupied and vacant square footage.

According to the SiiLA platform, having accurate and transparent calculations of gross and net absorption in the commercial real estate sector is essential, especially in the current global context.

José Carlos Alemán, CEO of SiiLA in Mexico, explains that not understanding these factors can have significant repercussions on financial projections, capital structure, interest rates, project or property holding periods, future cash flows, discount rates, marketing periods, and asset availability, among others.

Read the full article (in Spanish).