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Net supply growth matters

Within the commercial real estate world, the term “net absorption rate” is a riveting metric for debt and equity investors as well as property and asset managers. However, in the lodging industry, it is not a term that is widely considered. Contributed by Daniel Lesser, LW Hospitality Advisors, New York City Net Absorption is the amount of occupied space at the end of a period less the amount of space occupied at the beginning of the same period. Net absorption accounts for space vacated as well as new additions (i.e., new construction) over the applicable period. Net absorption is calculated…
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