Business, Legal & Accounting Glossary
Capture Rate refers to the ability at which properties are able to be sold or leased in an area.
The capture rate is dependent upon an area’s building sales, and how a specific property competes with local demand. Real-estate developers will consider the overall local demand for new properties, and how their properties compare to local supply, to determine the capture rate, the ability to sell their new development. For example, if new homes sales averages about 1000 new homes a year for an area, and a development is able to capture 5% of that market, their absorption rate is 50 properties a year. There are therefore two ways the capture rate may change, either the number of home sales may change, or the propertiesâ?? competitiveness may change compared to local supply.
Also known as Absorption Rate.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Capture Rate are sourced/syndicated and enhanced from:
This glossary post was last updated: 30th December, 2021 | 0 Views.