Section 8.2 - Connecting Demand, Vacancy, and Market Rents

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Section 8.2 - Connecting Demand, Vacancy, and Market Rents

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In this episode, Alex and Lily take a conceptual look at general market analysis through three core physical variables: occupied space, total stock of space, and vacancy rate. They explain how these measures help forecast market rents and how demand, rents, and vacancy influence occupancy and new construction. Using a tech boom in Seattle’s office market as an example, they trace how an external demand driver can increase occupied space, lower vacancy, raise rents, and encourage development. The discussion brings these relationships together into a continuing cycle as completed buildings add supply and reshape market conditions. Audio was generated using Wondercraft, with production assistance from Nicole Jordan & Elizabeth Schrim and audio uploaded by Peyton Stone.

© 2026 CRE Explained Podcast Team.
Based on Commercial Real Estate Analysis for Investment, Finance, and Development (4th Edition) by David M. Geltner, Norman G. Miller, Alex van de Minne, Piet Eichholtz, Thies Lindenthal, and Lily Shen.
Developed through Clemson University Creative Inquiry (CI) 4980, under the supervision of Dr. Lily Shen.
Reference Material: Commercial Real Estate Resources | CREBook.net

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