What type of analysis examines historic absorption and economic drivers?

The type of analysis that examines historic absorption and economic drivers is demand analysis. This approach focuses on understanding how much space has been taken up over time (absorption) and what factors impact that demand, such as employment rates, population growth, and overall economic conditions. By looking at these historical patterns, real estate professionals can gauge future demand for properties within a specific market or sector.

Demand analysis helps in forecasting future trends and making informed decisions regarding investments and development projects. It provides insight into how various economic indicators influence the real estate market, thus playing a crucial role in strategic planning. This is particularly relevant for assessing the viability of new projects and understanding the competitive landscape in commercial real estate.

Other options like vacancy analysis, market inventory analysis, and property appraisal serve different purposes. Vacancy analysis mainly focuses on the current occupancy rates and how they change, market inventory analysis looks at the total available space in a market, and property appraisal evaluates value based on different criteria, none of which explicitly analyze the historical demand dynamics and economic influences on the market in the way that demand analysis does.