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Updated on
March 16, 2024

Occupancy Rate

Written by: 
landa

Occupancy rate is a measure of how much of a real estate property, such as an apartment building or a shopping center, is being used by tenants. It is calculated by dividing the number of occupied units or spaces by the total number of units or spaces in the property, and expressing the result as a percentage.

For example, if a shopping center has 50 stores and 40 of them are occupied, the occupancy rate would be 80%. Similarly, if an apartment building has 100 units and 90 of them are occupied, the occupancy rate would be 90%.

Occupancy rate is an important metric in the real estate industry because it reflects the demand for a property and its ability to generate revenue. A high occupancy rate indicates that the property is in high demand and is able to attract and retain tenants. On the other hand, a low occupancy rate may indicate that the property is not as attractive to tenants and may be struggling to generate revenue.

Occupancy rate is often used as a benchmark to compare the performance of different properties or to track the performance of a single property over time. It is also used by investors and lenders to assess the risk and potential return of a real estate investment.

In summary, occupancy rate is a measure of how much of a real estate property is being used by tenants. It reflects the demand for the property and its ability to generate revenue, and is used as a benchmark to compare the performance of different properties or to track the performance of a single property over time.

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