Vacancy Rate

Definition: The percentage of rental units or space that is unoccupied, measured on a specified basis and date or period.

Example

Four vacant units out of 50 produce an 8% physical vacancy rate; occupancy is 92% on the same basis.

Keep the distinction clear

Physical vacancy does not capture every income loss. Collection losses, concessions, and differing rents can make economic loss differ from the unit vacancy percentage.

Related terms

Occupancy Rate · Vacancy and Collection Losses · Effective Gross Income (EGI)

Keep studying

Vacancy and Collection Loss: Calculate EGI and NOI

References: FREC Course II syllabus: investment concepts

Pronunciation (US): VAY-kun-see RAYT (capitals show stress)

Pronunciation reference: Merriam-Webster