ABSTRACT

The vacancy rate is the rate of current occupancy compared with the total rentable space or units in a development. A vacancy rate is usually expressed as a percentage of the total rentable space or units. A developer of a project will often calculate the break-even point of occupancy based on a percentage of vacancy. This will determine the level of vacancy permitted before the project can pay all related expenses. It is also a means of determining the future profit potential for a development when the vacancy rate decreases and the occupancy rate increases based on projected rental rates.