What is the Occupancy Rate?

The Occupancy Rate represents the percentage of rented or occupied units in a property compared to the total available units. It is calculated as:

Occupancy Rate = (Occupied Units ÷ Total Units) × 100

It is a key performance metric in real estate, indicating property demand and revenue potential.

Key Points:

• Indicator of Property Performance: Higher occupancy means steady rental income.
• Impacts Property Value: A high rate attracts investors and lenders.
• Varies by Market: Economic conditions and location affect rates.
• Target Benchmark: Commercial properties aim for 85-95% occupancy.

Maintaining a strong occupancy rate ensures cash flow stability and long-term profitability.