What is the Physical Occupancy Rate of an Apartment Building?

Understanding the concept of physical occupancy is crucial for both property managers and potential investors. It provides a clear picture of how well an apartment building is being utilized.

By measuring the ratio of occupied units to the total number of units available, one gains valuable insight into the current demand and efficiency of a property.

‍This percentage indicates that a majority of the available units are filled by tenants, reflecting good property management and high tenant interest. The higher this rate, the more successfully the property is attracting and retaining tenants.

An important aspect of physical occupancy is how it affects financial health. While physical occupancy reflects tenant presence, it is intertwined with economic occupancy, which measures revenue potential.

Both metrics together help in assessing a property's performance, offering a comprehensive view for anyone interested in the real estate sector.