Vacancy Rate
Also called: vacancy, occupancy rate, vacancy loss
Vacancy rate is the share of rentable space sitting empty, and its inverse is occupancy. It's the assumption most often understated in a deal projection: a model built on 100% occupancy is a model of a building that has never had a tenant move out. Even strong markets carry structural vacancy of 5% or more from turnover alone.
Formula
Vacancy rate = Vacant units ÷ Total units