# Vacancy Rate

*Real Estate — Finicade finance glossary*

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`

**Also known as:** vacancy, occupancy rate, vacancy loss

**Related terms:** [Net Operating Income](https://finicade.com/glossary/net-operating-income), [Rental Yield](https://finicade.com/glossary/rental-yield), [Rental Property](https://finicade.com/glossary/rental-property), [Absorption Rate](https://finicade.com/glossary/absorption-rate), [Commercial Real Estate](https://finicade.com/glossary/commercial-real-estate)

Source: https://finicade.com/glossary/vacancy-rate