Economic occupancy

Definition

The share of possible rent actually collected, not the share of units filled.

Why It Matters

A facility can show ninety-two per cent of its units full and collect far less than that suggests, because specials, delinquency, and discounted tenured rates all sit in the gap. Underwrite what is collected, not what is occupied, and ask for a rent roll instead of a percentage. The gap is also the upside: a facility full of promotional rates has room to move, and one already at street rate does not.