Resources · Glossary
What is economic occupancy?
Economic occupancy is rent actually collected as a percentage of potential rent, reflecting vacancy, concessions and bad debt, unlike physical occupancy. It shows how much of a property's rent potential turns into income.
| Term | Area |
|---|---|
| Economic occupancy | Performance metrics |
| Dashboards & reports | Modules |
| Rent collection & payments | Modules |
How is economic occupancy calculated?
Start with gross potential rent: what every unit would bring in at full market or scheduled rent for the period. Then compare it with the rent actually collected. The formula is economic occupancy = rent collected ÷ gross potential rent.
Physical occupancy counts occupied units. Economic occupancy also captures concessions, loss to lease, non-paying tenants and write-offs, so it is usually lower. Tracking both helps owners see whether a full building is actually a well-paying one.
See also: Dashboards & reports and Rent collection & payments.

What does an economic occupancy calculation look like?
Example (illustrative figures). A 100-unit property has gross potential rent of $150,000 a month. Ninety-five units are occupied, so physical occupancy is 95%. After concessions and unpaid rent, collections are $136,500. Economic occupancy is $136,500 ÷ $150,000 = 91%.

Why is economic occupancy lower than physical occupancy?
Physical occupancy only asks whether a unit is occupied. Economic occupancy also deducts the rent lost to concessions, below-market leases, delinquency and bad debt. A property can be 97% physically occupied and still collect a much smaller share of its potential rent.
What is a good economic occupancy rate?
There is no single benchmark. It depends on asset type, market, the age of the property and leasing strategy, such as how heavily concessions are used. Trends over time and comparisons with similar properties are more useful than a fixed target.
Which data do you need to measure it?
You need gross potential rent by unit for the period, actual collections, and ideally the components in between: vacancy loss, concessions, loss to lease and bad debt. These usually come from the rent roll and the tenant ledgers, so consistent records make the metric reliable.
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