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Economic Occupancy
Economic occupancy expresses net rental collections as a percentage of gross potential rent.
Economic occupancy measures net rental collections as a percentage of gross potential rent. Under the definition used here, both amounts cover the same reporting period; the result is an income measure rather than a count of occupied units.
Property operations example: label the reporting dates, rental collections, and gross-potential-rent basis used in the calculation. Review physical occupancy separately when explaining the property's operating results.
Source: Fannie Mae, November 2012 Multifamily MBS Prospectus, Defined Terms, pp. 73-75.
Frequently Asked Questions
Does high physical occupancy establish high economic occupancy?
No. Occupied-unit counts and rental collections measure different things. Check the income figures and reporting basis rather than inferring collections from occupancy alone.
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