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Physical Vacancy Rate
The percentage of total units or square footage within a property portfolio that is physically unoccupied at a given point in time.
The Physical Vacancy Rate measures the proportion of total leasable units or square footage within a building or portfolio that is physically unoccupied at a specific point in time.
Property managers track physical vacancy alongside turnover turnaround times to monitor leasing velocity and market competitiveness.
More in Asset Management
See all Asset Management terms →Asset Management
Strategic oversight focused on financial maximization, capital allocation, risk management, and long-term asset value growth for property owners.
Read definition →Asset Repositioning & Adaptive Reuse
The strategic redevelopment and physical conversion of obsolete real estate into alternative commercial, residential, or mixed-use assets.
Read definition →Capital Expenditure (CapEx)
Long-term investment funds used to improve, replace, or add major physical property assets that are capitalized rather than expensed immediately.
Read definition →Capital Expenditure Reserve Analysis
Financial modeling calculating annual cash reserves needed to fund anticipated roof, paving, and mechanical replacements over a 30-year lifecycle.
Read definition →Capitalization Rate (Cap Rate)
The unleveraged rate of return on a property investment calculated by dividing annual Net Operating Income by current market asset value.
Read definition →