In commercial multifamily real estate, there’s a language that is spoken when you are connecting with brokers, property managers and other investors in the profession. To avoid sounding like a novice, an investor must be fluent with the real estate terminology to be taken seriously. Let’s take a minute to breakdown one of those terms.
The physical occupancy rate is nothing but the rate of occupied units of an apartment. You can derive physical occupancy rate by dividing the total number of occupied units by the total number of units.
- For example, a 100-unit apartment community with 90 occupied units has a physical occupancy rate of 90%.
- 90 / 100 = 90%
By learning these concepts and terms, you’re separating yourself from the novice investor looking to be more active than passive. Here’s where you can learn more multifamily investing terms.
