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 Vacancy rate is nothing but the rate of unused or empty units. The vacancy rate can be calculated by dividing the total number of unoccupied units by the total number of units.
- For example, a 200-unit apartment community that has 23 vacant units has a vacancy rate of 11.5%.
- Total number of units / total number of unoccupied units = vacancy rate
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.