What is economic occupancy?
The share of Gross Potential Rent a property actually collects: collected (in-place) rent ÷ GPR. It is lower than physical occupancy whenever there is loss to lease, concessions, or credit loss, because a unit can be physically occupied yet not paying full market rent.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.