SS74 What is the Difference Between Physical and Economic Vacancy?

Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing the Difference Between Physical and Economic Vacancy.

The vacancy rate is one of the most important line items in any commercial real estate proforma but it also is a commonly misunderstood concept. In this episode, Charles explains the difference between physical and economic occupancy; and why you would want to know both vacancies when purchasing a property.

 

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