Occupancy Rate

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Dictionary Says

Definition of 'Occupancy Rate'

In real estate, the number of units in a building that have been rented out as compared to the total number of units in the building. An apartment building containing 20 units, 18 of which had renters, would have a 90% occupancy rate. A 200-room hotel with 150 rooms occupied would have a 75% occupancy rate.

Conversely, the vacancy rate is the number of units in a building that are not rented out as compared to the total number of units in the building.

Investopedia Says

Investopedia explains 'Occupancy Rate'

Occupancy rates are important to real estate investors because they provide an indication of anticipated cash flows. A commercial real estate investor looking for a shopping center to buy would probably not be interested in one that only had a 25% occupancy rate, meaning that tenants were leasing just 25% of the available space.

 

An investor in such a property would have to spend time and money to find additional tenants and would risk not earning any income from 75% of the space he owned, while he would still have to pay maintenance and property taxes on that space. The low occupancy rate probably indicates that something real or perceived is wrong with the shopping center, such as its location or amenities. In some cases, one or two tenants leaving a shopping center can have a domino effect that creates a low occupancy rate.
Search results for

'Occupancy Rate'

  • Oil States International - Accommodations Business Review

    http://stocks.investopedia.com/stock-analysis/2011/Oil-States-International---Accommodations-Business-Review-OIS-RDS.A-RDS.B-TOT-SU-IMO-XOM0615.aspx
    ... In 2011, the company reported a 79% committed occupancy rate at its Canadian facilities
    and a 94% committed occupancy rate at the Australian operations. ...

  • Commercial Real Estate Earnings On Deck

    http://stocks.investopedia.com/stock-analysis/2009/Commercial-Real-Estate-Earnings-On-Deck-RWR-SLG-VNO-BPX-JLL1027.aspx
    ... At the end of the Q2, the REIT had an occupancy rate of 96.2%. ... The company
    reported that its occupancy rate at the end of Q2 was 92%. ...

  • Gaylord Entertainment Is Looking Very Hospitable

    http://stocks.investopedia.com/stock-analysis/2011/Gaylord-Entertainments-Looking-Very-Hospitable-GETHHOTMARWYN0913.aspx
    ... The National's revenues were down 10.3% year-over-year, its occupancy rate dropped
    below 70% to 67.9% and RevPAR (revenue per available room) declined 11.7%. ...

  • Simon Says Things Will Get Better

    http://stocks.investopedia.com/stock-analysis/2009/Simon-Says-Things-Will-Get-Better-SPG-GGWPQ-KIM-TCO-BXP-VNO0525.aspx
    ... Strip Centers Hurt as Well Kimco Realty Corp. (NYSE: KIM), which operates strip
    centers, had to deal with tenant bankruptcies and an occupancy rate of 92.6 ...

  • 5 Reasons Why You Should Know Vornado

    http://stocks.investopedia.com/stock-analysis/2009/5-Reasons-Why-You-Should-Know-Vornado-VNO-ALX-ICF-DG-RUE-VSI1127.aspx
    ... between 87% and 89%. In comparison, its New York City office properties have
    an occupancy rate of 96%. Fortunately, all four divisions ...

  • 3 Types Of REITs For Your Portfolio

    http://www.investopedia.com/articles/mortgages-real-estate/12/three-types-reits-for-your-portfolio.asp
    ... individual hotel properties and compare performance among different properties,
    is revenue per available room, which multiplies a hotel's occupancy rate by its ...

  • Three Reasons To Own General Growth Properties

    http://stocks.investopedia.com/stock-analysis/2011/Three-Reasons-To-Own-General-Growth-Properties-GGP-HHC-BAM-SPG-KIM-SLG-MAC-VNO0616.aspx
    ... In the second quarter, General Growth signed 2.2 million square feet of permanent
    leasing space, increased its overall regional mall occupancy rate by 40 basis ...

  • Marriott Lodges Earnings Gains

    http://stocks.investopedia.com/stock-analysis/2011/Marriott-Lodges-Earnings-Gains-MAR-H-HOT-CHH-WYN0720.aspx
    ... revPAR), which is the occupancy rate times room rate and a key measure for the lodging
    industry, grew 6.8% during the quarter, including currency exchange. ...

  • 3 Big Dividend Payers That Move

    http://stocks.investopedia.com/stock-analysis/2010/3-Big-Dividend-Payers-That-Move-MO-O-RWR-KMP-AMLP-SBMRY1008.aspx
    ... Rental Cash Realty Income Corp (NYSE:O) is a $3.77 billion REIT operation with 2,339
    retail properties and an occupancy rate of 96.8% (as of Dec 2009). ...

  • 3 Reasons To Own National Retail Properties

    http://stocks.investopedia.com/stock-analysis/2011/3-Reasons-To-Own-National-Retail-Properties-NNN-O-EXL-RY-KO1020.aspx
    ... The stability of its tenants provides a 97% occupancy rate, higher than
    many other types of REITs, ensuring consistent dividends. ...

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