English Lesson · 10
Vacancy, Occupancy, and Credit Loss
A leased space is not always occupied, and an occupied space does not always produce collected rent.
Definition
Occupancy measures the share of space or units that are occupied or leased. Vacancy measures the share that is not. Credit loss reflects rent that is contractually due but not collected. Physical occupancy, economic occupancy, and collection performance answer different questions and should not be treated as identical.
Beginner Explanation
Picture a ten-unit building. Nine units have tenants, so physical occupancy is 90%. But if one tenant receives free rent and another is not paying, the building does not collect 90% of its potential income. Economic occupancy is lower because it measures the income actually captured, not only the doors with tenants behind them.
Professional Explanation
Analysts distinguish physical vacancy, economic vacancy, downtime, concessions, bad debt, and collection loss. They study current occupancy together with historical performance, submarket availability, lease expirations, tenant demand, and the time and cost required to refill space. Stabilized underwriting often includes a vacancy and credit-loss allowance even when a property is currently full, because permanent 100% collection is rarely a neutral long-term assumption. The appropriate allowance depends on property type, tenant mix, market depth, and lease structure.
Why It Matters
Vacancy affects more than lost rent. Empty space may still require taxes, insurance, utilities, security, repairs, tenant improvements, and leasing commissions. Concentrated rollover can create future vacancy even when today's occupancy is high. Underestimating vacancy therefore overstates effective income, NOI, value, and the amount of debt a property can safely support.
Real-World Example
A 20,000-square-foot property has 18,000 square feet leased, or 90% physical occupancy. Contract rent totals $500,000, but concessions and unpaid rent reduce collections to $425,000. Economic occupancy measured against potential rent is 85%, not 90%.
Common Mistakes
- Using physical occupancy as proof of full income.
- Assuming current full occupancy will continue indefinitely.
- Ignoring leasing costs and downtime when modeling vacancy.
Related Concepts
- Economic occupancy
- Concession
- Bad debt
- Rollover
- Effective gross income
How the Industry Says It
- Wall Street
- Economic occupancy and mark-to-market exposure
- Broker
- Vacancy and rent collection
- Interview
- I separate physical occupancy from economic occupancy and test future rollover.
Frequently Used Abbreviations
- Occ. — Occupancy
- Vac. — Vacancy
- V&CL — Vacancy and Credit Loss
Practical Exercise
A property has $800,000 potential rent, $40,000 vacancy, $24,000 concessions, and $16,000 bad debt. Calculate effective income and economic occupancy.
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Loan-to-Value and Leverage
中文
中文课程 · 10
空置率、出租率与信用损失
已出租空间未必实际使用，实际使用的空间也未必产生已收租金。
定义
出租率衡量已使用或已签租空间占全部空间的比例，空置率衡量未出租部分。信用损失指合同应付但没有收回的租金。实体出租率、经济出租率和收款表现回答的是不同问题，不能混为一谈。
先用简单语言理解
想象一栋十单元建筑，其中九个单元有租户，实体出租率就是 90%。但如果一名租户享有免租，另一名租户没有付款，物业实际收取的收入就达不到潜在收入的 90%。经济出租率关注真正实现的收入，而不只是有租户的门数。
专业解释
分析人员会区分实体空置、经济空置、空置期、租金优惠、坏账和收款损失，并把当前出租率与历史表现、子市场供应、租约到期、租户需求，以及重新出租所需的时间和成本共同研究。即使物业当前满租，稳定化承销通常也会计入空置与信用损失，因为永久 100% 收款很少是中性的长期假设。合理比例取决于物业类型、租户组合、市场深度和租约结构。
为什么重要
空置影响的不只是损失租金。空置空间仍可能产生地产税、保险、水电、安保、维修、租户装修和租赁佣金。即使今天出租率很高，租约集中到期也可能造成未来空置。低估空置会同时高估有效收入、NOI、价值和物业能够安全承担的债务。
实际案例
一项 20,000 平方英尺物业已出租 18,000 平方英尺，实体出租率为 90%。合同租金总额为 50 万美元，但优惠和未付款使实际收款降至 42.5 万美元。相对于潜在租金，经济出租率为 85%，而不是 90%。
常见错误
- 用实体出租率证明收入已经全部实现。
- 假设当前满租会无限期持续。
- 模拟空置时忽略招租成本和空置期。
相关概念
- Economic occupancy
- Concession
- Bad debt
- Rollover
- Effective gross income
行业表达
- Wall Street
- 经济出租率与市场租金重置风险
- Broker
- 空置与租金收取
- Interview
- 我会区分实体出租率与经济出租率，并检验未来租约到期风险。
常用缩写
- Occ. — Occupancy
- Vac. — Vacancy
- V&CL — Vacancy and Credit Loss
练习
一项物业潜在租金 80 万美元，空置损失 4 万、优惠 2.4 万、坏账 1.6 万。计算有效收入和经济出租率。
下一课
贷款价值比与杠杆