Economic Vacancy vs Physical Vacancy: What is the Difference?

What is the Difference Between Physical Vacancy and Economic Vacancy?

One of the most important line items in any commercial real estate proforma is the property’s vacancy rate.  However, this is a commonly misunderstood term.  There are actually two types of vacancy – physical vacancy and economic vacancy – and it is critically important to understand the difference. Physical Vacancy  Physical vacancy is the percentage […]