The share of available units or potential rental time that is unoccupied during a stated period.
What vacancy rate means in practice
Physical vacancy counts empty units or days, while economic vacancy reflects lost potential revenue, including concessions or nonpayment depending on the definition. Use the same definition when comparing periods or properties.
Example
One vacant unit in a ten-unit property at month-end equals a 10% physical vacancy rate.
This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.