Physical Occupancy

Glossary

Physical Occupancy

Physical occupancy is the percentage of units occupied by residents, regardless of rent collection, concessions, or delinquency.

Definition

Physical occupancy is the percentage of apartment units that are physically occupied by residents. It is calculated as occupied units ÷ total units × 100. Unlike economic occupancy, it does not show whether rent was collected, whether concessions were given, or whether residents are delinquent.

Example

A 200-unit community has 184 units with residents living in them. Its physical occupancy is 92%: 184 occupied units ÷ 200 total units × 100.

Why It Matters?

Physical occupancy helps operations leaders understand how full a property is and whether leasing, renewals, turns, and move-ins are keeping pace. It should be reviewed alongside economic occupancy and delinquency because a property can look full while still underperforming financially.

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