How is 'occupancy rate' defined?

Occupancy rate is defined as the ratio of occupied units to total available units in a given property or market. This metric is crucial in real estate management as it provides insight into how well a property is performing in terms of attracting and retaining tenants. A higher occupancy rate indicates that a property is effectively utilized, suggesting strong demand, while a lower rate may indicate issues such as poor management, high rental prices, or unfavorable market conditions.

Understanding occupancy rate is essential for property owners and investors, as it directly affects rental income and can be a key performance indicator for property management. This measurement allows for effective comparison across different properties and markets, guiding strategic decisions in real estate investments.

The other choices represent various aspects of real estate but do not accurately capture the meaning of occupancy rate, which focuses specifically on the relationship between occupied and total units.