What is the economic occupancy of a property with GPR at $376,500 and total concessions of $19,500?

To determine the economic occupancy of the property, it is crucial to understand the concepts involved. Economic occupancy reflects the percentage of potential rental income that is actually collected, accounting for any concessions or discounts given to tenants.

First, you need to calculate the effective gross potential rent (GPR) after concessions. The GPR is the total rent that could be collected at 100% occupancy without any discounts. In this case, the total GPR is $376,500, and the total concessions, which reduce the effective income collected, are $19,500.

To find the effective income, subtract the concessions from the GPR:

Effective Gross Income = GPR - Total Concessions
Effective Gross Income = $376,500 - $19,500
Effective Gross Income = $357,000

Next, to find the economic occupancy percentage, divide the effective gross income by the GPR and multiply by 100:

Economic Occupancy = (Effective Gross Income / GPR) × 100
Economic Occupancy = ($357,000 / $376,500) × 100
Economic Occupancy = 0.9488 × 100
Economic Occupancy = 94.88%

When rounded appropriately, this figure translates to