Which metric best indicates the overall performance of a leasing property?

The economic occupancy rate stands out as the best metric to indicate the overall performance of a leasing property because it provides a more comprehensive view of a property's financial success compared to other metrics. While physical occupancy rate reflects only the percentage of occupied units, economic occupancy takes into account the actual revenue generated from those occupied units.

This means that even if a property has a high physical occupancy rate, it may not necessarily translate to high financial performance if those tenants are not paying their rent in full or if the rent being achieved is below market rate. Economic occupancy assesses rental income against potential income, providing a clearer picture of profitability and effectiveness in maximizing revenue from the property.

Leasing activity, while important for understanding the pace of tenant turnover and interest in the property, does not directly measure financial performance. Retention rate reflects how well a property keeps its current residents but does not account for how much those residents are contributing to revenue compared to potential income from units. Therefore, economic occupancy is crucial for evaluating the overall financial health and operational effectiveness of a leasing property.