What is the degree of occupancy?
The occupancy rate reflects the number of available units in the housing community, hotel, commercial building or similar environment that is occupied by tenants. High rates are more advantageous because they suggest that most units are occupied and generated. The low rate can be a sign of problems such as excessively high rent, poor economy or lack of interest in a particular area. The occupancy rate is usually expressed as a percentage.
To calculate the degree of occupancy, it is necessary to determine the number of units available. In an environment like a hotel, some units may not be available because they are in repair or construction or are blocked for other reasons. Therefore, a 100 -room building could only have 93, because seven are not ready to use customers. With this information in hand, it is possible to determine how many rooms are used to generate the degree of occupancy.
100% occupancy can be unusual, except for settings as hotels During busy holidays. It is possible to look at the hotel ratesIndustry in the area as a whole, not only in one hotel. Analysts can also look at available commercial properties, apartments or family houses to assess the health of the real estate market. Most of this information is publicly available through records kept by government agencies.
developers are considering the degree of occupancy when they work on new projects. For example, if the commercial property rate is already low, the developer may not want to work on new commercial development because there would be no sufficient interest. Conversely, if hotels work normally at almost 100% occupancy, there is a place for another hotel on the market, and the developer could look at specific disorders to see if certain places or equipment would have more likely high use.
Governments must be thinned when checking proposals for public housing and other initiatives. They may also consider this when developers present the applicationThose about projects. For example, if the developer wants to design 500 new housing units and the occupancy rate of housing in the region is 40%, the planning committee may reduce it because more housing is not clearly necessary. Government agencies could also be interested in promoting economic activities by dealing with free buildings with promotion, such as providing incentives to landlords who convert buildings more attractive or reduce rent to introduce tenants in their buildings.