What is the formula for calculating the vacancy loss rate expressed as a percentage?

The calculation of the vacancy loss rate as a percentage is determined using the concept of vacant space in relation to the total available space. The correct formula takes the amount of vacant area, whether that's in units or square feet, and divides it by the total available area, which provides insight into how much space is not currently generating income.

By using the vacant area divided by the total area, you arrive at a ratio that represents the portion of the entire property that is unoccupied. This ratio is then multiplied by 100 to express it as a percentage, indicating the rate of vacancy compared to the total available area.

Understanding this formula is crucial for property management and assessment because it helps stakeholders identify potential revenue loss due to unoccupied spaces and guide strategies to minimize that occurrence.