Economic occupancy measures the revenue you’re actually collecting versus the gross potential at street rates. Once you’re approaching stabilization (around 80% physical in lease‑up), this becomes the metric. A well‑run facility keeps stabilized economic occupancy within 5% of physical. If the gap is larger, you’re leaving money on the table.
Action: Move existing tenants toward street rates systematically. If you have managers, make sure they know this gap is a line‑of‑sight KPI. When the spread exceeds 5%, investigate concessions, legacy rates, and get auctions moving where needed.
