Physical occupancy
Physical occupancy = rented units ÷ total units × 100%. You can also calculate it in square metres: rented m² ÷ total rentable m² × 100%. The second measure is fairer when your units vary a lot in size.
Economic occupancy
Economic occupancy = actual rental revenue ÷ potential rental revenue × 100%. Potential revenue is what you would earn if every unit were rented at street rate. Discounts, lower prices on old contracts and unpaid rent pull economic occupancy down.
Worked example
A facility with 200 units, of which 184 are rented:
| Measure | Value |
|---|---|
| Physical occupancy | 184 ÷ 200 = 92% |
| Potential revenue per month (all rented at street rate) | €30,000 |
| Actual revenue per month | €24,300 |
| Economic occupancy | €24,300 ÷ €30,000 = 81% |
Why you should track both
High physical occupancy with low economic occupancy often means you discount too much or that old contracts sit far below street rate. Lower physical occupancy with high economic occupancy can actually be healthy. Only by tracking both can you tell whether price increases or promotions make sense.
In TheStorageControl
The dashboard shows current occupancy, occupied versus total units and revenue, filterable by facility. With the SQL Explorer you calculate economic occupancy yourself on your own data.
