What is Sustainable Occupancy?

What is Sustainable Occupancy?

Sustainable occupancy refers to the level of tenant occupancy in a property that can be maintained over time without significant fluctuations, ensuring a stable and predictable income stream for the property owner. This concept is crucial in real estate, particularly for rental properties, as it indicates that the property is performing well in its market, attracting and retaining tenants at a rate that supports its operational costs and financial projections. Sustainable occupancy reflects a balance between supply and demand in the rental market, demonstrating that a property is effectively meeting the needs of its target tenant demographic.