One of the less frequently used ratios in commercial real estate is the breakeven occupancy. It is a metric for operators, lenders, and developers to determine when a particular property shifts from an operating deficit to an operating surplus. It is calculated by getting the sum of the total operating expenses and total debt service and dividing it by total potential income.
Breakeven Occupancy
One of the less frequently used ratios in commercial real estate is the breakeven occupancy. It is a metric for operators, lenders, and developers to determine when a particular property shifts from an operating deficit to an operating surplus. It is calculated by getting the sum of the total operating expenses and total debt service and dividing it by total potential income.
