Occupancy Percentage
Median Physical and Economic Occupancy by Development Type
FIGURE 3.3.1.10(B)
100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% New Construction
Acq/Rehab
Historic Rehab
Other
Development Type Median Physical Occupancy 2013
Median Physical Occupancy 2014
Median Economic Occupancy 2013
Median Economic Occupancy 2014
In the two previous studies conducted by CohnReznick, new construction and acquisition rehabilitation projects took turns reporting the highest physical occupancy (economic occupancy rates were not collected in past years). In 2013 and 2014, new construction projects, once again, were the strongest performers in physical occupancy, although the “other” category (i.e., mixed development types) took a slight lead in terms of economic occupancy. Our survey data suggest that historic rehabs tend to have more occupancy challenges than other development types, which is also consistent with previous studies. During the 2013−2014 period, stabilized historic rehab properties in our surveyed portfolio were 95%−96% physically occupied and roughly 95% economically occupied, both of which were below the national median levels. While the performance of this subset is less favorable, its sample size is relatively small, consisting of fewer than 300 properties (or 1.9% of the surveyed portfolio in terms of net equity), and thus can be more sensitive to a handful of “bad apples” spoiling the bunch.
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