Economic rent refers to the excess payment made to a factor of production over and above the amount needed to bring that factor into production. This term is often used in economics and appraisal contexts.
The occupancy rate is a key performance indicator in the real estate industry, representing the percentage of currently rented or occupied units in a building, neighborhood, or complex. A high occupancy rate generally indicates strong demand for the property.
The fundamental economic concept of Supply and Demand dictates that market prices are determined at an equilibrium point where the quantity supplied matches the quantity demanded. In real estate, this principle is complicated by the slow adjustment of supply due to lengthy planning and development periods.
