Property Management
In Minnesota, 'economic vacancy' differs from 'physical vacancy' in that economic vacancy accounts for:
AUnits that are occupied but generating below-market rent✓ Correct
BUnits that are physically empty and available for rent
CUnits under renovation
DUnits occupied by the property manager
Explanation
Physical vacancy refers to units that are literally unoccupied. Economic vacancy (or loss) includes both physically vacant units AND occupied units generating below-market rent (such as units rented at concessions, units occupied by staff, or units with rent-controlled below-market rates). Economic vacancy better reflects actual income loss.
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