Property Valuation

A South Carolina commercial strip center shows a 92% occupancy rate. What is the vacancy rate used in an income approach analysis?

A8%✓ Correct
B92%
C10%
D5%

Explanation

Vacancy rate = 100% − Occupancy rate = 100% − 92% = 8%. The income approach uses this vacancy rate to calculate the vacancy and collection loss from potential gross income.

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