How to Fill a Vacant Commercial Building

Podcast: The Commercial Real Estate Investor Podcast · Tyler Cauble

Opublikowano: 2026-09-21

Key Takeaways 40% vacancy can cause more than a 40% income hit. In the example, the owner loses rent and must cover operating expenses that vacant tenants previously reimbursed, reducing NOI from $300,000 to $140,000. Vacancy can create serious cash-flow and loan pressure. The example’s DSCR falls to 0.64; the owner may need to contribute about $6,500 per month. The speaker estimates the property needs 80% occupancy to break even and 93% to reach a 1.25 DSCR. Vacancy can sharply reduce the property’s value. At an 8% cap rate, the example’s value falls from $3.75 million when fully leased to $1.75 million based...