General Vacancy & Credit Loss

General Vacancy and Credit Loss are calculated exactly the same way within CashFlow, although they mean different things and as a result represent different assumptions.

General Vacancy
An underwriting tool used to discount scheduled revenues by some figure, often around 5-10%, to account for unforeseeable tenant vacancy.

Credit Loss
An underwriting tool used to discount schedule revenues by some figure in order to account for tenant credit risk.

Tenancy Loss Methods

All Tenant Income
The General Vacancy Loss factor will reduce actual scheduled income from tenant.

All Market Income
If selected, the General Vacancy Loss will only apply to those spaces designated as "Market" (i.e. not "Contract") on the Rent Roll tab. An underwriter might elect to use this option if there were a credit tenant already under contract whose income could be consider nearly certain.

Dynamic Loss (Contract)
If selected, the General Vacancy Loss will only apply to those spaces designated as "Market" (i.e. not "Contract") on the Rent Roll tab. An underwriter might elect to use this option if there were a credit tenant already under contract whose income could be considered nearly certain.

General Vacancy and Credit Loss in CashFlow: