The vacancy rate is the key figure that hits a property company's income, net operating income and valuation fastest. Yet many landlords still work reactively: letting starts once the space is already empty. This guide shows how to calculate the economic vacancy rate and the area vacancy rate, what an empty unit actually costs, and how to reduce vacancy by tracking the right data in advance instead of reading about vacancies after the fact.
What is the vacancy rate?
The vacancy rate shows how much of a property portfolio is not let. It can be measured in two ways: by area (square metres) or economically (rental value). The two often give different numbers, and it is the economic vacancy rate that affects earnings and property value.
Economic vacancy rate
The economic vacancy rate shows how much of the potential rental income is lost:
Economic vacancy rate = estimated rent for vacant space / total rental value
Rental value is contracted rent plus the estimated market rent for vacant space, on an annual basis. The inverse is the economic occupancy rate, which listed Swedish property companies typically define as rental income relative to rental value (see for example SBB's definitions of key figures). Companies reporting under EPRA use the same logic under the name EPRA vacancy rate: the rental value of vacant space divided by the rental value of the whole portfolio.
Note that some companies also count temporary discounts as part of economic vacancy. Decide how you do it and stick to it, or the figures will not be comparable over time.
Area vacancy rate
Area vacancy = vacant lettable area / total lettable area
Area vacancy is easy to understand and works well for describing a district or a market, but it does not tell you what the vacancy costs. An empty basement storage unit and an empty office floor with a view weigh the same per square metre.
Worked example
A hypothetical example: an office property has 10,000 sq m of lettable area and a total rental value of SEK 25,000,000 per year. Two units are empty.
| Vacant unit | Sq m | Estimated market rent | Rental value per year |
|---|---|---|---|
| Office floor, 4th floor | 1,000 | SEK 2,700/sq m/year | SEK 2,700,000 |
| Basement storage | 500 | SEK 800/sq m/year | SEK 400,000 |
| Total | 1,500 | SEK 3,100,000 |
- Area vacancy: 1,500 / 10,000 = 15.0 percent
- Economic vacancy: 3,100,000 / 25,000,000 = 12.4 percent
- Economic occupancy (no discounts): 87.6 percent
If the office floor is let, economic vacancy falls to 1.6 percent even though area vacancy is still 5 percent. That is why letting work should be prioritised by rental value, not by square metres.
Office vacancy in 2026
Vacancies have risen in recent years, but the picture is split. According to Citymark's spring 2026 survey, office vacancy inside Stockholm's inner city (innanför tullarna) rose from 10.3 percent in autumn 2025 to 11.1 percent, while the southern suburbs were at 13.8 percent and the northern suburbs at 23.1 percent. Older B-grade space has seen a clearer rise in vacancy than newer A-grade space (Fastighetssverige, April 2026). JLL, which measures the whole Stockholm market, reported 16.1 percent for the second quarter of 2026 (JLL, Stockholm Office Market Dynamics).
The sources differ because they use different geographies and methods. Compare your own vacancy rate with a measure that is defined the same way: same area, same segment, same definition. For more on market conditions, see our overview of the Swedish office market.
What does an empty unit cost?
The direct cost is lost rent. The office floor in the example above costs SEK 225,000 in lost rent for every month it stays empty. On top of that come costs the landlord carries regardless of vacancy: heating and ventilation to keep the space in condition, property tax (for commercial premises 1 percent of the tax assessment value, see Skatteverket), and often tenant fit-outs and broker fees once the space is let.
Vacancy also affects value. If a property is valued at a 5 percent yield, every lasting loss of SEK 100,000 in net operating income corresponds to roughly SEK 2,000,000 in market value. Valuers assume a long-term vacancy level, so a property that always has space empty gets a lower valuation even after a single unit is let. We explain how net operating income and yield fit together in the guide to key figures for property companies.
Why do vacancies happen?
Vacancies are rarely random. The most common causes are:
- The asking rent is above market for that specific space and location.
- The space does not match demand, for example the wrong layout, too large a contiguous area or outdated standard.
- Tenants leave because their needs have changed or they are unhappy with property management.
- The letting process is slow: late replies to enquiries, few viewings and long decision paths.
- The location has lost appeal compared with competing districts.
The information that reveals these patterns usually already exists in the company, but it is spread across rent billing, fault reporting systems, inboxes and spreadsheets. So the problems only show once the vacancy is a fact.
Six ways to reduce vacancy with data
1. Track upcoming vacancies, not just today's
The most important figure for next year's vacancy rate is which leases expire and which have already been terminated. Commercial leases running longer than nine months normally have at least nine months' notice under Chapter 12, Section 4 of the Swedish Land Code, which gives you a window to work in. Keep a running list of lease expiries per quarter, measured in rental value, and start letting a terminated unit the same week the notice arrives.
2. Spot tenants who are about to leave
A departing tenant is the most expensive vacancy, because you lose a working relationship and often have to rebuild the space. Signals to follow up:
- late or changed payments
- more fault reports, or a sudden stop in them
- clearly lower use of the premises
- news about hiring, layoffs, mergers or new management
Book conversations with tenants whose leases expire within 18 to 24 months, however the relationship feels. That gives you time to offer a refurbishment, more or less space or a new lease structure before they start looking at alternatives.
3. Price against the market and do the maths on time
Compare your asking rent with published market rents from brokers and research firms, and with the rents you have actually achieved on new lettings. Then calculate the alternative. A hypothetical example for 1,000 sq m:
- Cutting rent from SEK 3,000 to 2,700/sq m/year costs SEK 300,000 a year, or SEK 1,500,000 over a five-year lease.
- Staying empty six extra months at SEK 2,700/sq m/year costs SEK 1,350,000 in lost rent, plus running costs.
The figures vary for every property, but the calculation forces a deliberate decision instead of letting the asking rent stay where it is out of habit.
4. Measure the letting funnel
Track every vacant unit through the same steps: enquiry, viewing, offer, lease. Measure the number at each step and the time between them. Three questions usually matter most:
- How fast do we reply to a new enquiry?
- At which step do we lose most prospects?
- Which channels bring enquiries that actually lead to leases?
If many viewings do not lead to an offer, the problem is often the space or the price. If few enquiries come in at all, the problem is visibility.
5. Break vacancy down by segment
An average vacancy rate for the whole portfolio hides what matters. Split it by district, property, premises type and size band. Market data shows a widening gap between A- and B-grade space, and the same pattern often exists within a single portfolio. The breakdown shows where you need a price adjustment and where you need investment.
6. Shape the product to demand
Data on what is in demand, such as unit size, lease length and standard, should shape how you package vacant space. Splitting a large floor, offering ready-to-use premises or shorter leases can fill space that would otherwise stay empty. Read more about what tenants expect from office space.
From report to routine
You do not need a big systems project to get started. A handful of figures that are updated regularly and have a clear owner is enough:
| Key figure | How often | Why |
|---|---|---|
| Economic vacancy per property | Monthly | Shows the income loss |
| Lease expiries over the next 24 months | Monthly | Shows future vacancy risk |
| Time from enquiry to lease | Per letting | Shows process bottlenecks |
| Enquiries per source | Monthly | Shows which channels work |
When the figures live in one place rather than separate spreadsheets, it is also easier to act in time. We describe how to take that step in the article on real-time property data.
More qualified enquiries are part of the answer. Shace matches companies looking for offices with vacant premises and sends enquiries from tenants who have already described their needs. Landlords can also publish vacant space directly from their own systems through Shace's API.
Frequently asked questions
How do you calculate the vacancy rate?
The economic vacancy rate is the estimated rent for vacant space divided by the total rental value (contracted rent plus estimated rent for vacant space). Area vacancy is vacant lettable area divided by total lettable area. Both are expressed as a percentage.
What is the difference between economic vacancy and area vacancy?
Area vacancy measures the share of empty square metres, while economic vacancy measures the share of lost rent. Since rent per square metre differs between, say, offices and storage, the two can be very different. It is economic vacancy that affects net operating income and valuation.
What is a normal vacancy rate for offices?
It depends on location and segment. In spring 2026, office vacancy inside Stockholm's inner city was just over 11 percent according to Citymark, while the northern suburbs were above 20 percent. Always compare with a measure for the same area and the same type of premises.
What is the EPRA vacancy rate?
The EPRA vacancy rate is a standardised economic vacancy rate used by listed property companies: the rental value of vacant space divided by the rental value of the whole portfolio. The standard makes it easier to compare companies.
How does vacancy affect property value?
Vacancy lowers net operating income, and property value is often calculated as net operating income divided by a required yield. At a 5 percent yield, SEK 100,000 less in annual net operating income corresponds to roughly SEK 2 million less in value. Long-term vacancy can also raise the vacancy level a valuer assumes going forward.
Want to fill vacant space faster with tenants who already know what they need? Read more about Shace for landlords.