What does vacancy refer to in the context of commercial property?

In the context of commercial property, vacancy typically refers to an unoccupied property. This term highlights the idea that the property is available but is not currently generating income because it is not being rented or occupied by tenants. When considering insurance policies, properties that are unoccupied often have different risk factors associated with them, which may lead to reduced coverage or higher premiums.

The focus on vacancy specifically emphasizes the lack of occupancy, making it distinct from other conditions such as temporary rentals or properties under renovation. Understanding this concept is essential for evaluating the risks and potential income loss associated with commercial real estate investments.