Two different measurements, and the delinquency explanation isn't the main one.
Physical occupancy is a unit count. 240 units, 223 rented, that's 93%. Some brokers instead divide rented square feet by total rentable square feet, which gives a different number at the same facility, so ask which one they used.
Economic occupancy, strictly, is the rent actually being collected divided by gross potential rent, meaning what the place would collect if every unit were rented at today's advertised price. Your $49 tenants in an $89 unit each drag that number down while still counting as fully occupied physically. Free first months, discounted rates, units the manager uses for office or storage, and unpaid balances all sit in the same gap. Watch out for the loose version: some packages compute economic occupancy against in-place asking rents rather than current street rates, which makes discounting disappear.
Two terms you'll need for the rest of that rent roll. Street rate is the price shown to a new customer today. ECRI, existing customer rate increase, is the letter an operator sends raising an in-place tenant toward street rate, usually after they've been there some months.
To anchor's question, the recapture depends on whether street rates in that submarket are holding. A 16-point gap where advertised rates are firm is a rate management opportunity. The same gap in a market where the operator has been cutting street rates to fill space is telling you demand is soft, and raising the $49 tenants just sends them to the newer facility down the road. Pull the last 12 months of advertised rates by unit size before you decide which one you're looking at.
