A sale of a property that had a high vacancy where absorption will be an issue for the buyer and the market value was affected. It is important to understand why the vacancy is high — is it due to Physical or Functional Obsolescence or possibly Economic Obsolescence from outside the property. Price must be below common market levels due to prolonged vacancy or stagnant market conditions. Vacancy created from departed owner-user is generally not sufficient to qualify as high-vacancy status. High Vacancy thresholds may vary by property types, but generally will be above 50 percent.
