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Concession Burn Rate Calculator

Concessions burn through lease-up budgets. This calculator tracks rate and runway.

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$
$

Months of runway

7.4

Budget remaining

$260,000

Actual burn pace

33.33%

How the math works

Runway = remaining budget ÷ monthly burn. Burn pace = actual ÷ planned.

Stop concessions at 80% budget burned. Reposition headline rent and adjust marketing narrative. Market reads sustained concessions as desperation; pricing clarity restores momentum.

How to Use

  1. Enter lease-up concession budget.
  2. Enter monthly concessions given.
  3. Enter months elapsed.
  4. Enter spent to date.
  5. Read remaining runway.

Frequently Asked Questions

Concession types?

Free rent (1-2 months common). Reduced deposit. Free parking. Move-in credit. Furniture packages. Select accordingly — free rent most visible; credits more flexible.

Budget sizing?

Typical concession budget = 1.5-3 months of stabilized rent × number of units. Softer markets = larger budget. Track actual burn monthly; reforecast at 50% spent.

Over-budget?

Stop concessions and reposition pricing. Sometimes better to drop headline rent 5% than burn another 10% on concessions. Market sees pricing clarity better than concession negotiation.

How does this interact with the rest of the capital stack?

Each tier of the stack affects the next. Senior debt constrains LTC and DSCR. Mezz and pref consume equity spread. Interest rate hedges protect DSCR but cost premium. Always model the full stack holistically — optimizing one tier alone often degrades another. Institutional underwriters run three or four scenarios across the stack before committing capital.

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