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Lease-Up Cost Calculator
A new-construction or repositioned multifamily asset doesn't stabilize on day one. The lease-up period — typically 8-18 months — carries its own budget: heavy marketing, first-month-free or 1-2 month concessions, a dedicated leasing team, signage, a model unit, and rent-loss during absorption. This calculator rolls the full lease-up budget and per-unit lease-up cost for a project.
Loaded cost: salary, bonus, software
Total lease-up cost
$2,582,775
Per-unit lease-up cost
$17,219
Months to stabilization
12.5
Total marketing
$225,000
Total leasing team
$275,000
Total concessions value
$277,500
Absorption rent loss
$1,734,375
Per-unit as % of annual rent
77.6%
How the math works
A 150-unit conventional lease-up at 12 leases/month runs ~12.5 months to stabilization. Marketing at $18K/month and leasing team at $22K/month alone is $500K before concessions, signage, model unit, and rent loss. Total all-in commonly hits $900K-$1.2M ($6K-$8K/unit) — roughly 30-40% of one year of stabilized rent per unit.
Two levers dominate: absorption pace (double the pace, halve the team cost) and concession depth (every extra concession month is one month of rent × units given back). Before throwing concessions at it, run the funnel: if inquiries are fine and showings aren't converting, it's pricing or product — not marketing — and deeper discounts make more sense than broader spend.
How to Use
- Enter unit count, stabilized rent, and target months-to-stabilization.
- Enter planned concession (e.g., 1 month free) and absorption pace (units per month leased).
- Add lease-up team loaded cost, marketing spend, model unit hold, and signage/grand opening budget.
- The calculator sums all costs and expresses them per unit leased and as % of stabilized rent.
Frequently Asked Questions
What's a typical lease-up budget?
$4,000-$9,000 per unit is the mid-market norm for conventional multifamily, with luxury hitting $10K-$15K/unit. Affordable LIHTC lease-ups are cheaper ($1,500-$3,500/unit) because absorption is faster — subsidy-qualified applicants line up. Repositions come in $3K-$6K/unit.
How long is a 'normal' lease-up?
Absorption pace drives it. 10-15 leases/month is typical for a 150-250-unit conventional project in a strong market. A 200-unit project at 12/month = 17 months to full. Hot infill markets can hit 20-25/month; soft suburban markets can drop to 6-8/month.
Should I offer concessions?
Almost always for conventional lease-ups. '1 month free on a 13-month lease' is standard — it lowers the effective rent ~7.7% while keeping the face rent (and the future comp set) intact. Watch the tenant mix: concession-chaser turnover is 40-60% higher at renewal.
When does lease-up cost stop?
At 'stabilization' — usually defined as 90-95% occupancy for 90 days. Once hit, the project switches to normal operating cost. Lease-up expense is a capital item in many structures (added to basis, recoverable via operating refi), not an operating expense.
Related Calculators
Marketing Cost Per Lease Calculator
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Leasing Commission Calculator
Leasing broker fees.
Concession Break-Even Calculator
Rent concession break-even.
Vacancy Loss Calculator
Lost rent while vacant.
Rent-Up Period Loss Calculator
Rent loss during lease-up.
NOI Calculator
Net operating income.
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