Lease Up Recovery Calculator

Lease-up setbacks compound into lost NOI. This calculator sizes the recovery window.

Monthly absorption (units)

Avg rent/unit

Months delayed

Absorption ramp %

Lost income

$78,000

Recovery months

5 mo

Monthly shortfall

$19,500

How the math works

Lost income = absorption × rent × months delayed. Recovery months = delay ÷ ramp %.

Delay impact compounds because debt service, taxes, and insurance continue during lease-up. For any delay past 60 days, rework the pro forma debt coverage — often the covenant trip happens before the income recovery completes.

How to Use

Enter target monthly absorption (units).
Enter average rent per unit.
Enter months delayed.
Enter absorption ramp %.
Read lost income and recovery months.

Frequently Asked Questions

Typical lease-up pace?

Multifamily 8-15 units/month in primary markets, 4-8 in secondary. Class A luxury often slower (2-6/month) due to price point. Benchmark against comp set during underwriting, not national average.

Recovery mechanics?

Once delay clears, absorption resumes at target pace — but total stabilization window shifts. Each month of delay delays stabilized NOI by roughly one month (not compounded), with NOI impact of roughly one month's potential rent × vacant units.

Lost income per month?

Gross potential × months delayed × (1 − occupancy at delay start). Most owners under-budget this by 30-50% because they forget the compounding on concessions to re-accelerate absorption.