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Leasing Velocity Calculator

Lease-up risk dominates value-add and ground-up underwriting. The velocity at which vacant space converts to leased space — driven by submarket absorption and your competitive share — determines total carry burn and stabilization timing. This calculator integrates declining vacant SF over the lease-up period to size both the timeline and the total carrying cost.

%

Submarket competitive share

$

Months to fully lease

4 yr 3 mo

Expected absorption / mo

875

Carrying cost (mo 1)

$54,000

Total carrying cost

$1,415,700

How the math works

Leasing velocity = vacant SF ÷ expected monthly absorption. Carrying cost decays as space is leased — this calculator integrates the declining vacant SF over the lease-up period to size total interest, taxes, insurance, and management drag.

45,000 vacant SF in a market absorbing 3,500 SF/month, with you taking 25% share = 875 SF/month → 51 months to fully lease. At $1.20/SF/month, the carry adds up fast.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Leasing Velocity Calculator is built to give a quick, browser-based estimate for leasing velocity. Lease-up risk dominates value-add and ground-up underwriting. The velocity at which vacant space converts to leased space — driven by submarket absorption and your competitive share — determines total carry burn and stabilization timing. This calculator integrates declining vacant SF over the lease-up period to size both the timeline and the total carrying cost. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

  • Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
  • Run a low, base, and high case when the inputs are estimates.
  • Check the related calculators below when the next decision depends on a different assumption.

How to interpret the leasing velocity result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this leasing velocity estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

  1. Enter vacant SF that needs to be leased.
  2. Enter total submarket absorption per month and your competitive share %.
  3. Enter monthly carrying cost per vacant SF (taxes, insurance, debt service, management).
  4. Read total months to lease and total carrying cost during stabilization.

Frequently Asked Questions

Where do I find absorption data?

CoStar, JLL, CBRE, Cushman quarterly market reports — they publish submarket absorption trailing 12 months at the property type level.

What's a realistic competitive share?

If your asset is 5% of submarket inventory, you might capture 10-15% of absorption (newer assets attract demand). Trophy assets capture disproportionately.

What if absorption is negative?

Negative absorption means you can't model lease-up at market velocity — you need below-market rent or aggressive concessions to win share.

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