Leasing Velocity Lift From Concessions Calculator

Concessions speed lease-up. This calculator sizes.

Current velocity (units/mo)

Concession per unit

Elasticity (units/mo per $100)

Base rent per unit

Projected velocity

Velocity lift

Months lease-up faster (100 units)

5.4

How the math works

Lift = elasticity × (concession / 100). Projected = current + lift. Faster = months diff per 100 units.

8 units/mo + 6 unit lift from $600 concession at 1.0 elasticity = 14 units/mo. 100 units: 12.5 months → 7.1 months = 5.4 months faster. Concession economics win when time-value saved exceeds discount.

How to Use

Enter current velocity (units/mo).
Enter concession dollars per unit.
Enter elasticity (velocity lift per $100 concession).
Enter base rent impact.
Read projected velocity and NPV trade-off.

Frequently Asked Questions

Elasticity?

Multifamily: 0.5-1.5 units/month velocity lift per $100 concession/unit (market dependent). 1 month free on $2k rent = $2k concession = ~1-2 unit/month lift typically. Diminishing returns beyond 2 months free.

Math?

Concession reduces net rent. Lift in occupancy speeds revenue. Net: typically positive if concession under 10-15% of rent. Above: over-concession. Sweet spot: 5-10% of rent in concessions produces best-risk-adjusted outcome.

Timing?

Concessions front-loaded (first month free) more impactful than back-loaded. Cash flow of first-month-free: tenant signs, enjoys free month, then pays full rent. Better than split concessions (tenant discounts but over multiple months).

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.