Pre Leasing Requirement Calculator

Lenders require minimum pre-leasing before permanent financing.

Total SF

Required pre-lease %

Current pre-lease SF

Months to requirement

SF leased per month

Gap SF

45,000

Months needed

5.6

Feasibility

Achievable

How the math works

Required = total × required %. Gap = required − current. Months needed = gap / velocity.

150k × 70% = 105k required. 60k leased = 45k gap. 45k / 8k = 5.6 months vs 10 months = achievable.

How to Use

Enter total SF.
Enter required pre-lease %.
Enter current pre-lease SF.
Enter months to requirement.
Enter leasing velocity SF/month.
Read gap and feasibility.

Frequently Asked Questions

Pre-lease requirements?

Construction loan: 0-30% pre-leased typical. Conversion to permanent: 60-85% pre-leased. Institutional (CMBS): 70-85% (often stabilized occupancy). Speculative development: limited permanent options; usually rolls to Class B/C lender if unleased.

Anchor vs inline?

Anchor tenants (30-50% of GLA) typically pre-leased before ground-breaking. Inline (grocery-adjacent): 50-70% pre-leased. General retail/office: 30-60% pre-leased. Each property type has different market threshold.

Velocity benchmarks?

Class A office: 5-10k SF/month mature markets. Class B office: 3-7k SF/month. Industrial last-mile: large chunks (50-300k SF each). Strip retail: 2-4k SF/month. Lease up 6-18 months typical.

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.