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Preleasing Velocity Milestone Calculator

Preleasing unlocks financing. This calculator tracks.

%

Projected preleased at delivery

73

Target count

70

Milestone achieved (1=yes)

1

How the math works

Projected = current + (rate × months). Target = total × target %. Milestone met if projected ≥ target.

25 preleased + (4/mo × 12 mo) = 73 projected. Target 35% × 200 = 70. Milestone achieved, margin 3 units. Tight — any slowdown puts construction loan at risk.

How to Use

  1. Enter total units planned.
  2. Enter preleased to date.
  3. Enter months until delivery.
  4. Enter preleasing target %.
  5. Enter monthly preleasing rate.
  6. Read milestone projection.

Frequently Asked Questions

Why prelease?

Lender requires preleasing threshold before vertical construction ($20M+ projects). Reduces lender risk. Validates demand. Typical thresholds: 30-50% of units preleased before construction financing converts to permanent. Multifamily: less common; office/retail: standard.

Preleasing rate?

Office: 0.5-2% of units/month pre-construction. Retail: 1-3%/month. Industrial: higher (single-tenant often). Hotel: brand-driven. Multifamily: rarely preleased (closer to delivery). Factor into feasibility timeline.

Incentives?

Early tenants: aggressive concessions (12+ months free, enhanced TI). Signing bonus. Cost certainty (rent lock before delivery). Trade concession for preleasing commitment. Construction lender requires on paper, not contingent.

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.

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