Glossary of Terms

Stabilized Occupancy 2015-11-11 08:00:00

Stabilized Occupancy

The long-term average occupancy rate that an income-producing property is expected to achieve after exposure for leasing in the open market for a reasonable period of time at terms and conditions comparable to competitive offerings. The concept of stabilized occupancy is often applied to new or rehabbed properties that are still in the lease-up phase. The concept is used to estimate future value of a property or project once it reaches its reasonable occupancy potential. For example, a newly developed multi-family property may have an occupancy rate of 70% after 6 months of leasing, but is expected to achieve a stabilized occupancy rate of 95% after additional leasing over the next 3 months.

 


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