Lease-up (Lease-up Period)
Lease-up is the period in which a new scheme is let for the first time, ending when it reaches stabilised occupancy, typically taken as 90% or more. The term is American and is used in UK build to rent. In student accommodation it starts about 10 to 11 months before the September intake.
What is lease-up?
Lease-up ends when the scheme is stabilised. Walker & Dunlop, a US lender, defines it as the time from a property's first available unit to stabilised occupancy, typically 90% or more. In UK practice leasing usually opens before the building is complete, so the phase starts earlier than that definition suggests. Stabilised means the scheme has settled into steady occupancy and rent performance, and lenders and valuers treat it as the point where income becomes predictable.
The 90% figure is a market convention. No regulator or industry body sets it.
A related measure is absorption: the average number of homes let per month at new schemes still below 90% occupancy, as Axiometrics defines it. Lease-up is the phase; absorption is the speed at which it happens.
Why lease-up matters for BTR and PBSA operators
A new scheme earns little until it fills, so the lease-up period drives the early cash position, the underwriting case and how much concessions the operator can afford to offer. UK agents report on it: Knight Frank's Multihousing Report 2022/23 used it to describe schemes launched in the previous year, many of which stabilised well ahead of expectations.
Operators who only track occupancy see the result once it is too late to change. Lease-up is managed on leading indicators: enquiries, viewings and reservations against plan.
In student accommodation lease-up is the first booking cycle for a new building, and it starts early. Marketing and bookings open in October or November for the following September intake, so lease-up begins about 10 to 11 months before anyone moves in. The pre-let rate, read against the plan, is the leading indicator of where it will land, and a shortfall becomes a void period.
In build to rent the lead time is shorter and depends on when the development is signed off for occupation. In practice it is around six months.
Key takeaways
- Lease-up is the period from first available home to stabilised occupancy, typically 90% or more.
- The 90% threshold is a market convention set by lenders and analysts.
- Absorption is the monthly rate of lettings during lease-up.
- In student accommodation (PBSA), lease-up starts about 10 to 11 months before the September intake. In build to rent it is around six months in practice.
- Pre-let rate is the leading indicator of where a lease-up will land.
How Cloudfox Helps With Lease-up
Lease-up is when a CRM matters most. Lead volume, viewings and reservations all peak before the property management system has any history to report on. Cloudfox sets up HubSpot to capture every enquiry with its source, book viewings from real availability and track each lead through to a signed booking, so the team sees the funnel against plan while there is still time to act. The property management system integration then keeps reservations and occupancy in step. Find out more at cloudfox.it/what-we-do.
Frequently Asked Questions About Lease-up
What occupancy counts as stabilised?
Typically 90% or more, per Walker & Dunlop's definition. Lenders and operators set their own thresholds, so check the one in your facility or business plan.
How long is the lease-up period?
For new student accommodation, about 10 to 11 months before occupation: leasing opens in October or November for the following September intake. For build to rent it is shorter, around six months in practice, and depends on when the development is signed off for occupation. Published durations elsewhere vary widely, so treat any single figure as local to the scheme that produced it.
Is lease-up the same as pre-let rate?
No. [Pre-let rate](/glossary/pre-let-rate) is the share of stock reserved for a coming cycle at a given date. Lease-up is the whole phase from launch to stabilisation.