The leased rate is the projected amount of occupancy a property is expecting that has not already moved in.
Occupied is the actual amount of occupied units at the current time
Exposure is the expected amount of vacancy the property is anticipating in 90 days
This is also known as ATR.
A stabilized leased rate is typically 95% and above, and exposure below 9% is our goal, but stabilization is typically around 4% and below. The property needs both a stabilized lease rate and exposure amount to be considered truly stabilized.
Examples:
98% Leased Rate
3% Exposure
Stabilized
At this point, the property is most likely comfortable where they are with the leasing and might decrease the budget
96% Leased Rate
15% Exposure
Medium Stabilization
The property is most likely needing a boost in traffic as they are anticipating move-outs with high exposure
There could be several reasons for this high exposure, like increased rent pricing, renovations, or an adjustment to the property staffing
Clients will tend to be very active in communication to get more traffic and might request a budget increase and additional check-in calls.
30% Leased Rate
60% Exposure
Not Near Stabilization
The property is most likely a lease-up and will need a large focus on getting traffic in the first 90 days
These campaigns typically have an aggressive budget and need extra monitoring to see exposure drop