In rent modeling, what is a rent-up period?

• A. Period with no leasing activity.
• B. Period after stabilization with 100% occupancy.
• C. Period during which space is leased up to occupancy targets, often with higher concessions.
• D. Period with rents constant.

Answer: (C)

Rent-up is the leasing ramp before a property reaches its stabilization occupancy. In this phase, space is being leased up toward the target occupancy, and landlords often offer higher concessions to attract tenants (such as free rent or improvements). Because occupancy is still growing, rents during rent-up are usually below the stabilized level, and cash flows ramp up as more space is leased. The period ends when stabilization is reached at the occupancy target, after which rents and occupancy level off to normal, steady-state levels. The other descriptions describe no leasing activity, post-stabilization conditions, or rents that stay constant, none of which capture the active, concession-filled ramp to full occupancy.