Pre-Lease-Up: Setting the Foundation for Success

Market Analysis and Competitive Positioning

Before a single lease is signed, thorough market analysis lays the groundwork for success:

  1. Conduct Comprehensive Market Studies: Analyze demand drivers, employment trends, demographic shifts, and development pipelines that might impact your lease-up.

  2. Competitive Property Analysis: Survey competing properties within your market radius, noting their:

    • Rental rates and concession packages

    • Amenity offerings

    • Unit mix and features

    • Occupancy rates and leasing velocity

    • Target demographic and positioning

  3. Strategic Positioning: Develop a unique value proposition that distinguishes your property from competitors. This could be based on premium amenities, technological integration, sustainability features, price point, or service level.

pre-lease up strategy

Setting Optimal Rental Rates

Pricing strategy during lease-up requires both art and science:

  1. Value-Based Pricing: Rather than simply matching competitor rates, develop pricing that reflects your property's unique value proposition.

  2. Strategic Concessions: Consider whether your market responds better to reduced rental rates or value-add concessions (like free months or reduced security deposits).

  3. Premium Placement Pricing: Develop premiums for desirable units (better views, higher floors, corner units) to maximize revenue without pricing yourself out of the market.

  4. Absorption-Based Adjustments: Plan for dynamic pricing that can respond to actual leasing velocity once the process begins.

Pre-Leasing Campaign Development

The most successful lease-ups begin marketing well before construction completion:

  1. Timeline Development: Create a detailed marketing timeline working backward from target opening date, typically beginning serious efforts 4-6 months before completion.

  2. Digital Presence Establishment: Develop a compelling website, social media presence, and digital listing profiles on platforms like Apartments.com, Zillow, LoopNet, or CoStar (depending on property type).

  3. Pre-Leasing Incentives: Design compelling offers for early adopters who sign leases before property completion.

  4. Virtual Tour Development: Invest in high-quality renderings, 3D tours, and visual assets that help prospects envision the completed property.