New Launch - India Real Estate Report 2026.

What is a Lease-Up Period?

Lease-Up Period Lease-up period is the timeframe required to lease all or majority of available space in a newly constructed or repositioned property, starting from first tenant occupancy until reaching stabilized occupancy levels typically 90-95% leased.

Characteristics

  • Begins when first tenant occupies newly constructed property
  • Continues until stabilized occupancy of 90-95% achieved
  • Duration varies based on market conditions and property type
  • Landing period typically 12-24 months for commercial properties

Importance

  • Affects cash flow projections during development period
  • Influences financing terms and lender requirements
  • Determines when property generates stable income
  • Critical metric for investment performance evaluation

Lease-up period is timeframe from first occupancy to stabilized 90-95% occupancy in new or repositioned properties, affecting cash flow and investment performance during development.

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