Leasing and Marketing Flashcards

What is 'lease-up' in multifamily property management?

Answer: The period of filling a newly built or recently repositioned property with tenants to reach stabilized occupancy

Lease-up refers to the marketing and leasing phase for a new or repositioned property, aimed at reaching stabilized occupancy (typically 93–95%).

What is a 'right of first refusal' (ROFR) clause in a lease?

Answer: The tenant's right to match any offer the landlord receives before space is leased to another party

A ROFR gives a tenant the right to lease adjacent space or purchase the property by matching any third-party offer the landlord receives.

Which metric best evaluates the effectiveness of a leasing team?

Answer: Conversion rate of prospects to signed leases

Conversion rate (leads converted to signed leases) directly measures leasing effectiveness and the quality of the leasing process.

What does 'co-tenancy clause' mean in retail leasing?

Answer: A provision allowing a tenant to reduce rent or terminate if a key anchor tenant leaves

A co-tenancy clause protects retail tenants by allowing rent reductions or lease termination if a specified anchor tenant vacates, as this affects customer traffic.

What is 'usable square footage' vs. 'rentable square footage' in commercial leasing?

Answer: Usable is the tenant's exclusive area; rentable adds the tenant's pro-rata share of common areas

Usable SF is the tenant's exclusive space; rentable SF adds the tenant's proportionate share of common areas like lobbies, restrooms, and corridors.

What is 'lease abstraction'?

Answer: A summary of key lease terms extracted from the full lease document for quick reference

A lease abstract summarizes the critical provisions—rent, term, options, key dates, tenant obligations—from a full lease document for easy management reference.