Quick Answer: Occupancy rate measures the percentage of units currently occupied by residents. Pre-lease percentage measures the percentage of units that have signed leases for a future period (including both occupied and vacant units with upcoming leases). Occupancy tells you where you are today; pre-lease percentage tells you where you will be once pending move-ins and renewals take effect.
See our full guides: Pre-Lease Percentage and Occupancy Rate.
What Is Occupancy Rate?
Occupancy rate measures the proportion of units with a resident physically living in them right now. It is a point-in-time snapshot of current demand and leasing success.
Example: 190 occupied ÷ 200 total = 95.0% occupancy
What Is Pre-Lease Percentage?
Pre-lease percentage measures all units that are either currently occupied or have a signed lease commencing in the future. It includes current residents who have signed renewals plus vacant units with approved applications and signed leases for future move-in dates.
Example: (190 occupied + 6 vacant but leased) ÷ 200 = 98.0% pre-leased
Key Differences: Pre-Lease Percentage vs Occupancy Rate
| Factor | Occupancy Rate | Pre-Lease Percentage |
|---|---|---|
| Timing | Current, right now | Current + committed future |
| Vacant leased units | Counted as vacant | Counted as leased |
| Predictive value | Current state only | Forward-looking |
| Revenue link | Current revenue | Committed future revenue |
| Lease-up relevance | Shows units filled | Shows total demand commitment |
| Usually higher? | No — always ≤ pre-lease | Yes — includes future commitments |
When to Use Each Metric
Use occupancy rate when: Reporting current status to investors and lenders, calculating current revenue and economic occupancy, assessing whether a property is stabilized, and benchmarking against market averages. Occupancy rate is the standard for current performance.
Use pre-lease percentage when: Evaluating lease-up velocity for new developments, forecasting near-term occupancy changes, assessing the leasing pipeline, and determining whether a property is trending up or down. Pre-lease is especially critical during lease-up and seasonal transitions.
How They Relate in Practice
The gap between pre-lease percentage and occupancy rate represents committed demand that has not yet moved in. A property at 92% occupancy but 97% pre-leased has 5% of units with signed leases and pending move-in dates — occupancy will rise as those residents arrive.
Conversely, occupancy can be high (95%) while pre-lease percentage is similar (95.5%) if the leasing pipeline is thin. This suggests the property is maintaining current occupancy but has little buffer against upcoming move-outs. Tracking both metrics together gives a complete picture of both current position and near-term trajectory.
During new development lease-up, pre-lease percentage is the primary metric investors watch. Reaching 85% pre-leased is often the threshold for construction loan conversion to permanent financing. See how BubbleGum BI's operations dashboards monitor both metrics in real time, showing your leasing pipeline and projected occupancy trajectory across every property.
Track Pre-Lease Percentage and Occupancy Together
BubbleGum BI monitors both metrics in real time, showing you the leasing pipeline and projected occupancy trajectory across every property in your portfolio.
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