Lease-up is the process of leasing newly-constructed or heavily-renovated multifamily units to reach stabilized occupancy. Typical LA multifamily lease-up: 12–24 months for new Class A.
During lease-up, properties offer concessions and aggressive pricing to attract initial tenants. Effective rents during lease-up are often significantly below asking rents. Once stabilized, concessions burn off and rents reach full market levels.
LA multifamily Class A luxury lease-up in 2026 is carrying elevated vacancy and concessions. Premium 4-5 star product in Santa Monica runs 13%+ vacancy during lease-up. Concessions of 2+ months free on 12-month leases are common. Stabilization periods are running 18–24 months for large new projects.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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