Ask five multifamily professionals which leasing metric matters most, and you’ll get five different answers. Asset managers swear by exposure percentage for forecasting, while marketing directors track leased percentage for campaign performance. Meanwhile, property managers rely on the pre-leased percentage for planning operations and strategy going forward.
The industry tosses around Exposed %, Leased %, and Pre-leased % – often interchangeably – creating confusion that impacts decision-making across teams. So, this guide will break down what each metric means, when to use it, and how to get value out of each when used in the right context.
Breaking Down Each Metric
Each company may define leasing metrics a little differently, which is why it’s important to look beyond the terminology and examine what each metric is measuring. Small variations in definitions can lead to serious misalignment across teams, causing inconsistent reporting and expectations.
At ApartmentIQ, we conducted in-depth research with top NMHC operators, analysts, and companies to establish standardized definitions for each metric. This work was designed to reflect how today’s top multifamily teams measure and strategize around specific metrics.
So, before selecting the right metric to use, you should understand what each measures. The differences between each metric reveal critical information that informs your decisions regarding the property’s strategy.
Quick Overview
Here is a quick overview of each metric with additional details below:
| Metric | What It Measures | Formula |
| Exposure % | The percentage of units available for rent.* | (Vacant Units + On-Notice Units) / Total Units x 100 |
| Leased % | The percentage of all units under lease, including future move-ins. | Leased Units / Total Units x 100 |
| Pre-Leased % | The percentage of on-notice units that have a confirmed move out, regardless of when the existing tenant’s lease is up. | (Active leases – on-notice units)/Total Units x 100 |
*ApartmentIQ pulls in units with future availability dates up to 6 months in the future. This metric looks at all advertised units, inclusive of all current and future move-in dates.
Did You Know?
It’s important to note:
- Pre-lease % removes on-notice units (even if it’s currently occupied) from leased %
- Pre-leased % factors in all units that are on notice. It is the exact inverse of total exposure.
What is Exposure Percentage in Multifamily?
Exposure %, also known as “exposed units,” is the measurement of how much of your property is currently available for lease, including units with future availability dates up to six months into the future. This metric looks at all advertised units, inclusive of all current and future move-in dates.
Essentially, exposure percentage reveals your property’s upcoming unit availability and potential revenue risk. A high exposure percentage indicates a significant upcoming vacancy that requires immediate attention, while a low exposure percentage suggests stable occupancy but potentially limited revenue growth.
Exposure % matters to:
- Asset managers use exposure % to forecast cash flow and make allocation decisions.
- Acquisition analysts utilize exposure data to assess deal risk and revenue potential.
- Marketing directors use this metric to allocate advertising spend and time campaigns appropriately.
How to Calculate Exposure Percentage
Use this exposure percentage formula for your multifamily property:
Exposure % = (Vacant Units + 60-Day Notices*) ➗ Total Units x 100
*Important Note: You may adjust for 30/60/90-day notices based on your property.
What Does Leased Percentage Mean in Multifamily Real Estate?
Leased % is the percentage of units currently leased, including those with upcoming move-in dates, relative to the total number of units.
You may be wondering what the difference is between leased percentage vs. occupancy rate. Well, unlike the occupancy rate, leased % includes units that have signed agreements but haven’t moved in yet.
For example, a property may have an 85% occupancy rate but a 92% lease percentage due to signed leases with future move-in dates.
Who Leased % Matters to and Why
Leased % is an important metric to:
- Owners: Direct read on how much revenue is contractually secured today (including future move-ins), tying to NOI, DSCR, and distribution targets.
- Revenue Managers: Early, execution-based signal to raise/lower rents and concessions by floor plan before occupancy changes show up.
- Regional Managers: Comparable metric across sites to spot underperformers now and deploy support, pricing changes, or marketing help.
- Property Managers: Confirms if signed future move-ins will backfill notices; drives make-ready sequencing, staffing, and vendor timing.
- Finance: Improves near-term cash-flow and budget variance forecasts because leases are executed, not just projected.
Pro Tip: Track leased % trends over time and benchmark them against your comps using ApartmentIQ to get ahead of performance dips before they hit NOI.
How to Calculate Leased Percentage for Apartments
Use this leased percentage formula for your apartment building:
Leased % = Total Leased Units ➗ Total Units x 100
What is Pre-Leased Percentage for Multifamily Properties?
Pre-Leased % measures how many on-notice units already have a new lease signed, relative to the total property unit count.
Many multifamily teams consider the pre-leased percentage a forward-looking indicator of occupancy stability. By excluding the uncertainty of notice units still awaiting new leases, pre-leased % reveals your property’s secure, committed revenue base.
Who Pre-Leased % Matters to and Why
Pre-leased % is used in the following ways:
- Owners: Gauges stability of the current leased base by showing how much is not at risk from pending move-outs; informs hold/sell risk.
- Revenue Managers: Use pre-leased % to adjust pricing and renewal strategies based on near-term vacancy risk, helping avoid resident stacking during slower leasing months.
- Regional Managers: Highlights turnover pressure at each asset (lower % ⇒ more notices) to prioritize retention programs and field support.
- Property Managers: Guides renewal outreach and save strategies where notices are concentrated; plans turn capacity for upcoming churn.
- Marketing Managers: When pre-leased % drops, signals rising future exposure and the need to add demand now to cover forthcoming vacancies.
- Leasing Managers: Sets daily targets to replace at-risk units early, focusing follow-ups and unit release strategy where notices are highest.
How to Calculate Pre-Leased Percentage
Use this pre-leased percentage formula:
Pre-Leased % = Number of Units With Signed Leases – on Notice Units ➗ Total Units x 100
When to Use Each Metric
Each metric provides some insights into the performance of your property, but only when paired with the right situation and timed appropriately. When used together, these metrics give you a better perspective on the health of your property, especially when it comes to occupancy, future stability, and turnover.
Here’s how you can use each metric with your multifamily property:
- Exposure %: Use this metric when forecasting vacancy or assessing how much of your inventory is actively on the market. From here, you can start having conversations regarding marketing and pricing, giving you an idea of how much attention each unit requires.
- Leased %: This metric shows how many units are contractually secured, offering a real-time snapshot of leasing performance, demand, and revenue potential. So, use it to gauge your current leasing performance and to track occupancy against benchmarks.
- Pre-Leased %: Use pre-leased percentage to forecast future occupancy more accurately since it includes both vacant and on-notice units. This gives you a clearer picture of upcoming exposure, and it’s especially valuable during renewal season, portfolio reporting, and when anticipating dips in occupancy.
Choosing the Right Metric Isn’t Either/Or
No single metric tells the full story. Exposure %, leased %, and pre-leased % each capture a different part of the leasing lifecycle. However, their value comes from how they interact with one another, while isolating them could mislead you.
For instance, a high pre-leased % may signal stability, but without knowing your exposure %, you won’t see the full picture of upcoming turnover. Similarly, a solid leased % may look impressive until you realize many of those leases have given notice and are set to expire next month.
These metrics aren’t your answers but rather signals. You should use them together to inform your decisions regarding allocating funds and reducing risks.
Pro Tip: None of these metrics work in a vacuum. Use exposure % to provide context for pre-leased %: a high prelease rate with low exposure tells a very different story than a high prelease rate with high exposure.
Centralizing Metrics for Meaning
There’s no one-size-fits-all metric in the multifamily market. Exposure %, leased %, and pre-leased % each serve a purpose, but what matters the most is the context in which you use them.
Across critical operations, asset, and revenue workflows, ApartmentIQ equips your team with the metrics that matter the most, enabling you to make confident decisions. With ApartmentIQ data at your fingertips, each member of your team can customize the way they look at their property or portfolio’s data points.
Book a free demo today to see more than 20 performance metrics across 115+ data points that enable you to make smarter decisions around your property’s strategy.