Class A New Construction Case Study By Justin Coleman
Case study
Property overview
The subject property was a 132 unit class A community that began pre-leasing in early March for move-ins beginning in May. The property was struggling to generate qualified traffic and was having problems overcoming the price objection with the traffic that was qualified. CLASS was brought in to help accelerate the leasing activity. Prior to the arrival of CLASS, the property was 32% leased and had generated 7 net leases in the previous 30 days. The rents averaged $1,285/month.
Results
CLASS was able to increase the unit absorption rate from 7 leases per month to 31 leases per month. In just 35 days CLASS was able to secure 31 approved leases and increase the property to 50% leased.
With vs. without CLASS (assumes absorption rate without CLASS remains constant)
The increase in leasing activity resulted in 24 additional move-ins in 35 days.
Additional annual rent revenue generated by these move-ins = $370,080 ($30,840/month)
Cost of CLASS vs. increase in annual rent revenue
Total cost of CLASS Service = $21,500 (includes travel related fees)
Additional Rent Revenue generated by CLASS = $370,080
CLASS ROI: $370,080 – $21,500 = $348,580
Let’s solve your vacancy
Tell us about the community and where occupancy sits, and we will tell you what a deployment would look like.