A unit is designated as 'pre-leased'. How does this affect the occupancy calculation?

When a unit is designated as 'pre-leased', it means that a lease agreement has already been signed for that unit, even if the tenant has not yet moved in. This status positively impacts the occupancy calculation because it indicates a commitment to rent the unit, which increases the total number of units leased relative to the total number of units available.

In the context of occupancy percentage, which is calculated by taking the number of occupied units and dividing it by the total number of available units, including pre-leased units as filled contributes to a higher occupancy figure. Therefore, pre-leased units are considered part of the occupied count, thereby enhancing the overall occupancy percentage.

This is why choosing an option that reflects that pre-leased units positively impact occupancy calculation is accurate. Understanding this concept is crucial for property managers and leasing professionals as they analyze leasing performance and market positioning.