In the context of BTR assets, the ramp-up period usually lasts how long?

The ramp-up period for Build-to-Rent (BTR) assets is typically understood to be between 1 to 3 years. This period refers to the time it takes for a newly constructed BTR property to reach its stabilized occupancy rate, where the majority of units are rented out and generating consistent income.

During this ramp-up phase, several factors contribute to the length of time required, including market conditions, the property's marketing strategy, tenant demand, and the pace at which construction and final preparations for occupancy are completed. The timeline allows developers and property managers to establish a presence in the market, attract tenants, and conduct any necessary adjustments to pricing or leasing strategies based on early performance feedback.

Choosing a ramp-up period of 1 to 3 years is rooted in the common experience of BTR projects across various markets, as this timeframe reflects the typical progression from construction completion to full occupancy, enabling owners to achieve financial stability and make informed operational decisions.