Signed leases
What is it?
The KPIshows the total number of leases that have been signed during a specific time period, usually month or quarter. It gives a quantitative indication of the number of new leases that have been established and are binding on both the property owner and the tenants during the specified period.
It is of great economic importance and is used to plan, follow up and optimize property and rental operations.
Note that a high value in terms of the number of signed leases does not always signal something positive, and similarly, a low value does not always indicate something negative. A high number of signings may indicate an active and in-demand real estate market, but it may also mean that rapid turnover of tenants is common.
It is important to analyze this key figure with caution and in context to understand its importance in property management.
How is it calculated?
Number of leases
* Includes only those leases that have a signing date within the specified time period.
Why is it important to follow?
The key figure is important for real estate companies for several reasons:
Income assessment: It gives a direct indication of the real estate company's income from the rental business. By following this key figure, one can evaluate whether revenues are increasing, decreasing or remaining stable over time, which is critical for financial planning and budgeting.
Occupancy rate: The number of signed leases provides insights into the occupancy rate within the property portfolio. This is useful for assessing areas of high demand and those that may need improvement or marketing efforts to fill vacancies.
Market analysis: Real estate companies can use this key figure to evaluate market trends and how their own offerings compare to competitors. It helps them adapt their strategies to meet demand and competition.
Planning and investments: The information about signed leases is valuable for planning future investments and property development. It can help identify areas where there are opportunities to expand and increase revenue.
Governance and reporting: The KPI is often used to report results and progress to stakeholders such as investors, owners and management. It gives an overview of how well the company succeeds with its rental business.
In summary, the key figure provides valuable information about the real estate company's revenue, occupancy rate, market performance and future planning needs. It is a central measurement value for assessing and improving real estate operations.
Created by Homepal
9/1/2023
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