Trade-out

For new leases, trade-out equals new lease rent minus the prior resident's rent, often shown as a percentage. For renewals, it equals renewal rent minus the expiring rent. Using effective rents on both sides makes the comparison fair when concessions are involved.

Trade-out shows how quickly in-place rents are moving toward market. Comparing new-lease and renewal trade-outs reveals whether renewals are being underpriced or overpriced.