Custom Rent Escalations

By default, Valuation applies a flat annual rent growth rate to your stabilized rents across the entire hold period. This rate is set in the Growth & Timing section under the field labeled Rent Growth Stabilized. For many deals a single flat rate is sufficient, but real-world leasing markets rarely move in a straight line. When you need to model uneven rent growth — for example, aggressive increases in early years followed by slower growth as the market matures — you can use year-by-year custom escalations to override the flat rate on a per-year basis.

To access custom escalations, locate the Rent Growth Stabilized field in the Growth & Timing panel and click the gear icon (⚙) next to it. This opens a detail modal displaying each projection year with its own editable percentage field. You can enter a different growth rate for each year of your hold period. For example:

• Year 1: 2%
• Year 2: 3%
• Year 3: 1%
• Year 4: 5%
• Year 5: 1%

Each value you enter overrides the stabilized rate for that specific year. Any year left blank will fall back to the stabilized rate you set in the main field. This means you only need to fill in the years where growth differs from your baseline assumption — the rest are handled automatically.

This feature is especially useful for modeling lease-up scenarios where Year 1 may see below-market rents ramping up quickly, market cycle assumptions where you expect a dip in growth mid-hold, or value-add business plans where renovated units command larger rent bumps in the first few years after capital improvements are completed. The proforma cash flow and return metrics update instantly as you adjust each year's escalation.