Stabilization

A defined stage at which a property is considered to have reached a sustainable operating level, often measured by occupancy and income criteria.

Why it matters

There is no universal percentage that applies to every deal. Stabilization criteria should come from the underwriting or agreement, not be inferred from substantial completion.

In practice

A project example

Construction is finished, but the property has not yet met the occupancy and income tests required for permanent financing.

General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.