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Maria Tran, a financial model analyst, discusses lost lease in properties, defined as the gap between a property’s contractual lease rates and market rates. Essentially, it measures the discrepancy between what tenants pay and the prevailing rental rates in the area. She demonstrates how to model lost lease using the multi-family acquisition model from Top Shelf Models, focusing on the assumptions tab. Within this tab, there is a section for yearly revenue assumptions that includes a column for lost lease, which is typically gauged as a small percentage—currently set at 2% of total positive revenues—when modeling multi-family properties.