Stacking Plan in a Commercial Building

A stacking plan is a floor-by-floor diagram of a commercial building showing which tenants occupy which spaces, lease expiration dates, available square footage, and sometimes rental rates. Landlords, brokers, and investors use stacking plans to visualize occupancy, forecast rent roll turnover, market available space to prospective tenants, and track the building’s cash flow trajectory. It is a practical tool for understanding the lease portfolio at a glance.

What a stacking plan shows

A stacking plan is not a detailed architectural floor plan; it is a schematic. Most stacking plans are one-page documents that stack all floors vertically, often arranged left-to-right or top-to-bottom, with a row or section per floor showing:

• Floor number or level (B2 for basement 2, 1 for ground floor, 2–25 for upper floors)
• Tenant name(s) and which unit(s) they occupy
• Lease expiration date (the month and year the tenant’s lease ends)
• Occupancy status (occupied or vacant / available-for-lease)
• Square footage occupied (and sometimes available)
• Optional details: rental rate, suite number, lease commencement date, or special terms

A simple example might look like:

This view immediately tells an owner or broker: “Floors 1 and 3 are fully leased through 2027–2028. Floor 2 is half-occupied and half-vacant, with the current tenant expiring in late 2025. Floor 4 is completely empty and available to market.”

How brokers use stacking plans to market space

Commercial brokers rely on stacking plans as a core sales tool. When a prospective tenant asks “What availability do you have in the building?”, the broker pulls up the stacking plan and can say: “We have the entire 4th floor (8,500 sq ft) vacant immediately, or about 4,300 sq ft on the 2nd floor. The 2nd floor unit is available March 2025 when the current tenant expires.”

The stacking plan also reveals to the prospective tenant which companies already occupy the building. Some tenants care about prestige (occupying a building with established, creditworthy neighbors) or avoiding direct competition (not renting next to a competitor). The visible tenant roster on a stacking plan affects leasing velocity.

Brokers also use stacking plans to identify “contiguous” vacant blocks (multiple floors or large single-floor spaces), which command premium lease rates because they accommodate larger tenants or users who need growth room. A tenant evaluating the building can see at a glance whether expansion space is available on nearby floors.

Using stacking plans for valuation and cash flow forecasting

Investors and appraisers use stacking plans to forecast the building’s net operating income (NOI) and value. By noting lease expiration dates, they can project when rents will “roll over”—when a new tenant negotiates a renewal or a vacant space is re-leased at a new market rate.

For example, if the stacking plan shows 40% of the building’s leases expiring in the next 18 months and current market rent is 15% higher than the in-place rents, the property has significant upside as leases renew. Conversely, if rents are declining and 50% of leases expire soon, the forecast is for NOI contraction.

A sophisticated investor might simulate several scenarios: base case (tenants renew at market rate), downside (20% of space remains vacant after turnover), and upside (all space re-leases at a premium). The stacking plan is the starting data set for these models.

The lease maturity schedule embedded in a stacking plan also affects property valuation multiples. A building with a “front-loaded” expiration schedule (most leases due in the next 2–3 years) faces more near-term refinancing risk and operational uncertainty; it may trade at a lower cap rate or valuation multiple than a building with a staggered, back-loaded schedule (leases spread across 5–10 years). The “lumpiness” of lease expirations is real risk.

Stacking plans and occupancy pacing

During economic downturns or in oversupplied markets, landlords and brokers use stacking plans to track vacancy trends floor-by-floor and space-by-space. A stacking plan from January 2025 might show 85% occupancy; an updated plan from March 2025 might show 82% if a tenant vacated early. Monitoring occupancy trends month-to-month helps landlords anticipate cash flow shortfalls and decide whether to offer concessions (lower rent, free rent periods, tenant improvement allowances) to fill space quickly.

Similarly, in a tight market with high demand, the stacking plan shows which spaces are at highest risk of non-renewal. A landlord facing a tenant whose lease expires in 6 months will proactively negotiate renewal terms before the tenant considers alternatives. The stacking plan is the calendar.

Stacking plans in commercial real estate due diligence

When an investor buys a commercial building, the stacking plan is one of the first documents exchanged. The seller provides a stacking plan documenting all lease terms, tenant creditworthiness (is TechCorp investment-grade credit or a startup?), and occupied vs. vacant space. The buyer’s team verifies the accuracy against original lease agreements and does a “rent roll reconciliation” to make sure the numbers add up to the stated occupancy.

Discrepancies—a tenant listed as occupied but no lease in the file, or occupied square footage that exceeds the building’s rentable area—are red flags. The stacking plan must be reconciled with the actual leases and the property’s engineering plans (to verify the rentable square footage per floor).

Format and evolution

Historically, stacking plans were hand-drawn or simple Excel spreadsheets. Many still are, because the format is so straightforward that templates are easy to maintain. Some landlords and larger commercial real estate firms use CAD software or specialized property management platforms that generate stacking plans automatically from lease and occupancy data. Online platforms used by commercial brokers (CoStar, CBRE’s tools, etc.) often include stacking plan views as part of the property detail package.

A good stacking plan is updated every 3–6 months or whenever a material lease is signed, renewed, or expires. Stale stacking plans mislead brokers and investors, so property managers treat them as living documents.

Limits and interpretation

A stacking plan is a snapshot; it captures occupancy at a moment in time. It does not reveal lease renewal likelihood, tenant financial health, or hidden occupancy agreements (sub-leases or modifications not recorded in the base lease). A tenant listed as “occupied” might be planning to vacate in 90 days if renewal negotiations have stalled. The stacking plan must be read in context with recent lease discussions and tenant communications.

Similarly, a stacking plan shows available space, but does not indicate lease-up pace. A building showing 10% vacant space could absorb that space in 2 months in a hot market or languish vacant for 18 months in a weak one. The stacking plan is a fact base; forecasting requires market knowledge and tenant demand assumptions.

See also