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Gross Potential Rent (GPR)
The maximum theoretical rental revenue an investment property would generate if 100% of units were occupied and paying full market rent.
Gross Potential Rent (GPR) represents the maximum potential revenue a real estate asset would generate if every single unit or suite were 100% occupied and leased at full market rental value over a fiscal year.
GPR serves as the baseline starting line in real estate underwriting from which vacancy losses, credit concessions, and bad debts are deducted to arrive at effective gross income.
More in Accounting & Finance
See all Accounting & Finance terms →Additional Rent
Charges billed to a commercial or residential tenant beyond base rent, including CAM reconciliations, property taxes, insurance, and late fees.
Read definition →Bad Debt Reserve & Delinquency Aging
The accounting methodology categorizing past-due receivables into 30/60/90-day aging buckets and provisioning an allowance for uncollectable rent.
Read definition →Base Year & Gross Up Provision
A commercial lease provision adjusting variable operating expenses to reflect 95-100% occupancy to ensure equitable pass-through billings.
Read definition →CAM Audit Rights & Tenant Expense Objections
Contractual clauses permitting commercial tenants to inspect landlord invoices and ledger records supporting annual CAM true-up charges.
Read definition →CAM Reconciliation
The annual calculation reconciling actual shared building operating expenses against estimated monthly payments billed to commercial tenants.
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