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Net Operating Income (NOI)
A key real estate metric calculating property revenue minus all operating expenses, before debt service, capital improvements, and taxes.
Net Operating Income (NOI) is a fundamental valuation metric calculating total property revenue (gross rental income plus ancillary fees) minus all reasonable and necessary operating expenses. NOI excludes debt service payments (mortgage principal and interest), capital expenditures, and income taxes.
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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