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What is NOI (Net Operating Income)?

October 12, 2023

What is NOI (Net Operating Income)?

NOI (Net Operating Income) is a key financial metric used by real estate investors and industry professionals to measure the profitability of an investment property. It is determined by subtracting all operating expenses, including debt service, from the gross income generated by the property. This figure gives investors a clear indication of how much money they can expect to receive after all operations costs are covered.

NOI is a critical concept to understand when evaluating whether or not a real estate investment will be profitable. At SVN | Latus, we serve the Central PA region and specialize in commercial real estate. Our team of experienced brokers are here to help you determine what your NOI should be and how it can impact your profits.

How does NOI affect a real estate investment?

By understanding NOI, investors can make better-informed decisions when considering a real estate investment. It takes into account the property’s costs including taxes, insurance, repairs, and maintenance, as well as any other expenses associated with operating the property. Knowing this information upfront will help you better understand your potential ROI (return on investment).

At SVN | Latus we believe in giving our clients the knowledge and resources they need to make informed decisions. We provide comprehensive market insights, analytics, and financial advice to help you maximize the profitability of your real estate investments. Contact us today for more information on NOI or any questions related to commercial real estate in Central PA.

SVN | Latus is here to serve as your trusted partner every step of the way. With our expertise and experience, we can help you make smart decisions when it comes to investing in real estate in Central PA. Let us put our knowledge to work for you!

We take pride in helping our clients navigate through the complexities of commercial real estate investments and understanding NOI is a key part of the process. Contact us today to see how SVN | Latus can help you make the most of your real estate investments in Central PA.

Making informed decisions about commercial real estate investments is critical and understanding NOI is an important part of the process. At SVN | Latus, we leverage our expertise to provide clients with comprehensive market insights and financial advice to help maximize their return on investment.