The net operating income (NOI) of a real estate project is probably the most important metric in any deal. Why? Because it effectively defines ongoing profits that are derived from the building.
It’s important to understand how a developer arrives at the NOI of a project and to believe that the project costs and operating expense assumptions are reasonable. That’s why Small Change publishes all of the anticipated projects costs for each offering.
Adam Gower of Gower Crowd explains the ins and outs of NOI in this video.