![]() While some expenses can be embellished or manipulated, they’re a relatively minor part of the overall NOI calculation. NOI is a good metric for use in analyzing and comparing properties, precisely because it’s difficult to manipulate. ![]() Again, they are not regular, recurring expenses they’re irregular expenses associated with a particular tenant, who may or may not be there when you purchase the property.Īny other irregular or owner-specific cost or income is also excluded. Construction costs associated with making a space usable by a specific tenant are not part of NOI. Note that some NOI systems will include reserves, as they can be an essential factor for an owner’s ability to handle debt and maintain a property in alignment with market values.
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