What is pro forma NOI?
What the property may generate in the future if a specific business plan is executed (renovations, lease-up, higher rents). Powerful but the most assumption-dependent because the income has not yet been achieved.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.