What Is NOI in Commercial Real Estate?

Net Operating Income (NOI) is a property's revenue minus operating expenses, excluding debt service, capital expenditures, and income taxes. NOI drives cap rates, DSCR lender tests, and asset valuations across asset classes. AI tools extract rent-roll and operating statement data to compute NOI faster and flag anomalies—vacancy spikes, recoveries mismatches, or one-time expenses—that distort trailing performance. Accurate NOI is the foundation of both underwriting and ongoing asset management reporting.