What Is NOI?
Net Operating Income (NOI) is gross rental income minus vacancy/credit loss and operating expenses — before mortgage payments, income taxes, depreciation, and capital expenditures. NOI is the foundation of every CRE valuation method and lender underwriting metric.
Florida Expense Ratios (Benchmarks)
- Multifamily (Class A): 35–40% of EGI
- Multifamily (Class B/C): 40–50% of EGI
- Industrial (NNN): 5–15% of EGI (landlord retains some structural)
- Office (Class A): 40–50% of EGI
- Retail (NNN): 5–15% of EGI
- Hotel: 60–75% of total revenue (operating intensity)
Florida operating expenses are increasingly affected by elevated insurance premiums and property tax reassessment at sale. See our complete NOI guide, the FL Property Tax Estimator, and the FL Insurance Estimator for full Florida-specific operating expense modeling.