Property Valuation
A commercial property's 'potential gross income' (PGI) represents:
AThe actual income collected during the year
BThe maximum income the property could generate if 100% occupied at market rents✓ Correct
CIncome after deducting operating expenses
DIncome after deducting vacancy and collection losses
Explanation
Potential Gross Income (PGI) is the theoretical maximum income the property would generate if it were 100% occupied at market rental rates, before deducting vacancy, collection losses, or operating expenses.
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