Property Valuation
What is 'stabilized NOI' in a Delaware income property appraisal?
AThe NOI of a property with no debt service
BThe estimated net operating income from a property operating at normal or stabilized occupancy and management, used for valuation✓ Correct
CThe NOI after deducting income tax obligations
DThe NOI that has been stable for the last 3 years
Explanation
Stabilized NOI is the property's estimated income at typical (stabilized) occupancy and market conditions — removing one-time items and temporary vacancies. It represents the property's long-term income-producing capacity used in direct capitalization.
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