Property Valuation
What is 'stabilized NOI' in Delaware commercial real estate appraisal?
AThe NOI from only long-term, stable tenants
BThe estimated NOI at stabilized occupancy (typical market vacancy) — used to value income properties when actual occupancy is above or below market norms✓ Correct
CThe NOI after all capital improvements are fully depreciated
DThe NOI stabilized for inflation using the CPI
Explanation
Stabilized NOI represents the income a property would generate at typical market occupancy (stabilized occupancy), rather than current occupancy if it is unusually high or low. Appraisers use stabilized NOI to value properties that are currently over- or under-leased.
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