Property Management
In a NH commercial property management scenario, the net operating income (NOI) is used to:
ACalculate the property's assessed value
BEvaluate the property's income-generating potential and support lender underwriting✓ Correct
CDetermine the property manager's fee
DSet the tenant's rent increase
Explanation
NOI is the primary metric for evaluating commercial property performance — used in income capitalization to estimate value, in lender underwriting to assess debt service coverage, and in investor return analysis.
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