Property Valuation
In New York, a commercial property's 'potential gross income' (PGI) represents:
AThe income after deducting vacancies and expenses
BThe maximum rental income the property could generate if fully occupied at market rents✓ Correct
CThe income after deducting mortgage payments
DThe net rental income after management fees
Explanation
Potential Gross Income (PGI) is the total income a property would produce if 100% occupied at market rents, with no vacancy or collection losses. It is the starting point for the income capitalization approach.
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