Property Valuation
In the income approach, stabilized NOI means:
AThe NOI from the first year of ownership
BThe NOI reflecting a property operating at typical, sustainable long-term occupancy and income levels✓ Correct
CThe NOI with no vacancy allowed
DThe minimum NOI required by the lender
Explanation
Stabilized NOI represents the sustainable income a property generates at typical market occupancy and rental rates, excluding unusual one-time items and assuming the property is operating at its normal capacity.
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