Gross Income Multiplier

Gross Income Multiplier

The Gross Income Multiplier in a non-residential real estate context measures the value of a property as a proportion of the gross income it generates for its owner(s) or for property investors. While investors would be better served by calculations that take into account each property’s operating expenses to make comparisons between different properties, a low Gross Income Multiplier signals that a property’s gross income potential is high relative to the property’s value.

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