According to Don Paul in “Shopping Center Management” published by ICSC, the net operating income statement of a shopping center, includes typically only income and expense items occurring during the annual operations of the center. The income items include:
– Rental income
– Percentage rent
– Common area income
– Food court income
– Real estate tax income
– Tenant charges including utilities
– Temporary tenant income
– Miscellaneous income
The percentage rent listed above is typical of retail leases and represents an agreed percentage of the tenant’s gross sales receipts, only if these exceed a pre-determined level.
The expense items that are taken into account in building an NOI income statement for a shopping center include:
– Administrative
– Housekeeping
– General building maintenance
– Landscaping
– Security
– Trash removal
– Snow removal
– Parking lot maintenance
– Payroll
– Insurance
– Fees for professional consultants
– Utilities
– Real estate taxes
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