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Shopping Center Net Operating Income

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Shopping Center Net Operating Income

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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