Wealth Opportunities in Commercial Real Estate: Management, Financing, and Marketing of Investment Properties

Gross Income: The Starting Point

Determining gross income is the starting point when analyzing a real estate project. Gross income is the money received by the owner of the property, the landlord, from the tenant(s), and from any other source, such as parking revenues or vending machine income.

Let us assume you want to analyze a 60,000-net-rentable-square-foot medical office building (MOB) called the Diamond Medical Center, located on Diamond Road in Diamond Bar, California. Let us also assume, for purposes of this example, that the gross income of the Diamond Medical Center is $1,440,000.