What does NIM stand for in commercial real estate?

What is NIM in Commercial Real Estate?

In commercial real estate, NIM typically stands for "Net Income Multiplier." It is a valuation metric used to determine the value of income-producing properties. Unlike the Gross Income Multiplier (GIM), which uses gross income, the NIM is calculated by dividing the property's sale price by its net operating income (NOI). NOI is the income from the property after operating expenses are subtracted but before deducting taxes and financing costs. This metric gives investors and analysts a more accurate picture of a property's profitability, as it considers the costs associated with operating the property. Lower NIM values generally indicate a potentially more attractive investment because they suggest a higher return relative to the purchase price.

Let's transform data into your competitive advantage!

Contact us if you are interested in Bulk Data or using our APIs.

Try HelloData.ai now