Property Value Increase
A reduction in operating expenses effectively raises your net operating income (NOI) which, in turn, can significantly increase your property's valuation … all with an energy-efficient lighting retrofit
Example Calculation
Effective gross income
Operating expenses
Utilities
All other expenses
Total
Net operating income
Capitalization rate
Market value
Property value increase
Before
$1,500,000
$105,000
$560,000
$665,000
$835,000
6.3%
$13,250,000
After
$1,500,000
$81,000
$560,000
$641,000
$859,000
6.3%
$13,630,000