Glossary

Forward NOI

Also known as: Forward-Looking NOI, Underwritten Forward NOI

A projected net operating income figure for a defined future period, commonly the next twelve months, built from the current rent roll, known lease expirations and commencements, contracted rent steps, and the approved operating budget, rather than from historical actuals.

Forward NOI is used in refinancing (many lenders size loan proceeds off forward NOI or a blend of trailing and forward figures), in acquisition underwriting of Year-1 pro forma cash flow, and in internal asset management reforecasting to communicate where an asset is headed rather than where it has been. It differs from run-rate NOI, a mechanical extrapolation of recent actuals, by explicitly incorporating known, dated future events — a signed lease commencing in month four, a scheduled contractual rent step, an expiring lease assumed to renew or roll to market — rather than simply annualizing a recent snapshot. Forward NOI should not be confused with acquisition-stage pro forma NOI, which often embeds unexecuted, market-rate assumptions; a disciplined forward NOI produced during active asset management should be traceable line by line to signed leases and an approved budget, and appraisers and lenders will typically discount a forward figure that leans heavily on speculative renewal or market-rent assumptions.