Buy a building where every tenant pays $18 against a $24 market and you have bought two things: the income that exists, and the income that shows up as leases expire.
This tool walks the NOI from in-place to market and prices both ends at the same cap rate. The gap is the mark-to-market story, and it is one of the cleanest ways to create value without building anything.
NOI Today
$900K
NOI at Market
$1.20M
Value Today
$15.0M
Value When Rolled
$20.0M
Value Created
$5.00M
The NOI walk
NOI climbs as leases roll from in-place to market rent.
What this means
When leases sit below market, the rent roll hides value: the building earns less today than the space is worth, and every expiration is a step toward the real number. The same math runs in reverse when leases sit above market, which is how a "stable" rent roll can quietly be a melting ice cube. We keep this model simple on purpose: NNN leases, rent treated as NOI, straight-line roll. The mechanics are what matter.
Want to see how we apply this?
This is the math behind every deal we underwrite.