What is GPR in Commercial Real Estate?
GPR, or gross potential rent, is the maximum amount of rent money an owner or investor can expect to make from a property during a specific time period. Unlike a rent roll, which compiles all current rents from a property, gross potential rent assumes 100% occupancy. It is calculated by by adding together the market rent of every unit in a project.
For example, a property with 15 units, each with a market rent of $4,000 a month, has a monthly GPR of $60,000. In order to determine market rent, an investor should look at similar properties in the same area for an accurate estimate. By doing this, the investor gets a good idea of a property’s profitability before they decide to purchase it.