GPR: Gross Potential Rent in Commercial Real Estate

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 complies all current rents from a property, gross potential rent assumes 100% occupancy, so it can be calculated by taking 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, would have a monthly GPR of $60,000. In order to determine market rent, an investor should take a look at similar properties in the same area in order to make an accurate estimate. By doing this, the investor can get a good idea of a how profitable a property might be before they decide to purchase it. 

In addition to looking at GPR and rent roll, investors may also want to look a projects TTM (trailing twelve months) and T3 (trailing three months) financial numbers in order to determine its profitability. 


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