Tap to get financing
Commercial Real Estate Loans
Loan Options
Permanent FinancingLoans Under $1MBridge LoansMezzanine FinancingConstruction LoansUSDA 538 Loan ProgramLife Company LoansSBA 7(a) LoansSBA 504 Loan ProgramFannie Mae LoansFreddie Mac LoansCMBS LoansHUD Multifamily LoansFix and Flip LoansHUD 223(f) LoansHUD 221(d)(4) LoansHUD 223(a)(7) LoansHUD 241(a) LoansHUD 232 LoansHUD 232/223(f) LoansHUD 232 LEAN LoansHUD 232/223(a)(7) Loans
Property Types
All Property TypesRetailOfficeIndustrialApartmentsSelf StorageHotelLandChurchSchoolAuto DealershipAuto Repair ShopCar WashGas StationHealthcareMedical OfficeDental OfficeVeterinaryFitness CenterBowling AlleyConvenience StoreDay Care CenterGolf CourseAnchored Strip CenterRestaurantMarinaWarehouseFuneral Home
Resources
BlogCurrent Mortgage RatesForms and TemplatesCommercial Property for SaleCommercial MLS GuideGlossaryVideo LibraryApply OnlineHow to Get a CRE LoanFrequently Asked Questions
Calculators
Commercial Mortgage CalculatorCap Rate CalculatorNOI CalculatorDSCR CalculatorLTV CalculatorLTC CalculatorDebt Yield CalculatorYield Maintenance CalculatorInternal Rate of Return Calculator
About Us
About UsLeadershipTeamContactWe're Hiring
Get financing
Newly Published
Mar 17 at Commercial Real Estate Loans
Top 10 Commercial Real Estate Lenders of 2023
Mar 15 at Commercial Real Estate Loans
Top 4 Refinancing Loans for Industrial Real Estate in 2023
Feb 20 at Commercial Real Estate Loans
How to Set Rent Rates for Your Commercial Property in 2023
Explore the Janover Network
Mar 20 at Multifamily Loans
Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
Mar 14 at Multifamily Loans
Multifamily Minute Reader Reflections: How Big Are We Buying?
Feb 27 at Multifamily Loans
Multifamily Minute Reader Reflections: When Do You Start the Refi Process?
Was This Article Helpful?
Commercial Real Estate Glossary
Last updated on Feb 19, 2023
2 min read

Gross Scheduled Income in Commercial Real Estate

Gross scheduled income (GSI), sometimes referred to as gross potential income (GPI), is the amount of money a commercial property can generate, assuming 100% rental occupancy. It is often compared to gross potential rent (GPR), but gross scheduled income includes other, non-rental sources of income, such as parking spots or income from vending machines.

Better Financing Starts with More Options Start Your Application and Unlock the Power of Choice. Click Here to Get Quotes →$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes
In this article:
  1. What is Gross Scheduled Income for a Commercial Property?
  2. Gross Scheduled Income vs. Gross Potential Rent Example
  3. Gross Scheduled Income vs. Effective Gross Income
  4. Questions? Fill out the form below to speak with a commercial real estate loan specialist.
  5. Related Questions
  6. Get Financing

What is Gross Scheduled Income for a Commercial Property?

Gross scheduled income (GSI), sometimes referred to as gross potential income (GPI), is the amount of money a commercial property can generate, assuming 100% rental occupancy. It is often compared to gross potential rent (GPR), but gross scheduled income includes other, non-rental sources of income, such as parking spots or income from vending machines.

Gross Scheduled Income vs. Gross Potential Rent Example

For example if an apartment building has 15 units, each which rents for $2,000/month, the gross potential rent would be $30,000/month, or $360,000/year. However, if the building also has 35 parking spots, each which rents for $100/month, and can expect a vending machine income of an additional $250/month, than the gross scheduled income would be $33,750/month, or $405,000/year.

Gross Scheduled Income vs. Effective Gross Income

Another metric, effective gross income (EGI), reflects the income that a property owner is actually earning. It can be calculated by taking a property’s gross scheduled income and subtracting vacancies and credit loss, which occurs when a tenant does not pay part or all of their rent. While an investor may not immediately know the exact vacancy rate of a commercial property, an estimate of 5% is generally a good place to start.

In the same example mentioned above, if we estimate that the building has a 5% vacancy rate, for both apartments and parking spots, (assuming the vending machine income remains the same), the effective gross income would be approximately $385,000. In addition, EGI is one of the main metrics used to calculate net operating income (NOI), which itself is used to calculate debt service coverage ratio, cap rate, and other essential CRE metrics.

Questions? Fill out the form below to speak with a commercial real estate loan specialist.

Related Questions

What is gross scheduled income in commercial real estate?

Gross scheduled income (GSI), sometimes referred to as gross potential income (GPI), is the amount of money a commercial property can generate, assuming 100% rental occupancy. It is often compared to gross potential rent (GPR), but gross scheduled income includes other, non-rental sources of income, such as parking spots or income from vending machines.

For example if an apartment building has 15 units, each which rents for $2,000/month, the gross potential rent would be $30,000/month, or $360,000/year. However, if the building also has 35 parking spots, each which rents for $100/month, and can expect a vending machine income of an additional $250/month, than the gross scheduled income would be $33,750/month, or $405,000/year.

How is gross scheduled income calculated in commercial real estate?

Gross scheduled income (GSI) is calculated by adding up all of the potential rental income from the property, as well as any other sources of income, such as parking spots or income from vending machines. For example, if an apartment building has 15 units, each which rents for $2,000/month, the gross potential rent would be $30,000/month, or $360,000/year. However, if the building also has 35 parking spots, each which rents for $100/month, and can expect a vending machine income of an additional $250/month, than the gross scheduled income would be $33,750/month, or $405,000/year.

What factors affect gross scheduled income in commercial real estate?

Gross scheduled income in commercial real estate is affected by the number of rental units, the rental rate for each unit, and any additional sources of income, such as parking spots or vending machines. For example, if an apartment building has 15 units, each which rents for $2,000/month, the gross potential rent would be $30,000/month, or $360,000/year. However, if the building also has 35 parking spots, each which rents for $100/month, and can expect a vending machine income of an additional $250/month, than the gross scheduled income would be $33,750/month, or $405,000/year.

Sources:

  • Gross Scheduled Income in Commercial Real Estate
  • Gross Potential Rent

What are the benefits of gross scheduled income in commercial real estate?

The benefits of gross scheduled income in commercial real estate are that it provides a more accurate picture of the potential income of a property. Gross scheduled income includes not only rental income, but also income from other sources such as parking spots and vending machines. This allows investors to get a better understanding of the potential return on their investment. Additionally, lenders may use gross scheduled income to determine the loan amount they are willing to provide for a property.

What are the risks associated with gross scheduled income in commercial real estate?

The risks associated with gross scheduled income in commercial real estate include the potential for vacancies, tenant turnover, and unexpected expenses. Vacancies can occur when tenants move out and the property owner is unable to find a new tenant quickly. Tenant turnover can occur when tenants move out and the property owner is unable to find a tenant willing to pay the same amount of rent. Unexpected expenses can occur when the property owner has to make repairs or upgrades to the property in order to attract new tenants.

It is important to note that gross scheduled income is an estimate and not a guarantee of income. Property owners should always be prepared for the possibility of vacancies, tenant turnover, and unexpected expenses.

In this article:
  1. What is Gross Scheduled Income for a Commercial Property?
  2. Gross Scheduled Income vs. Gross Potential Rent Example
  3. Gross Scheduled Income vs. Effective Gross Income
  4. Questions? Fill out the form below to speak with a commercial real estate loan specialist.
  5. Related questions
  6. Get Financing
Categories
  • Commercial Real Estate
  • Commercial Development
Tags
  • Double Net Lease
  • Gross Scheduled Income
  • Gross Potential Income
  • Gross Potential Rent
  • Effective Gross Income

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

Commercial Real Estate Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@commercialrealestate.loans

Commercial Real Estate Loans

Eligible Property Types
Mortgage Rates
Commercial Loan Calculator
Glossary

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2022 Janover Inc. All rights reserved.