EGI: Effective Gross Income
Effective gross income, or EGI, is a forecast of an asset’s income. It isn’t strictly limited to rental payments — any other revenue-generating services at a property are fair game and should be considered.
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.
Effective Gross Income in Commercial Real Estate
Effective gross income (EGI), is all the income generated by a property, including rent, tenant reimbursements, and income from sources such as vending machines and laundry machines. It can also be defined as a property’s potential gross income, after expenses such as vacancies and credit costs have been subtracted. EGI is an efficient way to estimate a property’s value and cash flow