Glossary
The terms PropertyAlpha uses to put building technology in dollars, defined plainly.
- Net operating income (NOI)
- A property's income after operating expenses, before debt service and capital spending. It is the number buyers and lenders value a building on.
- NOI lift
- The recurring increase in NOI that a technology adds, through new income or lower cost, net of its own software and provider fees.
- Cap rate (capitalization rate)
- The rate the market uses to turn NOI into value: value = NOI ÷ cap rate. PropertyAlpha uses 5.5% for Class A, 6.0% for Class B, 7.0% for Class C and 8.25% for hotels. Learn more
- Asset value created
- NOI lift divided by the cap rate. At 5.5%, $1 of recurring NOI supports about $18 of asset value. Learn more
- The Gap
- The dollar value a building has not yet captured, shown on every Property Impact Report alongside the Impact Score.
- Impact Score
- A 0-100 index of how much of a building's achievable technology value it captures, measured against a best-in-class stack for its building type. Bands: Optimized (90-100), Strong (70-89), Emerging (50-69) and Hidden Alpha (below 50). Learn more
- Four value dimensions
- Income, efficiency, resilience and desirability. Every dollar PropertyAlpha models is assigned to exactly one, so nothing is counted twice. Learn more
- Input completeness
- How complete the information behind a report is. It is shown on every report and rises as an owner confirms more details. It is never a promise of accuracy.
- Evidence grade
- How well documented a benchmark's inputs are. Smart home and managed Wi-Fi are graded Medium; access operations is graded Low.
- Property Impact Report
- PropertyAlpha's free report for developers and owners: the building's hidden alpha in real dollars, its Impact Score today and with a plan, and the method behind each number. Learn more
- Property Impact Model
- The building-specific version of the report, built from the property's own designs, costs, utilities and insurance, including the categories the free report describes without a dollar figure.
- PropTech Index
- PropertyAlpha's view of how each technology category creates building value across the four value dimensions, using modeled reference data. Learn more
- Managed Wi-Fi
- Building-wide internet the owner arranges with a provider and offers to residents for a monthly fee. Learn more
- Take rate
- The share of residents who pay for an optional service such as managed Wi-Fi. PropertyAlpha's Wi-Fi benchmark assumes 95%, lower in California, where AB 1414 lets renters opt out. Learn more
- Green financing
- Agency loan programs, such as Fannie Mae Green Rewards and Freddie Mac Green Advantage, that offer better terms for properties that commit to energy and water improvements. Learn more
- Qualified introduction
- A developer, owner, or operator who has opted in to be introduced, with a named contact, a specific property, a technology timeline under 18 months, and stated interest in a Partner's category. Learn more
Figures are modeled decision-support: not a guarantee, not an appraisal, not investment advice.