Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Unlock Building Value: The NOI Preparation Secret #shorts

9 Sept 2026 · 1 min

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In this short video, Shafiq Hirani explains how unrecovered Net Operating Income (NOI) creates a "preparation discount" that directly reduces a building’s market value. Using a concrete example, he shows that $20,000 of unrecovered NOI at a 6% cap rate translates to roughly $330,000 less in sale price. He frames this loss as a discount that buyers capture, not a market flaw. Hirani then gives owners a simple calculation—divide annual NOI by the cap rate (0.06)—to estimate how much value they may be leaving on the table, urging them to assess their own properties immediately.

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Let me show you what that half is worth. Take a building carrying $20,000 a year in unrecovered NOI— expenses that should not be there, income that is not being captured— and take it to market anyway. At a 6% cap rate, $20,000 of NOI is over $330,000 of building value. So that building sells for $330,000 less. That is not a market discount. That is a preparation discount. And the buyer keeps every dollar of it. Run that on your own building tonight. Take your annual NOI, divide it by 0.06, and that is roughly what a buyer is pricing. Then ask yourself how much of that number you have never actually gone looking for.