Stabilization

Stabilization refers to a point in time when a property reaches its market potential in terms of occupancy, income, and expenses. This is commonly referenced in terms of Stabilized NOI., or the NOI once the property has reached that market potential.

In the case of value-add and opportunistic investments, stabilization occurs at some future point when the value-add or opportunistic strategy has been successfully executed. In the case of a core investment, the in-place NOI is assumed to be stabilized.