NOI is a critical consideration in CRE, though often more honored in the breach than the accurate calculation because so many factors can throw an initial back-of-the-envelope estimate off.

One of the factors is location. Trepp recently examined Freddie Mac multifamily loans from 2021. "The Freddie Mac financial statements were broken down by NOI, revenue, and expenses geographically, looking to unveil where the changes in NOI have been the most prominent," the report said. "On a national level, NOI has grown approximately 3.50%. A regional analysis shows that NOI growth was centered in the regions that were beneficiaries of consumers who opted for more space during the pandemic."

The result shouldn't be surprising. The opportunity for stronger profits come where demand is hottest, and the Sun Belt and west have dominated emerging housing markets because that's where many people have been moving at least as early as 2020, according to U.S. News. Last year, the two regions were expected to be the big areas of retail development, and retail doesn't succeed without people who need places to live.