What is Pro Forma?
A pro forma is a projected financial statement for a commercial property that estimates future income, expenses, and net operating income — often showing what a property could earn under improved management or full occupancy. Buyers use it to model returns, but should compare it against actual historical numbers, since pro formas can be optimistic.
Example: A listing's pro forma projects $150,000 NOI at full occupancy, but the buyer also reviews actual statements showing $120,000 today before deciding what to offer.