What type of income is derived from potential leasing opportunities in real estate?

The correct choice is Potential Gross Income (PGI), which refers to the total income a property could generate if fully leased at market rent, without considering any deductions for vacancies or operating expenses. PGI represents the maximum income potential and serves as a foundational figure in analyzing the financial performance of a real estate investment.

Understanding PGI is crucial for real estate investors, as it helps assess the revenue-generating capacity of a property under ideal conditions. It provides a benchmark against which actual income can be compared, allowing investors to evaluate property performance and make informed decisions about leasing strategies and potential improvements.

In contrast, scheduled income pertains to the income outlined in a lease agreement, potentially reflecting what the landlord expects to receive, but it does not capture the complete potential of the property as PGI does. Projected income typically refers to forecasts that may take future market trends into account, but again, it lacks the straightforward focus of PGI on maximum potential. Rental yield expresses the return on investment based on the rental income relative to property costs but is not directly related to potential leasing opportunities as PGI is.