Measurement-induced back action, a direct consequence of the Heisenberg Uncertainty Principle, is the defining feature of quantum measurements. We use quantum measurement theory to analyze the recent experiment of Safavi-Naeini et al. [Phys. Rev. Lett. {bf 108}, 033602 (2012)], and show that results of this experiment not only characterize the zero-point fluctuation of a near-ground-state nanomechanical oscillator, but also demonstrate the existence of quantum back-action noise --- through correlations that exist between sensing noise and back-action noise. These correlations arise from the quantum coherence between the mechanical oscillator and the measuring device, which build up during the measurement process, and are key to improving sensitivities beyond the Standard Quantum Limit.