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Argus Certification Practice Test, ARGUS Certification EXAM TEST BANK WITH ALL VERSIONS OF THE EXAM WITH ALLMODULES COVERED | ACCURATE AND VERIFIED QUESTIONS AND ANSWERS FOR GUARANTEED PASS| LATEST UPDATE WITH 150+ QUESTIONS The Expense Inflation Rate will be the default percentage for: a) Operating Expenses b) Non-Operating Expenses c) Capital Expenses d) All of the above - ANSWER All of the above True or False: Every inflation category must be given a number or it will default to the General Inflation Rate. - ANSWER False Assuming a 60% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis (revenue is $13,000 with fixed percentage of 0%). - ANSWER $7,800 (.6*13000) Assuming a 0% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - ANSWER $0 Assuming 100% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - ANSWER $13,000 What is the Capital Expense amount that will appear on the Cash Flow? - ANSWER $63,654??? Free Rent, by default, kick in at the beginning of the _________. - ANSWER Tenant's Lease Start Date The default recovery structure in ARGUS enterprise is __________. - ANSWER Net The Available Date column in the Tenants - Rent Roll, represents the start of the tenant's lease. - ANSWER False. The Start Date represents the start of the tenants lease. True or False: By default, Tenant Improvements and Leasing Commissions are paid at the start of the tenant's lease. - ANSWER True True or False: The Upon Expiration field within the Market Leasing profile allows users to select a different Market Leasing profile to be used after the first Market Leasing term is over. - ANSWER True Contractual Renewal: a) Utilizes the Renew Market Leasing profile terms b) Utilizes the New Market Leasing profile terms c) Inserts a new contract lease into the Rent Roll d) None of the above - ANSWER c) Inserts a new contract lease True or False: Additional principal payments can be factored into the loan computations? - ANSWER True While running a 7-year analysis on a property with a 30-year debt note in ARGUS Enterprise, the note will _____________ at the end of the projection. - ANSWER Balloon After changing the modeling policy for Gross Ups, any Recovery Structure already created will default to the Gross Up percent in the Modeling Policies window. - ANSWER False The default formula for Leasing Commissions is: - ANSWER Base Rent + Step Rent + CPI - Free Rent To indicate that an expense should not be included in the cash flow projection nor used in the calculation of the NOI, select ________________ - ANSWER Reference Only True or False: The percentage of the expense that is eligible to be recovered can be altered for the entire property within the Expense tab - ANSWER True What is the default formula for Free Rent? - ANSWER Base Rent + Fixed Steps + CPI True or False: Months Vacant Overrides will only affect the first rollover and there will be no blending based upon the renewal probability. - ANSWER True True or False: The Batch Update allows a user to model several changes simultaneously instead of performing each individual adjustment. - ANSWER True True or False: When creating a sensitivity scenario, changes to individual properties may be made at the top of the screen . - ANSWER False Different levels of detail can be set for the Audit Log in which Portfolio Application tab? - ANSWER Portfolio Details To change the report interval setting, click the _____________ button. - ANSWER Report Options Which report within Portfolio Level Reports will show individual property information that makes up the selected cash flow totals? - ANSWER Cash Flow Detail All of the following are options for exporting Portfolio Level Reporting except: a) Excel b) Tiff c) PDF d) HTML - ANSWER d) HTML Task Pane provides a number of shortcuts and convenient functions, which include: - ANSWER Getting Started, ARGUS Alerts, ARGUS Valuation - DCF Wizard, and Shared Workspace Getting Started (Task Pane) - 4 - ANSWER Create new files, open recent files, connect to ARGUS website, and access a shared workplace online ARGUS Alerts - ANSWER Login to the ARGUS website to receive instant alerts, news, and other information Property Library - ANSWER Window allows you to view a list of property files in the active directory when other ARGUS Valuation - DCF property files are open. Toolbar (on the Property Library window) - ANSWER Allows you to navigate to directories and to perform actions on one or multiple ARGUS files without opening the files themselves Items of Property Library Toolbar (5) - ANSWER Email a file to someone, report on a batch of ARGUS files, create a portfolio, compare two or more files, add selected files to the Tenant Registry When creating a ARGUS file it is best to start with... - ANSWER the Property Description Inputs of Property Description - ANSWER Basic property information - timing area measures, and inflation What is the first window to appear when creating a new file? - ANSWER Property Description window Where are the Export, Print, Calculate, and Pause button located? - ANSWER Bottom right hand corner Where is the import Graphic icon located? - ANSWER Upper left corner of the executive dashboard The Import Graphics icon - ANSWER Import images and will be included on each new property created with that template To create or modify a dashboard select the (blank) - ANSWER Dashboard template icon Where is the Dashboard Template icon located? - ANSWER The toolbar of the executive dashboard What are the (blank) per-formatted Dashboard templates? - 6 - ANSWER Valuation Summary, Classic, Investment, Appraisal,Lending, and Navigation Miscellaneous Revenues - ANSWER Are property-level income items not paid by the tenants. Any operating revenue not paid by the tenants can be entered in this screen. What are examples of miscellaneous revenues? - ANSWER Vending machines or rental of roof antennas What are the possible misc. revenues that can be selected? (5) - ANSWER % of EGR, $ Amount, $/Area, % of Constant, % of Line % of Line - ANSWER Misc revenue; the allows the revenue to be based on a percentage of other items in the property % of EGR - ANSWER Misc. Revenue; percentage of the Effective Gross Income $ Amount - ANSWER Misc. Revenue; interpreted as a full payment amount $/Area - ANSWER Misc. Revenue; multiplied by the area measure selected in the area column % of Constant - ANSWER Misc Revenue; interpreted as a percentage of the Amount column. If the amount of revenue is set to (blank), the Area/Constant column will be unavailable - ANSWER $ Amount, % of EGR, % of line Rebursable Expenses - ANSWER Property expenses the landlord will recover. All entires will be available for reimbursement by the tenants. Common Reimburment Expenses - ANSWER CAM, Taxes, Insurance, Repairs & Maintence Reimbursable Expenses may be entered as (7) - ANSWER Simple Amount, Detailed Amount, % of EGR, $/Area, % of Constant, % of Line, % of Fixed column - ANSWER Determines the amount of the expense ( or revenue) that is based on occupancy Capital Expenditures - ANSWER Not considered part of a property's NOI and appear below the income line on the CF in the Capital Costs section Typical CapEx are: - ANSWER Stuctural or Capital reserves, building repairs, or improvements (anything to improve te property value that is not routine) Property Level reports can be accessed in (2) ways - ANSWER Property level Reports icon in the toolbar or Reports Menu - Property Level selection Property Level Reports can be viewed - ANSWER Annually, Monthly, Quarterly, Semi- Annually Ways to access the Rent Roll - ANSWER From tenant menu --> select Rent Roll, or clock the Rent Roll icon on the toolbar Default Lease Type choices are: - ANSWER Office, Retail, Industrial, Pad Site and Storage In the Rent Roll, enter the Base/Min Rent field as (3) - ANSWER Amount per area, total amount for a given period, or percent of market rent What are three ways a tenant can reimburse expenses? - ANSWER None, Net, or Base Stop Net reimbursements - ANSWER Triple net leases - tenant will pay their natural pro-rata share of all Reimbursable Expenses Base Stop - ANSWER Typically 1 year and in Office spaces What kind of reimbursement method is used for gross leases? - ANSWER Base Stop True of False: An ARGUS Valuation - DCF cannot calculate a base year prior to the analysis start date - ANSWER True Rent Abatement - ANSWER Number of months of free rent for the current lease STARTED AT THE BEGINNING OF THE LEASE TERM Leasing Costs - ANSWER Consist of Tenant Improvements and Leasing Commissions Tenant Improvement default unit is... - ANSWER $/SqFt Apply Rate to following year income (Property Resale) - ANSWER Resale proceeds will be calculated using the following year of the analysis Calculate Resale for All Years (Property Resale) - ANSWER Calculate and display proceeds for each analysis year (for reporting purposes) Where can you find the Cap Rate Matrix? - ANSWER Bottom right icon of the Property Resale screen Cap Rate Matrix - ANSWER Allows your to input a range of Cap Rates that will calculate a range of PVs in a Cap Rate Matrix Report Present Value Discounting - ANSWER Pg. 46 To access the Cap Rate Matrix Report - ANSWER Reports, Property Level..., Check Prospective Present Vale Options, Check Cap Rate Matrix Prospective Resale and IRR Summary Report - ANSWER Shows what we think we will get back and when Frequency of Reimbursable Expenses can be entered as (x) in the drop down menu - ANSWER Annually, Monthly, Quarterly Present Value Discounting - ANSWER target internal rate of return True or False: ARGUS Enterprise merges three industry standard solutions: ARGUS Valuation- DCF, ARGUS Asset Management, and ARGUS Valuation-Capitalisation - ANSWER True In ARGUS Enterprise you can utilize shortcut keyboard commands to navigate within certain sections of the program. - ANSWER True In AE, a user can add over 100 properties into a portfolio. - ANSWER True Which is a benefit to utilizing a Chart of Accounts? a) Easier to track Revenues/Expenses b) Standardizes portfolio for names of all Expenses/Revenues c) Helps with accounting system integration d) All of the above - ANSWER All of the above In ARGUS Enterprise, you can only assign one Chart of Accounts to a portfolio. - ANSWER True The Discard Changes option will discard only the last change you have made to the property record. - ANSWER False Only users with appropriate permissions can access all of the features in the Control Panel. - ANSWER True To lock down a specific property and restrict who can edit it, click the _____________ button located in the ARGUS Enterprise Ribbon bar. - ANSWER Check Out Property True or False: You can import and/or export v15 DCF files from ARGUS Enterprise. - ANSWER True Using the information below, calculate the amount that will appear as the Operating Expense on Year 1 of the Cash Flow: Utilities Expense: $16,500 % Fixed: 35% % Occupied: 82% % Grossed Up: 90% - ANSWER $14,569.50???? The Fixed Amount/Area Recovery Method is calculated as: -The increases over an amount/area that will be paid by the tenant each year. -The annual amount/area, based on Property Size, that will be paid by the tenant each year. -The annual amount/area, based on Tenant Size, that will be paid by the tenant each year. -None of the Above - ANSWER The annual amount/area, based on Tenant Size, that will be paid by the tenant each year. Which Recovery Structure would you select to enter in a tenant that pays their net pro-rata share of all expenses over a specified base stop? - ANSWER Stop Amount/Area Users can define a varying buliding area over time by clicking the Building Area ellipsis. - ANSWER True Which of the following reports can be accessed by clicking Property Reports? -Executive Summary -Budget Comparison -Property Resale -Cash Flow - ANSWER Executive Summary Budget Comparison Cash Flow When leases roll to the Market Leasing profile, by default the rents do not inflate during the rollover term. - ANSWER True Entering in a property address will allow a user to access a map of the location in AE. - ANSWER False Which of the following are the three levels of detail offered with the Chart of Accounts? -Parent/Header Which of the following is NOT a Property sub-tab? -Operating -Area Measures -Inflation -Rent Roll -Description -Chart of Accounts - ANSWER Operating Inflation Rent Roll The _______________ sub-tab allows users to upload numerous files and URLs to centralize the location of property documents. - ANSWER Attachments Percentage Rent fields are only available when _________ is selected as the property type. -Office -Industrial -Retail or Mixed Use that includes retail -Mixed use that does not include retail - ANSWER Retail or mixed use that includes retail A Portfolio may have _______ Chart of Accounts applied at a time. - ANSWER One To change the Report Print Interval setting, click the __________ button. - ANSWER Report Options Calculate the Operating Expense shown on the Cash Flow from the following assumptions: Expense Amount: $0.45/SF/Year Property Size: 65,000 SF% Fixed: 45% Occupancy: 82% - ANSWER $26,354 In the Properties List, a user can add Property Classifications by going to the View tab, selecting Show Classifications, and checking the appropriate boxes. Up to _______ custom property classifications can be displayed at a time. - ANSWER 30 Which of the following are included in the default Free Rent calculation? -Base Rent -CPI Rent Increases -Fixed Steps -Recoveries - ANSWER Base Rent CPI Increases Fixed Steps A property with an analysis start date of January 2023 has Market Rent for both new and renewal tenants at $20.50/SF/Year. If a tenant rolls to market and a new lease begins in September 2027, what rent would ARGUS Enterprise use for the speculative tenant? Assume Market Rent Inflation is 4% beginning in the second year of the analysis. - ANSWER $23.98 Assume a NOI of $946,250, cap rate of 10.5%, and a 3% selling costs. Capitalize the NOI to determine the Net Sales Price. - ANSWER $8,741,548 The Present Value tab allows us to enter in a separate discount rate for the Leveraged and Unleveraged Cash Flow as well as the Leveraged and Unleveraged Resale Rate. - ANSWER True A property can have an analysis length longer than 110 years. - ANSWER False Any type of item can be added in as a Miscellaneous Rent if they are directly related to the tenant. - ANSWER True How is Total Rental Revenue calculated? - ANSWER Scheduled Base Rent + CPI Increases Use the following assumptions to calculate the Percentage Rent: Tenant Size: 1,250 SF Base Rent: $20/SF/Year Annual Sales Amount: $2,000,000 Sales Percentage: 3% Breakpoint: Natural - ANSWER 35,000??? In the Tenants - Rent Roll sub-tab, the _______ field allows a user to enable or disable a tenant as a reference record. - ANSWER Active Market Leasing profiles serve two key purposes.Check the two purposes below: -Apply leasing assumptions to a tenant area when the current lease for that space expires. -Setting up Space Absorption, or speculative leasing of a vacant space. -Creates a stabilized vacancy rate for a property and represents the minimum vacancy loss for the property on a monthly or annual basis. -Allows the user to model virtually any recovery structure they might encounter in a commercial real estate lease contract. - ANSWER Apply leasing assumptions to a tenant area when the current lease for that space expires. Setting up Space Absorption, or speculative leasing of a vacant space. Use the following assumptions to calculate the General Vacancy for the property in Year 1 of the analysis if we are overriding Tenant 1 and a Percent of Potential Gross Revenue is the method being applied. There is no Absorption & Turnover in Year 1. General Vacancy Rate: 5% Total Potential Gross Revenue: $87,632 Tenant 1 Rental: $42,330 Tenant 1 Override %: 0% - ANSWER $2,265