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ARGUS EXAM
When calculating a market leasing profile with the upon expiration set to renewal AE - ANSWERS-assumes 100% renewal Gross Sale Price is calculated by taking NOI to capitalize and dividing it by the when using CAP NOI (12 months after sale) - ANSWERS-Cap Rate Within the Investment tab, the tab is used to calculate debt notes outside of the AE system. - ANSWERS-Other debt Sales amount that must be achieved prior to the payment of any percentage rate is: - ANSWERS-Breakpoint When entering an available date prior to the start date within rent roll, AE will assume - ANSWERS-The space is available but vacant until the start date All recoverable expenses are paid by the tenant based on their proportionate share of the building over a stop amount, which is the amount of annual recoverable expenses in the base year of the lease - ANSWERS-Base Year Stop
Specifies that the tenant will pay expenses over their prior year base stop. The tenant is responsible for their share of any expenses over this amount - ANSWERS-Base Year Stop - 1 Tenant will pay expenses over their base year stop for the year following the lease start. Responsible for their share of expenses over this amount. - ANSWERS-Base Year Stop + Tenant this apply to will reimburse all recoverable expenses over the building stop amount based on their proportionate share of the building - ANSWERS-Stop Amount By default, when are leasing commissions paid within AE? - ANSWERS-The First month of the lease Sensitivity Analysis allows you to create scenarios and make edits to an individual property or all of the properties within your portfolio simultaneously - ANSWERS-TRUE Which of the following portfolio application tabs gives the ability to calculate a variance between two different scenarios? - ANSWERS- Reports Benefits of using a Chart of Accounts - ANSWERS-1. Easier to track Revenues/Expenses
- Standardizes portfolio names of expenses/revenues
- Helps with accounting integration
Users can create values for property and tenant classifications - ANSWERS-More than 100 Total Revenue Calculation = - ANSWERS-Scheduled Base Rent + CPI Increases Default Free Rent = - ANSWERS-Base Rent + Fixed Steps + CPI Increases The allows users to upload numerous files and URLs to centralize the location of property documents - ANSWERS- Attachments Tab Natural Breakpoint for % Rent = - ANSWERS-Base Rent / Sales % When calculating a Market Leasing Profile with the upon expiration set to vacate, ARGUS Enterprise: - ANSWERS-Assumes a 0% renewal probability When will the CPI Increase be applied to a tenant when the selected method is "Each Lease Anniversary" : - ANSWERS-At the beginning of each lease year start in the 2nd year A portfolio may have Chart of Accounts applied at a time: - ANSWERS-One
Percentage Rent: Tenant Size = 1250sf Base Rent = $20/sf/year Sales % = 3% Breakpoint = Natural - ANSWERS-Step 1: Natural Breakpoint = Base Rent / % Step 2: Chargeable Sales = Volume - Breakpoint Step 3: Retail Sales Revenue = Chargeable Sales x % Any type of item can be added on as a Miscellaneous Rent if they are directly related to the tenant: - ANSWERS-TRUE For a Tenant to pay a specific Amount for an Expense, select the Recovery Method: - ANSWERS-Fixed Amount Non-Operating Expenses will fall below the NOI Line on the Cash Flow: - ANSWERS-TRUE When leases roll to the Market Leasing Profile, by default the rents do not inflate during the roll over term: - ANSWERS-True Levels offered with the Charts of Accounts: - ANSWERS-1. Parent/Header
- Cash Flow/GL Account
- Detail/Job Costs
Percentage Rent Fields are only available when is selected as the property type. - ANSWERS-Retail or Mixed Use (that includes Retail) allows us to take who has been in the asset and what changes have been made to that asset. - ANSWERS-Audit Log Calculate the Operating Expense Shown on the Cash Flow from the following assumption: Expense Amount = $0.45/sf/year Property Size = 65,000 sf % Fixed = 45% Occupancy = 82% - ANSWERS-Step #1: Max Expense Amount = Expense Amount * Property Size Step #2: Fixed Amount = %Fixed x Max Expense Step #3: Variable Amount: Max Expense - Fixed Amount =
- Occupancy % Step #4: Total Expenses = Variable Amount + Fixed Amount Present Value Tab allows us to enter in a separate discount rate for the leveraged and un-leveraged resale rate - ANSWERS-True Intelligent Renewals are used to specify that tenant leases be renewed using? - ANSWERS-1. Last Months Rent Rate
- Contract Rate
- Weighted Market Renewal Rate
- Market Rent In A Different Market Leasing Profile It is required to enter in a Property Name and Address for every property added within a portfolio: - ANSWERS-FALSE The Fixed Amount/Area Recovery Method is calculated as : - ANSWERS-The annual amount/Area, based on tenant size that will be paid by the tenant each year. Calculate the amount that is eligible for recovery when using Gross Ups: Utilities Expense: $16, % Fixed: 35% % Occupied: 82% % Grossed Up: 90% - ANSWERS-(Utility Expense * % Fixed) + (Utility Expense * Variable % * %Gross Up) is a solution for consolidating and reporting property, tenant, portfolio and scenario info contained with in the ARGUS Date Warehouse. - ANSWERS-Portfolio Level Reporting Methods for Calculating General Vacancy: - ANSWERS-1. % of Potential Gross Revenue
- % of Total Rental Revenue
- % of Total Tenant Revenue
% Grossed Up: 90% - ANSWERS-Step 1: Fixed Expense = Utility Expense * % Fixed Step 2: Variable Expenses = (Utility Expense - Fixed Expense) * %Occupied Step 3: Total Expenses = Fixed Expense + Variable Expense 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, Tenant 1 Rental: $42, Tenant 1 Override %: 0% - ANSWERS-(Total Potential Gross Revenue - Tenant 1 Rental) * General Vacancy Rate Within AE it is possible to copy items from Excel into AE: - ANSWERS-True 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: - ANSWERS-Step 1: Sale Price = NOI / Cap Rate Step 2: Selling Cost = Sale Price * % selling costs Step 3: Net Sales Price = Sale Price - Selling Cost
