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Product User Manual ARGUS Enterprise 11.0.0 Published: 12/22/2015
Updated: 3/22/2016
ARGUS Software – An Altus Group Company Product User Manual ARGUS Enterprise 11.0 Product User Manual ARGUS Enterprise 11.0 12/22/2015 Published by: ARGUS Software, Inc. 750 Town and Country Blvd Suite 800 Houston, TX 77024 Telephone (713) 621‐4343 Facsimile (713) 621‐2787 www.argussoftware.com Information in this document is subject to change without notice and represents no commitment on the part of ARGUS Software, Inc. This document is copyright 2015, ARGUS Software, Inc. All rights reserved. This document is a confidential and proprietary trade secret of ARGUS Software, made available only under a license agreement and or other agreements containing obligations of confidentiality. "ARGUS" and “ARGUS Enterprise” are trademarks of ARGUS Software, Inc. All other trademarks and registered trademarks are property of their respective companies. 1
© 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Table of Contents ARGUS Enterprise ....................................................................................................................................... 38 Welcome ..................................................................................................................................................... 38 Questions about ARGUS Enterprise? .......................................................................................................... 39 How to get help:...................................................................................................................................... 39 On Screen Help ....................................................................................................................................... 39 ARGUS Technical Support ....................................................................................................................... 39 Hours of Operation ................................................................................................................................. 39 ARGUS Training ....................................................................................................................................... 40 System Requirements ................................................................................................................................. 41 ARGUS Enterprise Client ......................................................................................................................... 41 ARGUS Enterprise Application Server (medium installation) ................................................................ 42 ARGUS Enterprise Processing Server (medium installation) .................................................................. 42 ARGUS Enterprise Database Server (medium installation) .................................................................... 43 Control Panel............................................................................................................................................... 44 Control Panel ........................................................................................................................................... 44 Security ............................................................................................................................................... 44 System Settings ................................................................................................................................... 44 User Settings ....................................................................................................................................... 44 Getting Started ............................................................................................................................................ 45 Context Sensitive Help ............................................................................................................................ 45 Help Menu .......................................................................................................................................... 45 Backstage Area ........................................................................................................................................ 45 Dynamic Ribbon(s) .................................................................................................................................. 46 Home Ribbon .......................................................................................................................................... 46 Expand/Minimize Ribbon ........................................................................................................................ 47 Customer Feedback ................................................................................................................................ 47 2
© 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Help Menu .............................................................................................................................................. 47 View Ribbon ............................................................................................................................................ 47 Audit Ribbon ........................................................................................................................................... 47 Report Ribbon ......................................................................................................................................... 47 Property Editor ........................................................................................................................................ 48 Investment Structures Ribbon ................................................................................................................ 49 Shortcut Keys .............................................................................................................................................. 50 Inputs/Ribbon Shortcuts ......................................................................................................................... 50 Navigation between Sub‐tabs and Input tabs ........................................................................................ 51 Property Editor Input Tabs .................................................................................................................. 51 Property Input Sub‐tabs ...................................................................................................................... 51 Market Input Sub‐tabs ........................................................................................................................ 52 Revenues Input Sub‐tabs .................................................................................................................... 54 Expenses Input Sub‐tabs ..................................................................................................................... 54 Tenants Input Sub‐tabs ....................................................................................................................... 54 Investment Input Sub‐tabs.................................................................................................................. 55 Valuation Input Sub‐tabs .................................................................................................................... 55 Traditional Valuation Input Sub‐tabs .................................................................................................. 56 Property Editor Grids .......................................................................................................................... 56 Portfolio Grid ...................................................................................................................................... 58 Investment Structures ........................................................................................................................ 58 Portfolio ...................................................................................................................................................... 60 Adding a Property ....................................................................................................................................... 60 Property Asset Template .................................................................................................................... 60 Validating Import Data ........................................................................................................................ 62 Adding Property Information .............................................................................................................. 62 Deleting a Property ..................................................................................................................................... 65 Delete Property Assets window .......................................................................................................... 65 Delete Property Assets Job Progress window ..................................................................................... 67 Queued Job Details window ............................................................................................................... 67 3 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Permissions Security Setup ......................................................................................................................... 70 Portfolio Permissions .............................................................................................................................. 70 Scenario Permissions .............................................................................................................................. 71 Property Asset Permissions .................................................................................................................... 73 Classifications .............................................................................................................................................. 74 Copy Forecast to Budget ............................................................................................................................. 75 Property Groups .......................................................................................................................................... 78 The Manage Property Groups Panel ....................................................................................................... 78 The Edit Property Groups Panel .............................................................................................................. 78 Add New Property Group ....................................................................................................................... 79 Delete Property Groups .......................................................................................................................... 80 Duplicate Property Groups ..................................................................................................................... 80 Filter a Property Group ........................................................................................................................... 80 Property Groups and Portfolio Reports .................................................................................................. 80 Importing a Property ................................................................................................................................... 81 Export a Property ........................................................................................................................................ 84 Exporting Property Data as ARGUS Enterprise Property Asset file ......................................................... 85 Export Property Assets window .......................................................................................................... 85 Exporting Property Data in .aeex and .aeix formats ............................................................................... 86 Export Property Data window ............................................................................................................ 86 Exporting Property Data in Pisces and CVL Formats ............................................................................... 89 Removing Overrides .................................................................................................................................... 90 Calc Property Assets window .............................................................................................................. 91 Workflow Status .......................................................................................................................................... 92 Workflow Audits ................................................................................................................................. 93 Calculating Property Assets ........................................................................................................................ 94 Calc Property Assets window .............................................................................................................. 94 Calc Property Assets Job Progress window ......................................................................................... 96 Queued Job Details window ............................................................................................................... 96 4 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Checking In/Checking Out Properties ......................................................................................................... 99 Checking Properties In and Out .......................................................................................................... 99 Archiving Properties .......................................................................................................................... 100 Restoring Properties ......................................................................................................................... 101 Archiving a Property ................................................................................................................................. 103 Archiving Properties .......................................................................................................................... 103 Restoring Properties ......................................................................................................................... 104 Batch Update ............................................................................................................................................ 105 Batch Update – Update Current Scenario......................................................................................... 105 Batch Update – Create New Scenario ............................................................................................... 105 Parameters tab...................................................................................................................................... 107 Choose where to copy these property assets to (the destination scenario) .................................... 107 Copy to a New Scenario .................................................................................................................... 107 Property Assets ..................................................................................................................................... 109 Scenarios ................................................................................................................................................... 110 Creating a New Scenario ....................................................................................................................... 112 Scenario ............................................................................................................................................. 113 Duplicating a Scenario ........................................................................................................................... 115 Copy Options ..................................................................................................................................... 116 Scenario ............................................................................................................................................. 117 Record Security ................................................................................................................................. 120 Scenarios ........................................................................................................................................... 120 Repertoire Reporting ................................................................................................................................ 122 Working with Report Parameters ..................................................................................................... 122 Modifying Reports ............................................................................................................................ 123 Exporting Reports ............................................................................................................................. 123 Print Non‐Operating Expenses in Repertoire Reports ...................................................................... 124 Show/Hide Non‐Operating Expenses ................................................................................................ 124 Allocate a % of Non‐Operating Expenses to Operating Expenses .................................................... 125 User Defined Debt ............................................................................................................................. 125 Reports .............................................................................................................................................. 125 5 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Analysis ..................................................................................................................................................... 142 Analysis Ribbon ..................................................................................................................................... 142 Timing................................................................................................................................................ 142 Term .................................................................................................................................................. 143 Options .............................................................................................................................................. 143 Layout ................................................................................................................................................ 143 Analysis Columns .................................................................................................................................. 147 Analysis Chart ........................................................................................................................................ 147 Returns Over Time Layout .................................................................................................................... 148 Leveraged IRR per State Layout ............................................................................................................ 153 Top Grid ............................................................................................................................................ 154 Chart .................................................................................................................................................. 154 Bottom Grid ...................................................................................................................................... 154 PV & IRR Layout .................................................................................................................................... 155 Grid .................................................................................................................................................... 155 Traditional Valuation Layout ................................................................................................................. 156 Chart .................................................................................................................................................. 156 Grid .................................................................................................................................................... 157 Default Layout ....................................................................................................................................... 158 General .............................................................................................................................................. 158 Leveraged IRR.................................................................................................................................... 158 Net Operating Income ...................................................................................................................... 158 Cash Flow Available for Distribution ................................................................................................. 159 Occupied %........................................................................................................................................ 159 Audit Trail .................................................................................................................................................. 160 Override Audit Trail Levels ................................................................................................................ 161 Audit Trigger Actions ......................................................................................................................... 161 Audit Trail Grid .................................................................................................................................. 161 Audit Trail Options ............................................................................................................................ 162 Portfolio Details ........................................................................................................................................ 164 Portfolio Details ................................................................................................................................ 164 6 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Current Scenario Details ................................................................................................................... 165 Optional Calculations ........................................................................................................................ 167 Portfolio Properties ................................................................................................................................... 169 Property Asset Template .................................................................................................................. 169 Validating Import Data ...................................................................................................................... 171 Adding Property Information ............................................................................................................ 171 Archiving and Checking Properties In and Out ................................................................................. 173 Record Security ................................................................................................................................. 176 Workflow Status ................................................................................................................................ 177 Removing Overrides .......................................................................................................................... 179 Export Properties .............................................................................................................................. 180 Import Properties .............................................................................................................................. 180 Valuation‐Cashflow ................................................................................................................................... 182 Property ................................................................................................................................................ 182 Property Description ................................................................................................................................. 182 Purpose ................................................................................................................................................. 182 General Information ......................................................................................................................... 182 Analysis ............................................................................................................................................. 183 Timing................................................................................................................................................ 183 Currency and Measurement ............................................................................................................. 184 Property Location ...................................................................................................................................... 186 Purpose ................................................................................................................................................. 186 Address ............................................................................................................................................. 186 Additional Property Information .............................................................................................................. 187 Additional Property Information ...................................................................................................... 187 Comments ......................................................................................................................................... 187 Area Measures .......................................................................................................................................... 188 Purpose ................................................................................................................................................. 188 General .............................................................................................................................................. 188 Rentable Area ................................................................................................................................... 189 Occupied Area ................................................................................................................................... 191 7 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Detailed Area Measure ......................................................................................................................... 194 Area Measure .................................................................................................................................... 194 Rentable Area ................................................................................................................................... 194 Occupied Area ................................................................................................................................... 195 Charts of Accounts .................................................................................................................................... 197 Chart of Accounts Structure .................................................................................................................. 198 Opening a Chart of Accounts ................................................................................................................ 198 Creating a Chart of Accounts ................................................................................................................ 200 Importing a Chart of Accounts .............................................................................................................. 201 Exporting Charts of Accounts ................................................................................................................ 207 Adding Accounts ................................................................................................................................... 209 Deleting Accounts from a Chart of Accounts ........................................................................................ 210 Linking a Chart of Accounts to a Portfolio ............................................................................................ 210 Budgeting and Actuals .............................................................................................................................. 211 Purpose ................................................................................................................................................. 211 Highlight Rows/Cells ......................................................................................................................... 211 Actuals ................................................................................................................................................... 211 Budget ................................................................................................................................................... 212 Current Budget / Reforecasting ........................................................................................................ 213 Budget View .......................................................................................................................................... 214 Budget Tools ......................................................................................................................................... 214 Top Grid ............................................................................................................................................ 214 Timeframe ......................................................................................................................................... 214 Entry Functions ................................................................................................................................. 215 Budget Grid ........................................................................................................................................... 215 Details View .......................................................................................................................................... 216 Classifications ............................................................................................................................................ 218 Market ................................................................................................................................................... 219 Market Inflation ........................................................................................................................................ 219 8 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Purpose ................................................................................................................................................. 219 Inflation Indices ......................................................................................................................................... 222 Purpose ................................................................................................................................................. 222 General Vacancy ....................................................................................................................................... 224 Purpose ................................................................................................................................................. 224 Tenants to override ........................................................................................................................... 227 Credit Loss ................................................................................................................................................. 229 Purpose ................................................................................................................................................. 229 Tenants to Override Grid .................................................................................................................. 231 Market Leasing Profiles ............................................................................................................................. 233 Purpose ................................................................................................................................................. 233 Name ................................................................................................................................................. 233 General .............................................................................................................................................. 234 Base Rent (/Area) .............................................................................................................................. 234 Intelligent Renewals .......................................................................................................................... 235 Rent Increases ................................................................................................................................... 236 Rental Value ...................................................................................................................................... 238 Free Rent (Mo) .................................................................................................................................. 238 Recoveries ......................................................................................................................................... 239 Miscellaneous Items ......................................................................................................................... 240 Improvements ................................................................................................................................... 245 Leasing Commissions ........................................................................................................................ 246 Security Deposit ................................................................................................................................ 248 Percentage Rent (New & Renew) ..................................................................................................... 249 Volume .............................................................................................................................................. 249 Breakpoint ......................................................................................................................................... 250 Layer 1 ‐ Layer 6 ................................................................................................................................ 250 General .............................................................................................................................................. 251 Upon Expiration ................................................................................................................................ 251 Importing Market Leasing Profiles .................................................................................................... 251 Free Rent Profiles ...................................................................................................................................... 253 9 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Purpose ................................................................................................................................................. 253 General .............................................................................................................................................. 253 # Free Months ................................................................................................................................... 253 Elements to Include .......................................................................................................................... 253 CPI Increases ............................................................................................................................................. 255 Purpose ................................................................................................................................................. 255 CPI ..................................................................................................................................................... 255 First Increase ..................................................................................................................................... 256 Further Increases .............................................................................................................................. 256 CPI Amount ....................................................................................................................................... 257 Tenant Improvements .............................................................................................................................. 258 Purpose ................................................................................................................................................. 258 General .............................................................................................................................................. 258 Improvements ................................................................................................................................... 258 Lease Commission Categories ................................................................................................................... 260 Purpose ................................................................................................................................................. 260 General .............................................................................................................................................. 260 Commissions ..................................................................................................................................... 260 Elements to Include .......................................................................................................................... 261 Multifamily Market Leasing Profiles ......................................................................................................... 263 Name ................................................................................................................................................. 263 General .............................................................................................................................................. 263 Market Rent ...................................................................................................................................... 263 Intelligent Renewals .......................................................................................................................... 265 Improvements ................................................................................................................................... 266 Commissions ..................................................................................................................................... 266 Security Deposit ................................................................................................................................ 267 Market Rent Components ......................................................................................................................... 268 Purpose ................................................................................................................................................. 268 General .............................................................................................................................................. 268 Elements to Include .......................................................................................................................... 268 10 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Ranges ....................................................................................................................................................... 270 Purpose ................................................................................................................................................. 270 Rental Value Groups ................................................................................................................................. 272 Purpose ................................................................................................................................................. 272 Name ................................................................................................................................................. 272 Rental Value ...................................................................................................................................... 272 Revenues ............................................................................................................................................... 273 Miscellaneous Revenues ........................................................................................................................... 273 Purpose ................................................................................................................................................. 273 General .............................................................................................................................................. 274 Amount ............................................................................................................................................. 274 Timing................................................................................................................................................ 278 Inflation ............................................................................................................................................. 279 Limits ................................................................................................................................................. 279 Usage ................................................................................................................................................. 280 Capitalization Valuation .................................................................................................................... 280 Notes ................................................................................................................................................. 281 Parking Revenues ...................................................................................................................................... 282 Purpose ................................................................................................................................................. 282 General .............................................................................................................................................. 282 Amount ............................................................................................................................................. 282 Timing................................................................................................................................................ 285 Inflation ............................................................................................................................................. 286 Limits ................................................................................................................................................. 286 Usage ................................................................................................................................................. 287 Capitalization Valuation .................................................................................................................... 287 Notes ................................................................................................................................................. 288 Storage Revenues ..................................................................................................................................... 289 Purpose ................................................................................................................................................. 289 General .............................................................................................................................................. 289 Amount ............................................................................................................................................. 289 11 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Timing................................................................................................................................................ 292 Inflation ............................................................................................................................................. 293 Limits ................................................................................................................................................. 293 Usage ................................................................................................................................................. 294 Capitalization Valuation .................................................................................................................... 295 Notes ................................................................................................................................................. 295 Hotel Rooms .............................................................................................................................................. 297 Hotels: Departmental Revenues ............................................................................................................... 298 General .............................................................................................................................................. 298 Amount ............................................................................................................................................. 298 Timing................................................................................................................................................ 301 Inflation ............................................................................................................................................. 302 Limits ................................................................................................................................................. 302 Usage ................................................................................................................................................. 303 Notes ................................................................................................................................................. 304 Groups ............................................................................................................................................... 304 Hotels: Parking Revenues ......................................................................................................................... 305 General .............................................................................................................................................. 305 Amount ............................................................................................................................................. 305 Timing................................................................................................................................................ 308 Inflation ............................................................................................................................................. 309 Limits ................................................................................................................................................. 310 Usage ................................................................................................................................................. 311 Notes ................................................................................................................................................. 311 Groups ............................................................................................................................................... 311 Expenses................................................................................................................................................ 313 Operating Expenses .................................................................................................................................. 313 Purpose ................................................................................................................................................. 313 General .............................................................................................................................................. 313 Amount ............................................................................................................................................. 313 Timing................................................................................................................................................ 317 12 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation ............................................................................................................................................. 319 Limits ................................................................................................................................................. 319 Usage ................................................................................................................................................. 320 Capitalization Valuation .................................................................................................................... 320 Notes ................................................................................................................................................. 321 Groups ............................................................................................................................................... 322 Non‐Operating Expenses .......................................................................................................................... 323 Purpose ................................................................................................................................................. 323 General .............................................................................................................................................. 323 Amount ............................................................................................................................................. 324 Timing................................................................................................................................................ 327 Inflation ............................................................................................................................................. 328 Limits ................................................................................................................................................. 328 Usage ................................................................................................................................................. 329 Notes ................................................................................................................................................. 330 Capital Expenses ....................................................................................................................................... 331 Purpose ................................................................................................................................................. 331 General .............................................................................................................................................. 331 Amount ............................................................................................................................................. 332 Traditional Valuation......................................................................................................................... 335 Timing................................................................................................................................................ 335 Inflation ............................................................................................................................................. 337 Amortization ..................................................................................................................................... 338 Limits ................................................................................................................................................. 338 Usage ................................................................................................................................................. 340 Capitalization Valuation .................................................................................................................... 340 Notes ................................................................................................................................................. 341 Groups ............................................................................................................................................... 341 Expense Groups ........................................................................................................................................ 343 Purpose ................................................................................................................................................. 343 Excluded Expenses (Unlabeled) ........................................................................................................ 344 13 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Included Expenses (Unlabeled) ......................................................................................................... 344 Hide Detail ......................................................................................................................................... 345 Hotels: Operating Expenses ...................................................................................................................... 346 General .............................................................................................................................................. 346 Amount ............................................................................................................................................. 346 Timing................................................................................................................................................ 348 Inflation ............................................................................................................................................. 348 Limits ................................................................................................................................................. 348 Usage ................................................................................................................................................. 349 Groups ............................................................................................................................................... 350 Hotels: Non‐Operating Expenses .............................................................................................................. 351 General .............................................................................................................................................. 351 Amount ............................................................................................................................................. 351 Timing................................................................................................................................................ 353 Inflation ............................................................................................................................................. 354 Limits ................................................................................................................................................. 354 Usage ................................................................................................................................................. 355 Hotels: Capital Expenses ........................................................................................................................... 356 General .............................................................................................................................................. 356 Amount ............................................................................................................................................. 356 Timing................................................................................................................................................ 357 Inflation ............................................................................................................................................. 358 Limits ................................................................................................................................................. 358 Usage ................................................................................................................................................. 359 Repeating Payments ‐ Calculation Examples ............................................................................................ 361 Rent Roll .................................................................................................................................................... 363 Purpose ................................................................................................................................................. 363 Name ................................................................................................................................................. 364 Reference .......................................................................................................................................... 364 General .............................................................................................................................................. 364 Rental Income ................................................................................................................................... 367 14 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 CPI ..................................................................................................................................................... 374 GAAP Rent ......................................................................................................................................... 375 Percentage Rent ................................................................................................................................ 376 Recoveries ......................................................................................................................................... 377 Miscellaneous Items ......................................................................................................................... 378 Leasing Costs ..................................................................................................................................... 383 Security Deposit ................................................................................................................................ 384 Market Leasing .................................................................................................................................. 385 Traditional Valuation......................................................................................................................... 386 Capitalization Valuation .................................................................................................................... 388 Tenant Classifications ....................................................................................................................... 390 Notes ................................................................................................................................................. 390 Rental Income ‐ Calculation Examples ...................................................................................................... 391 Rent Review ‐ Calculations ........................................................................................................................ 392 Rental Value Unit ‐ Calculations ................................................................................................................ 394 Space Absorption ...................................................................................................................................... 395 Purpose ................................................................................................................................................. 395 Enable................................................................................................................................................ 395 General .............................................................................................................................................. 395 Market ............................................................................................................................................... 396 Areas ................................................................................................................................................. 396 Dates ................................................................................................................................................. 396 Detail ..................................................................................................................................................... 397 Name ................................................................................................................................................. 397 Reference .......................................................................................................................................... 398 General .............................................................................................................................................. 398 Rental Income ................................................................................................................................... 398 CPI ..................................................................................................................................................... 399 Percentage Rent ................................................................................................................................ 400 Recoveries ......................................................................................................................................... 400 Miscellaneous Items ......................................................................................................................... 400 15 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Leasing Costs ..................................................................................................................................... 400 Security Deposit ................................................................................................................................ 401 Market Leasing .................................................................................................................................. 401 Traditional Valuation......................................................................................................................... 401 Capitalization Valuation .................................................................................................................... 402 Tenant Classifications ....................................................................................................................... 403 Notes ................................................................................................................................................. 403 External ID ......................................................................................................................................... 403 Recovery Structures .................................................................................................................................. 404 Purpose ................................................................................................................................................. 404 Recovery Structures .......................................................................................................................... 405 Creating a User Recovery Structure ...................................................................................................... 407 Recovery Methods ............................................................................................................................ 408 Method Details ................................................................................................................................. 408 Expense Adjustments ........................................................................................................................ 410 Limits ................................................................................................................................................. 411 Percent Rent ..................................................................................................................................... 413 Multifamily Tenants .................................................................................................................................. 414 Name ................................................................................................................................................. 414 General .............................................................................................................................................. 414 Occupied Units .................................................................................................................................. 415 Unit Rollover ..................................................................................................................................... 416 Market Leasing .................................................................................................................................. 416 Absorption ........................................................................................................................................ 418 Tenant Groups .......................................................................................................................................... 421 Purpose ................................................................................................................................................. 421 Group Code ....................................................................................................................................... 421 Tenant Group Name ......................................................................................................................... 421 Excluded Tenants (left side) .............................................................................................................. 421 Included Tenants (right side) ............................................................................................................ 421 Ground Leases ........................................................................................................................................... 423 16 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Purpose ................................................................................................................................................. 423 Name ................................................................................................................................................. 424 Reference .......................................................................................................................................... 424 General .............................................................................................................................................. 424 Rental Income ................................................................................................................................... 424 Gearing .............................................................................................................................................. 426 Traditional Valuation......................................................................................................................... 427 Notes ................................................................................................................................................. 430 Tenant Security Deposits .......................................................................................................................... 431 Purpose ................................................................................................................................................. 431 General .............................................................................................................................................. 431 Refundable ........................................................................................................................................ 432 Non‐Refundable ................................................................................................................................ 432 Tenant Payment Schedules ....................................................................................................................... 434 Purpose ................................................................................................................................................. 434 General .............................................................................................................................................. 434 Investment ............................................................................................................................................ 435 Property Purchase ..................................................................................................................................... 435 Purpose ................................................................................................................................................. 435 Purchase Information ....................................................................................................................... 435 Closing Costs ..................................................................................................................................... 436 Purchase Notes ................................................................................................................................. 437 Debt Financing .......................................................................................................................................... 438 Purpose ................................................................................................................................................. 438 General .............................................................................................................................................. 438 Loan Details ....................................................................................................................................... 438 Loan Timing ....................................................................................................................................... 442 Calculation Options ........................................................................................................................... 443 Additional Principal ........................................................................................................................... 444 Loan Costs ......................................................................................................................................... 445 Reporting .......................................................................................................................................... 447 17 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Other Debt ................................................................................................................................................ 448 Purpose ................................................................................................................................................. 448 General .............................................................................................................................................. 448 Amount ............................................................................................................................................. 448 Inflation ............................................................................................................................................. 448 Notes ................................................................................................................................................. 449 Valuation ............................................................................................................................................... 450 Assumptions .............................................................................................................................................. 450 Purpose ................................................................................................................................................. 450 Timing................................................................................................................................................ 450 General .............................................................................................................................................. 450 Sensitivity Intervals ........................................................................................................................... 451 Intervals used for Present Value Reporting: ..................................................................................... 452 Direct Capitalization .................................................................................................................................. 453 Purpose ................................................................................................................................................. 453 Rate ................................................................................................................................................... 453 Results ............................................................................................................................................... 454 Capitalization Valuation ............................................................................................................................ 455 Property Defaults .............................................................................................................................. 455 Allowances Period ............................................................................................................................. 460 Revenue and Expense Treatments ................................................................................................... 461 Applying a Treatment to Revenue or Expense ..................................................................................... 463 Property Resale ......................................................................................................................................... 464 Purpose ................................................................................................................................................. 464 General .............................................................................................................................................. 464 Calculation Method ........................................................................................................................... 464 Stabilized Occupancy ........................................................................................................................ 468 Adjustment........................................................................................................................................ 469 Results ............................................................................................................................................... 471 Present Value ............................................................................................................................................ 472 18 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Purpose ................................................................................................................................................. 472 Discount ............................................................................................................................................ 472 Increment Discount Rate .................................................................................................................. 473 Timing................................................................................................................................................ 473 Capitalization Valuation Overrides ........................................................................................................... 474 General .............................................................................................................................................. 474 Treatment ......................................................................................................................................... 474 Traditional Valuation............................................................................................................................. 477 Traditional Valuation: Calculation............................................................................................................. 477 Assumptions ...................................................................................................................................... 477 Calculation Results ............................................................................................................................ 479 Running Yields ................................................................................................................................... 480 Traditional Valuation: Acquisition Costs ................................................................................................... 482 VAT .................................................................................................................................................... 482 Capital Costs ...................................................................................................................................... 483 Acquisition Costs grid ............................................................................................................................ 483 Name ................................................................................................................................................. 483 Amounts ............................................................................................................................................ 483 Traditional Valuation: Capitalization Yields .............................................................................................. 484 Name ................................................................................................................................................. 484 Method ............................................................................................................................................. 484 Froth .................................................................................................................................................. 486 Property Budget ........................................................................................................................................ 487 Budgeting and Actuals .............................................................................................................................. 487 Purpose ................................................................................................................................................. 487 Highlight Rows/Cells ......................................................................................................................... 487 Actuals ................................................................................................................................................... 487 Budget ................................................................................................................................................... 488 Current Budget / Reforecasting ........................................................................................................ 489 Budget View .......................................................................................................................................... 490 19 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Budget Tools ......................................................................................................................................... 490 Top Grid ............................................................................................................................................ 490 Timeframe ......................................................................................................................................... 490 Entry Functions ................................................................................................................................. 491 Budget Grid ........................................................................................................................................... 491 Details View .......................................................................................................................................... 493 Budgeting and Actuals .............................................................................................................................. 494 Purpose ................................................................................................................................................. 494 Highlight Rows/Cells ......................................................................................................................... 494 Actuals ................................................................................................................................................... 494 Budget ................................................................................................................................................... 495 Current Budget / Reforecasting ........................................................................................................ 496 Budget View .......................................................................................................................................... 497 Budget Tools ......................................................................................................................................... 497 Top Grid ............................................................................................................................................ 497 Timeframe ......................................................................................................................................... 497 Entry Functions ................................................................................................................................. 498 Budget Grid ........................................................................................................................................... 498 Details View .......................................................................................................................................... 499 Budgeting and Actuals: Copy Forecast ..................................................................................................... 501 Parameters window .......................................................................................................................... 501 View Job Progress ............................................................................................................................. 503 Queued Job Details ........................................................................................................................... 503 Modeling Policies ...................................................................................................................................... 504 Purpose ................................................................................................................................................. 504 General tab ........................................................................................................................................... 504 Sections ............................................................................................................................................. 506 Vacancy & Credit Loss ....................................................................................................................... 506 Inflation ............................................................................................................................................. 507 Market Leasing .................................................................................................................................. 507 20 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rounding ........................................................................................................................................... 508 Revenues and Expenses tab .................................................................................................................. 509 Revenue and Expense ....................................................................................................................... 509 Tenants tab ........................................................................................................................................... 511 Recoveries tab ....................................................................................................................................... 517 Recoveries ......................................................................................................................................... 519 Apply Admin Fees As ......................................................................................................................... 520 Traditional Valuation tab ...................................................................................................................... 521 Property Valuation ............................................................................................................................ 522 Output Yield Assumptions ................................................................................................................ 523 Methods/Yields ................................................................................................................................. 524 Sinking Fund ...................................................................................................................................... 525 Capitalization Valuation tab .................................................................................................................. 525 Property Level Reports ............................................................................................................................. 528 Reports and Charts ................................................................................................................................... 528 Printing Reports ........................................................................................................................................ 530 Dashboard Reports ................................................................................................................................... 532 Property Summary ............................................................................................................................ 532 Tenant Summary ............................................................................................................................... 533 Property Reports ....................................................................................................................................... 535 Cash Flow .......................................................................................................................................... 535 Executive Summary ........................................................................................................................... 540 Assumptions Report .......................................................................................................................... 542 Budget Comparison ........................................................................................................................... 543 Month and Year‐to‐Date Variance .................................................................................................... 544 Sources and Uses .............................................................................................................................. 545 Valuation Reports ..................................................................................................................................... 550 IRR Matrix .......................................................................................................................................... 550 Value Matrix ...................................................................................................................................... 553 Resale Matrix .................................................................................................................................... 557 Valuation and Return Summary ........................................................................................................ 558 21 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Present Value .................................................................................................................................... 560 Yearly Valuation ................................................................................................................................ 562 Returns Over Time ............................................................................................................................ 568 Tenant Reports .......................................................................................................................................... 573 Lease Summary Report ..................................................................................................................... 573 Lease Expiration Report .................................................................................................................... 574 Leasing Activity Report ..................................................................................................................... 575 Tenant Cash Flow / LPV Report ......................................................................................................... 576 Retail Revenue & Sales Report .......................................................................................................... 578 Recovery Structures Detail Report .................................................................................................... 578 Lease Break Options Report .............................................................................................................. 579 Unit Reports .............................................................................................................................................. 580 Unit Occupancy ................................................................................................................................. 580 Unit Audit .......................................................................................................................................... 581 Unit Assumptions .............................................................................................................................. 582 Audit Reports ............................................................................................................................................ 585 Occupancy Report ............................................................................................................................. 585 Lease Audit Report ............................................................................................................................ 586 ADR .................................................................................................................................................... 588 Percentage Rent Audit Report ‐ Standard and Detailed ................................................................... 589 RevPAR Report .................................................................................................................................. 590 Recovery Audit Report ...................................................................................................................... 591 Expense Group Audit Report ............................................................................................................ 593 Loan Amortization Report ................................................................................................................. 593 Property Resale Audit Report ........................................................................................................... 595 Income by Rent Review ..................................................................................................................... 596 Rent Schedule Audit .......................................................................................................................... 597 Input Assumptions ............................................................................................................................ 599 Reports: Review ........................................................................................................................................ 600 Data Review Details .......................................................................................................................... 600 Import Review Details ....................................................................................................................... 601 Calculation Review Details ................................................................................................................ 602 22 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Validation Listing ............................................................................................................................... 602 Audit Log ........................................................................................................................................... 602 Traditional Valuation Development Express Reports ............................................................................... 605 Summary Valuation ........................................................................................................................... 605 Detailed Valuation ............................................................................................................................ 607 Single Line Tenancy Schedule ........................................................................................................... 612 Area Analysis ..................................................................................................................................... 613 Valuation Audit ................................................................................................................................. 614 Capitalization Valuation Reports .............................................................................................................. 617 Capitalization Valuation .................................................................................................................... 617 Inputs ................................................................................................................................................ 620 Reversion Audit ................................................................................................................................. 621 Custom Reports......................................................................................................................................... 623 Reports .............................................................................................................................................. 623 Forms and Datasheets ...................................................................................................................... 624 Report Options ...................................................................................................................................... 627 Report Options: Global ............................................................................................................................. 627 Dates ................................................................................................................................................. 629 Printing Format ................................................................................................................................. 629 Tenant Report Options ..................................................................................................................... 630 Traditional Valuation Report Options ............................................................................................... 631 Report Options: Property Summary ......................................................................................................... 632 Upper Chart ....................................................................................................................................... 634 Lower Chart ....................................................................................................................................... 634 Printing Format ................................................................................................................................. 635 Report Options: Tenant Summary ............................................................................................................ 637 Upper Chart ....................................................................................................................................... 637 Lower Chart ....................................................................................................................................... 638 Report Options .................................................................................................................................. 638 Report Options: Cash Flow ....................................................................................................................... 639 Dates ................................................................................................................................................. 640 23 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Printing Format ................................................................................................................................. 641 Report Options: Executive Summary ........................................................................................................ 645 Printing Format ................................................................................................................................. 647 Report Options: Assumptions ................................................................................................................... 648 Dates ................................................................................................................................................. 650 Printing Format ................................................................................................................................. 650 Report Options: Budget Comparison ........................................................................................................ 651 Dates ................................................................................................................................................. 652 Printing Format ................................................................................................................................. 653 Report Options: Month and Year to Date Variance .................................................................................. 656 Dates ................................................................................................................................................. 657 Report Options .................................................................................................................................. 657 Report Options: Sources and Uses Report ................................................................................................ 658 Dates ................................................................................................................................................. 659 Printing Format ................................................................................................................................. 659 Hotels ................................................................................................................................................ 661 Exporting ........................................................................................................................................... 662 Report Options: IRR Matrix ....................................................................................................................... 663 Printing Format ................................................................................................................................. 664 Report Options: Value Matrix ................................................................................................................... 665 Printing Format ................................................................................................................................. 667 Report Options: Resale Matrix .................................................................................................................. 668 Printing Format ................................................................................................................................. 670 Report Options: Valuation and Return Summary ..................................................................................... 671 Printing Format ................................................................................................................................. 672 Report Options: Present Value ................................................................................................................. 673 Valuation ........................................................................................................................................... 674 Printing Format ................................................................................................................................. 675 Report Options: Yearly Valuation ............................................................................................................. 676 Dates ................................................................................................................................................. 677 Printing Format ................................................................................................................................. 678 24 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options: Returns Over Time.......................................................................................................... 679 Dates ................................................................................................................................................. 680 Printing Format ................................................................................................................................. 681 Report Options: Lease Summary .............................................................................................................. 683 Report Options: Lease Expiration ............................................................................................................. 686 Report Options: Leasing Activity ............................................................................................................... 691 Dates ................................................................................................................................................. 691 Report Options .................................................................................................................................. 692 Report Options: Tenant Cash Flow / LPV .................................................................................................. 693 Dates ................................................................................................................................................. 694 Printing Format ................................................................................................................................. 695 Lease Valuation Options ................................................................................................................... 698 Report Options: Occupancy ...................................................................................................................... 700 Dates ................................................................................................................................................. 701 Report Options .................................................................................................................................. 701 Report Options: Lease Audit ..................................................................................................................... 702 Dates ................................................................................................................................................. 703 Printing Format ................................................................................................................................. 704 Report Options: Percentage Rent Audit ................................................................................................... 707 Formats ............................................................................................................................................. 708 Dates ................................................................................................................................................. 708 Printing Format ................................................................................................................................. 708 Report Options: Recovery Audit ............................................................................................................... 710 Dates ................................................................................................................................................. 711 Printing Format ................................................................................................................................. 712 Report Options: Income by Rent Review .................................................................................................. 715 Dates ................................................................................................................................................. 716 Report Options .................................................................................................................................. 717 Report Options: Sources and Uses Report ................................................................................................ 720 Dates ................................................................................................................................................. 721 Printing Format ................................................................................................................................. 721 25 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Hotels ................................................................................................................................................ 723 Exporting ........................................................................................................................................... 724 Report Options: Input Assumptions ......................................................................................................... 725 Input Assumptions ............................................................................................................................ 726 Report Options: Rent Schedule Audit ....................................................................................................... 727 Dates ................................................................................................................................................. 729 Report Options .................................................................................................................................. 729 Report Options: Capitalization Valuation ................................................................................................. 732 Dates ................................................................................................................................................. 734 Printing Format ................................................................................................................................. 734 Report Options: Reversion Audit .............................................................................................................. 735 Portfolio Level Reports ............................................................................................................................. 738 Repertoire Reporting ................................................................................................................................ 738 Working with Report Parameters ..................................................................................................... 738 Modifying Reports ............................................................................................................................ 739 Exporting Reports ............................................................................................................................. 740 Print Non‐Operating Expenses in Repertoire Reports ...................................................................... 740 Show/Hide Non‐Operating Expenses ................................................................................................ 740 Allocate a % of Non‐Operating Expenses to Operating Expenses .................................................... 741 User Defined Debt ............................................................................................................................. 741 Reports .............................................................................................................................................. 742 Repertoire Reporting ................................................................................................................................ 758 Working with Report Parameters ..................................................................................................... 758 Modifying Reports ............................................................................................................................ 759 Exporting Reports ............................................................................................................................. 759 Print Non‐Operating Expenses in Repertoire Reports ...................................................................... 760 Show/Hide Non‐Operating Expenses ................................................................................................ 760 Allocate a % of Non‐Operating Expenses to Operating Expenses .................................................... 761 User Defined Debt ............................................................................................................................. 761 Reports .............................................................................................................................................. 761 Cash Flow and Operating Performance ................................................................................................ 777 26 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Repertoire Reports: Cash Flow Comparison ............................................................................................. 777 Purpose ................................................................................................................................................. 777 Report Parameters ............................................................................................................................ 778 Repertoire Reports: Cash Flow Detail Comparison ................................................................................... 782 Purpose ................................................................................................................................................. 782 Report Parameters ............................................................................................................................ 783 Repertoire Reports: Cash Flow Detail ....................................................................................................... 787 Purpose ................................................................................................................................................. 787 Report Parameters ............................................................................................................................ 787 Repertoire Reports: Cash Flow ................................................................................................................. 792 Purpose ................................................................................................................................................. 792 Report Parameters ............................................................................................................................ 792 Repertoire Reports: Dashboard ................................................................................................................ 796 Purpose ................................................................................................................................................. 796 Report Parameters ............................................................................................................................ 796 Report Parameters ............................................................................................................................ 800 Repertoire Reports: Executive Financial Summary ................................................................................... 803 Purpose ................................................................................................................................................. 803 Report Parameters ............................................................................................................................ 803 Custom .................................................................................................................................................. 806 Repertoire Reports: Custom ..................................................................................................................... 806 Leasing and Occupancy ......................................................................................................................... 807 Repertoire Reports: Average Daily Rate and Revenue per Available Room Comparison ........................ 807 Purpose ................................................................................................................................................. 807 Report Parameters ............................................................................................................................ 808 Repertoire Reports: Average Daily Rate and Revenue per Available Room ............................................. 811 Purpose ................................................................................................................................................. 811 Report Parameters ............................................................................................................................ 811 Repertoire Reports: Lease Expiration ....................................................................................................... 815 27 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Purpose ................................................................................................................................................. 815 Report Parameters ............................................................................................................................ 815 Repertoire Reports: Leasing Activity ......................................................................................................... 820 Purpose ................................................................................................................................................. 820 Report Parameters ............................................................................................................................ 820 Repertoire Reports: Net Absorption ......................................................................................................... 825 Purpose ................................................................................................................................................. 825 Report Parameters ............................................................................................................................ 825 Repertoire Reports: Net Effective Rent .................................................................................................... 828 Purpose ................................................................................................................................................. 828 Report Parameters ............................................................................................................................ 828 Repertoire Reports: Occupancy Comparison ............................................................................................ 832 Purpose ................................................................................................................................................. 832 Report Parameters ............................................................................................................................ 832 Repertoire Reports: Occupancy ................................................................................................................ 836 Purpose ................................................................................................................................................. 836 Report Parameters ............................................................................................................................ 836 Repertoire Reports: Rent Roll‐Current ..................................................................................................... 840 Purpose ................................................................................................................................................. 840 Report Parameters ............................................................................................................................ 840 Repertoire Reports: Rent Roll‐Presentation ............................................................................................. 843 Purpose ................................................................................................................................................. 843 Report Parameters ............................................................................................................................ 843 Repertoire Reports: Tenant Retention ..................................................................................................... 846 Purpose ................................................................................................................................................. 846 Report Parameters ............................................................................................................................ 846 Repertoire Reports: Top Tenants .............................................................................................................. 850 Purpose ................................................................................................................................................. 850 Report Parameters ............................................................................................................................ 850 28 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Operations ............................................................................................................................................ 855 Repertoire Reports: Budget Comparison .................................................................................................. 855 Purpose ................................................................................................................................................. 855 Report Parameters ............................................................................................................................ 856 Repertoire Reports: Cash Flow Forecast Comparison .............................................................................. 860 Purpose ................................................................................................................................................. 860 Report Parameters ............................................................................................................................ 861 Repertoire Reports: Forecast Summary.................................................................................................... 864 Purpose ................................................................................................................................................. 864 Report Parameters ............................................................................................................................ 864 Repertoire Reports: Month and Year‐to‐Date Variance ........................................................................... 867 Purpose ................................................................................................................................................. 867 Report Parameters ............................................................................................................................ 867 Summary and Assumptions .................................................................................................................. 870 Repertoire Reports: Classification Summary ............................................................................................ 870 Purpose ................................................................................................................................................. 870 Report Parameters ............................................................................................................................ 870 Repertoire Reports: Debt Summary ......................................................................................................... 872 Purpose ................................................................................................................................................. 872 Report Parameters ............................................................................................................................ 872 Repertoire Reports: Market Rate Assumptions ........................................................................................ 876 Purpose ................................................................................................................................................. 876 Report Parameters ............................................................................................................................ 876 Repertoire Reports: Portfolio Composition Summary .............................................................................. 879 Purpose ................................................................................................................................................. 879 Report Parameters ............................................................................................................................ 880 Repertoire Reports: Revenue and Expense Assumptions ........................................................................ 884 Purpose ................................................................................................................................................. 884 Report Parameters ............................................................................................................................ 884 29 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Repertoire Reports: Vacancy Assumptions ............................................................................................... 888 Purpose ................................................................................................................................................. 888 Report Parameters ............................................................................................................................ 888 Supporting Schedules ........................................................................................................................... 891 Repertoire Reports: Cash Flow By Report Group ..................................................................................... 891 Purpose ................................................................................................................................................. 891 Report Parameters ............................................................................................................................ 892 Repertoire Reports: Cash Flow Comparison By Report Group ................................................................. 897 Purpose ................................................................................................................................................. 897 Report Parameters ............................................................................................................................ 898 Report Subtitle .................................................................................................................................. 902 Repertoire Reports: Speculative Leasing Summary .................................................................................. 903 Purpose ................................................................................................................................................. 903 Report Parameters ............................................................................................................................ 903 Repertoire Reports: Tenant Revenue ....................................................................................................... 905 Purpose ................................................................................................................................................. 905 Report Parameters ............................................................................................................................ 905 UK Traditional Valuation ....................................................................................................................... 908 Repertoire Reports: Area Analysis ............................................................................................................ 908 Purpose ................................................................................................................................................. 908 Parameters ........................................................................................................................................ 908 Repertoire Reports: Detailed Valuation .................................................................................................... 910 Purpose ................................................................................................................................................. 910 Parameters ........................................................................................................................................ 910 Repertoire Reports: Single Line Tenancy Schedule .................................................................................. 912 Purpose ................................................................................................................................................. 912 Parameters ........................................................................................................................................ 912 Repertoire Reports: Summary Valuation .................................................................................................. 913 Purpose ................................................................................................................................................. 913 30 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Parameters ........................................................................................................................................ 914 Valuations and Returns ......................................................................................................................... 915 Repertoire Reports: Executive Present Value Summary .......................................................................... 915 Purpose ................................................................................................................................................. 915 Report Parameters ............................................................................................................................ 915 Repertoire Reports: Multiple Valuation Summary ................................................................................... 919 Purpose ................................................................................................................................................. 919 Report Parameters ............................................................................................................................ 919 Repertoire Reports: Present Value Comparison ....................................................................................... 922 Purpose ................................................................................................................................................. 922 Report Parameters ............................................................................................................................ 923 Repertoire Reports: Present Value ........................................................................................................... 926 Purpose ................................................................................................................................................. 926 Report Parameters ............................................................................................................................ 926 Investment Structures .............................................................................................................................. 929 Investment Structures .............................................................................................................................. 929 Purpose ................................................................................................................................................. 929 Refresh .................................................................................................................................................. 929 Add Investment Structure ..................................................................................................................... 930 Delete Investment Structures ............................................................................................................... 931 Duplicate Investment Structures .......................................................................................................... 931 Import/Export Investment Structures .................................................................................................. 933 Calculate Structures .............................................................................................................................. 935 Check in/Out Structures ........................................................................................................................ 935 Archive/Restore Structures ................................................................................................................... 937 Queued Job Progress popup ................................................................................................................. 938 Queued Job Details popup ................................................................................................................ 939 Investment Portfolios ............................................................................................................................... 940 Open Portfolio ....................................................................................................................................... 940 31
© 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Create New Portfolio ............................................................................................................................ 940 Duplicate Portfolio ................................................................................................................................ 941 Delete Portfolio ..................................................................................................................................... 942 Refresh .................................................................................................................................................. 943 Scenario ................................................................................................................................................. 943 Investment Structures: Visual Editor ........................................................................................................ 944 Purpose ................................................................................................................................................. 944 Visual Editor ...................................................................................................................................... 944 Editor Tab .......................................................................................................................................... 944 Structure Details Inputs ........................................................................................................................ 948 Structure Details: Investment Structure Details ....................................................................................... 948 Purpose ................................................................................................................................................. 948 Investment Structure Details ............................................................................................................ 948 Structure Details: Entity List ...................................................................................................................... 950 Purpose ................................................................................................................................................. 950 General .............................................................................................................................................. 950 Structure Details: Instrument List ............................................................................................................. 952 Purpose ................................................................................................................................................. 952 General .............................................................................................................................................. 952 Structure Details: Inflation ........................................................................................................................ 953 Purpose ................................................................................................................................................. 953 Structure Details: Present Value ............................................................................................................... 955 Purpose ................................................................................................................................................. 955 Discount ............................................................................................................................................ 955 Increment Discount Rate .................................................................................................................. 956 Structure Details: Valuation Assumptions ................................................................................................ 957 Purpose ................................................................................................................................................. 957 Sensitivity Intervals ........................................................................................................................... 957 Entity Inputs .......................................................................................................................................... 959 32 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Investment Entity: Entity Details .............................................................................................................. 959 Purpose ................................................................................................................................................. 959 Description ........................................................................................................................................ 959 Address ............................................................................................................................................. 960 Investment Entity: Costs ........................................................................................................................... 961 Purpose ................................................................................................................................................. 961 General .............................................................................................................................................. 961 Amount ............................................................................................................................................. 961 Investment Entity: Fees ............................................................................................................................ 965 Purpose ................................................................................................................................................. 965 General .............................................................................................................................................. 965 Amount ............................................................................................................................................. 965 Investment Entity: Assets ......................................................................................................................... 968 Purpose ................................................................................................................................................. 968 General .............................................................................................................................................. 968 Ownership ......................................................................................................................................... 968 Purchase ............................................................................................................................................ 969 Resale ................................................................................................................................................ 969 Adding a New Record ........................................................................................................................ 970 Investment Entity: Financing .................................................................................................................... 972 Purpose ................................................................................................................................................. 972 General .............................................................................................................................................. 972 Contributions of Capital .................................................................................................................... 972 Interest .............................................................................................................................................. 976 Finance Fees ...................................................................................................................................... 976 Repayment of Capital ........................................................................................................................ 977 Investment Entity: Inter‐source Transactions ........................................................................................... 980 Purpose ................................................................................................................................................. 980 General .............................................................................................................................................. 980 Amount ............................................................................................................................................. 980 33 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Investment Entity: Distributions ............................................................................................................... 982 Purpose ................................................................................................................................................. 982 General .............................................................................................................................................. 982 Amount ............................................................................................................................................. 982 Investment Entity: Portfolio Overrides ..................................................................................................... 985 Purpose ................................................................................................................................................. 985 Portfolio Area Options ...................................................................................................................... 985 Portfolio Purchase Price .................................................................................................................... 985 Portfolio Resale Price ........................................................................................................................ 986 Investment Entity: Valuation Assumptions ............................................................................................... 987 Purpose ................................................................................................................................................. 987 Sensitivity Intervals ........................................................................................................................... 987 Entity Reports ....................................................................................................................................... 989 Investment Structures: Entity Reports ...................................................................................................... 989 Purpose ................................................................................................................................................. 989 Reports: ............................................................................................................................................. 989 Cashflow ................................................................................................................................................ 989 Purpose ................................................................................................................................................. 989 Report Sections ................................................................................................................................. 989 Report Formatting............................................................................................................................. 990 Sources and Uses .................................................................................................................................. 990 Purpose ................................................................................................................................................. 990 Report Sections ..................................................................................................................................... 990 Sources of Capital ............................................................................................................................. 990 Uses of Capital .................................................................................................................................. 992 Other Uses of Capital ........................................................................................................................ 995 Investor Returns ................................................................................................................................ 996 Fund Performance Metrics ............................................................................................................... 997 Loan Amortization ................................................................................................................................. 997 Purpose ................................................................................................................................................. 997 34 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Columns ................................................................................................................................ 998 Report Formatting............................................................................................................................. 998 Debt Summary ...................................................................................................................................... 998 Purpose ................................................................................................................................................. 998 Report ............................................................................................................................................... 998 Report Formatting............................................................................................................................. 999 Present Value Summary ........................................................................................................................ 999 Purpose ................................................................................................................................................. 999 Report Sections ................................................................................................................................. 999 Report Formatting........................................................................................................................... 1000 Reviews ............................................................................................................................................... 1001 Investment Structures: Reviews ............................................................................................................. 1001 Investment Structures: Reviews ............................................................................................................. 1001 Reports: ........................................................................................................................................... 1001 Data Review Details ............................................................................................................................ 1001 Purpose ............................................................................................................................................... 1001 Calculation Review .............................................................................................................................. 1002 Validation Listing ................................................................................................................................. 1002 Investment Structures: Reviews ............................................................................................................. 1003 Data Review Details ............................................................................................................................ 1003 Calculation Review .......................................................................................................................... 1003 Validation Listing ............................................................................................................................. 1004 Investment Structures: Validation Listing ............................................................................................... 1005 Audit Reports ...................................................................................................................................... 1006 Investment Structures: Audit Reports .................................................................................................... 1006 Occupancy ........................................................................................................................................... 1006 Purpose ............................................................................................................................................... 1006 Property .......................................................................................................................................... 1006 Total Area Amount .......................................................................................................................... 1006 Total Portfolio Area ......................................................................................................................... 1006 35 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Average Percent Occupancy ........................................................................................................... 1006 Portfolio Reports ................................................................................................................................. 1007 Investment Structures: Consolidated Investor Return Report ............................................................... 1007 Purpose ............................................................................................................................................... 1007 Report Parameters .......................................................................................................................... 1007 Consolidated Investor Return Report ................................................................................................. 1008 Report Options ........................................................................................................................................ 1010 Investment Structures: Cashflow Report Options .................................................................................. 1010 Purpose ............................................................................................................................................... 1010 Investment Structures: Sources and Uses Report Options ..................................................................... 1013 Purpose ............................................................................................................................................... 1013 Report Options ................................................................................................................................ 1013 Investment Structures: Loan Amortization Report Options ................................................................... 1015 Purpose ............................................................................................................................................... 1015 Investment Structures: Debt Summary Report Options ......................................................................... 1016 Purpose ............................................................................................................................................... 1016 Investment Structures: Present Value Summary Report Options .......................................................... 1017 Purpose ............................................................................................................................................... 1017 Sensitivity Analysis .................................................................................................................................. 1019 Batch Update .......................................................................................................................................... 1019 Batch Update – Update Current Scenario....................................................................................... 1019 Batch Update – Create New Scenario ............................................................................................. 1019 Parameters tab.................................................................................................................................... 1021 Choose where to copy these property assets to (the destination scenario) .................................. 1021 Copy to a New Scenario .................................................................................................................. 1022 Property Assets ................................................................................................................................... 1023 Batch Update .......................................................................................................................................... 1025 Batch Update – Update Current Scenario....................................................................................... 1025 Batch Update – Create New Scenario ............................................................................................. 1025 36 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Parameters tab.................................................................................................................................... 1027 Choose where to copy these property assets to (the destination scenario) .................................. 1027 Copy to a New Scenario .................................................................................................................. 1028 Property Assets ................................................................................................................................... 1029 Administration: Sensitivity Assumptions ................................................................................................ 1031 Open Sensitivity Assumptions ............................................................................................................. 1032 Assumption Set Options.................................................................................................................. 1032 Create a New Sensitivity Assumptions Set ......................................................................................... 1032 Add Filters ....................................................................................................................................... 1033 Delete Filters ................................................................................................................................... 1035 Duplicate Filters .............................................................................................................................. 1035 Edit Filters ....................................................................................................................................... 1035 Matrix Builder ................................................................................................................................. 1036 Show Matrix ‐ Show Results and Print ............................................................................................ 1037 Sensitivity Matrix ................................................................................................................................ 1038 Key Features .................................................................................................................................... 1038 Show Detailed Results ..................................................................................................................... 1039 Apply to Scenario ............................................................................................................................ 1041 Duplicate Sensitivity Assumptions ...................................................................................................... 1041 Delete Sensitivity Assumptions ........................................................................................................... 1042 Refresh ................................................................................................................................................ 1042 Apply an Existing Sensitivity Assumption Set to a Scenario ................................................................ 1042 Create a New Assumption Set ............................................................................................................ 1043 Print/Export Assumption Sets ............................................................................................................. 1043 Index ........................................................................................................................................................ 1048 37 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 ARGUS Enterprise Welcome The ARGUS Enterprise platform is a powerful suite of integrated solutions for analyzing and reporting on tenant, property, and portfolio information for the purposes of: 
Fund and investment management 
Portfolio and asset management 
Cash flow projections and valuations 
Budgeting and forecasting The ARGUS Enterprise platform is comprised of two core modules: 
Valuation‐Cash Flow: This module enables you to model property level cash flow analysis and valuations. 
Repertoire Reporting: This module enables you to model portfolio reporting and analysis. ARGUS Enterprise is designed for companies and financial institutions that need to project the performance of their assets throughout the life‐cycle of the investment, including acquisitions, development, rehabilitation or repositioning, finance, leasing, asset, portfolio, and investment management and disposition. ARGUS Enterprise is a world‐class solution that ends the reliance on: 
Complex business processes based on manual hand‐offs of data 
Massive, error‐prone, and proprietary spreadsheets 
Costly and disconnected IT infrastructure and support ARGUS Enterprise scales to meet the forecasting and analysis needs of the entire organization, providing organizations the ability to standardize business processes and focus on analytics and returns. It also meets the specific needs of users in different business units who require different kinds of information – from top‐level analysis for calculating and projecting investment returns, to the fundamental analysis of lease contracts, cash flow forecasts, and property valuations. With ARGUS Enterprise, you may accomplish the following tasks: 
Centralize property files 
Accommodate the global and local requirements of any portfolio 
Run multiple scenarios in seconds to search out the optimum alternatives 
Provide presentation quality reporting for end results and sensitivity 
Analyze various market oriented scenarios in real time 
Win more business See Also Get Started with ARGUS Enterprise 38 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Questions about ARGUS Enterprise? How to get help: On Screen Help Comprehensive help is available in the Online Help which can be accessed via the Help menu. While on any screen, the F1 key or the Help button will direct the user to context sensitive reference information. ARGUS Technical Support The ARGUS Support Team is available for questions throughout the day. If the answer cannot be found in the User Manual or On Screen Help, please contact Technical Support: Submit a Support Request online at http://argus.custhelp.com/app/ask Online: By Chat:
Visit http://argus.custhelp.com for frequently asked questions (FAQs), Quick Tips, video tutorials, and a searchable knowledge base. Topics range from installation to reimbursement calculations. In addition, tell us how we can enhance our products using our feature request portal. Your opinion counts. The ARGUS Support site features online chat. No more waiting on hold; chat with a live representative to resolve inquiries quickly and hassle free. US/Canada: 1 888‐MyARGUS(692‐7487) Asia/Pacific/Singapore: +65 6411 2288 Australia: +612 9262 1332 By Telephone:
Europe: +44 (0) 203 589 3345 All others please call: +1 713 621 4343 Please have your serial number ready when you call. By Online Form:
Visit http://argus.custhelp.com and click Ask a Question. Feel free to attach an ARGUS Enterprise file to the online form. Please include your serial number (which can be found in the Help section of the File tab), email address, product, subject, and question. Hours of Operation Americas: 7:30am to 6:30pm GMT‐6 Monday to Thursday, 7:30am to 6:00pm GMT‐6 Friday, excluding USA public holidays Europe: 9:00am to 5:30pm GMT Monday to Friday, excluding UK public holidays Asia/Pacific: 9:00am to 6:00pm GMT+8 Monday to Friday, excluding Singapore public holidays Australia: 9:00am to 5:00pm GMT+10 Monday to Friday, excluding Australian public holidays 39 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 ARGUS Training The ARGUS training department is available to help with ARGUS Enterprise data modeling and private training requests. If you lack the manpower to complete a project in time, remember we are available to help you with your projects. For more information please call 1‐888‐MYARGUS (692‐7487); select option 3 for Training. 40 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 System Requirements The system requirements for ARGUS Enterprise depend upon the scale as described below. For assistance with specific configurations, contact us. 
Small: ARGUS Enterprise for small enterprises is a good fit for production environments with one to five users, each running locally but connecting to a SQL database on a server. The design is appropriate for establishing a production environment in the case of smaller work groups with only one or two property portfolios and a small number of models. Consider the medium‐scale implementation if more than two portfolios or more than 100 property models are anticipated. The small‐scale implementation is not recommended for our clients who use budgeting functionality. 
Medium: The medium‐scale design is a good selection for production environments with five to ten users or when creating pilot or test environments for larger scale implementations. A nice compromise to the lower performance of a small‐scale design and the higher cost of a large scale deployment, the medium‐scale design offers a reasonably fast startup time with options to provide some basic benefits in fault tolerance and capacity management. Consider the large‐scale implementation if more than 300 property models are anticipated. 
Large: The large‐scale design is a good selection to establish a production environment in an organization with large user counts and/or more than ten portfolios consisting of an average of 300 properties or more. Unless service up‐time is a critical priority, the large‐scale design is probably excessive for a pilot or test environment. ARGUS Enterprise Client Component Required
Computer and Processor 2 gigahertz (GHz) processor or higher Memory 4 gigabyte (GB) RAM or higher Hard Disk 2 GB; a portion of this disk space may be freed up post‐installation by removing the original download package. Display 1024x768 or higher resolution Operating System Microsoft Windows Vista with SP1 (32‐bit or 64‐bit); Microsoft Windows 7 (32‐bit or 64‐bit) , Microsoft Windows 8 (32bit or 64bit); Microsoft Windows 10 (32bit or 64bit). Other Installation of the .NET framework 4.0 is a pre‐requisite for use with the Enterprise platform. These minimum guidelines are subject to modification based on unique system specifications. 41 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 ARGUS Enterprise Application Server (medium installation) Application services are flexible, so it is possible to use one of many solutions to balance the load across a number of servers as required, providing scalability and fault tolerance. Component Required
Recommended Processor Dual processors rated faster than 2.5 gigaherz (GHz) Quad processors rated faster than 3.0 GHz RAM 4 gigabytes (GB) 8 GB Disk NTFS file‐system formatted partition with at least 3GB of free space with the operating system (O/S) installed Operating System Windows Server 2008 Std x86 or x64 Other Microsoft .NET framework 4.0 Windows Server 2012 R2 Std x64 ARGUS Enterprise Processing Server (medium installation) Component Required
Recommended Processor Dual processors rated faster than 2.5 GHz Multi processors rated faster than 3.0 GHz RAM 6 GB 8 GB Disk NTFS file‐system formatted partition with at least 3 GB of free space with the O/S installed Operating System Windows Server 2008 R2 Std x86 or x64 Other Microsoft .NET framework 4.0 Windows Server 2012 Std x64 42 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 ARGUS Enterprise Database Server (medium installation) Separate database server is not required as the use of SQL Express on the workstation is supported. Component Required
Recommended Processor Dual processors rated faster than 2.5 GHz Quad processors rated faster than 2.5 GHz RAM 8 GB 16 GB Disk 6 disk array on‐board storage with 50 GB of free space Network storage with 10+ disk array configured as logical unit numbers (LUNs) with 100 GB of free space. Operating System Windows Server 2008 R2 Std x86 or x64 Windows Server 2012 Std x64 Database Microsoft SQL Server 2008 or later Microsoft SQL Server 2012 or later Other If local reports are not used, then SSRS is required for Repertoire Reporting, but can be installed on a separate instance of SQL Server. 43 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Control Panel Control Panel allows you to use administrative features in ARGUS Enterprise if you have the appropriate permissions. Navigation: File>Control Panel Control Panel For more information about any of the following options, select a link below: Security Users User Groups Roles System Settings System Web Form Integration eFront FrontInvest Options Data Import Validation Rules Workflow Status XL4ADW Settings Report Packages User Settings Workspace 44 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Getting Started To access ARGUS Enterprise, you must be logged into the network. Your network login is used to determine the rights and permissions that allow you to access various areas of the program as well as individual properties and scenarios. Context Sensitive Help To access the Help Menu: • Push F‐1: Opens the Help Menu and jumps straight to information related to the active screen. • Click (top right corner of screen): Opens the Help Menu. Help Menu The Help Menu allows you to search for useful program information: • Table of Contents: Search by contents, grouped by module/screen order. • Index: Search by an indexed term. • Search: Search by a typed key term. This is especially useful when searching for information that may not be linked directly to a screen such as Quick Start topics that provide background/introductory information. Backstage Area When you login to ARGUS Enterprise, the first window that displays is the Backstage Area. You can also access the Backstage by clicking File in the upper left corner of the window. 45 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Dynamic Ribbon(s) ARGUS Enterprise uses dynamic ribbons, which change based on: • Modules • Screens • Inputs • Selections • Grids • Windows Home Ribbon Click the Home tab to open the Property Editor. Choose from the following sections: • Clipboard: Copy/paste data in standard ways. • Selection: Select data in grids. • Data: Manipulate record line items and choose how to save property since last session. 46 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Show/Hide: Choose to display/hide Input tabs, Report tabs. Dock/undock reports. Access Budget/Details screens if you have a Budget license. • Views: Select/create custom views for the Property Editor. • Options: Access Modeling Policies and select auto/manual saving. Expand/Minimize Ribbon Click in the top right corner of the ribbon to expand/minimize the ribbon. Customer Feedback Click to access the Customer Feedback form where you can submit Enhancement Requests. Help Menu Click or press F‐1 to access the ARGUS Enterprise Help Menu. View Ribbon See Custom Views. Audit Ribbon See Audit Trail. Report Ribbon Click a report tab to view the Reports Ribbon. Choose from the following sections: 47 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Report Options: Click on the button to launch the Report Options Pop‐Up for the selected report. Alternatively, you can click on the arrow to display report options tabs for all property level reports. • Page: Type/select the page or choose the page layout for the report. • Print & Export: Print or Export the report to various file formats. • Navigation: Navigate backward/forward across screens. Property Editor The Property Editor allows you to access: • Navigator: Toggle between multiple items such as properties, portfolios, and scenarios. • Queue: View the processing status of any jobs submitted to the server. • Report Tabs: View property level report group/report. • Input Tabs: View input grids for property data. • Input Grids: Type/select property data. 48 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Input Grid Behaviors Report Search Box Keyboard Shortcuts Repertoire (Portfolio) Reports Investment Structures Ribbon Navigation: Backstage>Investment Portfolios>Open Portfolio. The following Ribbon commands may be available for selection depending upon the tab/grid in which you are entering data for an investment structure: The Investment Structures Home Ribbon allows you to: • Refresh data • Add/Delete/Duplicate an investment structure • Import/Export an investment structure • Calculate Structures • Check In/Check Out/Archive Structures 49 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Shortcut Keys You can quickly navigate between tabs/grid cells and perform repetitive input tasks with ARGUS Shortcut Keys. Property Editor Input Tabs Investment Input Sub‐tabs Property Input Sub‐tabs Valuation Input Sub‐tabs Market Input Sub‐tabs Traditional Valuation Input Sub‐tabs Revenues Input Sub‐tabs Property Editor Grids Expenses Input Sub‐tabs Portfolio Grid Tenants Input Sub‐tabs Investment Structures Inputs/Ribbon Shortcuts You can quickly navigate to Inputs/Ribbon tabs and perform repetitive tasks like printing/exporting. 1. Push Alt. Result: Shortcuts appear over Inputs and Ribbon tabs. 2. Type the corresponding shortcut. Result: Ribbon/Input tabs display. Example ‐ Export a Report 1. Push Alt 2. Push 5 3. Push E 4. Select an export format in the pick list. Result: Report exports in selected format. 50 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Navigation between Sub‐tabs and Input tabs 1. Push an Input tab shortcut. 2. Push Esc before pushing a Sub‐tab shortcut Result: Input Key Tips re‐appear and Sub‐tab Key Tips disappear. Property Editor Input Tabs Shortcut Alt + P or Alt,P Alt + M or Alt,M Alt + R or Alt,R Alt + X or Alt,X Alt + T or Alt ,T Alt + N or Alt ,N Alt + V or Alt ,V Alt + L or Alt ,L Function Opens the Property Tab. Opens the Market Tab. Opens the Revenues Tab. Opens the Expenses Tab. Opens the Tenants Tab. Opens the Investments Tab. Opens the Valuation Tab. Opens the Traditional Valuation Tab. Property Input Sub‐tabs Shortcut Alt,P,D or Alt + P,D Alt,P,L or Alt + P,L Alt,P,I or Alt + P,I Alt,P,T 51 Function Opens the Property Description tab. Opens the Location tab Opens the Additional tab Opens the Attachments Tab. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 or Alt + P,T Alt,P,A or Alt + P,A Alt,P,C or Alt + P,C Alt,P,U or Alt + P,U Alt,P,B or Alt + P,B Alt,P,S or Alt + P,S Opens the Area Measures tab. Opens the Chart of Accounts Tab. Opens the Actuals Tab. Opens the Budget Tab. Opens the Classifications Tab. Market Input Sub‐tabs Alt,M,I or Alt + M ,I Opens the Inflation Tab. Alt,M,N or Alt + M,N Opens the Inflation Indices Tab. Alt,M,G or Alt + M,G Opens the General Vacancy Tab. Alt,M,M or Alt + M,M Opens the Market Leasing Tab. Alt,M,F or Alt + M,F Alt,M,C or Alt + M,C Alt,M,T or Alt + M,T Alt,M,L 52 Opens the Free Rent Tab. Opens the CPI Increases Tab. Opens the Tenant Improvements Tab. Opens the Lease Commissions Tab. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 or Alt + M,L Alt,M,R or Alt + M,R Alt,M,S or Alt + M,S Alt,M,V or Alt + M,V Alt,M,E or Alt + M,E Alt,M,M or Alt + M,M Alt,M,F or Alt + M,F Alt,M,C or Alt + M,C Alt,M,T or Alt + M,T Alt,M,L or Alt + M,L Alt,M,R or Alt + M,R Alt,M,S or Alt + M,S Alt,M,V or Alt + M,V 53 Opens the Rent Components Tab. Opens the Ranges Tab. Opens the Rental Value Groups Tab. Opens the Credit Loss Tab. Opens the Market Leasing Tab. Opens the Free Rent Tab. Opens the CPI Increases Tab. Opens the Tenant Improvements Tab. Opens the Lease Commissions Tab. Opens the Rent Components Tab. Opens the Ranges Tab. Opens the Rental Value Groups Tab. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Revenues Input Sub‐tabs Alt,R,M or Alt + R,M Alt,R,P or Alt + R,P Alt,R,S or Alt + R,S Alt,R,R or Alt + R,R Applies to Hotel property types only Alt,R,D or Alt + R,D Applies to Hotel property types only Opens the Miscellaneous Tab. Opens the Parking Tab. Opens the Storage Tab. Opens the Rooms Tab. Opens the Departmental Tab. Expenses Input Sub‐tabs Alt,X,O or Alt + X,O Alt,X,N or Alt + X,N Alt,X,C or Alt + X,C Alt,X,X or Alt + X,X Opens the Operating Tab. Opens the Non‐Operating Tab. Opens the Capital Tab. Opens the Expense Groups Tab. Tenants Input Sub‐tabs Alt,T,R or Alt + T,R Or Ctrl + R Alt,T,S or Alt + T,S Alt,T,C 54 Opens the Rent Roll. Opens the Space Absorption Tab. Opens the Recoveries Tab. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 or Alt + T,C Alt,T,G or Alt + T,G Alt,T,M or Alt + T,M Alt,T,L or Alt+ T,L Alt,T,D or Alt + T,D Alt,T,P or Alt + T,P Opens the Tenant Groups Tab. Opens the Multifamily Tab. Opens the Ground Leases Tab. Opens the Security Deposits Tab. Opens the Payment Schedules Tab. Investment Input Sub‐tabs Alt,N,P or Alt + N,P Alt,N,D or Alt + N,D Alt,N,O or Alt + N,O Opens the Property Purchase Tab. Opens the Debt Financing Tab. Opens the Other Debt Tab. Valuation Input Sub‐tabs Alt,V,A or Alt + V,A Alt,V,D or Alt + V,D Alt,V,P or Alt + V,P Alt,V,V or Alt + V,V Alt,V,C or Alt + V,C 55 Opens the Assumptions Tab. Opens the Direct Capitalization Tab. Opens the Property Resale Tab. Opens the Present Value Tab. Opens the Capitalization Valuation Tab. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Alt,V,O or Alt + V,O Opens the Capitalization Valuation Overrides Tab. Traditional Valuation Input Sub‐tabs Alt,L,C or Alt + L,C Alt,L,A or Alt + L,A Alt,L,Y or Alt + L,Y Opens the Calculations Tab. Opens the Acquisition Costs Tab. Opens the Capitalization Yields Tab. Property Editor Grids Ctrl + L Opens Filter Editor. Alt + 1 Opens File tab in Ribbon. Alt + 2 Opens Home tab in Ribbon. Alt + 3 Opens View tab in Ribbon. Alt + 4 Opens Audit tab in Ribbon. Alt + 5 Opens Report tab in Ribbon. F1 Open Help window. Ctrl + F1 Show/Hide Ribbon bar. F2 Place cursor in edit mode in a grid. F3 Toggle on/off Input section. F4 Toggle split/maximize Input and Reports windows. Alt + F4 Exit application F5 Refresh current window. F11 Open Report Options widow. F12 Open Modeling Policies window. Ctrl + i Inserts new record. 56 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Alt + E or Alt + O Ctrl + C Opens Direct Edit pane. Copy selection. Ctrl + D Duplicate current row. Ctrl + A Select all text. Ctrl + G Group accounts. Ctrl + P Print current report. Ctrl + Shift + P Open page setup window. Ctrl + S Save current property model. Ctrl + V Paste selection. Ctrl + X Cut a selection. Ctrl + Del Delete row or multiple rows. Ctrl + Shift + [ Move row to top. Ctrl + [ Move row up one Ctrl + ] Move row down one. Ctrl + Shift + ] Move row to bottom. Space Bar Open detail windows with input varies. Alt Display shortcuts for Menu,Quick Start,and Ribbon. Ctrl + Right Arrow Pull up next account in Budget view grid. Ctrl + Left Arrow Pull up previous account in Budget view grid. Ctrl + B Toggle between Property/Budget View grids. Ctrl + H Toggle between hiding/showing standard grid in Budget view. Ctrl + G Group on the standard grid in Budget view. Ctrl + U Extend value across grid in Budget view. Ctrl + Y Copy forecast row from grid in Budget view. Alt + O Clicks the OK button in all Windows. 57 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Portfolio Grid Ctrl + N Create new property model. Investment Structures Available in Investment Structures module: Shortcut Alt + 1 Alt + 2 Function Opens File tab in Ribbon. Opens Home tab in Ribbon. Alt + 3 Opens View tab in Ribbon. Alt + 4 Opens Audit tab in Ribbon. Alt + 5 Opens Editor tab in Ribbon. Ctrl + F1 F2 Ctrl + C Ctrl + D Ctrl + A Ctrl + P Ctrl + S Ctrl + V Ctrl + X Ctrl + Del Space Bar Show/Hide Ribbon bar. Place cursor in edit mode in a grid. Copy selection. Duplicate current row. Select all text. Print current report. Save current property model. Paste selection. Cut a selection. Delete row or multiple rows. Open detail windows with input varies. Display shortcuts for Menu,Quick Start,and Ribbon. Inserts new record. Alt Ctrl + I Alt + E or Alt + O Alt,D or Alt + D Alt,L or Alt + L Alt,I or Alt + I Alt,N or Alt + N Available if an Entity 58 Opens Direct Edit pane. Opens the Investment Structure Details Tab. Opens the Entity List Tab. Opens the Instrument List. Opens the Entity Details Tab. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 is selected Alt,C or Alt + C Available if an Entity is selected Alt,F or Alt + F Available if an Entity is selected Alt,A or Alt + A Available if an Entity is selected Alt,I or Alt +I Alt,T or Alt +T Alt,D or Alt + D Opens the Costs Tab. Opens the Fees Tab. Opens the Assets Tab. Opens the Instruments Tab. Opens the Inter‐Source Transactions Tab. Opens the Distributions Tab. 59 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Portfolio Adding a Property To add a property to a portfolio, click Add Property on the Ribbon. See Also Deleting a Property Duplicating a Property Record Security Setup Show Classifications Copy Forecast to Budget Import Properties Export Properties Remove Overrides Workflow Status Calculate Properties Check In/Out Properties Archive Properties Batch Update Create Sensitivity Scenario Portfolio Details Property Asset Template The Property Asset Template tab allows you to create a new property from scratch or to select a property template. 60 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Create Property from Scratch Select this option if you will be creating a property from scratch. Property Asset Type If you are creating a property from scratch, select the asset type from the pick list in the Property Asset Type field. Choose from: 
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61 Office Retail Industrial Mixed Use (Office/Retail) Mixed Use (Office/Industrial) Mixed Use (Office/Multifamily) Mixed Use (Retail/Multifamily) © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
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Multifamily Hotel Note: Some ARGUS Enterprise features are in available in multifamily and hotel asset types that are not available in others. See Multifamily Tenants for more information on multifamily properties; see Hotels for more information on hotel asset types. Create property from one of the templates below If you want to use a template for the property, select this option and then select the template for the property. Click Next to continue. Click the Previous button to return to the previous step or Close to stop this process. Validating Import Data If a property already exists in the target scenario, as determined by a matching External ID, the property in the scenario will be updated with the contents of the AEIX file. If a property with a matching External ID does not exist in the scenario, a new property will be created from the selected template or as a blank model from scratch, based on your selection in the previous window. Adding Property Information Once you have indicated the type of property you want to create, choose Next to enter information about the property. 62 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Name The property name appears on the first line of the report title on all reports and is typically the name of the real estate project being analyzed. External ID# The external ID is a critical identifier when linking the property to other information sources. Analysis Begin Enter the date on which the analysis should begin. Click the down arrow to display a calendar to select a date. The default is the current month of the current year. If you change the entry in the Analysis Begin Date field, all information entered will move forward and backward accordingly. To run a fiscal year 63 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 analysis, change the begin date to the month desired (in the same calendar year, e.g.,. 1/11 to 6/11). All data will shift to a fiscal year basis. Analysis Years Enter the number of years of the analysis. The length of the analysis cannot exceed 100 years (an additional year for resale calculations purposes will automatically be projected by the system). The system default for Length of Analysis is 10 years. Analysis Months Enter the number of months of the analysis. Months should be entered as zero (0) through eleven (11). Twelve (12) months should be expressed as one (1) year. Currency Select the currency in the pick list in the Currency field. Area Measure Select the area measurement unit in the pick list in the Area Measure field. Warning: The Currency and Measurement selections for a property model can be changed at any time; however, the model will not convert data inputs or calculated results to reflect the new currency or area measure. Address Enter the address of the property in the various address fields. Comments Enter any comments about the property. Property Type Select the property type in the pick list in this field. Open the Property in the Editor Select this option to automatically open the property in the Property Editor upon completion. Click Next to continue. Click Previous to return to the previous step or Close to stop this process. 64 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Deleting a Property To delete a property from the portfolio, select a property from the properties grid, then click Delete Properties on the Ribbon. See Also Adding a Property Duplicating a Property Record Security Setup Show Classifications Copy Forecast to Budget Import Properties Export Properties Remove Overrides Workflow Status Calculate Properties Check In/Out Properties Archive Properties Batch Update Create Sensitivity Scenario Portfolio Details Delete Property Assets window The Delete Property Assets window allows you to delete a selected property. 65 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Validation Result Displays the validation result. Validation Message Displays the validation message. Action Displays the action being processed. Property Name Displays the selected property name(s). External ID Displays the external ID. Property Type Displays the property type. 66 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Address Displays the address. City Displays the city name. State Displays the state name. Country Displays the country name. Comments Displays the comments entered. Checked Out/Archived by Displays the name of the user who has the property checked out or archived. Task ID Displays the task ID. Task Name Displays the task name. Click Finish to continue or Cancel to stop this process. Delete Property Assets Job Progress window The Delete Property Assets Job Progress window shows you the job progress. Click Job Details to open the Queued Job Details window. Click Close to close the window. Click Cancel Job to stop this process. Queued Job Details window The Queued Job Details window displays the details of the job being processed. 67 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Job Details Description Displays a description of the job being processed. Job ID Displays the job ID. Submitted At Displays the date and time the job was submitted. Submitted By Displays the user who submitted the job. Job Status Displays the status of job completion. Execution Location Displays the location of the job. 68 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Priority Displays the relative priority of the job. You can use Cancel Job to stop this process or Refresh to reset your choices. Job Details grid ID Displays the job ID. Task Type Displays the task type. Description Displays the description. Status Displays the job status. Order Displays the order number. Started Process Displays the date and time the job was started. Finished Process Displays the date and time the job finished. Message Displays a message if there is an error. Server Processed Displays the name of the process server. Click Export to Excel to export these columns to an Excel spreadsheet. Click Close to close this window. 69 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Permissions Security Setup Permissions allows you to specify record security at both the user and the group level. You can use the arrow to select a permission type from the pick list. Choose from: 
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Portfolio Permissions Scenario Permissions Asset Permissions Portfolio Permissions Permissions Security Setup (Admin Mode) window 70 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 The Record Security Setup window allows you to assign security levels to a portfolio, property, or scenario if you have the appropriate level of administrative permissions. If you do not have administrative rights to assign security to a record, you will still be able to view the Record Security Setup window, however, you will not be able to make changes to it. See Also Edit Rights Full Rights Available Groups & Users The Available Groups & Users section of the window lists the current groups and users who have not been assigned rights to the to the selected record. Selected Groups & Users The Selected Groups & Users section of the window lists the users who have rights to the selected record. 
Name: This field displays the name for the selected group or user. 
Description: This field displays the description for the selected group or user. 
No Access: If you select this option, the selected group or user will have no access. 
Read Only: If you select this option, the selected group or user will have read only rights. 
Edit: If you select this option, the selected group or user will have edit rights. 
Full: If you select this option, the selected group or user will have full rights. Assigning Rights to a Record / Removing Rights from a Record Use the arrow buttons in the middle of the window to move users into or out of the selected group. See Also Administration: Manage Permission Groups Scenario Permissions Permissions Setup (Admin Mode) window 71 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 72 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Asset Permissions Permissions Setup (Admin Mode) window 73 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Classifications Navigation: Property Editor>Inputs>Property>Area Measures The Classifications tab allows you to classify individual assets. You will be able to select from the available property classifications in the Group By parameter of many Repertoire Reports (this will vary by report). You will also be able to filter properties by the available property classifications in Sensitivity Analysis for the purposes of applying batch changes to inputs associated with properties matching the classification selection. Note: Creating and editing classifications is an administrative function. Only users with appropriate rights will be able to create or edit property classifications. See Also Global Categories: Managing Classifications Repertoire Reports Sensitivity Analysis To add a classification to a record, click Add Record on the Ribbon. Classification Select a classification to apply to an asset from the pick list in the Classification field. Value Select the value you want to associate with the asset from the drop‐down list in the Value field. Warnings Review any warnings that may be displayed in the Warnings field. 74 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Copy Forecast to Budget You can use Copy Forecast to Budget on the Ribbon to copy the forecast records for selected properties to the budget records within the same scenario for the same properties. This allows you to save time and eliminate errors on data entry by taking existing property forecast records and copying them into the budget records for those same properties within the same scenario. To copy forecast records, highlight the properties you wish to copy, and click Copy Forecast to Budget on the Ribbon. 75 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Define the forecast period you wish to copy by selecting the first and last months of the period from the pick lists in the corresponding month fields. Click Next to continue. 76 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Review the property assets to be copied. When you are certain that the correct properties have been selected, click Finish to copy the records. 77 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Groups Navigation: Home>Portfolio Properties>Ribbon>Property Groups>Manage Property Groups You can create and manage property groups for more flexibility in creating scenarios and reporting. The Property Groups button in the Ribbon allows you to: • Create/manage property groups. • Add/remove properties from a property group. • Rename property groups. • Filter and sort. • Delete/duplicate property groups. Note: The property group names are independent of scenarios and can be used across the portfolio. The Manage Property Groups Panel Use the Manage Property Groups panel to add, edit and duplicate property groups. 1. Select Property Groups>Manage Property Groups on the Ribbon. Result: The Manage Property Groups panel displays on the right with a button bar at the bottom. 2. Click Manage Property Groups again to hide the panel. Add New Property Group: Creates an empty property group. Delete Property Groups: Delete the selected property group. Duplicate Property Groups: Duplicate the selected property groups. Edit Property Group: Launches the Edit Property Groups panel. Apply: Applies your changes. Cancel: Ends the current process without saving changes. The Edit Property Groups Panel Use the Edit Property Groups panel to add, remove and view property groups. 1. Select Property Groups>Manage Property Groups on the Ribbon. Result: The Manage Property Groups panel displays on the right with a button bar at the bottom. 2. Click Edit . Result: The Edit Property Groups panel displays. 78 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Name: View or edit the property group name. Classification: View or edit the property group classification. Properties: Type a letter or letters to select or sort by: • External ID • Name • Address Option: Type in a Properties field to enable an Edit Filter button at the bottom of the panel. Click Edit Filter to launch a custom filter popup. See also: Grids. Add New Property Group Use this procedure to add a new property group and add/exclude properties. 1. In the Manage Property Groups panel click Add Result: A new property group displays. . 2. Type a name for the property group. Click Edit . Result: The Edit Property Groups panel displays. 3. Press Ctrl while clicking on properties to select multiple properties. 4. Click Add to add the selected properties to your group. Result: The properties display in the group. Option: You can click and drag properties into your group. 5. Click a property in the Edit Property Groups panel. Result: The property row highlights. 6. Click to exclude the property from your group. 7. Click Apply to save your changes. 8. Click Back to return to the Edit Property Groups panel. Note: A new list of external IDs will be stored in the database for this newly named Property Group. Groups that are not shared appear in My Property Groups under Property Groups in the Ribbon. 79 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Delete Property Groups 1. In the Manage Property Groups panel, select a property group. 2. Click Delete . Result: A popup appears asking if you are sure you want to delete this Property Group. 3. Click Yes to delete your property group. Duplicate Property Groups 1. In the Manage Property Groups panel select a property group. 2. Click Duplicate . Result: New property group displays with name (existingName)_Copy. 3. Type a new name for the newly duplicated property group. 4. Click Apply to save your changes. Filter a Property Group In the Edit Property Groups panel, type in External ID, Name, or Address fields. Result: Panel displays only filtered properties. Property Groups and Portfolio Reports Use this procedure to select a subset of properties for portfolio reports: 1. Go to Portfolio>Reports>Open Report>Report Folder>Report Name>Property Group 2. Click the property group to include in the report. 3. Click the group basis to enable desired Properties options. 4. Click/type desired parameters in remaining fields. 5. Click Run Report. Result: Report displays. Note: If you change one of the parameters, you must click Run Report again. 80 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Importing a Property You must be in a portfolio in order to import a property. See Also Portfolios To import a property into a portfolio, click Import Properties on the Ribbon. You can select which file format to use for the import in the pick list. Choose from: • Import from .avux or .sf file: You can import a .avux or .sf file, which are file formats specifically generated for import/export in ARGUS Enterprise. • Import from .aeix file: You can import a .aeix, which is a file format specifically generated for import/export in ARGUS Enterprise. • Import from Pisces file: You can import a PISCES file, which is an industry recognized medium for transfer of property data. Specially formatted files can be exchanged between Valuation‐Capitalisation and ARGUS Enterprise. The file can also be .PIE file or .CPI compressed file. • Import from CVL file: You can import a CVL file, which is an import/export file format used by Valuation‐Capitalisation. This format is unrelated to the PISCES format and was created to allow Valuation‐Capitalisation to dump all the data held in the database for a portfolio or property down into a flat file which can then be retained or sent to another organization. See Also Importing a Property from AEIX Deleting a Property Record Security Setup Show Classifications Copy Forecast to Budget Export Properties 81 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Remove Overrides Workflow Status Calculate Properties Check In/Out Properties Archive Properties Batch Update Create Sensitivity Scenario Portfolio Details Browse for the file you want to import in Windows Explorer, and click Open. The Import Property Assets window opens. The Import Property Assets window contains the following columns. Validation Result Displays if there are warnings associated with the property import. Validation Message Displays the warning messages associated with the property import. 82 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Action This field has a pick list with two options: • Import: Property will be imported despite warning messages. • Skip: Property will not be imported. Property Name Displays the property name. External ID Displays the unique external identification for the property. Property Type Displays the property type. Address Displays the property's address. Click Finish to continue the import process. The Queued Job Progress window opens. Click Cancel Job if you want to cancel the import. You may click Close to close the Queued Job Progress window. If you close the window, the import will continue to run. When the input is complete, your imported property will be displayed in the list of properties in your portfolio. See Also Connecting to a Database 83 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Export a Property To export a property to a portfolio, select a property from the list and then click Export Properties on the Ribbon. See Also Deleting a Property Duplicating a Property Record Security Setup Show Classifications Copy Forecast to Budget Import Properties Remove Overrides Workflow Status Calculate Properties Check In/Out Properties Archive Properties Batch Update Create Sensitivity Scenario Portfolio Details Select an export method in the pick list. Choose from: 
Export as ARGUS Enterprise Property Asset File: Export window opens and ask you to select a destination folder. 
Export as ARGUS Valuation ‐ DCF File: Export window opens and asks you to select a destination folder. 
Export Property Data in .aeex format: Export property data in .aeex format according to selections in the Export Property Data window. 
Export Property Data in .aeix format: Export property data in .aeix format according to selections in the Export Property Data window. 84 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Export Property Data in Pisces format: Export property data in Pisces format according to selections in the Export Property Data window. 
Export Property Data in CVL format: Export property data in CVL format according to selections in the Export Property Data window. Exporting Property Data as ARGUS Enterprise Property Asset file If you choose to export property data as a property asset file, the Export Property Assets Pop‐Up appears. Export Property Assets window You can choose to export properties data to: • A single AVUX file (zipped file): Check Export Properties data to a single file. Type a file name in Single File Name and click Finish. Note check your target folder for the zipped .avux file. • Multiple files: Click Finish.
85 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Exporting Property Data in .aeex and .aeix formats If you choose to export property data in either .aeex or .aeix formats, the Export Property Data window opens. Export Property Data window You can choose which property data to export. 86 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Assets Export Operating Expenses Select this option to export operating expenses. Export Capital Expenses Select this option to export capital expenses. Export Non‐Operating Expenses Select this option to export non‐operating expenses. Export Other Debt Select this option to export other debt expenses. Export Tenants Select this option to export tenant data. Export Tenant Groups Select this option to export tenant Group data. Export Classifications Select this option to export classifications. Export Actuals Data Select this option to export actuals data. 87 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Export Prior Budget Data Select this option to export prior budget data. Export Forecast Data Select this option to export forecast data. Export Expense Groups Select this option to export expense group data. Export Recovery Structures Select this option to export recovery structures data. Export Results Data Select this option to export results data. Export Property data to individual files Select this option to export data to individual files. Use Scenario Currency/Area Select this option to use the scenario currency/area data for exported data. Use Property dates for data exported Select this option to use property dates for exported data. Specify common dates for all Property Data exported Enter dates for exported property data. 
Data Begin Date: Enter a date for the data to begin. 
# Months: Enter the number of months for the period. • Base Rent Data to Export: Select which base rent data to export. Choose from: • Rent Schedule • Rent Schedule and Legacy Property Assets Grid Validation Result Displays the validation result. Validation Message Displays the validation message. Action Displays the action being processed. Property Name Displays the selected property name(s). 88 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 External ID Displays the external ID. Property Type Displays the property type. Address Displays the address. City Displays the city name. State Displays the state name. Country Displays the country name. Comments Displays any comments. Status Displays the status of the process. Locked By Displays the name of the user who has the property checked out. Task ID Displays the task ID. Task Name Displays the task name. Click Finish to continue or Cancel to stop this process. Exporting Property Data in Pisces and CVL Formats If you choose to export property data, the Save As window will open and allow you to select a directory in which to save the files. 89 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Removing Overrides If the budget‐related Override Scenario Settings has been selected in individual properties, you can use Remove Overrides on the Ribbon to remove any overrides in the selected properties and guarantee consistent data‐production for scenario‐level reporting. See Also Deleting a Property Duplicating a Property Record Security Setup Show Classifications Copy Forecast to Budget Import Properties Export Properties Workflow Status Calculate Properties Check In/Out Properties Archive Properties Batch Update Create Sensitivity Scenario Portfolio Details To remove overrides, select the property assets from which you want to remove overrides, and then click Remove Overrides. 90 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calc Property Assets window On the Calc Property Assets window, review the list of assets from which overrides will be removed. If you do not want to remove overrides from some of the listed assets, choose Skip from the pick list in the Action field. Once you have reviewed the list of properties, click Finish. The Override Scenario Settings column on the main portfolio Properties window will display the Override Scenario Settings status for the property assets in the portfolio. 91 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Workflow Status Users who have edit or administrative rights over selective records can use Workflow Status on the main portfolio Ribbon to add and edit property record status information. See Also Properties To enter the workflow status, select the property or properties for which you want to enter a status, and click Workflow Status. Property Name The items listed in the Property Name field are determined by the properties that were selected. To list different properties, you must close the window and re‐select the properties on the previous screen. 92 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Status Select the workflow status in the pick list in this field. Note that the available on the pick list are determined by the system administrator. See Also Administration: Workflow Status Options Comments If you want to enter comments or notes (up to 100 characters) related to the status, enter them in the Comments field. Workflow Audits If you want to review what changes have been made, by who, and when, or if you want to export the history to Word, Excel, or a PDF file, click Workflow Audit. To export from this window, click Export, enter a file name, and choose the file type to which you want to export. 93 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calculating Property Assets To calculate property assets, select properties you want to calculate and click Calculate Properties on the Ribbon. See Also Workflow Status Check In/Out Properties Archive Properties Portfolio Details Calc Property Assets window 94 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Validation Result Displays the validation result. Validation Message Displays the validation message. Action Displays the action being processed. Property Name Displays the selected property name(s). External ID Displays the external ID. Property Type Displays the property type. Address Displays the address. City Displays the city name. State Displays the state name. Country Displays the country name. Comments Displays the comments entered. Status Displays the status of the property asset. Checked Out/Archived by Displays the name of the user who has the property checked out or archived. Task ID Displays the task ID. Task Name Displays the task name. Click Finish to continue or Cancel to stop this process. 95 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calc Property Assets Job Progress window The Calc Property Assets Job Progress window shows you the job progress. Click Job Details to open the Queued Job Details window. Click Close to close the window. Click Cancel Job to stop this process. See Also Getting Started Queued Job Details window The Queued Job Details window displays the details of the job being processed. 96 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Job Details Description Displays a description of the job being processed. Job ID Displays the job ID. Submitted At Displays the date and time the job was submitted. Submitted By Displays the user who submitted the job. Job Status Displays the status of job completion. Execution Location Displays the location of the job. 97 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Priority Displays the relative priority of the job. You can use Cancel Job to stop this process or Refresh to reset your choices. Job Details grid ID Displays the job ID. Task Type Displays the task type. Description Displays the description. Status Displays the job status. Order Displays the order number. Started Process Displays the date and time the job was started. Finished Process Displays the date and time the job finished. Message Displays a message if there is an error. Server Processed Displays the name of the process server. Click Export to Excel to export these columns to an Excel spreadsheet. Click Close to close this window. 98 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Checking In/Checking Out Properties To check in/check out a property to a portfolio, select the property from the properties grid, then click Check in/Out Properties on the Ribbon. See Also Workflow Status Calculate Properties Archive Properties Portfolio Details You can select whether to check in/check out properties in the pick list. Choose from: 
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Check Out Properties Check In Properties Checking Properties In and Out Checking out a property in ARGUS Enterprise makes it unavailable for edits by anyone else. When you edit a property, it is automatically checked out as long as the property remains open. When you close the property, the system will automatically check the property back in, making it available for edits by others once again. If you want to check out a property for an extended period of time, you can use Check Out Properties, which is available on the pick list when you click Check In/Out Properties on the Ribbon, to make the property unavailable for edits by others even when the property is closed. 99 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 To check the property back in so that it is available for editing, use Check In Properties which is available on the pick list when you click Check In/Out Properties on the Ribbon. Archiving Properties If you want to make a property completely unavailable for edits by anyone (including yourself), you can use Archive Properties on the Ribbon to archive the property. 100 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Restoring Properties If you need to make an archived property available again, you can use Restore Properties which is available on the pick list when you click Archive Properties on the Ribbon. When a property has been checked out or archived, the corresponding Status field for that property will display a symbol. Archived properties will display a small shield; checked out properties will display a pencil as illustrated in the screen example below. In addition, the Checked Out/Archived By field will display the name of the user who checked out or archived the property. 101 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 102 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Archiving a Property To archive a property, which will make it completely unavailable for edits by anyone (including yourself), you can select the property from the properties grid then use Archive Properties on the Ribbon. See Also Workflow Status Calculate Properties Check In/Out Properties Portfolio Details Archiving Properties Select the property to be archived and choose Archive Properties in the Ribbon. 103 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Restoring Properties If you need to make an archived property available again, you can use Restore Properties, which is available on the pick list when you click Archive Properties on the Ribbon. When a property has been checked out or archived, the corresponding Status field for that property will display a symbol. Archived properties will display a small shield; checked out properties will display a pencil as illustrated in the screen example below. In addition, the Checked Out/Archived By field will display the name of the user who checked out or archived the property. 104 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Batch Update Navigate to Portfolio Properties>Ribbon>Batch Update. Batch Update allows you to: • Model several changes simultaneously instead of performing each adjustment. • Create more comprehensive changes than the Sensitivity Matrix allows. • Create a new base scenario. • Update/Copy a current scenario. Batch Update – Update Current Scenario Navigate to Portfolio>Batch Update>Update Current Scenario. 1. Click Batch Update in the Ribbon. 2. Select Update Current Scenario in the pick list. Result: Scenario tabs display on the bottom ribbon. 3. Click a scenario tab. 4. Click one or more of the No Change cells. 5. Select a calculation method for each value in the pick list. 6. Enter a new value in the adjacent field. 7. Click Apply to view adjustments in the Property Name grid below. 8. Double click/select cells to make further changes. Editable cells vary across grids. 9. Click Save and Calc to apply these changes to the base scenario. Batch Update – Create New Scenario Before you begin: Adjustments made to models within Sensitivity Analysis will change your underlying data. To maintain the base scenario for comparison purposes, or as the baseline for future sensitivity analytics, make a duplicate copy of your property model base scenarios. Note: Scenarios cannot be exported from AE. If you want to send property models to users outside of AE, then create duplicates of property models, save them in the same scenario, and export them in available formats. 105 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 1. Open a portfolio. 2. Select properties for your scenario. 
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To select contiguous properties, press Shift or Control (Ctrl) and click the properties you wish to select. To select non‐contiguous properties, press Control (Ctrl) while clicking properties. 3. Click Batch Update in the Ribbon. 4. Select Create New Scenario in the pick list. Result: Copy Property Assets Pop‐Up appears. 5. Type a name for the new scenario. 6. Type/select data to change. 106 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 7. Click Next. Result: Property Assets Pop‐Up appears. Note: Some options, such as Overwrite existing properties, and Copy to a different scenario, are not available when you are creating a completely new scenario. Parameters tab Complete this information in the Parameters tab to set up your scenario. Choose where to copy these property assets to (the destination scenario) Displays the destination scenario to which property assets will be copied. Portfolio Displays the currently selected portfolio. Copy Options Select a copy option for the scenario. Choose from: 
Retain all Existing User and Group Rights When Copying: Retains all existing user and group rights when copying the scenario. 
Overwrite Existing Properties: Overwrites existing property assets. See Also Manage Permission Groups Managing Users Copy to a New Scenario This option makes the Scenario section, in which you can enter the relevant scenario information, available. The following fields are in the Scenario section: Name Enter a name for the new scenario. Base / Budget If this scenario will be a budget scenario, select Budget to activate the budget‐related fields at the bottom of the window. Currency To apply a different currency, select it in the pick list. Currency Scenario To apply a different currency scenario, select it from the pick list. See Also Currency Scenarios 107 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Area Measure Indicate the area measurement unit by selecting a unit in the pick list. Net Effective Rent To use a Net Effective Rent definition other than the default (i.e., ARGUS), choose it in the pick list. See Also Net Effective Rent Definitions Description Enter a description for the new scenario. Use Actuals / Actuals Values End To use actuals data in the scenario, choose Use Actuals, and then, in Actuals Values End, choose the end date for the actuals data. Use Prior Budget / Budget Period End To use prior budget data, choose the Use Prior Budget option, and then, in Budget Period End, choose the end date for the prior budget data. See Also Budgeting and Actuals Use Inflation Begin Date To begin the calculation of inflation on a specific date, select this option and choose the date on which inflation calculation is to begin in the corresponding revenue and expense field. Miscellaneous Revenue Inflation Begins Choose the date on which miscellaneous revenue inflation is to begin. This field is only available if you selected Use Inflation Begin Date. See Also Miscellaneous Revenues Operating Expense Inflation Begins Choose the date on which operating expense inflation is to begin. This field is only available if you selected Use Inflation Begin Date. See Also Operating Expenses Capital Expense Inflation Begins Choose the date on which capital expense inflation is to begin. This field is only available if you selected Use Inflation Begin Date. See Also Capital Expenses 108 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Non‐Operating Expense Inflation Begins Choose the date on which non‐operating expense inflation is to begin. This field is only available if you selected Use Inflation Begin Date. See Also Non‐Operating Expenses Property Assets Once you have completed the information on the Parameters tab, click Next to review the list of properties included in the scenario. 8. Review the property data by dragging the navigation bar to the left. 9. Click Finish. 10. Please wait till Copy Property Assets Pop‐Up reaches 100% Complete. 11. Click Close. 109 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Scenarios Navigate to Portfolio>Scenarios (bottom ribbon). The Scenarios tab lists all the scenarios in the projections. You can view, audit, or print any assumption set part of a saved scenario. Note: Scenarios cannot be exported from AE. If you want to send property models to users outside of AE, you can create duplicates of property models and save them in the same scenario then export them in available formats. See Also Duplicating Properties Batch Update Getting Started Scenarios grid Name Enter the name for the scenario. Description Enter a description for the scenario. Base This option will be checked if you selected the base scenario settings. See Also Portfolio Details Property Asset Count Displays the number of property assets in the portfolio. Currency Displays the currency you selected for the scenario. 110 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calc Status Displays the calculation status of the scenario. Hover over the red "X" or the green arrow to read a note on the calculation status of the scenario. Possible notes are as follows: • Red X: • Scenario level calculations are out of date. • No scenario level calculations have been performed. All property level calculated results are up to date.
111 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Green Check Mark: Scenario level calculations are up to date. All property level calculated results are up to date. Status Displays the status of whether a scenario is checked out (pencil symbol) or not checked out. Checked Out/Archived Displays the user name of the person who checked out the scenario. Queue Task ID Displays the queue task ID. Queued Task Type Displays the queued task type. Assumptions Applied Displays the assumption set applied to the scenario. Click on the applied assumption set. to view more information about the Creating a New Scenario To add a new scenario, choose Add Scenario on the Ribbon. 112 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Scenario Name Enter a name for the new scenario. See Also Budgeting and Actuals Currency Select the currency you want to use in the pick list in the Currency field. Area Measure Select the area measurement unit you want to use in the pick list in the Area Measure field. Scenario Audit Trail Level Select the audit trail level option you want to use in the pick list. Note to edit a scenario, you must have Edit privileges to configure the audit trail and be the record administrator of the scenario. Choose from the following: • None: If you select this option, no audit trail data is recorded. 113 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Basic (default): If you select this option, scenario audit trail data is captured and stored according to the following methods: • The version number of a property asset model is incremented. The change set information is recorded. • Intermediate: If you select this option, scenario audit trail data is captured and stored according to the following methods: o
o
The version number of a property asset model is incremented. The change set information is recorded. KPIs and financial lines are recorded against the change set. Details are recorded for each business entity that has changed. Entries can be expanded to display calculated KPI and financial lines. Detailed: If you select this option, scenario audit trail data is captured and stored according to the following methods: o
o
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The audit trail data available from the Basic and Intermediate options is captured. Additionally, a version of the entire property asset model is be stored. See Also Audit Trails Description Enter a description for the scenario in the Description field. Base Scenario Select this option to use this scenario as the base scenario. See Also Portfolio Details Currency Scenario If you want to use a currency scenario, choose it in the pick list in the Currency Scenario field. See Also Currency Scenarios Net Effective Rent If you want to use a Net Effective Rent definition other than the default (i.e., ARGUS), choose it in the pick list in the Net Effective Rent field. For more information on creating custom Net Effective Rent definitions, see Net Effective Rent Definitions. See Also Net Effective Rent Definitions Store Tenant Recoveries by Account Number Select this option to store the tenant recoveries by account number. 114 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Enter Forecast Value at Choose a method for entering forecast values. Choose from: 
100% Occupancy (default): If you select this option, you will be able to enter forecast values at 100% occupancy. Note files from AE 9.5 and earlier will be imported at 100% occupancy. 
Projected Occupancy: If you select this option, you will be able to enter values using the projected occupancy. Use Actuals / Actuals Values End To use actuals data in the scenario, choose the Use Actuals option. In the Actuals Values End field, choose the end date for the actuals data. Use Prior Budget / Budget Period End To use prior budget data, choose the Use Prior Budget option. In the Budget Period End field, choose the end date for the prior budget data. See Also Budgeting and Actuals Use Inflation Begin Date To begin the calculation of inflation on a specific date, select this option, and choose the date on which inflation calculation is to begin in the corresponding revenue and expense field. Miscellaneous Revenue Inflation Begins This field is only available if you selected the Use Inflation Begin Date option. Choose the date on which Miscellaneous Revenue inflation is to begin. Operating Expense Inflation Begins This field is only available if you selected the Use Inflation Begin Date option. Choose the date on which Operating Expense inflation is to begin. Capital Expense Inflation Begins This field is only available if you selected the Use Inflation Begin Date option. Choose the date on which Capital Expense inflation is to begin. Non‐Operating Expense Inflation Begins This field is only available if you selected the Use Inflation Begin Date option. Choose the date on which Non‐Operating Expense inflation is to begin. Duplicating a Scenario To duplicate a scenario, select the scenario, then click Duplicate Scenario on the Ribbon. 115 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Portfolio Select the portfolio into which you want to copy the scenario from the pick list in this field. Copy Options Copy 12 Months of Forecast Data into Budget Select this option if you want to copy twelve months of forecast data into the budget. Retain All Existing User and Group Rights When Copying Select this option if you want to retain existing user and group rights when copying the scenario. Overwrite Existing Properties Select this option if you want to overwrite an existing copy of the same property. 116 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Copy Calculated Results Select this option if you want to copy calculated results. Store Tenant Recoveries by Account Number Select this option to enable the ability to combine recoveries by account number on specified tenant reports. Copy to a New Scenario If you want to copy the scenario to a new scenario, leave this option (the default) selected. Scenario Name Enter a name for the scenario in the Name field. See Also Budgeting and Actuals Currency Select the currency in the pick list in this field. Currency Scenario If you want to use a currency scenario, select it in the pick list in the Currency Scenario field. Area Measure Select the area measure in the pick list. Net Effective Rent If you want to use a net effective rent definition other than the default (i.e., ARGUS), choose it in the pick list in the Net Effective Rent field. For more information on creating custom net effective rent definitions, see Net Effective Rent Definitions. See Also Net Effective Rent Definitions Scenario Audit Trail Level Select the audit trail level option you want to use in the pick list. Note to edit a scenario, you must have Edit privileges to configure the audit trail and be the record administrator of the scenario. Choose from the following: 
None: If you select this option, no audit trail data is recorded. 
Basic (default): If you select this option, scenario audit trail data is captured and stored according to the following methods: o
o
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117 The version number of a property asset model is incremented. The change set information is recorded. Intermediate: If you select this option, scenario audit trail data is captured and stored according to the following methods: © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 o
o
o
o
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o
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The version number of a property asset model is incremented. The change set information is recorded. KPIs and financial lines are recorded against the change set. Details are recorded for each business entity that has changed. Entries can be expanded to display calculated KPI and financial lines. Detailed: If you select this option, scenario audit trail data is captured and stored according to the following methods: The audit trail data available from the Basic and Intermediate options is captured. Additionally, a version of the entire property asset model is be stored. See Also Audit Trails Description Enter a description for the scenario in the Description field. Enter Forecast Value at Choose a method for entering forecast values. Choose from: 
100% Occupancy (default): If you select this option, you will be able to enter forecast values at 100% occupancy. Note files from AE 9.5 and earlier will be imported at 100% occupancy. 
Projected Occupancy: If you select this option, you will be able to enter values using the projected occupancy. Use Actuals / Actuals Values End To use actuals data in the scenario, choose the Use Actuals option, and then, in the Actuals Values End field, choose the end date for the actuals data. Use Prior Budget / Budget Period End To use prior budget data, choose the Use Prior Budget option, and then, in the Budget Period End field, choose the end date for the prior budget data. See Also Budgeting and Actuals Use Inflation Begin Date To begin the calculation of inflation on a specific date, select this option, and choose the date on which inflation calculation is to begin in the corresponding revenue and expense field. Miscellaneous Revenue Inflation Begins Choose the date on which miscellaneous revenue inflation is to begin. This field is only available if you selected the Use Inflation Begin Date option. Operating Expense Inflation Begins Choose the date on which operating expense inflation is to begin. This field is only available if you selected the Use Inflation Begin Date option. 118 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Capital Expense Inflation Begins Choose the date on which capital expense inflation is to begin. This field is only available if you selected the Use Inflation Begin Date option. Non‐Operating Expense Inflation Begins Choose the date on which capital expense inflation is to begin. This field is only available if you selected the Use Inflation Begin Date option. Copy to a different Scenario If you want to copy the selected scenario into an already existing scenario, select this option and choose the scenario to which you want to copy from the pick list. Click the Finish button to complete this process. 119 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: When you copy properties from one scenario to another, a copy of the property assumptions, financial data, and tenant information is created and maintained in unique tables. Certain property‐level information transcends scenarios in the database (e.g., Name, Address, ID, etc.) Record Security This section allows you to change security rights. You may choose from the following options in the pick list: 
Change Rights for Portfolios: If you select this option, the Record Security Setup window will allow you to change rights for the selected portfolios. 
Change Rights for Scenarios: If you select this option, the Record Security Setup window will allow you to change rights for the selected scenarios. 
Change Rights for Properties: If you select this option, the Record Security Setup window will allow you to change rights for the selected properties. See Also Record Security Setup Scenarios This section allows you to select different options for scenarios. Choose from the following: Check In/Out Scenario Select Check In/Out Scenario in the Ribbon. Choose from: 
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Check Out Scenario Check In Scenario Archive/Restore Scenario Select Archive/Restore Scenario the Ribbon. Choose from: 
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Archive Scenario Restore Scenario Calculate Scenario Select Calculate Scenario in the Ribbon to open the Calc Property Assets window where you can review validation and other information on the property assets in the scenarios. 120 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Click Finish to complete this process. The Job Queue window allows you various options for dealing with queued jobs. 121 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Repertoire Reporting Repertoire reporting is a solution for consolidating and graphically reporting property, tenant, portfolio, and scenario information contained within the ARGUS Data Warehouse. As a component of ARGUS Enterprise, changes to information made in other ARGUS Enterprise modules are available immediately for aggregated reporting. This includes updates made to property level valuation models, budgets, re‐
forecasts, and scenarios. ARGUS Enterprise reports are published using Microsoft SQL Server Reporting Services (SSRS). This reporting interface uses parameters that allow you to control the format and data presented in each report. You can access the Repertoire reports from the Reports tab on the bottom Ribbon. Click the Report command above the Ribbon, then the Open Report button in the Ribbon. The resulting pick list displays the categories of reports that are available. To display the individual reports in each category, double‐
click the category folder. Working with Report Parameters All reports contain a set of parameters or report options at the top of the Report pane. Standard reports can be modified by selecting any combination of parameters to yield a report. Report settings can be saved in order to create a benchmark report that can be used for comparison month after month. Key Parameters 
122 Begin or As of Date: Defines when the report will start presenting data. Data prior to this date will not be included. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
End Date: Defines when the report will end presenting data. Data after this date will not be displayed. 
Reporting Period: Defines whether data is reported monthly, quarterly, or annually. 
Include Straight Line Rent Adj: Controls generally accepted accounting principles (GAAP) or cash basis presentation on the report. 
Months of Actuals: Defines the number of months of historical actual data to blend with forecasted amounts. 
Show Recovery Detail: Controls the presentation of recoveries in total or by account number. 
Group By: Controls how property level information is grouped and sub totaled (e.g., by property type or location). 
Reporting Units: Defines whether data is reported as a currency amounts or currency amount per area. 
Use Selected Data: Allows you to choose the type of data to be included. Depending upon your settings, the following options may be available: Actual + Budget + Forecast, Budget + Forecast, Actual + Forecast, and Forecast Only. 
Amount Reported As: Defines whether the report is presented in ones, thousands, or millions. 
Options: Controls the amount of extra detail to display on the report. 
Comparison Scenario: Controls which scenario the report is comparing to the current scenario. 
Comparison Properties: Controls which properties in the comparison scenario the report is comparing to the current selection of properties. 
Currency and Area: Controls whether the report will be generated using the local currency and area measures without having to create new scenarios at the portfolio level. All properties must have the same currency and area measures in order to use Local as the Currency and Area selection. If they do not, and you select Local, you will receive an error message. Modifying Reports Use this procedure to modify a report for viewing purposes: 1. Open the standard report to be modified. 2. In the Report Parameters pane, select the parameter that is to be modified. The available parameters are based on the report selected; therefore, each report will have a different set of parameters. 3. Click the pick list to display the available parameter options for this report. 4. Select the parameter options you want to use. 5. Once all the parameters have been selected, click the Run Report button. The updated report is displayed. Exporting Reports You can export reports as: 
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123 Excel PDF TIFF © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Microsoft Word Print Non‐Operating Expenses in Repertoire Reports You can print Non‐Operating Expenses from these repertoire report types: 
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Cash Flow Cash Flow Comparison Cash Flow Detail Comparison Budget Comparison Cash Flow Forecast Comparison Forecast Summary Month and Year‐to‐Date Variance Portfolio Composition Summary Revenue and Expense Assumptions Cash Flow by Report Group Cash Flow Comparison by Report Group Note: Cash Flow After Debt Service total will be a lower value since Cash Flow before Debt Service Total includes Non‐Operating Expenses. Note: Cash Flow Available for Distribution will be a lower value since Non‐Operating Expenses were passed down to Cash Flow After Debt Service from Cash Flow Before Debt Service. Show/Hide Non‐Operating Expenses Non‐operating expenses can be shown or hidden at both the property and portfolio levels for various reports, and the AE database stores both versions for the following reports: 
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Cash Flow Before Debt Service Cash Flow After Debt Service Cash Flow Available for Distribution Hide Non‐Operating Expenses If you elect to hide non‐operating expenses, then: 
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Non‐Operating Expenses will not display Cash Flow Before Debt Service will exclude Non‐Operating Expenses Cash Flow After Debt Service will exclude Non‐Operating Expenses Cash Flow Available for Distribution will be calculated based on the Cash Flow Before Debt Service total, which will exclude Non‐Operating Expenses Month and Year‐to‐Date Variance: The following Reports will also be modified: The Non‐Operating Expenses section will be added below net operating income (NOI) and above capital expenditures. All the budget, actuals, present value (PV), Variance amount, and Variance % fields will be calculated for each non‐operating expense line item. Portfolio Composition Summary: Non‐Operating Expenses will be added to the Reporting Options. The Non‐Operating Expense total will be shown at the property level. 124 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Revenue and Expense Assumptions: When you enable "Non‐Operating Expenses", the Average Growth % and Non‐Operating Expense year totals are shown. Enable Non‐Operating Expenses If you elect to enable non‐operating expenses, then: 
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Average Growth % and non‐operating expense year totals display Cash Flow Before Debt Service excludes Non‐Operating Expenses Allocate a % of Non‐Operating Expenses to Operating Expenses You can allocate a desired percentage of non‐operating expenses to operating expenses for a recovery pass through to tenants. Amount 1 Select % of Other in the How Input field; click the button to display a window listing the revenues and expenses to which you can link this item. Click the Expenses arrow, and select the Total Non‐
Operating Expenses arrow for a pick list of non‐operating expenses. In the % input field, enter the % of non‐operating expenses you want to allocate for each category. User Defined Debt You can enter items under the User Defined Debt option under the Investment tab, and the items will appear in the Debt Service section of the report. Note: If you enter items under Debt Financing, the ability to enter items under the User Defined Debt tab will be disabled. Additionally, items entered under the User Defined Debt will be listed under Debt Services and will not be grouped under Interest or Principal. Note: You can also enter non‐operating expense data in input and result sheets in AE Add‐in. See Also AE Add‐In Note: Exporting reports using the Export on the Ribbon allows for immediate viewing of the report. Once the export process is complete, a prompt to open the report appears. Reports Following is a summary of the reports available in ARGUS Enterprise. 125 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Cash Flow and Operating Performance Cash Flow Comparison and Cash Flow Detail Comparison The Cash Flow Comparison reports provide a financial statement for multiple periods of time. The Discounted Cash Flow “DCF” formatted report includes information which details operational income, expenses, capital, and debt while allowing you to compare two properties from different scenarios. The following are some of the key features of these reports: 
Provides a Cash Flow report that compares any two scenarios/versions and displays the variances between each. 
Allows you to drill down on items to view the property detail. See Also Cash Flow Comparison Cash Flow Detail Comparison Cash Flow and Cash Flow Detail The Cash Flow report displays a forecasted financial statement for a period of time and interval defined by the user. This report is displayed in a standard Discounted Cash Flow “DCF” format detailing tenant revenue, reimbursements, operating expenses, capital expenditures, and debt. The following are some of the key features of this report: 
Aggregates properties to produce a consolidated income statement. 
Defines the number of months, quarters, or years to view on the report. 
Allows the user to easily navigate to Property Level supporting detail. 
Blends historical and forecast data. 
Displays the report using a standard Chart of Accounts. 
Displays Revenue on a GAAP or cash basis. Cash Flow Report The Cash Flow report displays key performance indicators (KPIs) for all properties or a segment of a portfolio. On one report, information is graphically and numerically presented with performance charts 126 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 for quick and easy analysis of portfolio performance. The following are some of the key features of this report: 
Groups sections by key classifications such as property type. 
Provides the summary operating statement, occupancy statistics, and valuation information in one place. 
Provides a graphic representation of time series information for expiring area, contract vs. market rates, NOI growth, and occupancy trends. See Also Cash Flow Cash Flow Detail The Cash Flow Detail report displays cash flow report data and allows you to expand each heading for a detailed look of each property. See Also Cash Flow Detail Assured Cash Flow Calculations 
Assured cash flow is determined by a ratio based on revenue to determine percentage of PV. 
Lease Status is used to determine assured vs. speculative tenants. 
Pro‐rata calculations are used to calculate all other items (misc. revenues, operating expenses, and property level capital items). 
Total tenant revenue by lease status is divided by the total tenant revenue for the total property to calculate the pro‐rata share by lease status. 
Pro‐rata calculation will be applied after all other calculations have taken place. 
Tenant mid‐month calculations will remain the same with the first and last months of the lease prorated for the partial month and the first month of the spec profile starting the following full month. 
Total rental revenue is calculated by lease status. 
Other Tenant Revenue is calculated by lease status. 
Total assured income is calculated by totalling rental revenue and other tenant revenue for the assured portion only. 
Total speculative income is calculated by totalling rental revenue and other tenant revenue for the speculative portion only. 
Total tenant revenue and potential gross revenue. 
Total tenant revenue and potential gross revenue will be calculated for the entire property. 
If generating a report for assured cash flow only, the assured portion for these items will be displayed. 
Total other revenue will be calculated at the property level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 127 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Potential gross revenue will be calculated at the property level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 
Vacancy & credit loss will be calculated at the property level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 
Effective gross revenue will be calculated at the property level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 
Total operating expenses will be calculated at the property level. 
If generating a report for assured cash flow only the assured portion for this item will be displayed. 
Net operating income will be calculated at the property level. 
Total leasing & capital costs will be calculated at the property level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 
Cash flow before debt service will be calculated at the property level. 
If generating report for assured cash flow only, the assured portion for this item will be displayed. 
Total before debt service will be calculated at the property Level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 
Cash flow after debt service will be calculated at the property level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 
Total financing (Net) will be calculated at the property level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 
During the actuals period if the report is generated for assured & speculative income or assured cash flow, the actuals will appear in place of values for contract/contract renewal tenants. 
Speculative income during the actuals period only will be zero. 
During the budget period, the budget values are calculated based on the same pro‐rata share as the forecast values and appear in both the assured and speculative Income. Dashboard The Dashboard report displays KPIs for all properties or a segment of a portfolio. On one report, information is graphically and numerically presented with performance charts for quick and easy analysis of portfolio performance. The following are some of the key features of this report: 
Groups sections by key classifications such as property type 
Provides the summary operating statement, occupancy statistics, and valuation information in one place 
Provides a graphic representation of time series information for expiring area, contract vs. market rates, NOI growth, and occupancy trends. See Also Dashboard 128 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Executive Financial Summary The Executive Financial Summary report is an executive report, which displays key operating metrics for one or more properties for one year. Operating metrics include, but are not limited to, total revenue, expenses, tenant improvements, leasing commissions, and debt service. The following are some of the key features of this report: 
Easy access to key property performance information. 
Allows you to group by classifications such as property type or region to provide report group subtotals and grand totals for the entire portfolio. 
Displays data as amount or amount/area. 
Uses a calendar or fiscal year reporting. 
Provides flexibility to display all or a portion of the data contained on the report. 
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Lease Type Annual and Per Area Rent of Tenant Effective Rent Market Rent Variance between Market Rent and Effective Rent See Also Executive Financial Summary Custom Custom reports can be uploaded from the Business App Toolkit into ARGUS Enterprise. See Also Repertoire Reports: Custom Reports: Custom Web Form Integration Business App Toolkit 129 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Leasing and Occupancy Average Daily Rate and Revenue per Available Room Comparison The Average Daily Rate and Revenue per Available Room Comparison report allows you to perform a comparison between hotel properties in a portfolio. See Also Average Daily Rate and Revenue per Available Room Comparison Average Daily Rate and Revenue per Available Room The Average Daily Rate and Revenue per Available Room report allows you to analyze the revenue patterns and daily rates for each of the available rooms in hotel properties. See Also Average Daily Rate and Revenue per Available Room Lease Expiration The Lease Expiration report provides the data needed to perform an analysis of the lease expiration activity across a group of properties over an extended time series. The following are some of the key features of this report: 
130 Allows you to analyze the lease expiration profile of a group of properties and also understand leasing activity patterns, so that lease renewal/negotiation meetings can be scheduled prior to the expiration dates of each tenancy. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Provides information on timing and availability of floor space. 
Forecast using speculative leases what the tenant retention rate and corresponding vacancy might be in the future. 
Understand what the potential impact on the cash flow will be over time due to tenancies that remain vacant. This report covers multiple cash flow calculations across base rent, effective and market rent. 
Provides management with the flexibility to report expiry at an individual property level or across multiple properties and organized into groups and sub‐groups according to custom property classifications such as asset manager or property region. See Also Lease Expiration Leasing Activity The Leasing Activity report displays key lease information for all tenants leasing up within a defined period of time. The following are some of the key features of this report: 
Displays all tenants leasing up for a selected period of time. 
Allows grouping by lease end year, property, tenant, or months remaining. 
Supports multiple levels of grouping and totals. 
Key Data Elements: 
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Lease Type Lease Begin Date and Term Annual and Per Area Tenant Rent Market and Base Rent Displays Leasing Costs See Also Leasing Activity Net Absorption The Net Absorption report displays a consolidated report of all properties in a given portfolio, constituting asset acquisition or disposition and all expected leasing activities (expiration, absorption, renewal, new leasing) in a specified time frame. Net absorption and tenant retention statistics are critical metrics for asset and portfolio performance. This report will allow for analysis of trends in leasing activity over time. See Also Net Absorption Net Effective Rent The Net Effective Rent report displays leases in selected groups. The column on the right side of the report provides a time‐series display of the net effective rent for each lease reported as of the lease start date. This allows you to view net effective rent for comparable leases and provides a convenient way of displaying the income potential for newly signed leases. 131 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Net Effective Rent Occupancy The Occupancy report displays a portfolio view of occupancy with summary data based on the user‐
defined groupings. The following are some of the key features of this report: 
Displays rentable and occupied area and percent for one or more properties based on your selections. 
Allows you to specify the reporting period. 
Consolidates the Occupancy Statement with available subtotals based on the user defined groupings. See Also Occupancy Occupancy Comparison The Portfolio Occupancy – Comparison reports provide a comparative view of the occupancy of properties within two different scenarios. The following are some of the key features of this report: 
Compares occupancy information for two selected scenarios. 
Displays rentable and occupied area and percent for one or more properties within two scenarios based on your selections. 
Allows you to select the reporting period. 
Consolidates Occupancy Statement with available subtotals based on the user‐defined groupings. Rent Roll – Current The Rent Roll – Current report displays the tenant Rent Roll based on a user‐defined date. The following are some of the key features of this report: 
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Displays both initial lease information as well as the current lease status. Displays the remaining lease term. Provides multiple options for grouping. Tenant name. Property name. Lease start year. Lease status. Rent Roll – Presentation The Rent Roll – Presentation report displays the Tenant Rent Roll for all tenants and spaces for a defined period of time. This report will display key tenant data for current and future spaces. The following are some of the key features of this report: 
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Displays detailed information associated with each space and lease. Displays active, vacant, and future tenant information. Allows you to view rent increases. Displays reimbursement methods. Allows you to view future rollover activity. 132 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Rent Roll Presentation Tenant Retention The Tenant Retention report allows you to gain a better understanding of the factors influencing tenants' renewal decisions in specific market segments. This allows you to track trends over time. You can view tenants by lease status, and you can group them in the following manner to facilitate your analysis: 
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Lease Status Lease Type Property Name Property Type Classification Categories See Also Tenant Retention Top Tenants The Top Tenants report is a grouped list of all the tenants who collectively pay the greatest amount of base rent or occupy the greatest amount of rentable area on a particular date. Tenants included in this report are selected by consolidating the base rent or occupancy for all leases with matching names. Leases can be grouped by Tenant Name (default), Property, Country, State, or either Property or Tenant Classification. The Top Tenants report provides you with insight into exposure to particular tenants across a portfolio of properties. This report enables you to assess risk associated with downturns to particular industries or to particular organizations. It can also help you to understand what the potential impact on the cash flow will be if a particular tenant is lost. This report presents a rent value which can be configured to include any of the following elements: 
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Base Rent Step Rent CPI Free Rent Recoveries Percentage Rent It provides the flexibility to report on significant tenants at an individual property level or across multiple properties and organized into groups according to custom property classifications such as asset manager or property region. See Also Top Tenants 133 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Operations Budget Comparison The Budget Comparison report displays property level budget comparison information with up to three different variance calculations. For multi‐entity assets (e.g., mixed used, etc.), it allows you to view a portfolio level summary of three years of budget comparison information from one or more individual models with up to three different variance calculations. 
Allows you to select one or two years of actuals data. 
Allows you to select one or two years of forecast data. 
The forecast data can be presented monthly, quarterly, semi‐annually, or annually. 
The amount per area can be printed for each of the calculated data sets. 
You can display three variance levels between actuals, budget, reforecast, and projected. 
You can display the variance percentage as well as the variance amount. 
You have the option to break out properties so that each will be reported on a separate page. See Also Budget Comparison Cashflow Forecast Comparison The Cashflow Forecast Comparison report allows you to compare forecasted cashflows between portfolios for the specified dates. You may either aggregate or show all revenue and expense detail on this report. In addition you can: 
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Show the variance percentage. Show account detail. Show account numbers. Sort by account numbers. Show criteria. Show the property list. Consolidate properties. See Also Cash Flow Forecast Comparison 134 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Forecast Summary The Forecast Summary displays a combination of actual and budget data and actual and forecast data on a rolling basis over a time series. Key uses of this report are: 
Provide management with a summarized view of the profitability of a property or portfolio of properties on a rolling basis. 
Analyze the cash flow across the portfolio to better understand future liquidity and funding requirements (capital management). 
Forecast the impact of changing debt finance rates across a portfolio. See Also Forecast Summary Month and Year‐to‐Date Variance The Month and Year to Date Variance report presents a comparison of budgeted or actual results to budgeted ones for the current month or for the year‐to‐date period. See Also Month and Year‐to‐Date Variance Summary and Assumptions Classification Summary The Classification Summary report provides a summary of all classifications that have been used in a portfolio. See Also Classification Summary Debt Summary The Debt Summary displays a summary of debt and present value information by property and allows you to filter debt service coverage and loan to value ratios. 135 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Market Rate Assumptions The Market Rate Assumptions report displays Market Rates Assumptions by tenant type and growth trends. The following are some of the key features of this report: 
Displays multiple years of market rental rates for an entire portfolio. 
Allows you to group and display totals by any classifications such as region or property type. 
Allows you to easily view the computed weighted average market rate by tenant type for each property and/or region. 
Allows you to quickly compare the average market rates in your portfolio to industry data. See Also Market Rate Assumptions Portfolio Composition Summary The Portfolio Composition Summary allows you to determine the makeup of a portfolio for the purposes of determining the risk to a particular market or segment. Additionally, it might be used as a basis around acquisition and disposition strategies for the coming years, or to respond to investor or executive inquiries. See Also Portfolio Composition Summary Revenue and Expense Assumptions The Revenue and Expenses Assumptions report displays operating expense assumptions for one or more properties for a user‐defined range of years. The following are some of the key features of this report: 
Displays annualized operating expense. 
Displays expense as projected inflated amounts. 
Allows you to group and display totals by classification types such as region or property type. 
Computes annualized growth at multiple levels. 
Displays information as amount or amounts/area. 
Quickly compares the expense rates in the portfolio to industry data. See Also Revenue and Expense Assumptions Vacancy Assumptions The Vacancy Assumptions report provides an at‐a‐glance review of vacancy information related to the portfolio of assets. This report shows vacancy percentages as well as assumptions which guide the physical and economic vacancy results. The following are some of the key features of this report: 
Allows you to group by classification types within each Rate section and view totals by property and classification (e.g., region). 136 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Allows you to view one or more properties for multiple years at the same time. 
Allows you to drill down to property level details. 
Allows you to view vacancy results and assumption inputs on one report. See Also Vacancy Assumptions Supporting Schedules Cash Flow by Report Group The Cash Flow by Report Group report allows you to display the cash flow for selected properties by report group. See Also Cash Flow by Report Group Cash Flow Comparison by Report Group The Cash Flow Comparison by Report Group report allows you to perform a cash flow comparison by report group and display the variance between them. See Also Cash Flow Comparison by Report Group Speculative Leasing Summary The Speculative Leasing Summary report displays all speculative leasing information by property. This report can be run for one or more properties in a portfolio or fund. The following are some of the key features of this report: 
Displays critical speculative leasing information by property on one report. 
Display speculative areas as a percentage of NRA. 
Displays the annual and GAAP Rent. 
Displays speculative market leasing assumption information. 
Allows you to view information at the property level with ability to drill down to speculative tenant level detail. 137 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Revenue The Tenant Revenue report is an audit report that displays all tenant revenue and leasing costs for each tenant in the portfolio. Data is presented at the summary, property and lease level. The following are some of the key features of this report: 
Allows you to group information by property and tenant. 
Displays total tenant revenue with detailed information (base rent, recoveries). 
Contains the option to display total amounts, amounts per areas or both. 
This report can be run for any 12 month period and will include totals. See Also Tenant Revenue Traditional Valuation Note: To learn how to select a subset of properties within a scenario for a portfolio report, see Traditional Valuation Calculation Scenario Subsets Quick Start. Area Analysis The Area Analysis report is a traditional valuation report that displays tenant information. The following are some of the key features of this report: 
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Displays the use types. Displays the various zones. Displays parking space rates and information. See Also Area Analysis Detailed Valuation The Detailed Valuation report is a traditional valuation report that displays tenant information on a single line. The following are some of the key features of this report: 
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138 Displays the portfolio name. Displays the scenario name. Displays the dates. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
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Displays the running yields. Displays the operating expenses. Displays ground lease expenses. Displays the currency type. Displays the area. Displays property information external ID. Displays the property name. Displays number of tenants. Displays net rent. Displays rental value. Displays gross value. Displays capital expenses. Displays acquisition costs. Displays net value. Displays say value. Displays initial yield (valuation rent). Displays equivalent yield. Displays true equivalent yield. Displays reversionary yield. See Also Detailed Valuation Single Line Tenancy Schedule The Single Line Tenancy Schedule report is a traditional valuation report that displays tenant information on a single line. The following are some of the key features of this report: 
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Displays tenant Information. Displays ITZA area. Displays standard area. Displays start date. Displays term. Displays expiry. Displays active break. Displays earliest termination. Displays next review. Displays contracted rent. Displays valuation rent. Displays rental value. See Also Single Line Tenancy Schedule Summary Valuation The Summary Valuation report is a traditional valuation report that displays tenant information on a single line. The following are some of the key features of this report: 
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139 Displays running yields. Displays amounts. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
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Displays currency. Displays area. See Also Summary Valuation Valuations and Returns Executive Present Value Summary The Executive Present Value Summary report is an executive report that displays key valuation metrics for one or more properties. Metrics include PV date, sale date, cap rate, discount rate, leveraged and unleveraged cash, proceeds from sale, and present values. The following are some of the key features of this report: 
Allows easy access to valuation information. 
Allows you to group information by classifications such as property type or region to provide report group subtotals and grand totals for the entire portfolio. 
Displays data as amount or amount/area. 
Provides the flexibility to display all or a portion of the data contained on the report. See Also Executive Present Value Summary Multiple Valuation Summary The Multiple valuation summary report allows you to compare your property values using three valuation methods: discounted cash flow, capitalization valuation, and traditional valuation. See Also Multiple Valuation Summary Present Value Comparison The Present Value Comparison report allows you to compare the PV performance of single assets and groups of assets. See Also Present Value Comparison 140 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Present Value The Present Value report allows you to display the present value of select assets. See Also Present Value 141 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Analysis The Analysis tab allows you to report on the forecast performance of a number of different scenarios in your portfolio and test key performance indicators for each scenario. Click on the Analysis tab in the bottom Ribbon to open the Analysis screen. See Also Scenarios Analysis Ribbon Timing This section allows you to specify dates for the scenario analysis period. Analysis Start Choose a date for the analysis to begin. You may select a date from the drop‐down calendar. 142 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Analysis End Choose a date for the analysis to end. Your entries in the Years and Months fields of the Term section will determine the analysis end date. Term This section allows you to specify the length of the term of the analysis period in years and months. Years Enter the number of years for the term of the scenario analysis. Months Enter the number of months for the term of the scenario analysis. Options This section allows you specify the frequency of reporting periods. Resolution Specify the length of each period to chart. Choose from: 
Monthly: The resolution period will be set to monthly. 
Quarterly: The resolution period will be set to quarterly. 
Semi‐Annually: The resolution period will be set to semi‐annually. 
Annually: The resolution period will be set to annually. IRR Discount Interval Specify the interval for the IRR calculation. Choose from: 
Monthly: The discount interval for the IRR calculation will be set to monthly. 
Quarterly: The discount interval for the IRR calculation will be set to quarterly. 
Semi‐Annually: The discount interval for the IRR calculation will be set to semi‐annually. 
Annually: The discount interval for the IRR calculation will be set to annually. Layout This section allows you to construct, design, and select specific dashboards for display. There are five layouts already designed: Traditional Valuation, Leveraged IRR per State, PV & IRR, Returns Overtime, and Default Layout. You may choose one of these options or create your own layout. Layout Mode Select this option to open the Analysis Toolbox window. The Analysis Toolbox allows you to custom format the grid section. Drag and drop the icons for each layout item from the toolbox to the grid. 143 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Choose from: 
Empty Space Item: Insert an empty space between columns or rows. 
Separator: Insert a dotted line separator between columns or rows. 
Splitter: Resize discrete areas of the dashboard while in the standard view mode. 
Analysis Grid: Insert a copy of the standard default grid. 
Analysis Chart: Display a given KPI as a chart. 
Pivot Grid: Select which fields to group by on either the horizontal or vertical access and which KPI fields to amalgamate. 
Analysis Label: Insert a label box with the name of the analysis. Print Layout Select this option to open the Print Layout window. Layout Select this option to make your layout selection. 144 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Update Current Layout (available for New Layouts) Choose the Current Layout option to update the layout you are currently viewing. Create New Layout Choose the Create New Layout option to create a new layout. Enter a name for your new layout in the Layout Name field. Select the Share Layout option to share this layout with other users in your company. Click the OK button to create your new layout or the Cancel button to stop this process. Manage Layouts Choose the Manage Layouts option to select from a list of previously saved layouts. 145 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Edit Selected Layout Choose the Edit Selected Layout button to make changes to the layout. Enter a name for your new layout in the Layout Name field. Select the Share Layout to share this layout with other users in your company. Click the OK button to create your new layout or the Cancel button to stop this process. 146 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Delete Selected Layout Choose the Delete Selected Layout button to delete this layout. Click the Yes button to delete this layout or the No button to stop this process. Clear Layout Choose the Clear Layout option to clear the current layout from the Analysis window. Analysis Columns To add/remove column fields from Analysis grids: 1. Hover the right top corner of a grid. Result: Widget options appear. 2. Click the tool icon to Configure this widget... Result: Customization Pop‐Up appears with the Values & Categories tab selected. 3. Drag/drop a column header to/from the grid. Result: Column header and related fields displays in the grid. Option: Click Time Series in the Customization Pop‐Up to access additional column headers. Analysis Chart The Analysis chart will display IRR and date information by property name. You can change how this information is displayed by making selections in the Term and Options sections of the Ribbon. 147 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Returns Over Time Layout The Returns Over Time layout displays total, income, and capital returns calculated over time at specific time intervals. General The following columns are displayed at the beginning of each section in the Returns Over Time layout. Property Name Displays the name of the property. The property name is entered in the Property Name field in the Description tab. State/Territory Displays the state or territory in which the property is located. The state or territory is entered in the State / Territory field in the Location tab. Country Displays the country in which the property is located. The country is entered in the Country field in the Location tab. Property Type Displays the property type. The property type is entered in the Property Type field in the Description tab. Analysis Date Displays the analysis start date. The analysis start date is entered in the Analysis Begin Date field in the Description tab. 148 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Amounts in Period Displays the amounts paid and earned in the selected time period. Effective Gross Revenue (in period) These columns display the property's effective gross revenue in the specified time periods. The effective gross revenue comes from the Cash Flow property report. See Also Property Reports Ground Lease Expenses (in period) These columns display the property's ground lease expenses in the specified time periods. Ground lease expenses are entered in the Ground Leases tab. Operating Expense These columns display the property's operating expenses in the specified time periods. Operating expenses are entered in the Operating tab. Net Operating Income These columns display the property's net operating income in the specified time periods. The net operating income is Effective Gross Revenue minus Ground Lease Expenses minus Operating Expenses. Total Leasing and Capital Costs (in period) These columns display the property's total leasing and capital costs paid in the periods minus capital income received in the periods. Leasing costs are entered in the Leasing Costs section of the Rent Roll. Capital expenses are entered in the Capital Expenses tab. Total Leasing and Capital Costs (from start) These columns display the cumulative leasing and capital costs from the analysis start date through the specified time periods. Annual Amounts at Resale Date Displays a time series of the annual rates in force at the resale date. 149 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Effective Gross Revenue (at resale date) These columns display the property's annual rate of gross income at the resale date (current rent without any deductions). This comes from the Cash Flow property report. Ground Lease Expenses (at resale date) Displays the annual rate of ground lease expenses in payment at the resale date. Ground lease expenses are entered in the Ground Leases tab. Operating Expenses (at resale date) These columns display the annual value of repeated revenue costs minus the annual value of repeated revenue receipts at the resale date. Single costs (without repeats) are shown at face value. Costs repeated over the short term are shown as annual figures. Operating expenses are entered in the Operating tab. Revenues are entered in the Miscellaneous, Parking, and Storage tabs. Net Operating Income (at resale date) Displays tenant rents plus ground rents received minus ground lease expenses plus revenue items minus revenue costs paid. The net operating income is displayed in the Cash Flow report. Market Rent (at resale date) These columns display the market rental value from the cash flow at the resale date, ignoring payment timing. The market rental value is entered in the Rental Value field in the Rent Roll. Market Inflation (at resale date) These columns display the annual increase in the market rental value of the property during the periods measured, expressed as a percentage of the rental value at from a year ago. Market Inflation at resale date: where: NRt = net market rental value at resale date NR(t ‐ 1) = net market rental value at resale date minus one year Gross Sale Price (at resale date) These columns displays the gross sale price at the resale date. The gross sale price is displayed in the Property Resale report. Net Sale Price These columns display the property's net sale price, which is the gross sale price minus selling costs plus sale price adjustments. The net sale price is displayed in the Property Resale report. 150 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Net Sale Price Change These columns display the current net price minus the previous time period's net price. Net Sale Price Change % These columns display the change in the net sale price from the previous time period as a percentage. Net Sale Price Change % = (current net sale price divided by previous net sale price) minus one. Disc. Exit Capital Costs These columns display the total value of the discounted capital costs falling after the item date. The discount rate is entered in the Discount Rate field in the Capital Expenses tab. Only expenses with the Include in Resale check box (also in the Capital Expenses tab) selected will be included in the calculation. Note: The Disc. Exit Capital Costs columns will only display values if the Calc Method (selected in the Property Resale tab) is Traditional Valuation. If you are using a different Calc Method, the columns will display shaded cells. Selling Costs + Vendor's Costs These columns display the selling costs, which are entered in the Adjustments field in the Property Resale tab. Resale Yields Displays the internal rate of return (IRR) and yields you would get if you were to sell the property at the specified time periods. IRR (from start) These columns display the unleveraged IRR at the resale date. The unleveraged IRRs are displayed in the IRR Matrix report. Capitalization Rate These columns display the capitalization rates entered in the Cap Rate field in the Property Resale tab if the default Calc Method is CAP or in the Capitalization Valuation tab if the default Calc Method is Capitalization Valuation. Note: If you are using a different Calc Method, the columns will display shaded cells. 151 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Initial Yield These columns display the current net rent in force at the resale date divided by (the current gross sale price plus discounted exit capital costs plus acquisition costs). The figure in the Totals line is the sum of the net rents for the properties divided by (the sum of the gross sale prices plus discounted exit capital costs plus acquisition costs). Equivalent Yield These columns display the equivalent yield, which is the weighted average of the initial and reversionary yields based on the income received. Reversionary Yield These columns display the reversionary yield. Reversionary yield = Net rent on final reversion divided by (the current gross sale price plus discounted exit capital costs plus acquisition costs). The figure in the Totals line is the sum of the net rents on final reversion for the properties divided by the sum of the gross sale price plus discounted exit capital costs plus acquisition costs. Net Rent / Initial Value These columns display the annual rate of net rent (effective gross revenue minus ground lease expenses) at the resale date divided by the net initial purchase price. The figure in the Totals line on the Portfolio Analysis grid is the sum of the (effective gross revenue minus ground lease expenses) for the properties divided by the purchase price. ERV (gross) Yield These columns display the estimated rental value (ERV) yield. ERV yield = current market rent divided by (the current gross sale price plus discounted exit capital costs plus acquisition costs). The figure in the Totals line on the Portfolio Analysis grid is the sum of the current market rent for the properties divided by the sum of the gross sale price plus discounted exit capital costs plus acquisition costs. Performance KPI's Displays the key performance indicators for the specified time periods. Note: For the following column groups, CVt = the net value at the end of period t; CExpt = total leasing and capital costs in period t; and NIt = the NOI during period t. 152 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Total Return These columns display the total return. Total Return = ( CVt – CV(t‐1) – CExpt + NIt ) x 100 ( CV(t-1) + CExpt )
Comp. Mean Average Total Return These columns display the compound mean average total return. This is calculated by compounding all of the total return figures to date and then finding the single rate you would need to apply year by year to get the same compounded return. Income Return on Capital These columns display the income return on capital. Income Return on Capital = NIt x 100 ( CV(t-1) + CExpt )
Comp. Mean Average Income Return These columns display the compounded mean average income return. This is calculated by compounding all of the income return figures to date and then finding the single rate you would need to apply year by year to get the same compounded return. Capital Growth These columns display the capital growth. Capital Growth = ( CVt – CV(t‐1) – CExpt ) x 100 ( CV(t-1) + CExpt )
Comp. Mean Average Capital Growth These columns display the compounded mean average capital growth. This is calculated by compounding all of the capital growth figures to date and then finding the single rate you would need to apply year by year to get the same compounded return. Capital Employed These columns display the value of assets held at the beginning of the computation period plus purchase, development, and other capital expenses during the period. Capital Employed is the denominator of the total return calculations. Capital Employed = CV(t ‐ 1)+ CExpt See Also Returns Over Time Performance KPI Calculation Examples Valuation Reports Leveraged IRR per State Layout The following is the Leveraged IRR per State Layout 153 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Top Grid The top grid displays the leveraged internal rate of return at the end of each year for each state. The IRRs are calculated in the IRR Matrix report See Also Valuation Reports Chart The chart displays the leveraged IRR by property name. Bottom Grid The bottom grid displays leveraged IRR information for each property in the portfolio Property Name Displays the name of the property. The property name is entered in the Property Name field in the Description tab. City Displays the city in which the property is located. The city is entered in the City field in the Location tab. State/Territory Displays the state or territory in which the property is located. The state/territory is entered in the State / Territory field in the Location tab. Country Displays the country in which the property is located. The country is entered in the Country field in the Location tab. Property Type This column displays the property type. The property type is entered in the Property Type field in the Description tab. 154 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Analysis Date Displays the date your analysis begins. The analysis date is entered in the Analysis Begin Date field in the Description tab. Leveraged IRR These columns display the leveraged IRR at the end of each year. The IRRs are displayed in the IRR Matrix Report. Leveraged Sale Proceeds These columns display the leveraged sale proceeds. The proceeds are the net sale price minus the loan balance. The sale proceeds are displayed in the IRR Matrix report. PV & IRR Layout The following is the PV & IRR layout. Grid The grid displays information about the unleveraged present value and unleveraged IRR for each property. Fund Displays the fund the property is part of. The fund can be entered as a classification in the Manage Classifications screen. It can then be selected in the property Classifications tab. Asset Manager Displays the property's asset manager. The asset manager can be entered as a classification in the Manage Classifications screen. It can then be selected in the property Classifications tab. Region Displays the property's region. The region can be entered as a classification in the Manage Classifications screen. It can then be selected in the property Classifications tab. Property Name Displays the name of the property. The property name is entered in the Property Name field in the Description tab. City Displays the city in which the property is located. The city is entered in the City field in the Location tab. State/Territory Displays the state or territory in which the property is located. The state/territory is entered in the State / Territory field in the Location tab. Property Type This column displays the property type. The property type is entered in the Property Type field in the Description tab. 155 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Analysis Date Displays the date your analysis begins. The analysis date is entered in the Analysis Begin Date field in the Description tab. Term Displays the length of your analysis period in years and months. The term is entered in the Length of Analysis fields in the Description tab. Purchase Price Displays the property's purchase price. The purchase price is displayed in the Total Price field in the Property Purchase tab. Unleveraged PV These columns display the property's unleveraged present value at the end of each year. The present values are displayed in the Present Value report. See Also Valuation Reports Unleveraged IRR These columns display the property's unleveraged IRR at the end of each year. The IRRs are displayed in the IRR Matrix report. Traditional Valuation Layout The following is the Traditional Valuation layout. Chart The chart displays the equivalent yield of each property in the portfolio. The equivalent yield is a collection of different cap rates assigned to various tenants in the property model. 156 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Grid The grid displays traditional valuation information about each property in the portfolio. Property Name Displays the name of the property. The property name is entered in the Property Name field in the Description tab. City Displays the city in which the property is located. The city is entered in the City field in the Location tab. State/Territory Displays the state or territory in which the property is located. The state/territory is entered in the State / Territory field in the Location tab. Country Displays the country in which the property is located. The country is entered in the Country field in the Location tab. Property Type This column displays the property type. The property type is entered in the Property Type field in the Description tab. Analysis Date Displays the date your analysis begins. The analysis date is entered in the Analysis Begin Date field in the Description tab. Gross Value Displays the property's gross value. The gross value is displayed in the Gross Value field in the Calculation tab. Net Value Displays the property's net value, which is the gross value minus capital expenses minus acquisition costs. The net value is displayed in the Net Value field in the Calculation tab. Say Value Displays the property's say value, which is how much you say the property is worth. The say value is entered in the Say Value field in the Calculation tab. Equivalent Yield Displays the property's equivalent yield. The equivalent yield is displayed in the Equivalent Yield field in the Calculation tab. Initial Yield Displays the property's initial yield, which is the first net rent divided by the running yield result. The initial yield is displayed in the Initial Yield field in the Calculation tab. Reversionary Yield Displays the property's reversionary yield, which is the last non‐zero rent divided by the running yield result. The reversionary yield is displayed in the Reversionary Yield field in the Calculation tab. 157 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Default Layout The following grid is the Default Layout. General Displays general identifying information for the property. Property Name Displays the property name. The property name is entered in the Property Name field in the Description tab. City Displays the city name. The city is entered in the City field in the Location tab. State/Territory Displays the state or territory name. The state or territory is entered in the State / Territory field in the Location tab. Country Displays the country name. The country is entered in the Country field in the Location tab. Property Type Displays the property type. The property type is entered in the Property Type field in the Description tab. Analysis Date Displays the analysis start date. The analysis start date is entered in the Analysis Begin Date field in the Description tab. Leveraged IRR Displays the IRR as a leveraged position over the period interval selected. The purchase price is netted down by the loan balance as of the scenario analysis date. Also, the system includes the cash flow up until the scenario end date and uses the resale values as of the scenario end date. Net Operating Income Displays the net operating income over the period interval selected. The net operating income is displayed in the Cash Flow report. 158 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Cash Flow Available for Distribution Displays the cash available for distribution over the period interval selected. The cash flow available for distribution is displayed in the Cash Flow report. See Also Property Reports Occupied % Displays the occupied percentage over the period interval selected. The occupied percentage is displayed in the Occupancy report. See Also Audit Reports 159 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Audit Trail You can configure the audit trail to record the changes you make to a specific scenario at different levels of detail in order to view changes to property assets, portfolios, and scenarios. You can also restore or purge prior versions of a property asset model and assign permissions to other users to configure and/or view the audit trail. See Also System Settings Click Audit above the Ribbon then Open Global Audit Log to open the Audit Trail screen. An alternate path to view the Audit Log is to click the Audit Log tab on the bottom Ribbon in Scenario view. Note: The Open Audit button will be available if your permissions allow access to view the audit trail, otherwise the button will be disabled. For more information on Permissions, see Security Roles. 160 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Override Audit Trail Levels You can override the audit trail levels in the Scenarios tab. See Also Scenarios Audit Trigger Actions If you take any of following actions while using ARGUS Enterprise, an entry will be prompted in the Audit Log: 
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Create a new property asset model, an entry in the audit log will be triggered. Copy a property asset model, an entry in the audit log will be triggered. Save an edited property asset model, an entry in the audit log will be triggered. Calculate a property asset model (as part of a batch), an entry in the audit log will be triggered. Perform a sensitivity update on a property asset model, an entry in the audit log will be triggered. Import information into a property asset model as an AEIX file, an entry in the audit log will be triggered. Import information into a property asset model from the ARGUS Add‐In, an entry in the audit log will be triggered. Import a property asset model as an SF file, an entry in the audit log will be triggered. Import a property asset model as an AVUX file, an entry in the audit log will be triggered. Archive a property asset model, an entry in the audit log will be triggered. Copy forecast data to a budget, an entry in the audit log will be triggered. Purge an audit log, an entry in the audit log will be triggered. Restore a previous version of a property asset model, an entry in the audit log will be triggered. Delete a property asset model, an entry in the audit log will be triggered. Upgrade your database, an entry in the audit log will be triggered. Audit Trail Grid The grid will display several columns of audit data that you can use to inspect the history and nature of changes made to property asset models within a specified scenario over time. You can also click on the button in the Name column to jump to a specific property asset. Standard sorting and filtering are available. 161 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 From/To Dates Enter a start and end date in the From and To fields. Click the Search button to call up the audit trail for those dates or to refresh the view. Location View the file location information for the specific portfolio, scenario, and property asset. Name View the name for the property asset. Version View the update version of the property asset. User View the user name who made the changes. Time Stamp View the time stamp when changes were made. Audit Trigger View the trigger that caused the audit of the change. Audit Level View the audit level associated with the trigger. AE Version View the version of ARGUS Enterprise used to make the changes. Description View the description of the property asset. Audit Trail Options The following commands are available in the Audit section of the Ribbon: 
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Purge Audit Log Export Asset Version Export to Excel Purge Audit Log If you have Edit privileges, Purge Audit Log in the Ribbon will allow you to purge the Audit Logs before a specified date. 162 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Purge all audit history prior to: Select a purge date in the pick list. Click Finish to purge the Audit Log or Close to stop this process and close this window. Export Asset Version Export the property model as an AVUX file. Export to Excel Export the property model as an Excel file. See Also Review Reports 163 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Portfolio Details The Portfolio Details window displays information about the current portfolio and scenario. To edit items on this window, click Edit in the section you want to edit. Portfolio Details Name You can edit the name for the portfolio. Description You can edit the description for the portfolio. See Also Creating Portfolios Chart of Account You can select an account in the pick list. 164 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Chart of Accounts Is Template You can check the box to save your selections as a template. You can click Save to save the changes you made or Cancel to cancel them. Current Scenario Details Name You can edit the name for the scenario. See Also Scenarios Currency You can select a currency in the pick list. See Also Currency Scenarios Area Measure You can select a standard area measure in the pick list. See Also Area Measures Scenario Audit Trail Level If you are a Record Administrator of the scenario with Edit rights, you can edit/override the global audit trail settings for the scenario. Select an audit trail in the pick list. Choose from: 
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Detail: Audit trail level will is set to the detail level for the scenario. See Also Audit Trail Description Enter a description for the scenario. See Also Scenarios Base Select this option to use this scenario as the base scenario. 165 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Currency Scenario Select a currency scenario in the pick list. See Also Currency Scenarios Net Effective Rent Select a net effective rent definition in the pick list. See Also Net Effective Rent Definitions Enter Forecast Value at Choose a method for entering forecast values. Choose from: 
100% Occupancy (Default): Enter forecast values at 100% occupancy. Note files from AE 9.5 and earlier will be imported at 100% occupancy. 
Projected Occupancy: Enter values using the projected occupancy. Base Select the Base option to use base values in the scenario. See Also Rent Roll Budgeting and Actuals Store Tenant Account Details Select this option to combine recoveries by account number on specified tenant reports. Use Actuals Select the Use Actuals option to make the Actual Values End field available. Actual Values End Select an date for actual values in the pick list. Store Miscellaneous Rent and Incentive Account Details Select this option to store miscellaneous rent and incentive account details in the database. Use Prior Budget Select the Use Prior Budget option to make the Budget Period End field available. Budget Period End Select an end date for the budget period in the pick list. See Also Budgeting and Actuals 166 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Use Inflation Begin Date Select Use Inflation Begin Date to make the Miscellaneous Revenue Inflation Begins and Non‐
Operating Expense Inflation Begins fields available. See Also Non‐Operating Expenses Miscellaneous Revenues Operating Expense Inflation Begins Select a start date for the operating expense inflation period in the pick list. See Also Operating Expenses Capital Expense Inflation Begins Select a start date for the capital expense inflation period in the pick list. See Also Capital Expenses Miscellaneous Revenue Inflation Begins Select a start date for the miscellaneous revenue inflation period in the pick list. Non‐Operating Expense Inflation Begins Select a start date for the non‐operating expense inflation period in the pick list. You can click Save to save the changes you made or Cancel to cancel them. Optional Calculations Calculate Assured Income Choose whether or not you want to calculate assured income for all properties in the portfolio. Choose from: • No (default): Assured income is calculated only for properties with the Calculate Assured Income option selected in the Modeling Policies window. • Yes: Assured income is calculated for all properties in the portfolio, regardless of your selection in the Modeling Policies window. Extend Cashflow Projection for Rolling PV Choose whether or not to extend the cashflow projection past the analysis end date for the resale value calculation. The length of time for which data should be calculated after the valuation date (entered in the PV/IRR Date field on the Present Value tab) is determined by the entries in the Hold Period and Hold Years fields in the Property Resale tab. If you select Length of Analysis or Fixed Date in the Hold Period field, the selection you make in the Extend Cashflow for Rolling PV field will not affect the resale value calculation. The selection only makes a difference if you select Hold Years in the Hold Period field and enter a number in the Hold Years field. You may choose from the following options: 167 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • No (default): Calculate the resale value from the end of your analysis period back to the valuation date. The resale date is the final date of your analysis period. • Yes: Resale date may be after the analysis period ends. The resale value is calculated from the end of the hold period to the valuation date. The final date of the hold period may be after the final date of your analysis period. See Also Extend Cashflow Projection for Rolling PV Calculation Examples Resale Frequency Select the interval at which rolling valuations will be calculated for the resale method. Choose from: 
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Annual (default) Semi‐Annual Quarterly Monthly If you select an option other than Monthly, the values for non‐valuation date months will be copied from the most recent valuation date. See Also Resale Frequency Calculation Examples You can click Save to save the changes you made or Cancel to cancel them. When you make a change to one of the optional calculations, you will be prompted to run the recalculations immediately or wait and run them later. See Also Properties Calculating Properties 168 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Portfolio Properties To add a property to a portfolio, click Add Property on the Ribbon. See Also Creating an Investment Portfolio Model from Selected Properties See Also Portfolio Details Property Asset Template Click on the ribbon to launch the Create Property Asset popup. You can create a new property from scratch or to select a property template. 169 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Create Property from Scratch Select this option if you will be creating a property from scratch. Property Asset Type If you are creating a property from scratch, select the asset type from the pick list in the Property Asset Type field. Choose from: 
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170 Office Retail Industrial Mixed Use (Office/Retail) Mixed Use (Office/Industrial) Mixed Use (Office/Multifamily) © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
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Mixed Use (Retail/Multifamily) Multifamily Hotel Note: Some ARGUS Enterprise features are in available in multifamily and hotel asset types that are not available in others. See Multifamily Tenants for more information on multifamily properties; see Hotels for more information on hotel asset types. Create property from one of the templates below If you want to use a template for the property, select this option and then select the template for the property. Validating Import Data If a property already exists in the target scenario, as determined by a matching External ID, the property in the scenario will be updated with the contents of the AEIX file. If a property with a matching External ID does not exist in the scenario, a new property will be created from the selected template or as a blank model from scratch, based on your selection in the previous window. Adding Property Information Once you have indicated the type of property you want to create, choose Next to enter information about the property. 171 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Name The property name appears on the first line of the report title on all reports and is typically the name of the real estate project being analyzed. External ID# The external ID is a critical identifier when linking the property to other information sources. Analysis Begin Enter the date on which the analysis should begin. Click the down arrow to display a calendar to select a date. The default is the current month of the current year. If you change the entry in the Analysis Begin Date field, all information entered will move forward and backward accordingly. To run a fiscal year 172 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 analysis, change the begin date to the month desired (in the same calendar year, e.g.,. 1/11 to 6/11). All data will shift to a fiscal year basis. Analysis Years Enter the number of years of the analysis. The length of the analysis cannot exceed 100 years (an additional year for resale calculations purposes will automatically be projected by the system). The system default for Length of Analysis is 10 years. Analysis Months Enter the number of months of the analysis. Months should be entered as zero (0) through eleven (11). Twelve (12) months should be expressed as one (1) year. Currency Select the currency from the pick list in the Currency field. Area Measure Select the area measurement unit from the pick list in the Area Measure field. Warning: The Currency and Measurement selections for a property model can be changed at any time; however, the model will not convert data inputs or calculated results to reflect the new currency or area measure. Address Enter the address of the property in the various address fields. Comments Enter any comments about the property. Property Type Select the property type from the pick list in this field. Archiving and Checking Properties In and Out Checking out a property in ARGUS Enterprise makes it unavailable for edits by anyone else. When you edit a property, it is automatically checked out as long as the property remains open. When you close the property, the system will automatically check the property back in, making it available for edits by others once again. If you want to check out a property for an extended period of time, you can use Check Out Properties, which is available on the pick list when you click Check In/Out Properties on the Ribbon, to make the property unavailable for edits by others even when the property is closed. 173 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 To check the property back in so that it is available for editing, use Check In Properties which is available on the pick list when you click Check In/Out Properties on the Ribbon. If you want to make a property completely unavailable for edits by anyone (including yourself), you can use Archive Properties on the Ribbon to archive the property. 174 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 If you need to make an archived property available again, you can use Restore Properties which is available on the pick list when you click Archive Properties on the Ribbon. When a property has been checked out or archived, the corresponding Status field for that property will display a symbol. Archived properties will display a small shield; checked out properties will display a pencil as illustrated in the screen example below. In addition, the Checked Out/Archived By field will display the name of the user who checked out or archived the property. 175 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Record Security Record Security allows you to specify record security at both the user and the group level. You can use this button to set the security for portfolios, scenarios, and for individual properties. The Record Security Setup window allows you to assign security levels to a portfolio, property, or scenario if you have the appropriate level of administrative permissions. If you do not have administrative rights to assign security to a record, you will still be able to view the Record Security Setup window, however, you will not be able to make changes to it. Available Groups & Users The Available Groups & Users section of the window lists the current groups and users who have not been assigned rights to the to the selected record. 176 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Selected Groups & Users The Selected Groups & Users section of the window lists the users who have rights to the selected record. Assigning Rights to a Record / Removing Rights from a Record Use the arrow buttons in the middle of the window to move users into or out of the selected group. See Also Administration: Manage Permission Groups Workflow Status If you have Edit or Administrative rights over selective records can use Workflow Status on the Ribbon to add and edit property record status information. See Also Workflow Status To enter the workflow status, select the property or properties for which you want to enter a status, and click Workflow Status. 177 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Name The items listed in the Property Name field are determined by the properties that were selected. To list different properties, you must close the window and re‐select the properties on the previous screen. Status Select the workflow status from the pick list in this field. Note that the available on the pick list are determined by the system administrator. See Also Administration: Workflow Status Options Comments If you want to enter comments or notes related to the status, enter them in the Comments field. See Also Workflow Status 178 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Removing Overrides If the budget‐related Override Scenario Settings option has been selected in individual properties, you can use Remove Overrides on the Ribbon to remove any overrides in the selected properties and guarantee consistent data‐production for scenario‐level reporting. To remove overrides, select the property assets from which you want to remove overrides, and then click Remove Overrides. On the Calc Property Assets window, review the list of assets from which overrides will be removed. If you do not want to remove overrides from some of the listed assets, choose Skip from the pick list in the Action field. Once you have reviewed the list of properties, click Finish. The Override Scenario Settings column on the main portfolio Properties window will display the Override Scenario Settings status for the property assets in the portfolio. 179 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Property Description Export Properties You can use Export Properties on the Ribbon to export selected properties in various file types from the pick list. Choose from: 
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Export as ARGUS Enterprise Property Asset File Export as ARGUS Enterprise Valuation DCF File Export as Property Data in .aeex format Export as Property Data in .aeix format Import Properties You can use Import Properties on the Ribbon to import selected properties in various file types from the pick list. Choose from: 
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Import from .avux or .sf file Import from .aeix file The AEIX import process in the client application is a two‐step process. Step 1 Select a single template that will apply to all properties being imported in the current batch. 180 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Step 2 Validate import data by selecting the items to import. If the property already exists in the target scenario, as determined by a matching external ID, the property in the scenario will be updated with the contents of the AEIX file. If a property with a matching external ID does not exist in the scenario, a new property will be created from the selected template or as a blank model from scratch, based on your selection on the previous dialog. Click Previous to return to the previous window or Cancel to stop this process. Click Finish to complete this process. 181 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Valuation‐Cashflow Property Property Description Navigation: Property Editor>Inputs>Property>Description Purpose The Property Description tab is where you enter general property details that will be used in the analysis. Fields marked with an asterisk (*) are required. General Information This section of the tab is where you enter general information such as the property name, property ID, property type, and the building area. Property Name* The property name appears on the first line of the report title on all reports and is typically the name of the real estate project being analyzed. External ID The external ID is a critical identifier when linking the property to other information sources. Entity ID You can use this field to enter a unique ID of up to 38 characters to identify the source of the data for mapping purposes. 182 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Type* Select the property type in the pick list. Selecting Retail or Mixed Use (which includes retail) will activate percentage rent options. Selecting Multifamily or Mixed Use (which includes multifamily) will activate Multifamily unit input. Selecting Hotel will activate Hotel input. The property type selected will filter specific elements available for input and reporting. See Also Multifamily Tenants Hotels Building Area* Enter the building area (typically this is the net rentable area) or click the ellipsis to display the Building Area window. The Building Area window allows you to enter changing building area information by date, month, and amount. % Owned Enter the percentage of ownership. Default value is 100%. This percentage affects all cash flow calculations and Valuation Reports. Any percentage of ownership other than 100% will display in these report headers. Analysis The Analysis section describes the projection start date and the length of the analysis. The analysis period can be changed at any time, but please note that certain inputs, such as revenues and expenses are linked to the analysis period and will need to be updated. Analysis Begin Date* Enter the date on which the analysis should begin. Click the down arrow to display a calendar to select a date. The default is the current month of the current year. If you change the entry in the Analysis Begin Date field, all information entered will move forward and backward accordingly. To run a fiscal year analysis, change the begin date to the month desired (in the same calendar year, e.g., 1/13 to 6/13). All data will shift to a fiscal year basis. Length of Analysis* Years Enter the number of years of the analysis. The length of the analysis cannot exceed 100 years (an additional year for resale calculations purposes will automatically be projected by the system). The system default for Length of Analysis is 10 years. Months Enter the number of months of the analysis. Months should be entered as zero (0) through eleven (11). Twelve (12) months should be expressed as one (1) year. Timing This section of the tab is where you specify the timing for the analysis. 183 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Override Scenario Settings If you select this option, it will be disabled for properties included in budget scenarios. In other properties, selecting this option will enable budget‐related fields. Use Actuals / Actual Values End To use actuals in reports, select this option, and then, in the Actual Values End field, choose the date on which actual values end. Use Prior Budget / Budget Period End To use prior budget data in reports, select this option, and then, in the Budget Period End field, choose the date on which the budget period ends. Use Inflation Begin Date To begin the calculation of inflation on a specific date, select this option, and choose the date on which inflation calculation is to begin in the corresponding revenue and expense field. Miscellaneous Revenue Inflation Begins This field is only available if you selected the Use Inflation Begin Date option. Choose the date on which Miscellaneous Revenue inflation is to begin. Miscellaneous revenue is any income that does not come from tenants, such as antenna rental. Enter miscellaneous revenue on the Miscellaneous tab. Operating Expense Inflation Begins This field is only available if you selected the Use Inflation Begin Date option. Choose the date on which Operating Expense inflation is to begin. Operating expenses are subtracted from revenue to calculate the net operating income (NOI). They are typically ongoing expenses, such as electricity. Operating expenses are entered on the Operating tab. Capital Expense Inflation Begins This field is only available if you selected the Use Inflation Begin Date option. Choose the date on which Capital Expense inflation is to begin. Capital expenses are typically large one time expenses, such as roof repair. They are not included in the NOI calculation. Capital expenses are entered on the Capital tab. Non‐Operating Expense Inflation Begins This field is only available if you selected the Use Inflation Begin Date option. Choose the date on which Non‐Operating Expense inflation is to begin. Non‐operating expenses are any expenses you don't want to include in the NOI calculation. They are entered on the Non‐Operating tab. Currency and Measurement This section of the tab is where you specify the currency and area measurement unit for this property. Currency and area measure are used both for input and for reporting amounts. Property Warning: The Currency and Measurement selections for a property model can be changed at any time; however, the model will not convert data inputs or calculated results to reflect the new currency or area measure. 184 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Currency Select the currency in the pick list in the Currency field. The currencies in the pick list are the ones selected in the Managing Currencies window. Area Measure Select the area measurement unit in the pick list in the Area Measure field. Scenario Currency Select the currency in the pick list in the Currency field. Area Measure Select the area measurement unit in the pick list in the Area Measure field. 185 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Location Navigation: Property Editor>Inputs>Property>Location. Purpose The Property Location tab is where you enter location information for the property. This information is not required, but entering it will facilitate the use of advanced features in ARGUS Enterprise. Address Address Enter the street number and name. If there is an apartment or suite number, enter it in the second line. City Enter the city name. State/Territory Enter the state or territory. Zip/Postal Code Enter the zip or postal code. Country Select the country name from the pick list. Parcel Number Enter the parcel number. 186 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Additional Property Information Navigation: Property Editor>Inputs>Property>Additional The Additional tab is where you can enter additional information about the property including preparer name, appraisal number, loan number, year built, portfolio name, and comments. This information is optional. Additional Property Information Preparer Name Enter the name of the individual who prepared this property. Appraisal Number Enter the appraisal number for this property. Loan Number Enter the loan number for this property. Year Built Enter the year in which this property was built. Portfolio Name If the property is part of a portfolio, enter the portfolio name. Comments Enter any additional comments about this property. 187 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Area Measures Navigation: Property Editor>Inputs>Property>Area Measures. Purpose The Area Measures tab allows you to define multiple building/occupancy areas. In addition, you can reference these area measures for revenue, expense, and recovery calculation purposes. The Area Measures tab lists some standard measure records for which you can enter rentable areas. In addition, you can add and delete your own area measure records. You can reference all area measure records for calculation purposes by other area measure records, revenue and expense records, and recovery structure methods. See Also Short Cuts To enter your own area measure record, click Add Record in the Ribbon. General The General section of the tab allows you to view the standard area measures or to enter the name of custom area measures. Name The Name field displays the names of standard area measures. If you are creating a custom area measure, enter the name. Note that you cannot edit the names of standard area measures. 188 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rentable Area The Rentable Area section allows you to enter the area for standard area measures and to define your own custom areas. How Input Select the method by which you want to enter area measures. Choose from the following: 
Enter Area: Enter the area in the Area field. 
Sum of Other Rentable Area: Define the area measure record by selecting other area measure records. Area This field is only available if you select Enter Area in How Input. Use it to enter the area for the area measure record. Click to enter areas that change over time. 189 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Selected Rentable Areas This field is only available if you selected Sum of Other Rentable Areas in How Input. Click other area measure records. 190 © 2015 ARGUS Software, Inc. to select Product User Manual ARGUS Enterprise 11.0 Select the option corresponding to each area measure record you want to include. Click OK to apply your entries. Click Close to discard your changes and close this window. Occupied Area The Occupied Area section allows you to include or exclude specific tenants or tenant groups, select an area type, and enter a minimum and adjusted minimum for the area measure record. 191 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 How Input Select the method by which you want to determine the area. Choose from the following: 
All Tenants: All tenants will be included in the area measure record. 
Include Tenants: Use the Selected Tenants field to include specific tenants or tenant groups. 
Exclude Tenants: Use the Selected Tenants field to exclude specific tenants or tenant groups. 
Per Lease Type: Use the Selected Lease Types field to include specific lease types. Selected Tenants If you selected either Include Tenants or Exclude Tenants in How Input, click tenant groups to be included or excluded. to select the tenants or See Also Tenant Groups Click the check‐boxes corresponding to the tenants you want to include or exclude. Click OK to apply your entries. 192 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Click Close to discard them and close this window. Selected Lease Types If you selected Per Lease Type in How Input, click to select the lease types. Click the check‐boxes corresponding to the lease types you want to include. Click OK to apply your entries. Click Close to discard your changes and close this window. Area Type Select the area type in the pick list in the Area Type field. You may choose from the following options. 
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Standard Area Alternate Area Minimum If you want to enter a minimum area for the record, enter it in the Minimum field. 193 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Adjusted Minimum This field is only available if you made an entry in the Minimum field. If you want to use an adjusted minimum, enter it here. Click OK to apply your entries. Click Close to discard them and close this window. Detailed Area Measure Click Details on the Ribbon to display details you entered in the selected row. Area Measure Name Enter a name for the area measure record. Rentable Area How Input Select an input method in the pick list. Choose from: 
Enter Area: enter a number to define the rentable area or click 
Sum of Other Rentable Area: the rentable area will be defined by the areas you choose from to enter varying area amounts. Selected Area Measures If you clicked 194 in How Input, select the area measures. © 2015 ARGUS Software, Inc. . Product User Manual ARGUS Enterprise 11.0 Click OK to apply your entries. Click Close to discard them and close this window. Occupied Area How Input Select an input method in the pick list. Choose from: 
Per Lease Type: The occupied area will be defined per lease type, or you can select specific lease types by clicking . 
Include Tenants: The occupied area will include tenants, or you can select specific tenants and tenant groups to include by clicking . 195 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Exclude Tenants: The occupied area will exclude tenants, or you can select specific tenants and tenant groups to exclude by clicking . 
All Tenants: The occupied area will automatically include all tenants on the rent roll. Area Type Select an area type in the pick list. Choose from: 

Standard Area Alternate Area Minimum Enter a number for the minimum. Adjusted Minimum Enter a number for the adjusted minimum. 196 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Charts of Accounts Navigation: Property Editor>Inputs>Property>Chart of Accounts Click the top File tab and select Charts of Accounts in the Backstage area of the main ARGUS Enterprise window for a menu of options. You can also access the Chart of Accounts screen by clicking on the Accounts tab in the bottom Ribbon. • Opening a Chart of Accounts • Creating a Chart of Accounts • Importing a Chart of Accounts • Exporting Charts of Accounts • Adding Accounts • Deleting Accounts from a Chart of Accounts • Linking a Chart of Accounts to a Portfolio 197 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Chart of Accounts Structure ARGUS Enterprise displays three levels of detail in the Chart of Accounts: • parent/header • cashflow/GL account • job costs This is a many‐to‐one structure in which you can map multiple general ledger accounts to a single cash flow account. Items that can be mapped from detail to header should always be updated where the lowest level of detailed information is maintained. This account structure provides for a budget‐level entry of detail while keeping the chart simple for the valuation team, as, typically, the valuation team only needs to view the cash flow by parent level account with less detail than exists in a budget. In addition to mapping charts of accounts to each other, you can also map charts of accounts to reports. As a security measure, the administrator is the only role able to make changes to the chart and mapping. Opening a Chart of Accounts Select a chart of accounts in the Accounts area, and click Open Chart of Accounts or double click to open it. Standard filtering is available by clicking on the column name by which you want to filter the chart data. 198 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 The Chart of Accounts screen displays these columns: Account Number Click the arrow next to the header account number to expand to the account and detail levels. Level Displays the account level for the line item. Description Enter a description for the line item. Class You can select a new class for the header line item in the pick list. Choose from: 

Expense Revenue Line Item Type Select a line item type in the pick list. You may choose from several options in the following item categories: 199 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 

Common All Cost Code Type Displays the cost code type for each line item. Account Permissions This field will allow you to grant permissions in these ways: 

Enter the names/groups using semicolon separated values Click the button to open the Record Security Setup window Active? You can select or deselect this field in order to make the line item active or inactive. Creating a Chart of Accounts Click Create New Chart of Accounts to launch a popup with fields for a new chart of accounts name, External ID and Description. 200 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Result: The Create a New Chart of Accounts popup appears. Click the Finish button to complete this process or Close to stop this process and close the window. Name Enter a name for the new chart of accounts. External ID Enter an ID for the chart of accounts. Description Enter a description for the chart of accounts. Active Select this option if the chart of accounts will be in active use. Importing a Chart of Accounts Import Chart of Accounts in the Chart of Accounts window will allow you to import a chart of accounts. You will typically import a chart of accounts rather than create it in ARGUS Enterprise. You can import a chart of accounts from the main Chart of Accounts window. Choose Import Chart of Accounts from the Investment Portfolios section. 201 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 To import a chart of accounts, click Import Chart of Accounts. Select the chart of accounts you want to import and then click Open. 202 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Click Previous to return to the previous window. Click Next to continue. Click Cancel to stop this process. Select a sheet from the workbook Select a sheet from the drop down‐list. Chart Name Select the column for the chart name. External ID Select the column for the external ID. Chart Description Select the column for the chart description. Account Number Select the column for the account number. Account Level Select the column for the account level. 203 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Account Description Select the column for the account description. Class Select the column for the class. Line Item Type Select the column for the line item type. Permissions Select the column for the account permissions. Status Select the column for the status. Enter which row to begin importing from Enter the row number to begin importing from. Import Account Permissions Choose Import Account Permissions to import the account permissions. Select the columns you want to include and click Next to continue. Select either: • Import as a new chart • Update an existing chart Click Next to continue. 204 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Result: The Import Chart of Accounts Review tab displays. Review the data to be imported. Click Finish to complete the import process. 205 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: Importing will not work if you have the Chart of Accounts open in Excel. Close the Excel spreadsheet before importing. 206 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Exporting Charts of Accounts To export a chart of accounts to an Excel file, click Export Chart on the Ribbon. Export Account Permissions window Click Yes to export the account permissions. Enter a file name for the chart and select a location to save the file. Click Open to complete this process. 207 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 208 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Adding Accounts Click Add Account in the Ribbon to add new accounts one at a time. Parent/Child Account Choose whether the new account item will be a parent or child account in the COA hierarchy. If you select Child Account, you will be able to select a Parent Account in the Parent Account field. Account Number Enter the account number. Description Enter a description for the account. Class Select a class for the account in the pick list. These buttons are only available if you selected Parent Account. Choose from: • Revenue • Expense Line Item Type Select a line item type in the pick list. Click Apply to implement your changes then OK to close the window. 209 Note: Some line items can only have one account mapped to it. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Deleting Accounts from a Chart of Accounts To delete a chart of accounts, navigate to the Backstage area of the main ARGUS Enterprise window, select the account then click Delete Chart of Accounts. Warning: This action will permanently delete the selected chart of accounts. Click Yes to delete this chart of accounts or No to cancel this process. Linking a Chart of Accounts to a Portfolio You must link a chart of accounts to a specific portfolio in order to use the chart in ARGUS Enterprise. You can link a chart of accounts to a portfolio by employing one of the following methods: • Link a Chart of Accounts to a New Portfolio: You can create a new portfolio and link an existing or new chart of accounts to the portfolio by selecting the chart by name in the Chart of Account field of the Create New Portfolio window. You can navigate to the Create New Portfolio option by clicking File in the Ribbon and choosing Property Portfolios in the Backstage menu. • Link Chart of Accounts to Existing Portfolio: You can link a chart of accounts to an existing portfolio by opening a portfolio, choosing Edit in the Portfolio Details section, and selecting a chart by name in the Chart of Account field. 210 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Budgeting and Actuals Navigation: Property Editor>Inputs>Property>Actuals. Navigation: Property Editor>Inputs>Property>Budget. Purpose The budgeting and actuals features in ARGUS Enterprise allow you to create detailed budgets, forecasts, and valuations in a collaborative environment across your entire organization. You can use these features to manage the budget and forecasting cycles of your assets and separate tasks between submission, review, acceptance, and approval. In addition, if you have a license for the Property Budget module of ARGUS Enterprise, the Budget button on the Ribbon provides additional budget‐related features on the Capital Expenses, Operating Expenses, and Miscellaneous Revenues tabs. See Also Portfolios Scenarios Highlight Rows/Cells For easy reference, you can use Control + click to highlight multiple cells within selected rows. There are additional short cut key combinations available for the Actuals and Budget screens. See Also Getting Started Hot Keys Actuals The Actuals tab is where you can import or manually enter actual expenses incurred by the property. Although actuals data is typically imported, you can also enter it manually. To enter data manually, click Add Record. See Also Report Impacts of Actuals Data 211 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Timing The timing options near the top left corner of the tab determine the timing of the date columns in the grid. To specify the timing, choose one of the following options: 



Monthly Quarterly Semi‐annually Annually First Month to Display In addition to setting the timing, you can also specify the first month displayed in the grid by selecting a date in the First Month to Display field. Account Code Click and select an account code on the resulting window. Account Name If you selected an account code that exists on your Chart of Accounts, the account name associated with that code will automatically be entered in the Account Name field. Data Origin Displays the origin of the associated actuals data. You cannot edit this field; it is for information only. Date Columns Enter the actuals data in the corresponding date columns to the right. The data in these fields will be displayed on the corresponding detailed Expense windows. For more information on detailed Expense windows, see Current Budget / Reforecasting below. See Also Capital Expenses Operating Expenses Non‐operating Expenses Miscellaneous Revenues Budget The Budget tab is where you can enter budget information for the expenses incurred by the property. Although prior budget data is typically imported, you can also enter it manually. To enter data manually, click Add Record. 212 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Timing The timing options near the top left corner of the tab determine the timing of the date columns in the grid. To specify the timing, choose one of the following options: 



Monthly Quarterly Semi‐annually Annually First Month to Display In addition to setting the timing, you can also specify the first month displayed in the grid by selecting a date in the First Month to Display field. Account Code Click the button and select an account code on the resulting window. Account Name If you selected an account code, the account name associated with that code will automatically be entered in the Account Name field. Data Origin Displays the origin of the associated prior budget data. You cannot edit this field; it is for information only. Date Columns Enter the prior budget data in the corresponding date columns to the right. The data in these fields will be displayed on the corresponding detailed Expense windows. For more information on detailed Expense windows, see Current Budget / Reforecasting below. See Also Capital Expenses Operating Expenses Non‐operating Expenses Current Budget / Reforecasting The Capital Expenses, Operating Expenses, and Miscellaneous Revenues windows are where you can reforecast your original budget assumptions. For users with a Budget license for ARGUS Enterprise, these windows include an additional Budget view, which allows you to display budget records, actuals, and account level notes without having to open multiple windows. To show or hide the Budget view, click Budget on the Ribbon. 213 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Budget View The following example shows the Budget View for the Miscellaneous Revenues window. Budget Tools You can toggle between the top grid and the Budget View by using the shortcut key Ctrl + B. Note you can customize the Budget View grid and save the state of that view for later use. Top Grid Hide Accounts Select/deselect this option to hide/show the top grid. Note that if you select Detail in the Ribbon, hidden accounts will reappear in the top grid. Alternatively, you may use the shortcut keys Ctrl + H. Group Accounts Click this button to group accounts by the parent account. You will be able to expand/collapse to view or hide sub‐accounts under each parent account. Alternatively, you may use the shortcut keys Ctrl + G. Timeframe Current Budget Year Select current budget year in the pick list. Your selection controls the first year that appears on the budget Miscellaneous Revenues, Operating Expenses, and Capital Expenses screens. Your selection does not affect the analysis start date or the reporting start date. 214 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Years to Display Select or enter the number of years to be displayed in the budget Miscellaneous Revenues, Operating Expenses, and Capital Expenses screens. Your selection does not affect the length of the projection or the reporting end date. Entry Functions Extend Value Select this option to extend the value to all future years until the end of the analysis period. Alternatively, you can use the shortcut keys Ctrl + U. Note you can enter/modify a single cell value without extending that value to the end of the analysis period. Copy Year Select a forecast row and click Copy Year to copy the row values to all future years until the end of the analysis period. Alternatively, you can use the shortcut keys Ctrl + Y , copy/paste commands, or click/drag a highlighted row to the target row. See Also Occupancy Calculation Examples Note: For multifamily properties, the occupancy rate is replaced by the total multifamily occupancy rate in the conversion calculation. Note: For Mixed Use (Office/Multifamily and Retail/Multifamily) properties, the conversion calculation uses the occupancy rate from the commercial tenants, except when the $/Unit option is selected in the How Input field. The $ / Unit option uses the total multifamily occupancy rate from the residential tenants in place of the occupancy rate to perform the conversion calculation. Budget Grid Account Number Enter or select the account by number in the pick list. Account Name The account name is auto‐populated from your selection in the Account Number field. Alternatively, you may select an account name in the pick list or enter the account name. Previous/Next Click the Previous or Next button to move to the previous/next account. Alternatively, you may use the shortcut keys Ctrl + Left/Right Arrows. Current Year Ending Displays the year and month of the currently active budget. How Input Displays the selected option from the How Input field in the expense grid. 215 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Show/Hide Rows You can choose to show or hide rows by clicking the Show/Hide Rows header and selecting/de‐selecting specific rows by name. Depending upon the available data in your model, the following rows may be available: 
Forecast: This row displays forecast data to the end of the period. 
Variance (B/F): This row displays variance data for budget vs. forecast to the end of the period. 
Variance % (B/F): This row displays variance data for budget vs. forecast, expressed as a percentage, to the end of the period. 
Variance (B/A): This row displays variance data for budget vs actuals, to the end of the period. 
Variance % (B/A): This row displays variance data for budget vs. actuals, expressed as a percentage, to the end of the period. 
Variance (A/F): This row displays variance data for actuals vs. forecast to the end of the period. 
Variance % (A/F): This row displays variance data for actuals vs. forecast, expressed as a percentage, to the end of the period. See Also Getting Started Notes Enter any notes in the Notes area you want linked to the selected account. Details View To view additional detail about the individual items on the window, you can select an item, and then click the Details on the Ribbon. 216 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Monthly Select this option to display line items on a monthly basis. Quarterly Select this option to display line items on a quarterly basis. Semi‐Annual Select this option to display line items on a semi‐annual basis. Annual Select this option to display line items on an annual basis. See Also Capital Expenses Operating Expenses Non‐operating Expenses Miscellaneous Revenues 217 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Classifications Navigation: Property Editor>Inputs>Property>Area Measures The Classifications tab allows you to classify individual assets. You will be able to select from the available property classifications in the Group By parameter of many Repertoire Reports (this will vary by report). You will also be able to filter properties by the available property classifications in Sensitivity Analysis for the purposes of applying batch changes to inputs associated with properties matching the classification selection. Note: Creating and editing classifications is an administrative function. Only users with appropriate rights will be able to create or edit property classifications. See Also Global Categories: Managing Classifications Repertoire Reports Sensitivity Analysis To add a classification to a record, click Add Record on the Ribbon. Classification Select a classification to apply to an asset from the pick list in the Classification field. Value Select the value you want to associate with the asset from the drop‐down list in the Value field. Warnings Review any warnings that may be displayed in the Warnings field. 218 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Market Market Inflation Navigation: Property Editor>Inputs>Market>Inflation. Purpose The Market Inflation tab allows you to enter simple default inflation rates to be used in each section of the application, or to enter detailed monthly inflation rates for each section of the application. These default rates will be used throughout the property in the relevant areas unless an overriding rate is entered for a particular item. For example, all expenses will inflate at the expense inflation rate unless a custom inflation rate or override rate is entered for a specific expense. See Also Short Cuts By default, inflation rates are applied annually according to the timing of the model established by the analysis begin date. For example, if the analysis begins in November 2013, inflation will be applied annually starting in November 2014. However, the inflation month can be set independently of the analysis timing, allowing for any combination of analysis and inflation timing. For instance, it is possible to start an analysis in November 2013 and apply inflation every January starting in January 2014. To enter a single inflation rate, enter a percentage in the corresponding Rate field, or click a window where you can enter detailed inflation rates. to display Use Reset to return inflation to the original inflation inputs. Enter inflation as a percentage for each year of the projection. For example, a 1.5% inflation rate should be entered as 1.5 or 1.5%, but not as 0.015, which would be interpreted as 0.015%. Inflation You can apply standard or enter custom inflation rates to revenues and expenses. To apply a standard rate, select from the following options: 
No Inflation Rate: The zero inflation rate is applied to elements that do not inflate each period specified. 
General Inflation Rate: The general inflation rate is applied to general elements in the property valuation including miscellaneous revenues, parking revenues, storage revenues, and sales volume amounts. 
Market Inflation Rate: The market inflation rate is applied to all market rents on the Market Leasing window. Market rates will inflate annually each year of the projection if Annually is selected in the 219 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflate Market Rents field on the Modeling Policy window. If it is set to Monthly, market rates will inflate each month at 1/12th of the market inflation rate beginning in the second month of the projection. 
Expense Inflation Rate: The expense inflation rate is applied to all operating and capital expenses on an annual basis. 
CPI Inflation Rate: The CPI inflation rate is used for CPI rent increases in the Market Leasing and Tenant sections of the application. To add a custom inflation rate to the model, click Add Record on the Ribbon. After adding a custom rate, enter a name for the inflation rate and enter the corresponding inflation rates for that item. Inflation Basis In this field, you can select a global inflation category that has been entered in the Managing Inflation Rates screen. You may also leave this field at the default setting, As Entered. If you select a global inflation category, the grid will be automatically populated with the rates from the selected category. If you want to enter monthly inflation rates, click next to the Inflation Basis field. This opens the monthly inflation window. The way the monthly rates are used depends on your selection in the Monthly Detail Inflation field in the Modeling Policies window. See Also Varying Rate Windows section of Getting Started Inflation Month Select the inflation month for your model. The inflation rates entered will correspond to the twelve‐
month period starting with the inflation month. For example, if the inflation month is July, the inflation rates will be entered as of the years ending in June. You can also select Monthly to define a monthly amount or the Analysis Date option to begin with the analysis month. Recovery Timing Select the timing for recoverable expenses in your model. The selection in this field will be applied to all operating expenses with a recoverable portion. Choose from: 
Fiscal Recovery using Fiscal Inflation: Recovery timing and recovery inflation timing will mirror the month selected in the Inflation Month field. 
Calendar Recovery using Fiscal Inflation: January will be used as the start of the year for recovery timing and inflation will mirror the month selected in the Inflation Month field. 
Calendar Recovery using Calendar Inflation: January will be used as the start of the year for recovery timing and inflation calculation. The month selected in the Inflation Month field will not be used. Note: Recoveries timing is necessary when calculation for recoveries is set to Annual, instead of Monthly on the Modeling Policies window. 220 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Reset Inflation The Reset buttons will zero out the inflation rates for the selected inflation rate type. Update Click Update to update the inflation rates in the selected row to match those in the global category selected for the row. Note: Update will only be active if you have a row highlighted with a global category selected in the Inflation Basis field, and the inflation rates entered in this window do not match the global inflation rates. 221 Note: Update will only update the highlighted row. All other rows will remain the same. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation Indices Navigation: Property Editor>Inputs>Market>Inflation Indices. Purpose The Inflation Indices tab allows you to enter inflation indices for a property. In addition to local inflation indices, you can also use this window to select a global Inflation Index category. See Also Short Cuts See Also Global Categories To create an inflation index, click Add Record in the Ribbon. Name Enter a name for the inflation index or select an existing global Inflation Index category in the pick list in the Name field. If you select a global category, the name is the link between the global category and any usages of the category within individual properties. If you change the name of a global category, it will no longer be updated within any properties in which it has been used. In addition, if you change the name of a global category within an individual property, it will no longer be linked to the global category. See the "Update" section below for information on updating local inflation indices to reflect changes made to a global Inflation Index category. Date Enter the date on which the corresponding inflation index is to take effect. Amount Enter the amount of the inflation index. ARGUS Enterprise will interpret your entry based on the selection in the Units field. Units Select the inflation method in the pick list in the Units field. Choose from: 
Index Value: Interpret the entry in the Amount field as an index value. Inflation calculated using this method will be determined by the difference in index values between one date and the next. 
Percent Increase: Interpret the entry in the Amount field as a percentage increase. Repeat Last Percentage Indicate that inflation should increase by the last inflation percentage. 222 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Update If you make changes to a global Inflation Index category that is linked to a property, the Information icon will be displayed on the left side of the Name field. You can use Update to reflect the changes to the inflation index in the current property. If you do not click this button after changes have been made to a global Inflation Index category, those changes will not be reflected in the individual property. 223 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 General Vacancy Navigation: Property Editor>Inputs>Market>General Vacancy. Purpose General Vacancy is used to enter the stabilized vacancy rate for the property. It represents the minimum vacancy loss for the property on a monthly or annual basis. See Also Rent Roll Calculation Select one of the following calculation methods in the pick list. Choose from the following: 
Annual Amount: Enter an annual amount to represent vacancy. Click over time. 
% of Potential Gross Revenue: Total Tenant Revenue + Total Other Income is used as the calculation method. 
% of Total Rental Revenue: Scheduled Base Rent + CPI Increases is used as the calculation method. 
% of Total Tenant Revenue: Total Tenant Revenue + Total Other Tenant Revenue is used as the calculation method. to enter rates that vary Amount / Percentage (field not labeled) Enter a currency or percentage amount used in the calculation of general vacancy. Click to display an inflation percentage window that allows you change the vacancy amount or percentage rate for each month and year of the analysis period. 224 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Gross‐Up Revenue by Absorption & Turnover Vacancy Calculates the general vacancy loss by adding back the absorption and turnover vacancy to the projected revenue before applying the selected calculation method. Example ‐ Annual Amount: Enter 50,000; General Vacancy Amount for the year = $50,000 Example ‐ % of Potential Gross Revenue: Potential Gross Revenue = $1,000,000; General Vacancy Rate = 5%; General Vacancy Amount = (1,000,000 X .05) = $50,000 Example ‐ % of Total Rental Revenue: Total Rental Revenue = $1,200,000; General Vacancy Rate = 5%; General Vacancy Amount = (1,200,000 X .05) = $60,000 Example ‐ % of Total Tenant Revenue: Total Tenant Revenue = $900,000; General Vacancy Rate = 5%; General Vacancy Amount = (900,000 X .05) = $45,000 225 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Reduce General Vacancy Result by Absorption & Turnover Note: Calculations based on potential revenue with 100% Occupancy. Absorption & Turnover... Cash Flow shows... Checked (Default) Deducted from vacancy allowance Vacancy Allowance as 0 (zero) if absorption and turnover vacancy is greater than vacancy allowance. Unchecked Not Deducted from vacancy allowance. Separate Vacancy Allowance and Absorption and Turnover Vacancy line items. Checkbox... Override Specified Tenants Select this option if you want to override the vacancy rate for a specific tenant or group of tenants. This will make the Tenants to Override section available. Override Tenants Method Select this option if you wish to override vacancy for specific tenants. Choose an override method in the pick list. You may choose from the following options: 
Adjust Standard Rate: Override percentage value will be multiplied by the current rate entered to adjust the rate for the specific group/lease. 
Increment Standard Rate: Override percentage value will be added to the current rate entered to adjust the rate for the specific group/lease. 
Replace Standard Rate (default): Override percentage value will be used as the new rate for the specific group/lease. Calculations and Examples Example ‐ Adjust Standard Rate: Potential Gross Revenue = $1,000,000; General Vacancy Rate = 5%; PGR for Tenant 1 = $500,000; PGR for Tenant 2 = $300,000; PGR for Tenant 3 = $200,000; Override Tenant 3; Override % = 80%; General Vacancy Amount = ((Tenant 1 + Tenant 2) X .05) + (Tenant 3 X .08) = ((500,000+300,000) X.05) + (200,000 X (.05 X .90)) = $48,000 Example ‐ Increment Standard Rate: Potential Gross Revenue = $1,000,000; General Vacancy Rate = 5%; PGR for Tenant 1 = $500,000; PGR for Tenant 2 = $300,000; PGR for Tenant 3 = $200,000; Override Tenant 3; Override % = 1%; General Vacancy Amount = ((Tenant 1 + Tenant 2) X .05) + (Tenant 3 X (.08+.01)) = ((500,000+300,000) X .05) + ((200,000 X (.08+.01)) = $58,000 Example ‐ Replace Standard Rate: Potential Gross Revenue = $1,000,000; General Vacancy Rate = 5%; PGR for Tenant 1 = $500,000; PGR for Tenant 2 = $300,000; PGR for Tenant 3 = $200,000; Override Tenant 3; Override % = 10%; General Vacancy Amount = ((Tenant 1 + Tenant 2) X .05) + (Tenant 3 X .10) = ((500,000+300,000) X .05) + (200,000 X .10) = $60,000 226 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenants to override The Tenants to Override grid will display all existing tenant groups and individual tenants for the Rent Roll and Space Absorption. You can filter columns, sort rows, and group rows by dragging headers to the top of the grid. Note: A lease, which is linked to another lease as a result of the main lease rolling over as an option, contract renewal, month to month, or hold over, will be treated separately as its own lease record. Similar to Tenant Groups, such leases will be listed individually in the grid along with the main lease. Calculations will be treated separately as well. Selection This section of the tab allows you to select the tenants you wish to override. Select To select a tenant, click the corresponding option in the left column. Override % Enter the override percentage for the selected tenant in the Override % field. After Expiration Select the rate to be applied after expiration in the pick list in the After Expiration field. You may choose from the following options: 
Standard Rate: Individual leases or leases within the selected group will revert back to using the original general vacancy rate when the main lease expires. 
Override (default): Individual leases or leases within the selected group will proceed with using the adjusted rate in the calculation. Note: A selected individual rent roll lease takes priority over a selected tenant group where the same lease is included. If a lease is included in more than one tenant group, the tenant group sort order within the Tenants/Tenant Group tab will be used to determine in which group the lease will be included. Lease Details Type The Type field displays tenant group, tenant lease, or space absorption. Name The Name field displays the group or lease name. 227 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Suite The Suite field displays available suite information. Note this field will always be blank for tenant groups. Area The Area field displays lease size information. Note this field will always be blank for tenant groups. For space absorption leases, this field will display area to lease / average lease area. Tenant Classifications This section will display any global tenant classifications that have been marked to be shown in the rent roll screen as columns. This field will be blank for tenant groups and space absorption leases. Create tenant classifications by navigating to File>Backstage>Global Categories>Manage Classifications. See Also Manage Classifications Note: Based on your entry in the Override Percent field and the method you select in the Override Specified Tenants field, the calculation for a lease's general vacancy will use the adjusted rate. If you override a tenant group, the calculation for general vacancy will also use the adjusted rate. Alternatively, if you select Standard Rate in the After Expiration field for a selected lease or tenant group, the calculation will revert back to using the original general vacancy rate when the main lease expires. 228 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Credit Loss Navigation: Property Editor>Inputs>Market>Credit Loss Purpose You can use the Credit Loss tab to enter an additional loss factor for the property to account for the possibility of bad debts or non‐payment of rents by certain tenants. Calculation Select a calculation method in the pick list. You may choose from the following options: 
Annual Amount: The annual amount is entered on a scale or a time series. Inflation can be applied to this value. 
% of Potential Gross Revenue: Total Tenant Revenue + Total Other Income. 
% of Total Rental Revenue: Scheduled Base Rent + CPI Increases. 
% of Total Tenant Revenue: Total Tenant Revenue + Total Other Tenant Revenue. See Also Credit Loss Calculation Examples Amount / Percentage (field not labeled) Enter a currency or percentage amount used in the calculation of Credit Loss. Clicking will display an inflation percentage window that allows you change the credit loss amount or percentage rate for each month and year of the analysis. 229 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Override Specified Tenants Select this option if you want to override the credit loss rate for a specific tenant or group of tenants. If you select this option, the Tenants area will be displayed in the lower portion of the window. Override Tenants Method (unlabeled) If you wish to override credit loss for specific tenants, select the override method in the pick list in the field to the right of the Override Specified Tenants field. You may choose from the following options: 
Adjust Standard Rate: Override percentage value will be multiplied by the current rate entered to adjust the rate for the specific group/lease. 
Increment Standard Rate: Override percentage value will be added to the current rate entered to adjust the rate for the specific group/lease. 
Replace Standard Rate (default): Override percentage value will be used as the new rate for the specific group/lease. 230 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenants to Override Grid The Tenants to Override grid will display all existing tenant groups and individual tenants for the Rent Roll and Space Absorption. You can filter columns, sort rows, and group rows by dragging headers to the top of the grid. Selection This section of the tab allows you to select the tenants you wish to override. Select To select a tenant, click the corresponding option in the left column. Override % Enter the override percentage for the selected tenant in the Override % field. After Expiration Select the rate to be applied after expiration in the pick list in the After Expiration field. You may choose from the following options: 
Standard Rate: Individual leases or leases within the selected group will revert back to using the original rate when the main lease expires. 
Override (default): Individual leases or leases within the selected group will proceed with using the adjusted rate in the calculation. Note: A selected individual rent roll lease takes priority over a selected tenant group where the same lease is included. If a lease is included in more than one tenant group, the tenant group sort order within the Tenants/Tenant Group tab will be used to determine in which group the lease will be included. Lease Details Type The Type field displays tenant group, tenant lease, or space absorption. Name The Name field displays the group or lease name. Suite The Suite field displays available suite information. Note this field will always be blank for tenant groups. Area The Area field displays lease size information. Note this field will always be blank for tenant groups. For space absorption leases, this field will display area to lease / average lease area. 231 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Classifications This section will display any global tenant classifications that have been marked to be shown in the rent roll screen as columns. This field will be blank for tenant groups and space absorption leases. Create tenant classifications by navigating to File>Backstage>Global Categories>Manage Classifications. See Also Manage Classifications 232 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Market Leasing Profiles Navigation: Property Editor>Inputs>Market>Market Leasing. Purpose A Market Leasing profile allows you to apply market rates and other tenant assumptions to the rollover of tenant areas when the current leases reach their expiration. A Market Leasing profile must be applied to each tenant. Market Leasing profiles serve two key purposes. The first is to group leasing assumptions to be applied to a tenant area when the current lease contract for that space expires. The second use for the profile is for speculative leasing, or Space Absorption, of vacant space. If there is a block of vacant space in the property, the model can use a set of Market Leasing profiles to lease that space as one or more separate speculative lease contracts. A blank default profile is present in each new property model created which is automatically applied to each tenant added to the file, unless another Market Leasing profile is selected. This default profile can be renamed and edited. You can create additional Market Leasing profiles by clicking Add Record in the Ribbon or by right‐
clicking in the input area and choosing Add Record from the right‐click menu. See Also Short Cuts Name The Name section allows you to enter a name for the Market Leasing profile. Name Enter the name you want to assign to the Market Leasing profile. 233 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 General The General section allows you to enter the term, renewal probability, and months vacant for the Market Leasing profile. Term (Yrs/Mos) Enter the number of years (max. number is 100), forward slash as a separator, then the number of months (max. number is eleven) for market leases. The default is 5 years and zero months. Renewal % Enter the probability that existing tenants will remain in place and renew their lease. All new and renewal market assumptions is blended using this percentage. The default is 50%. Click the button to enter a renewal probability that varies on a monthly basis. Months Vacant Enter the number of months a space will remain vacant between leases if the current tenant moves out. Months vacant can only be entered as a whole number of months. The default is zero months. Base Rent (/Area) The Base Rent (/Area) section allows you to enter information about the Market Leasing profile's base rent. Base Rent Unit Select the unit of measure for the new and renewal base rents. You may choose from the following options in the drop down list: 
$ / SF / Year: Entries in the New Base Rent and Renew Base Rent fields is calculated using currency per area per year. 
$ / SF / Month: Entries in the New Base Rent and Renew Base Rent fields is calculated using currency per area per month. 
$ / Year: Entries in the New Base Rent and Renew Base Rent fields is calculated using currency per year. 234 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
$ / Month: Entries in the New Base Rent and Renew Base Rent fields is calculated using currency per month. 
% of Market: Entries in the New Base Rent and Renew Base Rent fields is calculated using a percentage of the market rent. New Base Rent Enter the rate that a tenant new to the building would be expected to pay. This rate is typically blended on a weighted average basis with the Renew Base Rent below to obtain the projected rate for the next lease term for an expiring space. This entry inflates with market inflation. You may enter a number or select Market Rental Value to make the new base rent = the value entered in the Rental Value field. You may also click the button to enter new base rent that varies over time. Renew Base Rent Enter the rate that an existing tenant is projected to pay upon renewal or extension of their current lease. This rate is typically blended on a weighted average basis with the New Base Rent above to obtain the projected rate for the next lease term for an expiring space. The default option for this field is Same as New, meaning that the renew base rent = the value in the New Base Rent field. Click the button to enter renew base rent that varies over time. This entry inflates with market inflation. Alternatively, you can select the Continue Prior option in the pick list to base renewal base rent on the prior rent amount and blended according to the entry in the Renewal Override and Renewal % fields. Note: if Continue Prior is selected, the Renewal Override and % of Prior Rent fields is available. See Also Market Leasing Calculation Examples Varying Rate Windows section of Getting Started Renewal Override Specify how an entry in the Rental Value field on the Rent Roll will be treated in relation to the Continue Prior option. This field will only be available if the Continue Prior option is selected in the Renewal Market Rent field. You may choose from the following options in the drop down list: 
None: The rental value is used in place of the new market rent and the prior rent will be blended with this amount to determine the market rate. 
Rental Value: The amount + inflation entered for the rental value is used as the market rate instead of the blended new and renewal market rates. % of Prior Rent Enter a numeric value that will determine the percentage of prior rent that is used when calculating the renewal rate. Intelligent Renewals To turn on this section, select the Use Intelligent Renewals option in the Modeling Policies. This section allows you to specify how the renewal rate is determined. 235 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Use Market or Prior You can specify how the renewal rate is determined. You may choose from the following options in the drop down list: 
Market (default): Renewal rate is the blending of new and renewal market rents. 
Prior: Renewal rate is the amount specified in the Prior Rent field. It can either be the total of all the selected rent components or a user specified contract rate. 
Use Lesser of: Renewal rate is the smaller amount between the prior rent and market leasing blended renewal rate. 
Use Greater of: Renewal rate is the larger amount between the prior rent and market leasing blended renewal rate. When Intelligent Renewals is on and a rental value is specified, the following conditions will apply: 
If Use Lesser Of is selected in the Market or Prior field, then the rental value is used to compare with prior rent instead of the market leasing blended rate. 
If Use Greater Of is selected in the Use Market or Prior field, the rental value is used to compare with prior rent instead of market leasing blended rate. 
If Prior is selected in the Use Market or Prior field, the rental value is ignored. See Also Intelligent Renewals Quick Reference Prior Rent Choose whether to use prior rent or a specified contract rate. The Prior Rent field will use Standard Rent. Contract rates entered will always use amount/per area/year unit of measure and will not be affected by inflation. Alternatively, you can specify which elements of tenant income is used in determining the tenant's last rent by using a rent components profile. For more information on this, see Rent Components. This field is disabled if Use Market or Prior is set to Market and Renew Market Rent is set to a numeric value. Rent Increases The Rent Increases section allows you to enter rent increases to the Market Leasing profile. 236 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Changing Base Rent Enter any changes to the base rent. The default option for this field is None. Click that changes over time. to enter base rent See also Market Leasing Rent Schedule Fixed Steps Select the unit of measure for fixed step increases in the initial rent over the term of a market lease in the pick list. You may choose from the following options in the drop down list: 
None: Initial rent does not increase over the term of the market lease. 
$/SF/Year: Initial rent increases by currency per area per year over the term of the market lease, according to your entry in the Step Amounts field. 
$/SF/Month: Initial rent increases by currency per area per month over the term of the market lease, according to your entry in the Step Amounts field. 
$/Year: Initial rent increases by currency per year over the term of the market lease, according to your entry in the Step Amounts field. 
$/Month: Initial rent increases by currency per month over the term of the market lease, according to your entry in the Step Amounts field. 
% Increase: Initial rent increases by a percentage increase over the term of the market lease, according to your entry in the Step Amounts field. Step Amounts Enter the step amount to specify a constant rent increase that occurs every year on the lease anniversary. When the Changing Base Rent field is not equal to None, the Fixed Step and Step Amounts fields is disabled. CPI Increases Select the timing of CPI increases. You may choose from the following options in the drop down list: 
None: CPI do not increase over the term of the market lease. 
Each Lease Year: CPI increases on each lease anniversary over the term of the market lease. 
Each Calendar Year: CPI increases on January 1st of each year for the term of the market lease. 
At Mid‐lease: CPI increases half‐way through the term of the market lease. 
Indexed Review: CPI increases are applied based on the entry in the Inflation Rate/Index field. Selecting Indexed Review enables the Inflation Rate/Index field. See Also CPI Increases 237 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation Rate / Index Select the CPI inflation rate/ index in the pick list. You may choose from the following options in the drop down list: 
Zero Inflation Rate: CPI does not inflate for the specified period. 
General Inflation Rate: CPI inflates at the general inflation rate. 
Market Inflation Rate: CPI does not inflate at the market inflation rate. 
Expense Inflation Rate: CPI inflates at the expense inflation rate. 
CPI Inflation Rate: CPI inflates at the CPI inflation rate. Rental Value The Rental Value section allows you to enter information about market rental value. Rental Value Unit Enter the unit used to calculate the rental value. You may choose from the following options: • Continue Prior (default): Rental value will be the same as the input in the Rental Value field of the previous lease. • $/SF/Year: Entry in the Rental Value field will adjust the rental value by that amount per square unit per year. • $/SF/Month: Entry in the Rental Value field will adjust the rental value by that amount per square unit per month. • $/Year: Entry in the Rental Value field will adjust the rental value by that amount per year. • $/Month: Entry in the Rental Value field will adjust the rental value by that amount per month. Rental Value Enter the rental value. This field is disabled when the Rental Value Unit field = Continue Prior. Click to enter a value that changes over time. Rental Value Inflation Enter the rental value inflation. Click to enter an inflation rate that changes over time. Free Rent (Mo) The Free Rent (Mo) section allows you to enter free rent. 238 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 New Free Rent Enter the number of months of free rent for new leases. Free rent is applied at the beginning of the lease. Free rent is entered as a number of months. For example, if a single month of free rent is given to new leases regardless of the lease start date, enter 1 in the New Free Rent field. Otherwise, click to provide a free rent entry that varies according to the lease start date. Alternatively, you can specify which elements of tenant income is abated during the free rent period by using a Free Rent profile. To use a Free Rent profile, you must create one on the Free Rent tab and then choose it in the pick list in the New Free Rent field. Renew Free Rent Enter the number of months of free rent for renewal leases. Free rent is applied at the beginning of the lease. Free rent is entered as a number of months. For example, if a single month of free rent is given to renewal leases regardless of the lease start date, enter 1 in the Renew Free Rent field. Otherwise, click to provide a free rent entry that varies according to the lease start date. Alternatively, you can specify which elements of tenant income is abated during the free rent period by using a Free Rent profile. To use a Free Rent profile, you must create one on the Free Rent tab and then choose it in the pick list in the Renew Free Rent field. See Also Free Rent Profiles Detailed Free Rent Recoveries The Recoveries section allows you to enter information about recoveries (money you charge the tenant to cover expenses). Structure Select the recovery structure to be applied to the speculative lease in the pick list. The default is Continue Prior which will continue to use the recovery structure of the existing tenant including allocation percentage, recovery stops, recoverable expenses, etc. 239 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Continue Prior: Recovery methods in effect at the end of the prior lease is used for each of the subsequent market leasing terms. Base year stops are not reset when using this method. 
Net: Recoverable expenses are paid by the tenant based on their proportionate share of the building area. 
Base Year Stop: All recoverable expenses is paid by the tenant based on their proportionate share of the building area (NRA) over a stop amount which is the actual amount of annual recoverable expenses in the base year (or first year of the lease). 
Base Year Stop ‐1: All recoverable expenses is paid by the tenant based on their proportionate share of the building area (NRA) over a stop amount which is the actual amount of annual recoverable expenses in the year prior to the base year (first year of the lease). 
Base Year Stop +1: All recoverable expenses is paid by the tenant based on their proportionate share of the building area (NRA) over a stop amount which is the actual amount of annual recoverable expenses in the year following the base year (or first year of the lease). 
Stop Amount: Enter the building stop amount. This tenant will reimburse all recoverable expenses over the building stop amount entered based on their proportionate share of the building area. 
Stop Amount/Area: Enter the building stop amount/area. This tenant will reimburse all recoverable expenses over the building stop amount/area entered based on their proportionate (pro rata) share of the building area. 
Fixed Amount: Enter the annual recovery amount that is paid by the tenant each year. The fixed amount can be a single amount or vary over time. The fixed amount is a tenant amount not a building amount. 
Fixed Amount/Area: Enter the annual amount/area recovery that is paid by the tenant each year. The fixed amount/area can be a single amount or vary over time. The fixed amount/area is a tenant amount/area not a building amount/area. 
Custom: Use any custom recovery structures previously created. 
None: No recoveries is calculated for the tenant. Note: In addition to the options above, you can also create user‐constructed recovery structures. These provide you with the ability to create custom recovery structures which apply different recovery methods to individual expenses or expense groups. This flexibility allows you to model virtually any recovery structure you might encounter in a commercial real estate lease contract. For more information, see Recovery Structures. Amount This field is disabled if you selected a recovery structure that doesn't require the entry of an amount. Enter simple stop or fixed amounts for the recovery structure, or click the button to vary the stop or fixed recovery amounts over time. See Also Recovery Allocation Calculation Examples Miscellaneous Items The Miscellaneous Items section allows you to link miscellaneous rent, expenses, and other items to tenants you specify. 240 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Miscellaneous Rent You can link miscellaneous revenues to a specific tenant, tenants, or pre‐defined tenant groups. You may choose from the following options in the drop down list: 
None (default): Does not enable the Detail window. 
Detailed/Multiple: Makes visible the Detail window, which will provide a grid for defining miscellaneous items. Miscellaneous Rental Revenue The Detail window appears below the Market Leasing grid if you select Detailed/Multiple in either the Miscellaneous Rent and/or the Incentives field. Incentives are expenses incurred by the property owner as part of securing a new tenant. For example, an owner might pay moving expenses or lease break fees. General Account Number Enter an account number to be associated with the record. Name Enter an account number to be associated with the record. Amount How Input Select an input method in the pick list. You may choose from the following options in the drop down list: 
Amount 1: Entry in the Amount 1 field is a currency amount. 
$/Tenant Area: Entry in the Amount 1 field is calculated using the currency per tenant area. 
% of Rent: Entry in the Amount 1 field is calculated using a percentage of the rent. Amount 1 Enter either a number or a percentage (depending upon your selection in the How Input field). Note if you click , it will open an amount‐time list grid for varying amounts. Frequency Select an input method in the pick list. This field will not be available if % of Rent is selected in the Amount field or if there are variable amounts entered for the Amount 1 field. You may choose from the following options in the pick list: 241 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 

Annually (default) Monthly See Also How Input Calculation Examples Rent Components Select a rent component record in the pick list. You may choose from the following options in the pick list: 
Standard Rent: Rent components include base rent, fixed step, CPI and free rent. 
Total Prior Components: Rent components include base rent, fixed step, CPI and percentage rent. 
Custom Rent Components: Rent components include whichever elements you selected in the Rent Components window. Inflation Inflation % Enter an inflation rate or select one of the inflation references from the pick list. This field will not be available if the % of Rent option is selected in the How Input field. You may choose from the following options in the pick list: 
Zero Inflation Rate: Rent components does not inflate for the specified period. 
General Inflation Rate: Rent components inflate by the general inflation rate. 
Market Inflation Rate: Rent components inflate by the market inflation rate. 
Expense Inflation Rate: Rent components inflate by the expense inflation rate. 
CPI Inflation Rate: Rent components inflate by the CPI inflation rate. See Also Inflation Limits Limits Set a lower or upper monthly limit on the projected miscellaneous rent amounts. You may choose from the following options in the drop down list for each expense: 
None (default): No lower or upper limits is applied to the miscellaneous rent item. 
Min: Only a lower limit is applied to the miscellaneous rent item. 
Max: Only an upper limit is applied to the miscellaneous rent item. 
Both: A lower and upper limit is applied to the miscellaneous rent item. Basis Define the units of measurement for the Minimum and Maximum fields. You may choose from the following options in the drop down list: 
242 $/Tenant Area/Month: Currency per tenant area per month is used to define your entries in the Minimum and Maximum fields. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
$/Tenant Area/Year: Currency per tenant area per year is used to define your entries in the Minimum and Maximum fields. 
$ Amount/Year: Currency per amount per year is used to define your entries in the Minimum and Maximum fields. 
$ Amount/Month: Currency per amount per month is used to define your entries in the Minimum and Maximum fields. Minimum Enter a monthly minimum limit amount if there is one. Click to display a monthly limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum Enter a monthly maximum limit amount if there is one. Click to display a monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Notes Notes Enter a note related to this record or click to open the Notes window. Note: When an option lease is created, the contents of the Detail grid is duplicated in the newly created lease except if the selection in the Amount 1 field is varies. Also, in this case the corresponding field for the new lease is populated with the last value from the amount‐period editor grid from the base lease. Incentives You can link capital expenditures to a specified tenant. You may choose from the following options in the drop down list: 
None (default): Does not enable the Detail Pane. 
Detailed/Multiple: Makes visible the Detail window, which will provide a grid for defining incentive items. Miscellaneous Incentives Window (unlabeled) The Detail window appears below the Rent Roll grid if you select Detailed/Multiple in either the Miscellaneous Rent and/or Incentives field. Each row represents a distinct source of rental revenue paid by the tenant. General Account Number Enter an account number to be associated with the record. 243 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Project ID Enter the project ID for this incentive. Name Enter an account number to be associated with the record. Amount How Input Select an input method for the Amount 1 field. You may choose from the following options in the drop down list: 
Amount 1: Entry in the Amount 1 field is a currency amount. 
$/Tenant Area: Entry in the Amount 1 field is calculated using the currency per tenant area. Amount 1 Enter either a numeric or percentage value (depending upon your selection in the How Input field). Timing Enter the percentage value for timing or click to open an amount‐time list grid where percentages can be entered for a range of months starting two years prior to the lease begin and continuing for the entire term of the lease. See Also How Input Calculation Examples Inflation Inflation % Enter an inflation rate or select one of the inflation references from the pick list. Note inflation will only be applied to the lease start date and using the Timing field to extend payments into a different inflation year will not result in inflated payments. You may choose from the following options in the drop down list: 
Zero Inflation Rate: No inflation applied for specified period. 
General Inflation Rate: Inflate incentives by general inflation rate. 
Market Inflation Rate: Inflate incentives by market inflation rate. 
Expense Inflation Rate: Inflate incentives by expense inflation rate. 
CPI Inflation Rate: Inflate incentives by CPI rate. See Also Inflation GAAP Amortize Check this box to apply straight line rent calculations to incentives. 244 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also GAAP Rent Recovery Recoverable % Enter a numeric value for the recoverable percentage. Note that recovery of incentives will not be grouped with expense recoveries on reports, nor will it be abated if free rent is configured to offer free recovery periods. You will not be able to create periods with free incentive recovery. Note: Recovery of any incentive amounts is spread out over the remaining term of the lease starting from the date they hit the cash flow. Notes Notes Enter a note related to this record or click to open the Notes window. Note: When an option lease is created for a lease where the Detailed / Multiple option is selected for the Incentives field, the contents of the Detail grid is duplicated in the newly created lease except in the case where Varies is selected for the Amount 1 field. The corresponding field for the new lease is populated with the last value from the amount‐
period editor grid from the base lease. Improvements The Improvements section allows you to enter tenant improvements TI Unit Select the unit of measure to be used for tenant improvements. You may choose from the following options in the drop down list: 
None: Disables New TI, Renew TI, and TI Timing fields. 
$ Amount: Interprets entries in the New TI and Renew TI fields will be interpreted as currency amounts. 
$ / Area: Interprets entries in the New TI and Renew TI fields is interpreted as currency amounts per area. 
% of Rent (Year 1): Calculates new tenant improvements by multiplying the entry in the New TI field by the base rent in the first twelve months of the lease. Renewal tenant improvements is calculated by multiplying the entry in the Renew TI field by the base rent in the first twelve months of the lease. Note that base rent is a blend of new and renewal market rent. If you have entered 245 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 variable data for either new or renewal tenant improvements, they is calculated by multiplying the corresponding lease start month by the base rent in the first twelve months of the lease. • Custom Categories: If you have created tenant improvement categories on the Tenant Improvements tab, the categories are displayed in this pick list. If you select one of these categories, the New TI, Renew TI, and TI Timing fields is disabled. New TI Enter the tenant improvements to be applied to new (spec) tenants on an amount/area basis (Example: $/SF). Entries for new tenant improvements will automatically be copied to the renewal improvement column. The renewal improvement rate can be then be overwritten. A weighted average tenant improvement rate is calculated using the new and renew tenant improvements rate based on the renewal probability. All tenant improvements are paid at the beginning of the lease. When changing over time, tenant improvements is shown in the month the speculative lease begins is paid. To enter changing tenant improvements, click . Renew TI Enter the tenant improvements to be applied to renewal (spec) tenants on an amount/area basis (Example: $/SF). All tenant improvements are paid at the beginning of the lease. When changing over time, tenant improvements is shown in the month the speculative lease begins is paid. To enter changing tenant improvements, click . TI Timing Enter the tenant improvements timing percentage. The default entry of 100% in the TI Timing field indicates that the entire tenant improvement amount should occur in month one of the lease. However, the tenant improvement amount can be distributed across the lease term by entering the percentage to be paid in each month. Click in the TI Timing field to enter percentages that vary over time. See Also Tenant Improvements Calculation Examples Leasing Commissions The Leasing Commissions section allows you to enter leasing commissions New LC Unit Select the unit of measure for new leasing commissions. The default selection is Fixed %. Value entries for new commissions will automatically be copied to renewal commissions. If the new commissions payment type is set to anything other than the default Fixed %, that change must be made manually for renewal commissions. Only the value entered is copied to the renewal. All leasing commissions are paid 246 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 at the beginning of the lease. Leasing commission percentages are applied to base rent plus fixed steps less free rent. You may choose from the following options in the drop down list: 
None: No commissions is applied. 
$ Amount: Entry in the New LC field is interpreted as a fixed commission amount. 
$ / SF: Entry in the New LC field is interpreted as a fixed commission rate per square unit of measure. 
1st Month + %: Entry in the New LC field is interpreted as a percentage of the remaining months in the term. ARGUS Enterprise will calculate new commissions using 100% of month 1 rent, plus a separate % of the remaining months in the term (e.g., 100% of 1st month, 2% of remaining 59 months in a 5 year lease term). 
Fixed %: Entry in the New LC field is interpreted as a percentage of the entire lease value over the term (e.g., 4% of the total rent, including steps, less free rent over the 5 year lease term). 
% by Lease Year: Specify a percentage rate for each year of the lease term (e.g., 5% of year 1, 4% of year 2, 3% of year 3, etc.). 
# of Months at Initial Base Rent: Specify the number of months for the lease amount based on the initial base rent (e.g., Initial Base rent * number of months = commission). Any changes in the step rent or free rent will not be reflected in the commission as it depends only on initial base rent. 
Lease Commissions Category: If you created a Lease Commissions category, includes specific income streams, you can select that option h ere. New LC Enter the new leasing commissions amount. Leasing commissions are on an amount per square unit percentage basis. Click to access the detail screen. Please note that the New Leasing Commissions window that appears will vary based on the unit selected in the New Commissions Unit field. Renew LC Unit Select the unit of measure for renewal leasing commissions. The default selection is Fixed %. All leasing commissions are paid at the beginning of the lease. Leasing commission percentages are applied to base rent plus fixed steps less free rent. You may choose from the following options in the drop down list: 
None: No commissions is applied. 
$ Amount: Entry in the New LC field is interpreted as a fixed commission amount. 
$ / SF: Entry in the New LC field is interpreted as a fixed commission rate per square unit of measure. 
1st Month + %: Entry in the New LC field is interpreted as a percentage of the remaining months in the term. ARGUS Enterprise will calculate new commissions using 100% of month 1 rent, plus a separate % of the remaining months in the term (e.g., 100% of 1st month, 2% of remaining 59 months in a 5 year lease term). 
Fixed %: Entry in the New LC field is interpreted as a percentage of the entire lease value over the term (e.g., 4% of the total rent, including steps, less free rent over the 5 year lease term). 247 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
% by Lease Year: Specify a percentage rate for each year of the lease term (e.g., 5% of year 1, 4% of year 2, 3% of year 3, etc.). 
# of Months at Initial Base Rent: Specify the number of months for the lease amount based on the initial base rent (e.g., Initial Base rent * number of months = commission). Any changes in the step rent or free rent will not be reflected in the commission as it depends only on initial base rent. 
Lease Commissions Category: If you created a Lease Commissions category, includes specific income streams, you can select that option here. See Also Commissions Calculation Examples Renew LC Enter the renewal leasing commissions amount. Leasing commissions are on an amount per square unit percentage basis. Click to access the detail screen. Please note that the Renew Leasing Commission window that appears will vary based on the unit selected in the Renew Commissions Unit field. LC Timing Enter the renewal leasing commission timing. The default leasing commission timing for the lease start year is 100%. Leasing commissions can be paid across the lease years for defined percentages. Click the button in the LC Timing field and enter the percentage of the leasing commission to be used, in the respective years. The Leasing Commission Timing window defines the years from ‐2, ‐1, 1, 2, 3, 4, 5 etc. Year 1 defines the lease start year; i.e., year dates and months is relative to the lease start date. Year 2, Year 3, etc. define the lease term plus two years. Security Deposit The Security Deposit section allows you to enter security deposits. The input for these fields is blended using the percentage entry in the Renewal Probability field for the current lease. New Security Deposit Select the new security deposit record in the pick list. Renew Security Deposit Select the renew security deposit record in the pick list. See Also Security Deposits Security Deposit Calculation Examples 248 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Percentage Rent (New & Renew) The Percentage Rent (New & Renew) section allows you to enter percentage rent (the percentage of sales that retail tenants pay you). The input fields for percentage rent will not be available unless the property type is Retail or Mixed Use (including Retail). Sales % Basis If you want to base calculations on a sales percentage, select the sales percentage basis in the pick list in this field. You may choose from the following options in the drop down list: 
None: Detail pane is unavailable. 
Percent: Enter a sales percentage in the next field. 
Continue Prior: Percentage rent for rollover terms is calculated based on the input for the previous term. 
Detailed/Multiple: Detail pane is available in the lower portion of the window to enter detailed information for sales percentage basis and tenant sales categories. Detailed/Multiple grid To create a Tenant Sales category, once you have selected Detailed/Multiple in the Sales % Basis field, click in the lower portion of the window and then click Add Record on the Ribbon. Sales Categories Account Number You may select one account number per Tenant Sales category. This field is only available if Use Account Numbers is selected in Modeling Policies. Name Enter the item name. Volume Sales Amount Unit Select the sales amount unit in the pick list in this field. You may choose from the following options: 
Annual Amount (Annual $): Entry in the Sales Amount field is interpreted as an annual amount. 
Amount / Area ($/SF): Entry in the Sales Amount field is interpreted as an amount per area. 249 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Sales Amount Enter the sales amount. To enter varying amounts, click to access the detail window. Breakpoint Breakpoint Unit Select the breakpoint unit in the pick list in this field. You may choose from the following options: 
Natural: Calculates only after natural breakpoint is reached. The natural breakpoint is base rent + step rent + CPI. 
Annual $: Calculates on sales volume over annual amount entered. 
Amount / Area: Calculates on sales volume over amount per area entered. Break Amount Enter the breakpoint amount. Click to enter breakpoints that vary. Note: This field is unavailable when you select Natural in the Breakpoint Unit field. Layer 1 ‐ Layer 6 Sales % Enter the sales percentage for the current layer. Click to enter sales percentages that vary over time. Cap Unit Select the option for entering the sales volume. You may choose from the following options in the drop down list: 
Amount per square unit: The amount to capitalize is based on an amount per square unit. 
Annual amount: The amount to capitalize is based on an annual amount. Cap Enter the amount you want to capitalize. To enter an amount that varies, click . Breakpoint The breakpoint is the sales volume which must be achieved prior to the payment of any percentage rent. The overage percentage will only be applied to sales that exceed the breakpoint. The calculation methods for deriving the breakpoint are as follows: 
Continue Prior: The methods in effect at the end of the prior lease is used for each of the subsequent market leasing terms. Base year stops are not reset when using the Continue Prior method. 
Amount/Area: Percentage rent is calculated on sales volume that exceeds the rate per area entered. 
Annual Amount: Percentage rent is calculated on sales volume that exceeds the annual amount entered. 250 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Natural: If a retail tenant has a natural breakpoint, percentage rent is calculated only after the natural breakpoint is reached. The natural breakpoint is calculated on base rent + step rent + CPI. 
Zero: Percentage rent is calculated on total sales. Break Amount Enter the breakpoint amount. Click that vary over time. to display the Breakpoint Amount window to enter breakpoints To create a Tenant Sales category, once you have selected Detailed/Multiple in the Sales % Basis field, click in the lower portion of the window and then click Add Record on the Ribbon. General Account Number You may select one account number per Tenant Sales category. This field is only available if the Use Account Numbers option has been selected in Modeling Policies. See Also Modeling Policies Name Enter the item name. Upon Expiration The Upon Expiration section allows you to specify what happens to the lease when it expires. Upon Expiration Select the leasing profile you want to use to govern the creation of future leases following expiration. Your selection in this field will be the active leasing profile. Importing Market Leasing Profiles You can import market leasing profiles from other programs to model in ARGUS Enterprise. Importing from Valuation DCF When importing files from Valuation DCF, you can account for entries in the Number of Terms to Apply Method field to be reflected in the projected cash flow in the imported model. The following procedures and rules will apply: 251 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
For any leases which have the Market, Vacate, or Renew options selected in the Upon Expiration field and use a detailed recovery method in which the Number of Terms to Apply Method has a value greater than 1, ARGUS Enterprise will create duplicate profiles. 
The import process will create the same number of market leasing profiles as the one that was entered into the Number of Terms to Apply Method field. Each of these profiles will conform to the following pattern: Tenant Name, Rollover, and the number. 
The selection in the Recovery field for the final profile will mirror the original market leasing profile. 
The selection in the Upon Expiration field will refer to the next profile in turn until the end of the profile list. 
The selection in the Upon Expiration field for the final profile will refer to itself. 
Leases that reabsorb or rollover to an option lease will not require special treatment. 252 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Free Rent Profiles Navigation: Property Editor>Inputs>Market>Free Rent. Purpose The Free Rent tab allows you to specify which elements of tenant income will be abated during the free rent period. When you create Free Rent profiles, you will be able to reference them for individual tenants on the Rent Roll and Market Leasing windows. See Also Short Cuts To create a Free Rent profile, choose Add Record on the Ribbon. See Also Rent Roll Market Leasing General The General section of the Free Rent tab allows you to enter a descriptive name for the Free Rent profile. Name Enter a name to describe the Free Rent profile. # Free Months New Free Rent Enter the number of months of free rent to be applied to tenants with new leases. To enter numbers that change over time, click . Renew Free Rent Enter the number of months of free rent to be applied to tenants with renewing leases. To enter numbers that change over time, click . See Also Detailed Free Rent Elements to Include This section of the tab allows you to specify the percentage for each component to be included when calculating free rent. 253 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Base Rent % Enter the percentage of base rent to be included in the free rent calculation. The default base rent percentage is 100%. Fixed Steps % Enter the percentage of fixed steps to be included in the free rent calculation. The default fixed steps percentage is 100%. CPI % Enter the percentage of CPI to be included in the free rent calculation. The default CPI percentage is 0%. Percentage Rent % Enter a numeric value for the percentage rent to be included in the free rent calculation. The default percentage rent is 0%. Recoveries % Enter the percentage of recoveries to be included in the free rent calculation. The default recoveries percentage is 0%. Miscellaneous Rent % Enter the percentage of miscellaneous rent to be included in the free rent calculation. The default recoveries percentage is 0%. 254 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 CPI Increases Navigation: Property Editor>Inputs>Market>CPI Increases Purpose The CPI Increases window includes the ability to create CPI Increase categories that specify the timing of increases, the date of CPI adjustments , the number of months between increases, the percentage of the CPI increase paid by the tenant, minimum and maximum percentage increases, and any CPI amounts currently being paid by the tenant. The projected CPI increase is determined by these factors, as well as the CPI inflation rate entered on the Market Inflation screen. See Also Rent Roll Market Leasing Short Cuts CPI The CPI section on the tab allows you to specify a name for the CPI increase category, the timing, and the inflation rate, or index. Name Type a name for the CPI Increase category. Timing Select the timing for CPI increases: 
None: No CPI increases are applied. 
Each Calendar Year: Applies CPI at the beginning of each calendar year. 
Each Lease Year: Applies CPI at the beginning of each lease year. 
At Mid Lease: Applies CPI at the midpoint of the lease. 
Indexed Review: Uses an indexed review to determine CPI increases. 
Specified Interval: Allows you to type/select the interval periods. Inflation Rate / Index Type/select an inflation rate: 
No Inflation Rate: Inflates at a zero inflation rate. 
General Inflation Rate: Inflates at the general inflation rate. 
Market Inflation Rate: Inflates at the market inflation rate. 255 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Expense Inflation Rate: Inflates at the expense inflation rate. 
CPI Inflation Rate: Inflates at the CPI inflation rate. CPI Index Value Override Enable value override fields: • None: Disables CPI Start Value Date, CPI Specified Start Value, and CPI Months Offset Value. • Use Value on a Date: Enables CPI Start Value Date. • Use Specified Value: Enables CPI Specified Start Value. • Use Months Offset Value: Enables CPI Months Offset Value. CPI Start Value Date Type/select the start value date for CPI in the drop‐down calendar. CPI Specified Start Value Type/select a number for the start value for CPI. CPI Months Offset Value Type/select a number for CPI offset months. This applies a CPI Index from a prior month. Example If you select 01‐01‐2015 as the CPI Start Value Date and you type 3 months, the index goes back 3 months and recalculates the CPI increase starting from 10‐01‐2014 . First Increase This First Increase section on the tab allows you to indicate the initial timing of increases. The fields in this section will only be available if you enter a specific rate in the Inflation Rate / Index field. Begin After Select an option to indicate when increases are to begin. You may choose from the following options: 
# Months: CPI increases begins after the number of months specified in the First Increase field. 
% Increase: CPI increases begins after the percentage increase specified in the First Increase field. 
# Points Increase: CPI increases begins after the points increase specified in the First Increase field. First Increase ARGUS Enterprise will interpret the entry in this field depending upon the selection in the Begin Increase field. Enter the number of months, the percentage, or the number of points at which the first increase is to begin. Further Increases This section of the tab allows you to specify additional CPI increases. The fields in this section will only be available if you enter a specific rate in the Inflation Rate / Index field. 256 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Increases After Select an option to indicate when additional increases are to be applied: 
# Months: Additional CPI increases are applied after the number of months specified in the Further Increases field. 
% Increase: Additional CPI increases are applied after the percentage increase specified in the Further Increases field. 
# Points Increase: Additional CPI increases are applied after the points increase specified in the Further Increases field. Further Increases ARGUS Enterprise will interpret the entry in this field depending upon the selection in the Increases After field. Enter the number of months, the percentage, or the number of points at which the additional increase is to be applied. Minimum Interval (mo) This field allows you to indicate that CPI rent cannot increase until after the specified number of months have passed since the previous increase. CPI Amount This section of the tab allows you to specify additional parameters for the calculation and application of CPI increases. % of CPI This field allows you to modify the calculated CPI result. For example, if calculated CPI is $,1000, if you enter 57% in this field, the CPI rent will be $570. Minimum Increase This field allows you to enter a minimum percentage increase over the prior rent (rent + prior CPI), enabling you to address inflation rates or indices that fluctuate over time. Maximum Increase This field allows you to enter a maximum percentage increase over the prior rent (rent + prior CPI), enabling you to address inflation rates or indices that fluctuate over time. 257 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Improvements Navigation: Property Editor>Inputs>Market>Tenant Improvements. Purpose The Tenant Improvements tab allows you to create Tenant Improvement categories that you can use both in Market Leasing profiles and the Rent Roll. Note: You cannot delete Tenant Improvement categories if you have used them in a Market Leasing profile or the Rent Roll. See Also Short Cuts Rent Roll Market Leasing General The General section allows you to specify a name for the tenant improvement. Name Enter a name for the tenant improvement. Improvements The Improvements section allows you to enter information about the tenant improvements. TI Unit Select a unit to measure the tenant improvement. • None: Tenant improvement will not be measured, and all the following fields will be greyed out and disabled. • $ Amount: Numbers in the New TI and Renew TI fields will be the amounts paid for the improvements. • $/Area (default): Numbers in the New TI and Renew TI fields will be multiplied by the lease's square footage to equal the amounts paid for the improvements. • % of Rent Year (Year 1): Percentages in the New TI and Renew TI fields will be multiplied by the first year's rent to equal the amounts paid for improvements. The types of rent used (e.g., base and step) depend on your selection in the Rent Components field. 258 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 New TI Enter the amount or percentage for new tenant improvements. Click time. to enter amounts that vary over Renew TI Enter the amount or percentage for renewing tenant improvements. Click vary over time. to enter amounts that Timing Enter a percentage indicating what amount you will pay at the beginning of the lease. The default is 100%. Click to enter percentages paid at different times. See Also Varying Rate Windows section of Getting Started Rent Components Select a rent component from the pick list. Rent components are entered on the Rent Components tab. The default selection is Base Rent. 259 Note: This field is only available if you have selected % of Rent Year (Year 1) in the TI Unit field. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Lease Commission Categories Navigation: Property Editor>Inputs>Market>Lease Commissions. Purpose The Lease Commissions tab allows you to create Lease Commission categories that you can use in both Market Leasing profiles and the Rent Roll. Note: You cannot delete Lease Commission categories if you have used them in a Market Leasing Profile or on the Rent Roll. See Also Market Leasing Profiles Rent Roll Short Cuts General Name Enter a descriptive name of up to 40 characters for the Lease Commission category. Commissions Commissions Unit Select the commissions unit to be associated with the tenant. Choose from the following: 
None: No commissions are applied. 
$ Amount: Entries in the New LC field and the Renew LC field are interpreted as a fixed commission amounts. 
$ / SF: Entries in the New LC field and the Renew LC field are interpreted as fixed commission rate per square units of measure. 
1st Month + %: Entries in the New LC field and the Renew LC field are interpreted as percentages of the remaining months in the term. ARGUS Enterprise will calculate new commissions using 100% of month 1 rent, plus a separate % of the remaining months in the term (e.g., 100% of 1st month, 2% of remaining 59 months in a 5 year lease term). 
Fixed %: Entries in the New LC field and the Renew LC field are interpreted as percentages of the entire lease value over the term (e.g., 4% of the total rent, including steps, less free rent over the 5 year lease term). 260 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
% by Lease Year: Specify a percentage rate for each year of the lease term (e.g., 5% of year 1, 4% of year 2, 3% of year 3, etc.). 
# of Months at Initial Base Rent: Specify the number of months for the lease amount based on the initial base rent (e.g., Initial Base rent * number of months = commission). Any changes in the step rent or free rent will not be reflected in the commission as it depends only on initial base rent. New LC Enter the new leasing commissions amount. Leasing commissions are on an amount per square unit percentage basis. Click to access the detail screen. Please note that the New Leasing Commissions window that appears will vary based on the unit selected in the Commissions Unit field. Renew LC Enter the renewal leasing commissions amount. Leasing commissions are on an amount per square unit percentage basis. Click to access the detail screen. Please note that the Renew Leasing Commission window that appears will vary based on the unit selected in the Commissions Unit field. Timing The default leasing commission timing for the lease start year is 100%. Leasing commissions can be paid across the lease years for defined percentages. Click in the Timing field and enter the percentage of the leasing commission to be used, in the respective years. The Leasing Commission Timing window defines the years from ‐2, ‐1, 1, 2, 3, 4, 5 etc. Year 1 defines the lease start year; i.e., year dates and months will be relative to the lease start date. Year 2, Year 3, etc. define the lease term plus two years and so on. See Also Commissions Calculation Examples Elements to Include By default, ARGUS Enterprise includes base rent, fixed steps, CPI, and free rent in the calculation of leasing commissions. You can use this section of the window to include or exclude specific income streams in the leasing commission calculations. Base Rent Include base rent in the calculation of leasing commissions. Fixed Step Include fixed steps in the calculation of leasing commissions. CPI Rent Include CPI rent in the calculation of leasing commissions. Percentage Rent Include percentage rent in the calculation of leasing commissions. Note that this option is only available in properties for which the property type is Retail. 261 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Recoveries Include recoveries in the calculation of leasing commissions. Free Rent Include free rent in the calculation of leasing commissions. 262 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Multifamily Market Leasing Profiles Navigation: Property Editor>Inputs>Market>Multifamily Market Leasing You can create leasing profiles for multifamily units including assumptions for renewal probability, new and renewal market rents, months vacant between terms, prep costs (improvements), leasing costs (leasing commissions), free rent, and term length. You can also import/export multifamily unit market leasing assumptions data between ARGUS Enterprise and ARGUS Valuation DCF. Name Name Enter the item name you want to use to identify the market leasing profile record. The name you enter will appear in the pick list of the Market Leasing field in the multifamily record. General Term (Yrs/Mos) Enter the number of years and months for future leases when a unit rolls over. The default value is zero years/months. Renewal % Enter the probability percentage that existing tenants will remain in place and renew their lease. This percentage is used to weight the entries in the New Market and Renewal Market fields for the following items: market rent, leasing commission, improvements, free rent. All new and renewal market assumptions will be blended using this percentage. The default is 50%. Click to enter a renewal probability that varies on a monthly basis. Months Vacant Enter the number of months a space will remain vacant between leases if the current tenant moves out. Months vacant can only be entered as a whole number of months. The default is zero months. Market Rent Market Rent Unit Select the unit of measure for the New Market and Renewal Market Rent fields. You may choose from the following options: 
$/Unit/Month: New market rent and renewal market rent will be entered as $/Unit/Month. 
$/SF/Month: New market rent and renewal market rent will be entered as $/SF/Month. 263 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also How Input Calculation Examples New Market Rent Enter the rate that a tenant new to the building would be expected to pay. This field also determines an absorbed unit's rent if a market leasing assumption (MLA) profile is referenced. Note this field will not be available if Prior is selected in the Use Market Rent or Prior field. This rate is typically blended on a weighted average basis with the renewal market rate below to obtain the projected rate for the next lease term for an expiring space. This entry inflates with market inflation. Renewal Market Rent Enter the rate at which a renewed lease would be expected to start. This field will not be available if Prior is selected in the Use Market Rent or Prior field. This rate is typically blended on a weighted average basis with the new market rent to determine a renewed lease's starting rent. Renewal Override Select an option to override the renewal rates with a different rate. Choose from: 

None Rental Value % of Prior Rent Enter a numeric value that will determine the percentage of prior rent that will be used when calculating the renewal rate. A warning icon will be displayed if you enter a value equal to/greater than 200. New Free Rent Enter the number of months of free rent for new leases. Free rent will be applied at the beginning of the lease. Free rent is entered as a number of months. For example, if a single month of free rent will be given to new leases regardless of the lease start date, enter 1 in the New Free Rent field. Otherwise, click to provide a free rent entry that varies according to the lease start date. Alternatively, you can specify which elements of tenant income will be abated during the free rent period by using a Free Rent profile. To use a Free Rent profile, you must create one on the Free Rent tab and then choose it in the pick list in the New Free Rent field. See Also Free Rent Profiles Detailed Free Rent Renew Free Rent Enter the number of months of free rent for renewal leases. Free rent will be applied at the beginning of the lease. Free rent is entered as a number of months. For example, if a single month of free rent will be given to renewal leases regardless of the lease start date, enter 1 in the Renew Free Rent field. Otherwise, click to provide a free rent entry that varies according to the lease start date. Alternatively, you can specify which elements of tenant income will be abated during the free rent period by using a Free Rent profile. To use a Free Rent profile, you must create one on the Free Rent tab and then choose it in the drop‐down in the Renew Free Rent field. 264 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Free Rent Profiles Detailed Free Rent Intelligent Renewals Turn this section on by selecting the Use Intelligent Renewals option in the Modeling Policies. Use Market or Prior You can specify how the renewal rate will be determined. You may choose from the following options: 
Market (default): Renewal rate will be the rental value entered instead of the blended new and renewal market rents. 
Prior: Renewal rate will be the amount specified in the Prior Rent field. It can either be the total of all the selected rent components or a user specified contract rate. 
Use Lesser of: Renewal rate will be the smaller amount between the prior rent and market leasing blended renewal rate. 
Use Greater of: Renewal rate will be the larger amount between the prior rent and market leasing blended renewal rate. When Intelligent Renewals is on and a rental value is specified, the following conditions will apply: 1.
If Use Lesser Of is selected in the Market or Prior field, then the rental value will be used to compare with prior rent instead of the market leasing blended rate. 2.
If Use Greater Of is selected in the Use Market or Prior field, the rental value will be used to compare with prior rent instead of market leasing blended rate. 3.
If Prior is selected in the Use Market or Prior field, the rental value will be ignored. See Also Intelligent Renewals Quick Reference Prior Rent Choose to use prior rent or a specified contract rate. This field is disabled if Use Market or Prior is set to Market and Renew Market Rent is set to a numeric value. You may choose from the following options in the pick list: 
Standard Rent: Calculation for the Prior Rent field will include base rent, fixed step, consumer price index (CPI), and free rent. 
Total Prior Components: Calculation for the Prior Rent field will include base rent, fixed step, CPI, and percentage rent. 265 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Improvements Improvements Unit Select the unit of measure to be used for tenant improvements in the New TI and Renew TI fields. Choose from: 
$/Unit: Entry in the $/Unit field will be interpreted as a dollar/unit amount. 
$/SF: Entry in the $/SF field will be interpreted as a dollar/area amount. New Improvements Enter the tenant improvements to be applied to new (spec) tenants on an amount/area basis (Example: $/SF). Entries for new tenant improvements will automatically be copied to the renewal improvement column. The renewal improvement rate can be then overwritten. A weighted average tenant improvement rate will be calculated using the new and renew tenant improvements rate based on the renewal probability. All tenant improvements are paid at the beginning of the lease. When changing over time, tenant improvements will be shown in the month the speculative lease begins will be paid. To enter changing tenant improvements, click . Renew Improvements Enter the tenant improvements to be applied to renewal (spec) tenants on an amount/area basis (Example: $/SF). All tenant improvements are paid at the beginning of the lease. When changing over time, tenant improvements will be shown in the month the speculative lease begins will be paid. To enter changing tenant improvements, click . See Also Tenant Improvements Calculation Examples Commissions Commissions Unit Select the unit of measure for leasing commissions. The default selection is $/Unit. All leasing commissions are paid at the beginning of the lease. Leasing commission percentages are applied to base rent plus fixed steps less free rent. You may choose from the following options: 
$/Unit: Entry in the $/Unit field will be interpreted as a fixed rate per leased unit. 
$/SF: Entry in the $/SF field will be interpreted as a fixed rate per leased area. 
# Months: Entry in the # Months field will specify the number of months for the lease amount. 
Fixed %: Entry in the Fixed % field will be interpreted as a percentage of the entire lease value over the term (e.g., 4% of the total rent, including steps, less free rent over the 5 year lease term). See Also Lease Commission Categories New LC This value for this field will match the entry in the Commissions field on the Multifamily window and will determine the commissions for new units. This value will be blended with the value entered in the Renew LC field and will use the renewal probability to determine a lease’s starting leasing commission. 266 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Click to access the detail screen. Please note that the New Leasing Commissions window that appears will vary based on the unit selected in the New Commissions Unit field. Renew LC This value for this field will match the entry in the Commissions field on the Multifamily window and will determine the commissions for renewal units. Click to access the Detail screen. Please note that the Renew Leasing Commission window that appears will vary based on the unit selected in the Renew Commissions Unit field. See Also Commissions Calculation Examples Security Deposit The input for these fields will be blended using the percentage entry in the Renewal Probability field for the current lease. New Security Deposit Select the new security deposit record in the pick list. Renew Security Deposit Select the renew security deposit record in the pick list. 267 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Market Rent Components Navigation: Property Editor>Inputs>Market>Rent Components. Purpose The Market Rent Components tab allows you to define the rental components to be included in the calculation of the last month's rent so that you can accurately forecast rollover leases. A tenant's last month's rent will be calculated as follows: the selection in the Prior Rent field will be multiplied by the selection in the % of Prior Rent field and blended with the new market rent input according to the entry in the Renewal % field. New properties added will contain the following three system objects, which cannot be edited or deleted: 
Standard Rent: The following fields are automatically selected and cannot be altered: Base Rent, Fixed Step Rent, CPI, Percentage Rent, and Free Rent. 
Total Prior Components: The following fields are automatically selected and cannot be altered: Base Rent, Fixed Step Rent, CPI, and Percentage Rent. 
Base Rent: The following field is automatically selected and cannot be altered: Base Rent. In addition, Standard Rent will automatically be selected in the Prior Rent field in the Market Leasing grid when a new record is added. To add a new market rent component record, choose Add Record in the top Ribbon. See Also Short Cuts Note: For multifamily properties, only the Base Rent and Free Rent fields will be available. General Name Enter the name you want to assign to the market rent record. Elements to Include Base Rent Select this option to include base rent in the rent components. 268 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Fixed Step Rent Select this option to include fixed step rent in the rent components. Miscellaneous Rent Select this option to include miscellaneous rent in the rent components. CPI Select this option to include CPI in the rent components. Percentage Rent Select this option to include percentage rent in the rent components. This field will not be available unless the property type is retail or mixed use (retail). Note this option can only be selected for Retail properties. Recoveries Select this option to include recoveries in the rent components. Free Rent Check the box to include free rent in the rent components. This will be a negative amount that should be subtracted to the total last rent amount. 269 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Ranges Navigation: Property Editor>Inputs>Market>Ranges. Purpose The Ranges tab allows you to model ranged property acquisition costs and ranged definitions. You can use it to calculate costs such as stamp duty or SA notary fees where the percentage charged is dependent on the net or gross value (calculated in a cumulative or direct manner). You can also define an amount to which a value will be rounded in a specific range. The system will use the ranges to define rounding for vendors cost (net rounded value) , rounding for net value to produce a say value, and rounding for the equivalent rounded value, which will be calculated from the Area Schedule. To create a new range, choose Add Record on the Ribbon. Name Enter a name for the range. Purpose Select a method for the purpose of the range in the pick list. Choose from the following: 
Rounding: Purpose method used for the range will be rounding. 
Acquisition Cost: Purpose method used for the range will be acquisition cost. Cumulative Select or de‐select this option to make the range cumulative/non‐cumulative. See Also Market Range Calculation Examples Lower Limit Enter a number for the lower limit of the range. Upper Limit Enter a number for the lower limit of the range. Amount Enter an amount. 270 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Rent Roll Market Leasing 271 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rental Value Groups Navigation: Property Editor>Inputs>Market>Rental Value Groups. Purpose The Rental Value Groups tab allows you to organize rental values into groups that can be categorized and ranked. You can add, duplicate, and delete rows in this grid. See Also Short Cuts Name Name Enter a name for the rental group. Rental Value Rental Value Enter an amount for the rental value. See Also Rent Roll Market Leasing 272 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Revenues Miscellaneous Revenues Navigation: Property Editor>Inputs>Revenues>Miscellaneous. Purpose The Miscellaneous tab is where you can enter all non‐tenant related revenue. Note: If you have a license for the Property Budget module of ARGUS Enterprise, the Budget on the Ribbon provides additional budget‐related features for this window. For more information, see Budgeting and Actuals. See Also Short Cuts Clicking the Details on the Ribbon expands or collapses the review section on the lower portion of the window. The review section displays calculated results as they will be shown on the Cash Flow report over the projection term. 273 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 You can enter miscellaneous revenues as: 
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An amount An amount times a second amount An amount per building area An amount per occupied area An amount per vacant area A percentage of another line item A percentage of another line item multiplied by an amount Detailed inputs that change over time By default, all miscellaneous items are assumed to be annual amounts that are 100% fixed and will inflate by the general inflation rate. Additionally, the Memo option is not selected. Selecting the Memo option will result in the revenue item not being displayed on the Cash Flow or being used in the calculation of net operating income (NOI). Memo amounts can, however, be used to calculate other amounts. For example they can be used in a % of Other calculation. To create a new miscellaneous revenue, click Add Record on the Ribbon, or right‐click in the input area and choose Add‐Record from the right‐click menu. You can create one or more duplicate miscellaneous revenues by clicking Duplicate or Duplicate + on the Ribbon. General Parent Account Number This field is auto‐populated with the header (parent) account number from the account you select in the Account Number field. Account Number Enter the account number for this item or click to open the Account Number window which displays a list of available account numbers from the Chart of Accounts. Name Enter the name associated with this account. Amount How Input Select an input method in the pick list in the How Input field. Choose from: 
Amount 1: Entry in the Amount 1 field is interpreted as a currency amount. 
Amount 1 x Amount 2: Entry in the Amount 1 field is multiplied by the entry in the Amount 2 field. 
Currency Amount / Rentable Area: Entry in the Amount 1 field is interpreted as a currency amount per rentable area. 
Currency Amount / Occupied Area: Entry in the Amount 1 field is interpreted as a currency amount per occupied area. 
Currency Amount / Vacant Area: Entry in the Amount 1 field is interpreted as a currency amount per vacant area. 274 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Percentage of Effective Gross Revenue: Entry in the Amount 1 field is interpreted as a percentage of effective gross revenue. 
Percentage of Other: Entry in the Amount 1 field is interpreted as a percentage of another revenue or expense. This allows you to link the calculation of expenses to other amounts in the projection. This is useful for management fees and other administrative costs that are calculated as a percentage of specific revenues or expenses associated with the operations of the property. The percentages can be applied on an expense group to have an effect on each expense. 
Percentage of Other x Amount 2: You can specify the percentage of another revenue or expense in the Amount 1 field, and multiply it by the entry in the Amount 2 field. 
Percentage of Rental Revenue: Entry in the Amount 1 field is interpreted as a percentage of rental revenue. Rental revenue is potential base rent, including step rent, with deductions for absorption and turnover vacancy and free rent. CPI increases are then added to result in total rental revenue. 
Percentage of Total Tenant Revenue: Entry in the Amount 1 field is interpreted as a percentage of total tenant revenue. Total tenant revenue is lease‐related income outside of the concept of “base rent.” Examples include percentage rent, parking rent (tied to leases), and expense recoveries. 
Percentage of Tenant Market Rent: Entry in the Amount 1 field is interpreted as a percentage of the applied tenants’ market rent over time. 
Sub‐lines: You can specify that the expense is comprised of any number of additional expenses. When you choose this option, enter the additional expenses on the lines below. Sub‐line expense lines is indented under the primary expense. 
$/Unit (Multifamily Properties): Entry in the Amount 1 field is interpreted as a currency amount per unit. 
Percentage of Scheduled Multifamily Rent (Multifamily Properties): Entry in the Amount 1 field is interpreted as a percentage of rental revenue scheduled to be collected. 
Percentage of Total Multifamily Revenue (Multifamily Properties): Entry in the Amount 1 field is interpreted as a percentage of total rental revenue. 
Percentage of Market: Entry in the Amount 1 field is multiplied by the applied tenants' market rent over time. Note if no tenants are applied, the revenue is calculated as zero. See Also How Input Calculation Examples Amount 1 Enter the amount to be allocated or click to display a monthly input window for amounts that vary over time. If you selected % of Other in the How Input field, click to display a window listing the revenues and expenses to which you can link this item. Frequency Select the frequency in the pick list. You may choose from the following options: 
Annually 
Monthly 275 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Amount 2 Enter the amount to be allocated for the second amount or click to display a monthly input window where you can enter amounts that vary over time. The Amount 2 field is only available if you selected Amount 1 x Amount 2 in the How Input field, and if the Use Amount 2 Modeling Policy is enabled. Area Measure Select the area measure you want to use in the calculation. This field is only available if you select an area‐based input method (Currency Amount/Rentable Area, Currency Amount/Occupied Area, Currency Amount/Vacant Area) in the How Input field. You may choose from the following options: 
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Building Total Office Total Retail Total Industrial Total Storage Total Alternate Building Total Custom Area Measure ‐ Note that custom area measures are created on the Area Measures tab. For more information, see Area Measures. Fixed % Enter the fixed percentage for this item. An item that is part fixed and part variable can be entered on the same row. The variable portion of the revenue is adjusted based on the projected occupancy of the property. See Also Fixed Percentage Calculation Examples Apply to Tenants Select a method for applying the revenue item to tenants. You may choose from the following options: 
No: Revenue item will not be applied to tenants. Note if the Traditional Valuation modeling policy option is selected, the revenue item is apportioned across all tenants based on each tenant's potential rent. 
All Tenants: Revenue item is applied to all tenants. The entire amount of the expense is applied to each tenant. 
Select Tenants: Revenue item will only be applied to selected tenants and/or tenant groups. The entire amount of the expense is applied to each tenant. Applied Tenants Click to select tenants and/or tenant groups. Note this field will only be available if you select Select Tenants in the Apply to Tenants field. Select the tenants you want to include then click OK to finish or Cancel button to close this window. 276 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 How Input (Applied Tenants) If you select either All Tenants or Select Tenants in the pick list of the Apply to Tenants field, the context of the How Input selections will change to a tenant specific context. Select an input method in the pick list in the How Input field. Choose from: 
Amount 1: Entered amount is applied on a per tenant basis. 
Amount 1 X Amount 2: Product of the entries in the Amount 1 and Amount 2 fields is applied on a per tenant basis. 
Amt/Rentable Area: Entered amount is applied to and multiplied by each tenant’s input area during occupied and downtime periods. 
Amt/Occupied Area: Entered amount is applied to and multiplied by each tenant’s occupied area during occupied periods. 
Amt/Vacant Area: Entered amount is applied to and multiplied by each tenant’s vacant area i.e. the area during downtime periods. 
% of Rental Revenue: Entered percentage is applied to the tenant’s rental revenue. Tenant rental revenue includes base rent, fixed steps, CPI, free rent, and miscellaneous rent. 
% of Total Tenant Revenue: Entered percentage is applied to the tenant’s total revenue. Tenant total revenue includes base rent, fixed steps, CPI, free rent, miscellaneous rent, percentage rent, and recoveries. 
% of Effective Gross Revenue: Entered percentage is applied to the tenant’s total revenue. 277 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Timing Start Date Select the start date method you want to use. You may select from the following options in the pick list: 
Analysis Begin (Default): Revenue item is calculated starting on the analysis start date. 
Specified Date: Revenue item is calculated starting on the date you specify. 
Valuation Date: Revenue item is calculated starting on the valuation date. Date Enter or select a date in the drop‐down calendar. This field is available only if Specified Date is selected in the Start Date field. Start Date Adjustment Select the start date adjustment method you want to use in the pick list. You may select from the following options: 
None: Does not allow you to enter a number in the Adjustment Months field. 
Offset: Enter a number in the Adjustment Months field that is used to offset the start date. Offsetting payments will affect both the begin and end of payments. 
Delay: Enter a number in the Adjustment Months field that is used to delay the start date. Delaying payments will only affect the begin date of payments. Adjustment Months Enter a number for adjustment months. See Also Start Date Adjustment Calculation Examples Repeat Select the frequency method you want to use in the pick list. Choose from: 
Monthly: Revenue item appears on a monthly basis. 
Quarterly: Revenue item appears on a quarterly basis. 
Semi‐Annually: Revenue item appears on a semi‐annual basis. 
Annually: Revenue item appears on an annual basis. 
Single Payment: Revenue item appears as a single payment. See Also Repeating Payments Calculation Examples End Date Select the end date method you want to use in the drop‐down calendar. Choose from: 
None: The adjacent Date field and Duration Months field will not be available. 
Specified Date: Choose a date in the adjacent Date field. 278 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
For the Next: Enter a number in the Duration Months field that is added to the start date. 
Lease Expiry/Break: Cost ceases on the earlier of lease expiry or break date. Date Enter or select a date in the drop‐down calendar. This field is available only if Specified Date is selected in the End field. Duration Months Enter a number for duration months. Inflation Inflation % Use the drop‐down arrow to select the Inflation Rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the detailed Inflation window. Note that if you enter detailed inflation, annual inflation entries will represent increases to amounts that occur in the Inflation Month. Monthly inflation entries will represent increases to amounts in the month of the inflation entry. The first column of the detailed Inflation window is determined by the Allow Inflation in Year One option on the Modeling Policies window. If the option is selected, the first column is the first year of the analysis; if it isn't selected, the first column is the second year of the analysis. Limits Limits Set a lower or upper monthly limit on the projected revenue amount. If the projected monthly revenue amount is less than the inflated lower limit or greater than the inflated upper limit, it is overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default revenue inflation rate. Select one of the following options for each revenue: 
None: No lower or upper limits is applied to the revenue. 
Min: Only a lower limit is applied to the revenue. 
Max: Only an upper limit is applied to the revenue. 
Both: A lower and upper limit is applied to the revenue. Basis Select the unit of measurement for the Monthly Minimum and Monthly Maximum fields in the pick list. If you make no selection, the default choice is $/SqFt/Month. You may choose from the following options: 
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279 $/SqFt/Year $/SqFt/Month $/Year $/Month © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: For all hotel properties, the default value is $/Room/Month, and the options available is $/Room/Month & $/Month. For all multifamily properties, the default value is $/Unit/Month, and the options available is $/Unit/Month & $/Month. Minimum Enter a monthly minimum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Usage Discounted Cash Flow Choose whether the item is included in the cash flow projection and used to calculate net operating income (NOI). You may choose from the following options: 
Include (default): Displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: Not displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select Yes in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. Traditional Valuation Choose whether the item is used in traditional valuation calculations. Choose from: 
Include (default): Item is used in traditional valuation calculations. 
Exclude: Item is used in traditional valuation calculations. Capitalization Valuation Note: The fields in this section will not be available if the How Input is set to Sub‐lines. Treatment Name Select a treatment name. Choose from: • Property default (default): Item is capitalized according to the values entered in the Property Default section of the Capitalization Valuation tab. • Select a treatment from the pick list, which is populated from the treatments defined in the Revenue and Expense Treatments section of the Capitalization Valuation tab. Note: If you select a treatment in this field and later delete it from the Revenue and Expense Treatments grid, the revenue will revert to the property default. Treatment Displays the treatment associated with the treatment name you selected, and is read‐only. 280 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rate Displays the rate associated with the treatment name you selected, and is read‐only. Duration Displays the duration associated with the treatment name you selected, and is read‐only. Use Treatment Displays the Use Treatment value associated with the treatment name you selected, and is read‐only. Note: If Use Treatment is set to No, the revenue is capitalized according to the property default settings. Notes Notes You can use this field to enter notes related to the revenue. Click adding extensive notes. to open the Notes window for See Also Storage Revenues Parking Revenues 281 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Parking Revenues Navigation: Property Editor>Inputs>Revenues>Parking. Purpose Parking revenue can be entered as a monthly or annual currency amount. Alternatively, parking can be entered as a monthly or annual rate per parking space. If you enter annual or monthly rates per parking space, you must also enter the number of parking spaces. If you enter annual or monthly amounts, the number of parking spaces, if you enter them, is informational only. Parking can also be tied to building occupancy using the % Fixed field. The default method is monthly per parking space, 100% fixed, and inflating at the general inflation rate. See Also Short Cuts General Parent Account Number This field is auto‐populated with the header (parent) account number from the account you select in the Account Number field. Account Number Enter the account number for this item or click to display a list of available account numbers. Name Enter the name associated with this account number. Amount How Input Select an input method in the pick list in the How Input field. Choose from: 
Currency Amount per Space per Month: Entry in the Rate field is interpreted as a currency amount per space per month. 
Currency Amount per Space per Year: Entry in the Rate field is interpreted as a currency amount per space per year. 
Currency Amount per Month: Entry in the Rate field is interpreted as a currency amount per month. 
Currency Amount per Year: Entry in the Rate field is interpreted as a currency amount per year. 282 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Sub‐lines: Specify that the parking revenue will be comprised of any number of additional revenues. When you choose this option, enter the additional revenues on the lines below. Sub‐line revenue lines will be indented under the primary revenue. See Also How Input Calculation Examples Rate Enter the rate to be charged. To enter rates that change over time, click window. to display the Rate amount # Of Spaces Enter the number of spaces associated with this property. To enter a number parking spaces that changes over time, click to display the # Of Spaces window. Fixed % Enter the fixed percentage for this item. A parking revenue that is part fixed and part variable, according to building occupancy, can be entered on the same row. See Also Fixed Percentage Calculation Examples Apply to Tenants Select a method for applying the revenue item to tenants. Choose from the following: 
No: Revenue item is not applied to tenants. Note if the Traditional Valuation modeling policy option is selected, the revenue item will be apportioned across all tenants based on each tenant's potential rent. 
All Tenants: Revenue item is applied to all tenants. The entire amount of the expense is applied to each tenant. 
Select Tenants: Revenue item is only applied to selected tenants and/or tenant groups. The entire amount of the expense is applied to each tenant. Applied Tenants Click the button to select tenants and/or tenant groups. Note this field will only be available if you select Select Tenants in the Apply to Tenants field. Select the tenants you want to include then click OK to finish or Cancel to close this window. 283 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Rent Roll How Input (Applied Tenants) If you select either All Tenants or Select Tenants in the pick list of the Apply to Tenants field, the context of the How Input selections will change to a tenant specific context. Select an input method in the pick list in the How Input field. Choose from: 
Amount 1: Entered amount is applied on a per tenant basis. 
Amount 1 X Amount 2: Product of the entries in the Amount 1 and Amount 2 fields are applied on a per tenant basis. 
Amt/Rentable Area: Entered amount is applied to and multiplied by each tenant’s area during occupied and downtime periods. 
Amt/Occupied Area: Entered amount is applied to and multiplied by each tenant’s occupied area during occupied periods. 
Amt/Vacant Area: Entered amount is applied to and multiplied by each tenant’s vacant area i.e. the area during downtime periods. 
% of Rental Revenue: Entered percentage is applied to the tenant’s total revenue. Tenant rental revenue includes base rent, fixed steps, CPI, free rent, and misc. rent. 
% of Total Tenant Revenue: Entered percentage is applied to the tenant’s total revenue. Tenant total revenue includes base rent, fixed steps, CPI, free rent, misc. rent, percentage rent, and recoveries. 284 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
% of Effective Gross Revenue: Entered percentage is applied to the tenant’s total revenue. Note: Percentage of Total Tenant Revenue and Percentage of Effective Gross Revenue options will result in the same value. Note: For the All Tenants and Selected Tenants, the entire amount of the expense is applied to each tenant. For example, a £ 1,000 expense applied to 5 tenants will appear as a £ 5,000 expense in the property cash flow. Timing Start Date Select the start date method you want to use. Choose from: 
Analysis Begin (default): Revenue item is calculated starting on the analysis start date. 
Specified Date: Revenue item is calculated starting on the date you specify. 
Valuation Date: Revenue item is calculated starting on the valuation date. Date Enter or select a date in the drop‐down calendar. This field is available only if Specified Date is selected in the Start Date field. Start Date Adjustment Select the start date adjustment method you want to use in the drop‐down list. Choose from: 
None: Does not allow you to enter a number in the Adjustment Months field. 
Offset: Enter a number in the Adjustment Months field that is used to offset the start date. Offsetting payments will affect both the begin and end of payments. 
Delay: Enter a number in the Adjustment Months field that will be used to delay the start date. Delaying payments will only affect the begin date of payments. See Also Start Date Adjustment Calculation Examples Adjustment Months Enter a number for adjustment months. Repeat Select the frequency method you want to use in the pick list. Choose from: 
Monthly: Revenue item appears on a monthly basis. 
Quarterly: Revenue item appears on a quarterly basis. 
Semi‐Annually: Revenue item appears on a semi‐annual basis. 
Annually: Revenue item appears on an annual basis. 
Single Payment: Revenue item appears as a single payment. 285 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 End Date Select the end date method you want to use in the drop‐down calendar. Choose from: 
None: Analysis end date will be used as the end date. 
Specified Date: Choose a date in the adjacent Date field. 
For the Next: Enter a number in the Duration Months field that will be added to the start date. 
Lease Expiry/Break: Cost ceases on the earlier of lease expiry or break date. Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the End field. Duration Months Enter a number for duration months. Inflation Inflation % Use the drop‐down arrow to select the Inflation Rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click the button to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the Detailed Inflation window. Limits Set a lower or upper monthly limit on the projected revenue amount. If the projected monthly revenue amount is less than the inflated lower limit or greater than the inflated upper limit, it will be overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default revenue inflation rate. Note if the Input method is Amount 1, the Limits fields are disabled. Select one of the following options for each revenue: 
None: No lower or upper limits will be applied to the revenue. 
Min: Only a lower limit will be applied to the revenue. 
Max: Only an upper limit will be applied to the revenue. 
Both: A lower and upper limit will be applied to the revenue. Basis Select the unit of measurement for the Monthly Minimum and Monthly Maximum fields. If you make no selection, the default choice will be $/SqFt/Month. You may choose from the following options in the pick list: 
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286 $/SqFt/Year $/SqFt/Month $/Year $/Month © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: For all hotel properties, the default value is $/Room/Month, and the drop‐down options available will be $/Room/Month & $/Month. For all multifamily properties, the default value is $/Unit/Month, and the options available will be $/Unit/Month & $/Month. Minimum Enter a monthly minimum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum Enter a monthly maximum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Usage Discounted Cash Flow Choose whether the item will be included in the cash flow projection and used to calculate net operating income (NOI). Choose from: 
Include (default): Displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: Not displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select the Yes option in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. Traditional Valuation Choose whether the item will be used in traditional valuation calculations. Choose from: 
Include (Default): Item is used in traditional valuation calculations. 
Exclude: Item is not used in traditional valuation calculations. Capitalization Valuation Note: The fields in this section will not be available if the How Input is set to Sub‐lines. Treatment Name Select a treatment name. Choose from: • Property default (default): If you select this option, the item is capitalized according to the values entered in the Property Default section of the Capitalization Valuation tab. • Select a treatment from the pick list, which is populated from the treatments defined in the Revenue and Expense Treatments section of the Capitalization Valuation tab. Note: If you select a treatment in this field and later delete it from the Revenue and Expense Treatments grid, the revenue will revert to the property default. 287 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Treatment Displays the treatment associated with the treatment name you selected, and is read‐only. Rate Displays the rate associated with the treatment name you selected, and is read‐only. Duration Displays the duration associated with the treatment name you selected, and is read‐only. Use Treatment Displays the Use Treatment value associated with the treatment name you selected, and is read‐only. settings. Note: If Use Treatment is set to No, the revenue will be capitalized according to the property default Notes Notes You can use this field to enter notes related to the revenue. Click adding extensive notes. to open the Notes window for Miscellaneous Revenues Storage Revenues 288 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Storage Revenues Navigation: Property Editor>Inputs>Revenues>Storage. Purpose Storage revenue can be entered as a monthly or annual amount or a monthly or annual rate per square unit. Storage can also be tied to building occupancy. If you enter an amount per square unit, you must also enter the area of the storage space. If you enter an annual or monthly amount, the area, if you enter it, is informational only. The default is an annual amount per square unit, 100% fixed, and inflating at the general inflation rate. Storage area information entered here is not included in the occupied area calculations. To include storage tenants in Net Rentable Area and Occupancy Calculations, storage leases should be entered in the Rent Roll. See Also Short Cuts General Parent Account Number This field is auto‐populated with the header (parent) account number from the account you select in the Account Number field. Account Number Enter the account number for this item or click the numbers. button to display a list of available account Name Enter the name associated with this account number. Amount How Input Select an input method in the pick list in the How Input field. Choose from: 
Currency Amount per Month: Entry in the Rate field will be interpreted as a currency amount per month. 
Currency Amount per Year: Entry in the Rate field will be interpreted as a currency amount per year. 
Currency Amount per Square Unit per Month: If you select this option, the entry in the Rate field will be interpreted as a currency amount per square unit per month. 289 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Currency Amount per Square Unit per Year: If you select this option, the entry in the Rate field will be interpreted as a currency amount per square unit per year. 
Sub‐lines: If you select this option, you can specify that the storage revenue will be comprised of any number of additional revenues. When you choose this option, enter the additional revenues on the lines below. Sub‐line revenue lines will be indented under the primary revenue. See Also How Input Calculation Examples Rate Enter the rate to be charged. To enter rates that change over time, click the Rate window. button to display the Area Enter the area associated with this item. To enter an area that changes over time, click the display the Area window. button to Fixed % Enter the fixed percentage for this item. A revenue that is part fixed and part variable with building occupancy can be entered on the same row. See Also Fixed Percentage Calculation Examples Apply to Tenants Select a method for applying the revenue item to tenants. You may choose from the following options: 
No: If you select this option, the revenue item will not be applied to tenants. Note if the Traditional Valuation modeling policy option is selected, the revenue item will be apportioned across all tenants based on each tenant's potential rent. 
All Tenants: If you select this option, the revenue item will be applied to all tenants. The entire amount of the expense will be applied to each tenant. 
Select Tenants: If you select this option, the revenue item will only be applied to selected tenants and/or tenant groups. The entire amount of the expense will be applied to each tenant. Applied Tenants Click the button to select tenants and/or tenant groups. Note this field will only be available if you select the Select Tenants option in the Apply to Tenants field. Select the tenants you want to include then click the OK button to finish or the Cancel button to close this window. 290 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Rent Roll How Input (Applied Tenants) If you select either the All Tenants or Select Tenants option in the pick list of the Apply to Tenants field, the context of the How Input selections will change to a tenant specific context. Select an input method in the pick list in the How Input field. Choose from: 
Amount 1: If you select this option, the entered amount will be applied on a per tenant basis. 
Amount 1 X Amount 2: If you select this option, the product of the entries in the Amount 1 and Amount 2 fields will be applied on a per tenant basis. 
Amt/Rentable Area: If you select this option, the entered amount will be applied to and multiplied by each tenant’s area during occupied and downtime periods. 
Amt/Occupied Area: If you select this option, the entered amount will be applied to and multiplied by each tenant’s occupied area during occupied periods. 
Amt/Vacant Area: If you select this option, the entered amount will be applied to and multiplied by each tenant’s vacant area (i.e., the area during downtime periods). 
% of Rental Revenue: If you select this option, the entered percentage will be applied to the tenant’s total revenue. Tenant rental revenue includes base rent, fixed steps, CPI, free rent, and misc. rent. 291 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
% of Total Tenant Revenue: If you select this option, the entered percentage will be applied to the tenant’s total revenue. Tenant total revenue includes base rent, fixed steps, CPI, free rent, misc. rent, percentage rent, and recoveries. 
% of Effective Gross Revenue: If you select this option, the entered percentage will be applied to the tenant’s total revenue. See Also How Input Calculation Examples Timing Start Date Select the start date method you want to use. You may select from the following options in the pick list: 
Analysis Begin (default):If you select this option, the revenue item will be calculated starting on the analysis start date. 
Specified Date: If you select this option, the revenue item will be calculated starting on the date you specify. 
Valuation Date: If you select this option, the revenue item will be calculated starting on the valuation date. Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the Start Date field. Start Date Adjustment Select the start date adjustment method you want to use in the drop‐down list. You may select from the following options: 
None: If you select this option, the system will not allow you to enter a number in the Adjustment Months field. 
Offset: If you select this option, you will be allowed to enter a number in the Adjustment Months field that will be used to offset the start date. Offsetting payments will affect both the begin and end of payments. 
Delay: If you select this option, you will be allowed to enter a number in the Adjustment Months field that will be used to delay the start date. Delaying payments will only affect the begin date of payments. Adjustment Months Enter a number for adjustment months. See Also Start Date Adjustment Calculation Examples Repeat Select the frequency method you want to use in the pick list. You may select from the following options: 292 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Monthly: If you select this option, the revenue item will appear on a monthly basis. 
Quarterly: If you select this option, the revenue item will appear on a quarterly basis. 
Semi‐Annually: If you select this option, the revenue item will appear on a semi‐annual basis. 
Annually: If you select this option, the revenue item will appear on an annual basis. 
Single Payment: If you select this option, the revenue item will appear as a single payment. See Also Repeating Payments Calculation Examples End Date Select the end date method you want to use in the drop‐down calendar. You may select from the following options: 
None: If you select this option, the adjacent Date field and Duration Months field will not be available. 
Specified Date: If you select this option, you will be able to choose a date in the adjacent Date field. 
For the Next: If you select this option, you will be allowed to enter a number in the Duration Months field that will be added to the start date. 
Lease Expiry/Break: If you select this option, the cost ceases on the earlier of lease expiry or break date. Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the End field. Duration Months Enter a number for duration months. Inflation Inflation % Select the Inflation Rate category you want to adjust or select a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click the button to enter the inflation rates for the selected category. To reset inflation rate amounts, click the Reset button on the detailed Inflation window. Limits Set a lower or upper monthly limit on the projected revenue amount. If the projected monthly revenue amount is less than the inflated lower limit or greater than the inflated upper limit, it will be overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default revenue inflation rate. Select one of the following options for each revenue: 
None: If you select this option, no lower or upper limits will be applied to the revenue. 
Min: If you select this option, only a lower limit will be applied to the revenue. 
Max: If you select this option, only an upper limit will be applied to the revenue. 293 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Both: If you select this option, a lower and upper limit will be applied to the revenue. Basis Select the unit of measurement for the Monthly Minimum and Monthly Maximum fields in the pick list. If you make no selection, the default choice will be $/SqFt/Month You may choose from the following options: 
$/SqFt/Year: If you select this option, currency per square foot per year will be used as the basis unit of measurement. 
$/SqFt/Month: If you select this option, currency per square foot per month will be used as the basis unit of measurement. 
$/Year: If you select this option, currency per year will be used as the basis unit of measurement. 
$/Month: If you select this option, currency per month will be used as the basis unit of measurement. Note: For all Hotel properties, the default value is $/Room/Month, and the drop‐down options available will be $/Room/Month & $/Month. For all Multi‐family properties, the default value is $/Room/Month, and the drop‐down options available will be $/Unit/Month & $/Month. Minimum Enter a monthly minimum limit amount if there is one. Click the button to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum Enter a monthly maximum limit amount if there is one. Click the button to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Memo (Trad Val) Select the Memo (Trad Val) option will result in the item not being included in traditional valuation calculations. Note that this field will only be displayed when the Traditional Valuation policy option is selected in the General tab in the Modeling Policies. Usage Discounted Cash Flow Choose whether the item will be included in the cash flow projection and used to calculate net operating income (NOI). You may choose from the following options: 
Include (default): If you select this option, the item will be displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: If you select this option, the item will not be displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select the Yes option in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. 294 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Traditional Valuation Choose whether the item will be used in traditional valuation calculations. Choose from: 
Include (default): If you select this option, the item will be used in traditional valuation calculations. 
Exclude: If you select this option, the item will not be used in traditional valuation calculations. Capitalization Valuation Note: The fields in this section will not be available if the How Input is set to Sub‐lines. Treatment Name Select a treatment name. Choose from: • Property default (default): If you select this option, the item will be capitalized according to the values entered in the Property Default section of the Capitalization Valuation tab. • Select a treatment from the pick list, which will be populated from the treatments defined in the Revenue and Expense Treatments section of the Capitalization Valuation tab. Note: If you select a treatment in this field and later delete it from the Revenue and Expense Treatments grid, the revenue will revert to the property default. Treatment Displays the treatment associated with the treatment name you selected, and is read‐only. Rate Displays the rate associated with the treatment name you selected, and is read‐only. Duration Displays the duration associated with the treatment name you selected, and is read‐only. Use Treatment Displays the Use Treatment value associated with the treatment name you selected, and is read‐only. settings. Note: If Use Treatment is set to No, the revenue will be capitalized according to the property default Notes You can use this field to enter notes related to the revenue. Click the window for adding extensive notes. 295 button to open the Notes © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Miscellaneous Revenues Parking Revenues 296 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Hotel Rooms The Rooms tab is where you can enter individual hotel units, including the unit mix, the number of units, the annual/monthly average daily rate, and the annual/monthly room occupancy. See Also Hotels: Departmental Revenues Hotels: Parking Room Type/Description Enter a description for this room type. Number of Rooms Enter the number of rooms for the type of room described in the Room Type/Description field. Click to enter a number that varies over time. Average Daily Rate Enter the average daily rate for the associated room type. Click to enter variable rates. Occupancy Enter the occupancy rate for the associated room type. Click over time. to enter an occupancy rate that varies See Also Hotel Rooms Calculations Examples 297 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Hotels: Departmental Revenues The Departmental Revenues tab allows you to model various revenue items associated with hotels. See Also Hotels: Parking Hotels: Rooms General Account Number Enter the account number for this item or click to open the Account Number window which displays a list of available account numbers from the Chart of Accounts. Name Enter the name associated with this account. Amount How Input Select an input method in the pick list in the How Input field. Choose from: 
Amount: Entry in the Amount field is interpreted as a currency amount. 
Currency / Area: Entry in the Amount field is interpreted as a currency per area amount. 
Currency / Room: Entry in the Amount field is interpreted as a currency per room amount. 
Currency / Occupied Room Night: Entry in the Amount field is interpreted as a currency per occupied room night amount. 
Currency / Available Room Night: Entry in the Amount field is interpreted as a currency per available room night. 
Percentage of Room Revenue: Entry in the Amount field is interpreted as a percentage of room revenue. 298 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Percentage of Other: Entry in the Amount field is interpreted as a percentage of another revenue or expense. Click to link the calculation of revenues or expenses to other amounts in the projection. 
Sub‐lines: Specify that the revenue is comprised of any number of additional revenues. When you choose this option, enter the additional revenues on the lines below. Sub‐line items will be indented under the primary revenue. See Also How Input Calculation Examples Amount Enter the amount or percentage of the revenue. To enter amounts or percentages that vary over time, click to display a corresponding detail window. Frequency Select the frequency in the pick list. Choose from: 
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Annually Monthly Weekly Nightly Note: This field is only available if you select Amount, Currency / Area, or Currency / Room in the How Input field. Area Measure This field is only available if you selected Currency/Area in the How Input field. Select the area measure you want to use in the calculation. Choose from: 
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Building Total Office Total Retail Total Industrial Total Storage Total Alternate Building Total Custom Area Measure ‐ Note that custom area measures are created on the Area Measures tab. For more information, see Area Measures. Apply to Tenants Select a method for applying the expense item to tenants. Choose from the following: 
No: Expense item will not be applied to tenants. Note if the Traditional Valuation modeling policy option is turned on, the expense item is apportioned across all tenants based on each tenant's potential rent. 
All Tenants: Entire amount of the expense item is applied to each tenant. 
Select Tenants: Entire amount of the expense item is applied to selected tenants and/or tenant groups. The entire amount of the expense is applied to each tenant. 299 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Applied Tenants Click to select tenants and/or tenant groups. Note this field will only be available if you select Select Tenants in the Apply to Tenants field. Select the tenants you want to include then click OK to finish or Cancel to close this window. See Also Rent Roll How Input (Applied Tenants) If you select either the All Tenants or Select Tenants option in the pick list of the Apply to Tenants field, the context of the How Input selections will change to a tenant‐specific context. Select an input method in the pick list in the How Input field: 
Amount 1: Applied on a per tenant basis. 
Amount 1 X Amount 2: Product of the entries in the Amount 1 and Amount 2 fields is applied on a per tenant basis. 
Amt/Rentable Area: Applied to and multiplied by each tenant’s area during occupied and downtime periods. 
Amt/Occupied Area: Applied to and multiplied by each tenant’s occupied area during occupied periods. 
Amt/Vacant Area: Applied to and multiplied by each tenant’s vacant area (i.e., the area during downtime periods). 300 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
% of Rental Revenue: Percentage is applied to the tenant’s total revenue. Tenant rental revenue includes base rent, fixed steps, consumer price index (CPI), free rent, and misc. rent. 
% of Total Tenant Revenue: Percentage is applied to the tenant’s total revenue. Tenant total revenue includes base rent, fixed steps, CPI, free rent, misc. rent, percentage rent, and recoveries. 
% of Effective Gross Revenue: Percentage is applied to the effective gross revenue. Timing Start Date Select the start date method you want to use: 
Analysis Begin (Default): Calculated starting on the analysis start date. 
Specified Date: Calculated starting on the date you specify. 
Valuation Date: Calculated starting on the valuation date. Date Enter or select a date in the drop‐down calendar. This field is available only if Specified Date is selected in the Start Date field. Start Date Adjustment Select the start date adjustment method you want to use in the pick list. You may select from the following options: 
None: No number is allowed in the Adjustment Months field. 
Offset: Enter a number in the Adjustment Months field that is used to offset the start date. Offsetting payments will affect both the begin and end of payments. 
Delay: Enter a number in the Adjustment Months field that is used to delay the start date. Delaying payments will only affect the begin date of payments. See Also Start Date Adjustment Calculation Examples Adjustment Months Enter a number for adjustment months. Repeat Select the frequency method you want to use in the pick list. You may select from the following options: 
Monthly: Calculated on a monthly basis. 
Quarterly: Calculated on a quarterly basis. 
Semi‐Annually: Calculated on a semi‐annual basis. 
Annually: Calculated on an annual basis. 301 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Single Payment: Calculated as a single payment. See Also Repeating Payments Calculation Examples End Date Select the end date method you want to use in the drop‐down calendar. You may select from the following options: 
None: Adjacent Date field and Duration Months field will not be available. 
Specified Date: Choose a date in the adjacent Date field. 
For the Next: Enter a number in the Duration Months field that will be added to the start date. 
Lease Expiry/Break: Cost ceases on the earlier of lease expiry or break date. Date Enter or select a date from the drop‐down calendar. This field is available only if Specified Date is selected in the End field. Duration Months Enter a number for duration months. Inflation Inflation % Use the drop‐down arrow to select the Inflation Rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the detailed Inflation window. Click to display inflation rates that vary over time. Choose from: 
Zero Inflation Rate: Revenues inflate at the expense inflation rate. 
Expense Inflation Rate: Revenues inflate at the expense inflation rate. 
General Inflation Rate: Revenues inflate at the general inflation rate. 
Market Inflation Rate: Revenues inflate at the market inflation rate. 
CPI Inflation Rate: Revenues inflate at the CPI inflation rate. Limits 302 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Limits Limits provide the ability to set a lower or upper monthly limit on the projected expense amount. If the projected monthly expense amount is less than the inflated lower limit or greater than the inflated upper limit, it will be overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default expense inflation rate. Select one of the following options for each expense: 
None: No lower or upper limits is applied to the expense. 
Min: Only a lower limit is applied to the expense. 
Max: Only an upper limit is applied to the expense. 
Both: A lower and upper limit is applied to the expense. Basis Select a basis unit of measure that will be used for the Minimum and Maximum fields. Choose from: 
$ Amount / Month: Currency amount per month is used as the basis for the Minimum and Maximum fields. 
% / Room / Month: Percentage per room per month is used as the basis for the Minimum and Maximum fields. Minimum If there is a monthly minimum limit amount, enter it in the Minimum field. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum If there is a monthly maximum limit amount, enter it in the Maximum field. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Note: Zero is the default value for these fields and will be treated as if no minimum or maximum is applied. Negative values will be ignored. Usage Discounted Cash Flow Choose whether the item will be included in the cash flow projection and used to calculate net operating income (NOI). Choose from: 
Include (Default): The item is displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: The item will not be displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select Yes in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. 303 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Notes Notes Enter notes related to the revenue. Click to open the Notes window for adding extensive notes. See Also Hotel Rooms Hotel Parking Groups Category Select the revenue category for the item for reporting purposes in the pick list: 
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304 Departmental Miscellaneous © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Hotels: Parking Revenues Parking revenue can be entered as a monthly or annual currency amount. Alternatively, parking can be entered as a monthly or annual rate per parking space. If you enter annual or monthly rates per parking space, you must also enter the number of parking spaces. If you enter annual or monthly amounts, the number of parking spaces, if you enter them, is informational only. Parking can also be tied to building occupancy using the % Fixed field. The default method is monthly per parking space, 100% fixed, and inflating at the general inflation rate. See Also Hotels: Departmental Revenues Hotels: Rooms General Account Number Enter the account number for this item or click to display a list of available account numbers. Name Enter the name associated with this account number. Amount 305 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 How Input Select an input method in the pick list in the How Input field. Choose from: 
Currency Amount / Month: Entry in the Rate field will be interpreted as a currency amount per month. 
Currency Amount / Year: Entry in the Rate field will be interpreted as a currency amount per year. 
Currency Amount / Space / Month: Entry in the Rate field will be interpreted as a currency amount per space per month. 
Currency Amount / Space / Year: Entry in the Rate field will be interpreted as a currency amount per space per year. 
Currency Amount / Room: Entry in the Rate field will be interpreted as a currency per room amount. 
Currency Amount / Occupied Room Night: Entry in the Rate field will be interpreted as a currency per occupied room night amount. 
Currency Amount / Available Room Night: Entry in the Rate field will be interpreted as a currency per available room night amount. 
Currency Amount / Unoccupied Room Night: Entry in the Rate field will be interpreted as a currency per unoccupied room night amount. 
Sub‐lines: Specify that the parking revenue will be comprised of any number of additional revenues. When you choose this option, enter the additional revenues on the lines below. Sub‐line revenue lines will be indented under the primary revenue. See Also Hotel Rooms Calculation Examples Rate Enter the rate to be charged. To enter rates that change over time, click window. to display the Rate amount # Of Spaces Enter the number of spaces associated with this property. To enter a number parking spaces that changes over time, click to display the # Of Spaces window. Fixed % Enter the fixed percentage for this item. A parking revenue that is part fixed and part variable, according to building occupancy, can be entered on the same row. See Also Fixed Percentage Calculation Examples Apply to Tenants Select a method for applying the revenue item to tenants. Choose from the following: 306 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
No: Revenue item will not be applied to tenants. Note if the Traditional Valuation modeling policy option is selected, the revenue item will be apportioned across all tenants based on each tenant's potential rent. 
All Tenants: Revenue item will be applied to all tenants. The entire amount of the expense will be applied to each tenant. 
Select Tenants: Revenue item will only be applied to selected tenants and/or tenant groups. The entire amount of the expense will be applied to each tenant. Applied Tenants Click to select tenants and/or tenant groups. Note this field will only be available if you select the Select Tenants option in the Apply to Tenants field. Select the tenants you want to include then click OK to finish or Cancel to close this window. See Also Rent Roll How Input (Applied Tenants) If you select either All Tenants or Select Tenants in the pick list of the Apply to Tenants field, the context of the How Input selections will change to a tenant specific context. Select an input method in the pick list in the How Input field. Choose from: 
Amount 1: Entered amount will be applied on a per tenant basis. 
Amount 1 X Amount 2: Product of the entries in the Amount 1 and Amount 2 fields is applied on a per tenant basis. 307 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Amt/Rentable Area: Entered amount is applied to and multiplied by each tenant’s area during occupied and downtime periods. 
Amt/Occupied Area: Entered amount is applied to and multiplied by each tenant’s occupied area during occupied periods. 
Amt/Vacant Area: Entered amount is applied to and multiplied by each tenant’s vacant area (i.e., the area during downtime periods). 
% of Rental Revenue: Entered percentage is applied to the tenant’s total revenue. Tenant rental revenue includes base rent, fixed steps, consumer price index (CPI), free rent, and misc. rent. 
% of Total Tenant Revenue: Entered percentage is applied to the tenant’s total revenue. Tenant total revenue includes base rent, fixed steps, CPI, free rent, misc. rent, percentage rent, and recoveries. 
% of Effective Gross Revenue: Entered percentage is applied to the tenant’s total revenue. Timing Start Date Select the start date method you want to use. You may select from the following options in the pick list: 
Analysis Begin (default): Revenue item is calculated starting on the analysis start date. 
Specified Date: Revenue item is calculated starting on the date you specify. Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the Start Date field. Start Date Adjustment Select the start date adjustment method you want to use in the pick list. You may select from the following options: 
None: The system will not allow you to enter a number in the Adjustment Months field. 
Offset: Enter a number in the Adjustment Months field that will be used to offset the start date. Offsetting payments will affect both the begin and end of payments. 
Delay: Enter a number in the Adjustment Months field that will be used to delay the start date. Delaying payments will only affect the begin date of payments. See Also Start Date Adjustment Calculation Examples Adjustment Months Enter a number for adjustment months. 308 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Repeat Select the frequency method you want to use in the pick list. You may select from the following options: 
Monthly: Revenue item appears on a monthly basis. 
Quarterly: Revenue item appears on a quarterly basis. 
Semi‐Annually: Revenue item appears on a semi‐annual basis. 
Annually: Revenue item appears on an annual basis. 
Single Payment: Revenue item appears as a single payment. See Also Repeating Payments Calculation Examples End Date Select the end date method you want to use in the drop‐down calendar. You may select from the following options: 
None: Adjacent Date field and Duration Months field will not be available. 
Specified Date: Choose a date in the adjacent Date field. 
For the Next: Enter a number in the Duration Months field that will be added to the start date. 
Lease Expiry/Break: Cost ceases on the earlier of lease expiry or break date. Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the End field. Duration Months Enter a number for duration months. Inflation Inflation % Use the drop‐down arrow to select the Inflation Rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the detailed Inflation window. Click to display inflation rates that vary over time. Choose from: 
Zero Inflation Rate: Parking revenues will inflate at a zero inflation rate. 
General Inflation Rate: Parking revenues will inflate at the general inflation rate. 
Market Inflation Rate: Parking revenues will inflate at the market inflation rate. 
Expense Inflation Rate: Parking revenues will inflate at the expense inflation rate. 309 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
CPI Inflation Rate: Parking revenues will inflate at the CPI inflation rate. Limits Limits Set a lower or upper monthly limit on the projected expense amount. If the projected monthly expense amount is less than the inflated lower limit or greater than the inflated upper limit, it will be overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default expense inflation rate. Select one of the following options for each expense: 
None: No lower or upper limits will be applied to the expense. 
Min: Only a lower limit will be applied to the expense. 
Max: Only an upper limit will be applied to the expense. 
Both: A lower and upper limit will be applied to the expense. Note: If the Input method is Amount 1, you cannot enter limits for an individual amount, hence the Limits fields are disabled. Basis Select the unit of measurement for the Minimum and Maximum fields. If you make no selection, the default choice will be $/SqFt/Month. You may choose from the following drop‐down options: 
$ Amount / Month: Currency amount per month will be used as the basis for the Minimum and Maximum fields. 
% / Room / Month: Percentage per room per month will be used as the basis for the Minimum and Maximum fields. Note: For all Hotel properties, the default value is $/Room/Month, and the drop‐down options available will be $/Room/Month & $/Month. For all Multi‐family properties, the default value is $/Unit/Month, and the options available will be $/Unit/Month & $/Month. Minimum Enter a monthly minimum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum Enter a monthly maximum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. 310 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Usage Discounted Cash Flow Choose whether the item will be included in the cash flow projection and used to calculate net operating income (NOI). Choose from: 
Include (Default): The item will be displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: The item will not be displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select Yes in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. Notes Notes You can use this field to enter notes related to the revenue. Click adding extensive notes. to open the Notes window for See Also Hotel Rooms Hotel Parking Groups This section of the window is only available if the selected property type is Hotel. For more information, see Hotels. 311 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Category Select the revenue category for the item for reporting purposes. Choose from the following: 
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312 Departmental Miscellaneous © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Expenses Operating Expenses Navigation: Property Editor>Inputs>Expenses>Operating. Purpose Operating expenses are entered on the Operating tab. Note: If you have a license for the Property Budget module of ARGUS Enterprise, the Budget on the Ribbon provides additional budget‐related features for this window. For more information, see Budgeting and Actuals. See Also Short Cuts Non‐Operating Expenses Capital Expenses Expense Groups General Parent Account Number This field is auto‐populated with the header (parent) account number from the account you select in the Account Number field. Account Number Click to select a new entry from the chart of accounts. Account Type This field is auto‐populated with the account type from the account you select in the Account Number field. Depending on your Chart of Accounts setup, the following account levels will be available. Name Enter the name for the operating expense item. Amount How Input Select an input method in the pick list in the How Input field. Choose from: 313 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Amount 1: Entry in the Amount 1 field is interpreted as a currency amount. 
Amount 1 x Amount 2: Entry in the Amount 1 field is multiplied by the entry in the Amount 2 field. 
Currency Amount / Rentable Area: Entry in the Amount 1 field is interpreted as a currency amount per rentable area. 
Currency Amount / Occupied Area: Entry in the Amount 1 field is interpreted as a currency amount per occupied area. 
Currency Amount / Vacant Area: Entry in the Amount 1 field is interpreted as a currency amount per vacant area. 
$/Unit (Multifamily Properties): Entry in the Amount 1 field is interpreted as a currency amount per unit. 
Percentage of Scheduled Multifamily Rent (Multifamily Properties): Entry in the Amount 1 field is interpreted as a percentage of rental revenue scheduled to be collected. 
Percentage of Total Multifamily Revenue (Multifamily Properties): Entry in the Amount 1 field is interpreted as a percentage of total rental revenue. 
Percentage of Rental Revenue: Entry in the Amount 1 field is interpreted as a percentage of rental revenue. Rental revenue is potential base rent, including step rent, with deductions for absorption and turnover vacancy and free rent. Consumer price index (CPI) increases are then added to result in total rental revenue. 
Percentage of Total Tenant Revenue: Entry in the Amount 1 field is interpreted as a percentage of total tenant revenue. Total tenant revenue is lease‐related income outside of the concept of “base rent.” Examples include percentage rent, parking rent (tied to leases), and expense recoveries. 
Percentage of Tenant Market Rent: Entry in the Amount 1 field is interpreted as a percentage of the applied tenants’ market rent over time. 
Percentage of Effective Gross Revenue: Entry in the Amount 1 field is interpreted as a percentage of effective gross revenue. 
Percentage of Other: Entry in the Amount 1 field is interpreted as a percentage of another revenue or expense. This allows you to link the calculation of expenses to other amounts in the projection. This is useful for management fees and other administrative costs that are calculated as a percentage of specific revenues or expenses associated with the operations of the property. The percentages can be applied on an expense group to have an effect on each expense. 
Percentage of Other x Amount 2: Specify the percentage of another revenue or expense in the Amount 1 field, and multiply it by the entry in the Amount 2 field. 
Percentage of Market: Entry in the Amount 1 field is multiplied by the applied tenants' market rent over time. Note if no tenants are applied, the expense is calculated as zero. 
Sub‐lines: Specify that the expense is comprised of any number of additional expenses. When you choose this option, enter the additional expenses on the lines below. Sub‐line expense lines is indented under the primary expense. Note: Certain fields, such as Frequency, Amount 2, Inflation, and Fixed % is disabled for all percentage selections in the How Input field. When non‐operating expenses are used in percent of other calculations and are recovered or included in operating expenses or capital expenses, they will affect valuations. 314 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Prop 13‐A: Interpret the expense as a California Proposition A expense and will calculate it as a percentage of the resale amount as well as any recovery of the adjusted expense. If you enter more than one expense as a Proposition 13 expense, only the first Proposition 13 expense is used in calculations. 
Prop 13‐B: Interpret the expense as a California Proposition B expense, add the tax rate to the cap rate, and calculate resale of the property based on the incremented cap rate. In the year following the resale, the Prop 13 B expense will be calculated by continuing to inflate the expense from the prior year. If you enter more than one expense as a Proposition 13 expense, only the first Proposition 13 expense will be used in calculations. See Also How Input Calculation Examples Frequency Select the frequency in the pick list. You may choose from the following options: 
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Annually Monthly Amount 2 The Amount 2 field is only available if you selected Amount 1 x Amount 2 or Percentage of Other x Amount 2 in the How Input field, and if the Use Amount 2 Modeling Policy is enabled. Enter the amount to be allocated for the second amount or click to display a monthly input window where you can enter amounts that vary over time. Area Measure This field is only available if you select an area‐based input method (Currency Amount/Rentable Area, Currency Amount/Occupied Area, Currency Amount/Vacant Area) in the How Input field. Select the area measure you want to use in the calculation. You may choose from the following options: 
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Building Total Office Total Retail Total Industrial Total Storage Total Alternate Building Total Custom Area Measure ‐ Note that custom area measures are created on the Area Measures tab. For more information, see Area Measures. Fixed % By default, operating expenses are entered as an annual amount that is assumed to be 100% fixed, 100% recoverable, and inflated by the expense inflation rate. To use a fixed percentage other than 100%, enter the percentage in the Fixed % field. See Also Fixed Percentage Calculation Examples 315 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Recoverable % Use the Recoverable % field to indicate non‐recoverable expenses (by entering zero as the recoverable percentage) or to indicate expenses that are not 100% recoverable (by entering the percentage recoverable). Note: Recoverable percentages indicated in the expense section can be superseded by inputs in advanced recovery structures. The value entered here is the default for recoveries. Apply to Tenants Select a method for applying the expense item to tenants. You may choose from the following options: 
No: Expense item will not be applied to tenants. Note if the Traditional Valuation modeling policy option is turned on, the expense item will be apportioned across all tenants based on each tenant's potential rent. 
All Tenants: Entire amount of the expense item is applied to each tenant. The entire amount of the expense will be applied to each tenant. 
Select Tenants: Entire amount of the expense item is applied to selected tenants and/or tenant groups. The entire amount of the expense will be applied to each tenant. Applied Tenants Click to select tenants and/or tenant groups. Note this field will only be available if you select Select Tenants in the Apply to Tenants field. Select the tenants you want to include then click OK to finish or Cancel to close this window. 316 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Rent Roll How Input (Applied Tenants) If you select either All Tenants or Select Tenants in the pick list of the Apply to Tenants field, the context of the How Input selections will change to a tenant specific context. Select an input method in the pick list in the How Input field. Choose from: 
Amount 1: Entered amount is applied on a per tenant basis. 
Amount 1 X Amount 2: Product of the entries in the Amount 1 and Amount 2 fields is applied on a per tenant basis. 
Amt/Rentable Area: Amount is applied to and multiplied by each tenant’s area during occupied and downtime periods. 
Amt/Occupied Area: Amount is applied to and multiplied by each tenant’s occupied area during occupied periods. 
Amt/Vacant Area: Amount is applied to and multiplied by each tenant’s vacant area (i.e., the area during downtime periods). 
% of Rental Revenue: Percentage is applied to the tenant’s rental revenue. Tenant rental revenue includes base rent, fixed steps, CPI, free rent, and miscellaneous rent. 
% of Total Tenant Revenue: Percentage is applied to the tenant’s total revenue. Tenant total revenue includes base rent, fixed steps, CPI, free rent, miscellaneous rent, percentage rent, and recoveries. 
% of Effective Gross Revenue: Percentage is applied to the tenant’s total revenue. Timing Start Date Select the start date method you want to use. You may select from the following options in the pick list: 
Analysis Begin (default): Expense item is calculated starting on the analysis start date. 
Specified Date: Expense item is calculated starting on the date you specify. 
Valuation Date: Expense item is calculated starting on the valuation date. Date Enter or select a date in the drop‐down calendar. This field is available only if Specified Date is selected in the Start Date field. Start Date Adjustment Select the start date adjustment method you want to use in the drop‐down list. You may select from the following options: 
None: You cannot enter a number in the Adjustment Months field. 
Offset: Enter a number in the Adjustment Months field that is used to offset the start date. Offsetting payments will affect both the begin and end of payments. 317 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Delay: Enter a number in the Adjustment Months field that is used to delay the start date. Delaying payments will only affect the begin date of payments. Adjustment Months Enter a number for adjustment months. See Also Start Date Adjustment Calculation Examples Repeat Select the frequency method you want to use in the pick list. You may select from the following options: 
Monthly: Expense item appears on a monthly basis. 
Quarterly: Expense item appears on a quarterly basis. 
Semi‐Annually: Expense item appears on a semi‐annual basis. 
Annually: Expense item appears on an annual basis. 
Single Payment: Expense item appears as a single payment. See Also Repeating Payments Calculation Examples End Date Select the end date method you want to use in the drop‐down calendar. You may select from the following options: 
None: Analysis end date is used as the end date. 
Specified Date: Choose a date in the adjacent Date field. 
For the Next: Enter a number in the Duration Months field that is added to the start date. 
Lease Expiry/Break: Cost ceases on the earlier of lease expiry or break date. Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the End field. Duration Months Enter a number for duration months. See Also Repeating Payments Calculation Examples 318 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation Inflation % Use the drop‐down arrow to select the Inflation Rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the detailed Inflation window. Note that if you enter detailed inflation, Annual inflation entries will represent increases to amounts that occur in the Inflation Month. Monthly inflation entries will represent increases to amounts in the month of the inflation entry. The first column of the detailed Inflation window is determined by the Allow Inflation in Year One option on the Modeling Policies window. If the option is selected, the first column will be the first year of the analysis; if it isn't selected, the first column will be the second year of the analysis. Click to display inflation rates that vary over time. Choose from: 
Zero Inflation Rate: Operating expenses increases by a zero inflation rate. 
Expense Inflation Rate: Operating expenses inflates at the expense inflation rate. 
General Inflation Rate: Operating expenses inflates at the general inflation rate. 
Market Inflation Rate: Operating expenses inflates at the market inflation rate. 
CPI Inflation Rate: Operating expenses inflates at the CPI inflation rate. Limits Limits Set a lower or upper monthly limit on the projected expense amount. If the projected monthly expense amount is less than the inflated lower limit or greater than the inflated upper limit, it will be overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default expense inflation rate. Select one of the following options for each expense: 
None: No lower or upper limits is applied to the expense. 
Min: Only a lower limit is applied to the expense. 
Max: Only an upper limit is applied to the expense. 
Both: A lower and upper limit is applied to the expense. Basis Define the units of measurement for the Minimum and Maximum fields. If you make no selection, the default choice will be $ Amount/Month. You may choose from the following drop‐down options: 
$/Area/Month: Currency amount per area per month is used as the basis for the Minimum and Maximum fields. 
$/Area/Year: Currency amount per area per year is used as the basis for the Minimum and Maximum fields. 
$ Amount / Month: Currency amount per month is used as the basis for the Minimum and Maximum fields. 319 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
$ Amount/Year: Currency amount per year is used as the basis for the Minimum and Maximum fields. Note: For all Hotel properties, the default value is $/Room/Month, and the pick list options available will be $/Room/Month & $/Month. For all Multi‐family properties, the default value is $/Room/Month, and the drop‐down options available will be $/Unit/Month & $/Month. Minimum Enter a monthly minimum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum Enter a monthly maximum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Usage Discounted Cash Flow Choose whether the item is included in the cash flow projection and used to calculate net operating income (NOI). You may choose from the following options: 
Include (default): Item is displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: Item will not be displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select Yes in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. Traditional Valuation Choose whether the item will be used in traditional valuation calculations. Choose from: 
Include (default): Item is used in traditional valuation calculations. 
Exclude: Item is not be used in traditional valuation calculations. Capitalization Valuation Note: The fields in this section will not be available if the How Input is set to Sub‐lines. Treatment Name Select a treatment name. Choose from: • Property default (default): Item will be capitalized according to the values entered in the Property Default section of the Capitalization Valuation tab. • Select a treatment from the pick list, which is populated from the treatments defined in the Revenue and Expense Treatments section of the Capitalization Valuation tab. 320 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: If you select a treatment in this field and later delete it from the Revenue and Expense Treatments grid, the expense will revert to the property default. Treatment Displays the treatment associated with the treatment name you selected, and is read‐only. Rate Displays the rate associated with the treatment name you selected, and is read‐only. Duration Displays the duration associated with the treatment name you selected, and is read‐only. Use Treatment Displays the Use Treatment value associated with the treatment name you selected, and is read‐only. settings. Note: If Use Treatment is set to No, the expense will be capitalized according to the property default Notes You can use this field to enter notes related to the expense. Click adding extensive notes. to open the Notes window for See Also Storage Revenues Parking Revenues 321 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Groups Expense Groups The Expense Groups field allows you to associate the respective expense to any group. An expense can be associated to multiple groups. Click in the Expense Groups field and select the required expense group from the list of expense groups (listed alphabetically). Click OK to apply your selections or Cancel to discard them and close this window. See Also Expense Groups 322 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Non‐Operating Expenses Navigation: Property Editor>Inputs>Expenses>Non‐Operating. Purpose The Non‐Operating Expenses tab allows you to enter expenses that are not directly related to the operations of the property. Note: If you have a license for the Property Budget module of ARGUS Enterprise, the Budget on the Ribbon provides additional budget‐related features for this window. For more information, refer to Budgeting and Actuals. See Also Short Cuts Operating Expenses Capital Expenses Expense Groups General Parent Account Number This field is auto‐populated with the header (parent) account number from the account you select in the Account Number field. Account Number Click the button to select a new entry from the chart of accounts. Account Type This field is auto‐populated with the account type from the account you select in the Account Number field. Depending on your Chart of Accounts setup, the following account levels will be available. Name Enter the name for the non‐operating expense item. 323 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Amount How Input Select an input method in the pick list in the How Input field. You may choose from the following options in the drop‐down list: 
Amount 1: Entry in the Amount 1 field will be interpreted as a currency amount. 
Amount 1 x Amount 2: Entry in the Amount 1 field will be multiplied by the entry in the Amount 2 field. 
Currency Amount / Rentable Area: Entry in the Amount 1 field will be interpreted as a currency amount per rentable area. 
Currency Amount / Occupied Area: Entry in the Amount 1 field will be interpreted as a currency amount per occupied area. 
Currency amount / Vacant Area: Entry in the Amount 1 field will be interpreted as a currency amount per vacant area. 
Percentage of Rental Revenue: Entry in the Amount 1 field will be interpreted as a percentage of rental revenue. Rental revenue is potential base rent, including step rent, with deductions for absorption and turnover vacancy and free rent. CPI increases are then added to result in total rental revenue. 
Percentage of Total Tenant Revenue: Entry in the Amount 1 field will be interpreted as a percentage of total tenant revenue. Total tenant revenue is lease‐related income outside of the concept of “base rent.” Examples include percentage rent, parking rent (tied to leases), and expense recoveries. 
Percentage of Effective Gross Revenue: Entry in the Amount 1 field will be interpreted as a percentage of effective gross revenue. 
Percentage of Other: Entry in the Amount 1 interpreted as a percentage of another revenue or expense. This allows you to link the calculation of expenses to other amounts in the projection. This is useful for management fees and other administrative costs that are calculated as a percentage of specific revenues or expenses associated with the operations of the property. The percentages can be applied on an expense group to have an effect on each expense. 
Percentage of Other x Amount 2: Specify the percentage of another revenues or expenses in the Amount 1 field, and multiply it by the entry in the Amount 2 field. 
Sub‐lines: Specify that the expense will be comprised of any number of additional expenses. When you choose this option, enter the additional expenses on the lines below. Sub‐line expense lines will be indented under the primary expense. Note: Certain fields, such as Frequency, Amount 2, Inflation, and Fixed %, will be disabled for all percentage selections in the How Input field. When non‐operating expenses are used in percent of other calculations and are recovered or included in operating expenses or capital expenses, they will affect valuations. See Also How Input Calculation Examples 324 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Amount 1 Enter the amount to be allocated or click to display a monthly input window for amounts that vary over time. If you selected % of Other in the How Input field, click to display a window listing the revenues and expenses to which you can link this item. It is also possible to drill‐down and link a revenue or expense to one of multiple accounts within a specific area. Frequency Select the frequency in the pick list. You may choose from the following options in the pick list: 
Annually  Monthly Amount 2 The Amount 2 field is only available if you selected Amount 1 x Amount 2 or Percentage of Other x Amount 2 in the How Input field, and if the Use Amount 2 Modeling Policy is enabled. Enter the amount to be allocated for the second amount or click the button to display a monthly input window where you can enter amounts that vary over time. Area Measure This field is only available if you select an area‐based input method (Currency Amount/Rentable Area, Currency Amount/Occupied Area, Currency Amount/Vacant Area) in the How Input field. Select the area measure you want to use in the calculation. You may choose from the following options in the pick list: 
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Building Total Office Total Retail Total Industrial Total Storage Total Alternate Building Total Custom Area Measure ‐ Note that custom area measures are created on the Area Measures tab. For more information, see Area Measures. Fixed % By default, operating expenses are entered as an annual amount that is assumed to be 100% fixed, 100% recoverable, and inflated by the expense inflation rate. To use a fixed percentage other than 100%, enter the percentage in the Fixed % field. See Also Fixed Percentage Calculation Examples Apply to Tenants Select a method for applying the revenue item to tenants. You may choose from the following options: 
No: The revenue item will not be applied to tenants. Note if the Traditional Valuation modeling policy option is selected, the revenue item will be apportioned across all tenants based on each tenant's potential rent. 
All Tenants: The revenue item will be applied to all tenants. The entire amount of the expense will be applied to each tenant. 325 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Select Tenants: The revenue item will only be applied to selected tenants and/or tenant groups. The entire amount of the expense will be applied to each tenant. Applied Tenants Click to select tenants and/or tenant groups. Note this field will only be available if you select the Select Tenants option in the Apply to Tenants field. Select the tenants you want to include then click OK to finish or Cancel to close this window. See Also Rent Roll How Input (Applied Tenants) If you select either All Tenants or Select Tenants in the pick list of the Apply to Tenants field, the context of the How Input selections will change to a tenant specific context. Select an input method in the pick list in the How Input field. Choose from: 
Amount 1: The entered amount will be applied on a per tenant basis. 
Amount 1 X Amount 2: The product of the entries in the Amount 1 and Amount 2 fields will be applied on a per tenant basis. 
Amt/Rentable Area: The entered amount will be applied to and multiplied by each tenant’s area during occupied and downtime periods. 
Amt/Occupied Area: The entered amount will be applied to and multiplied by each tenant’s occupied area during occupied periods. 326 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Amt/Vacant Area: The entered amount will be applied to and multiplied by each tenant’s vacant area (i.e., the area during downtime periods). 
% of Rental Revenue: The entered percentage will be applied to the tenant’s rental revenue. Tenant rental revenue includes base rent, fixed steps, CPI, free rent, and miscellaneous rent. 
% of Total Tenant Revenue: The entered percentage will be applied to the tenant’s total revenue. Tenant total revenue includes base rent, fixed steps, CPI, free rent, miscellaneous rent, percentage rent, and recoveries. 
% of Effective Gross Revenue: The entered percentage will be applied to the tenant’s total revenue. Timing Start Date Select the start date method you want to use. You may select from the following options in the pick list: 
Analysis Begin (default): The expense item will be calculated starting on the analysis start date. 
Specified Date: The expense item will be calculated starting on the date you specify. 
Valuation Date: The expense item will be calculated starting on the valuation date. Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the Start Date field. Start Date Adjustment Select the start date adjustment method you want to use in the drop‐down list. You may select from the following options: 
None: The system will not allow you to enter a number in the Adjustment Months field. 
Offset: You can allowed to enter a number in the Adjustment Months field that will be used to offset the start date. Offsetting payments will affect both the begin and end of payments. 
Delay: You can allowed to enter a number in the Adjustment Months field that will be used to delay the start date. Delaying payments will only affect the begin date of payments. Adjustment Months Enter a number for adjustment months. Repeat Select the frequency method you want to use in the pick list. You may select from the following options: 
Monthly: The expense item will appear on a monthly basis. 
Quarterly: The expense item will appear on a quarterly basis. 
Semi‐Annually: The expense item will appear on a semi‐annual basis. 
Annually: The expense item will appear on an annual basis. 
Single Payment: The expense item will appear as a single payment. See Also Repeating Payments Calculation Examples 327 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 End Date Select the end date method you want to use in the drop‐down calendar. You may select from the following options: 
None: The adjacent Date field and Duration Months field will not be available. 
Specified Date: You will be able to choose a date in the adjacent Date field. 
For the Next: You will be allowed to enter a number in the Duration Months field that will be added to the start date. Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the End field. Duration Months Enter a number for duration months. Inflation Inflation % Select the inflation rate category in the pick list you want to apply to expenses or click inflation rates that vary over time. Choose from: 
Zero Inflation Rate: Non‐operating expenses will increase by a zero inflation rate. 
General Inflation: The general inflation rate will be applied to the expense. 
Expense Inflation: The expense inflation rate will be applied to the expense. 
Market Inflation: The market inflation rate will be applied to the expense. 
CPI Inflation Rate: The CPI inflation rate will be applied to the expense. to display See Also Market Inflation Limits Set a lower or upper monthly limit on the projected expense amount. If the projected monthly expense amount is less than the inflated lower limit or greater than the inflated upper limit, it will be overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default expense inflation rate. Note if the Input method is Amount 1, the Limits fields are disabled. You may choose from the following options in the pick list: 
None: No lower or upper limits will be applied to the expense. 
Min: Only a lower limit will be applied to the expense. 
Max: Only an upper limit will be applied to the expense. 
Both: A lower and upper limit will be applied to the expense. 328 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Basis Define the units of measurement for the Minimum and Maximum fields. If you make no selection, the default choice will be $ Amount/Month. You may choose from the following drop‐down options: 
$/Area/Month: Currency amount per area per month will be used as the basis for the Minimum and Maximum fields. 
$/Area/Year: Currency amount per area per year will be used as the basis for the Minimum and Maximum fields. 
$ Amount / Month: Currency amount per month will be used as the basis for the Minimum and Maximum fields. 
$ Amount/Year: Currency amount per year will be used as the basis for the Minimum and Maximum fields. Note: For all Hotel properties, the default value is $/Room/Month, and the options available will be $/Room/Month & $/Month. For all Multi‐family properties, the default value is $/Room/Month, and the options available will be $/Unit/Month & $/Month. Minimum Enter a monthly minimum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum Enter a monthly maximum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Usage Discounted Cash Flow Choose whether the item will be included in the cash flow projection and used to calculate NOI. Choose from: 
Include (default): The item will be displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: The item will not be displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select Yes in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. 329 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Notes You can use this field to enter notes related to the expense. Click adding extensive notes. to open the Notes window for 330 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Capital Expenses Navigation: Property Editor>Inputs>Expenses>Capital. Purpose Capital expenditures and reserve amounts are entered on the Capital input tab. Note: If you have a license for the Property Budget module of ARGUS Enterprise, the Budget on the Ribbon provides additional budget‐related features for this window. For more information, see Budgeting and Actuals. See Also Short Cuts Non‐Operating Expenses Operating Expenses Expense Groups General Parent Account Number This field is auto‐populated with the header (parent) account number from the account you select in the Account Number field. Account Number Click to select a new entry from the chart of accounts. Account Type This field is auto‐populated with the account type from the account you select in the Account Number field. Project ID Enter the identity number for this item. You can use alphanumerics with a maximum of 100 characters. Name Enter the name associated with this Project ID. 331 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Amount How Input Select an input method in the pick list. Choose from: 
Amount 1: Entry in Amount 1 field is interpreted as a currency amount. 
Amount 1 x Amount 2:Entry in the Amount 1 field is multiplied by the entry in the Amount 2 field. 
Currency Amount / Rentable Area: Entry in the Amount 1 field is interpreted as a currency amount per rentable area. 
Currency Amount / Occupied area: Entry in the Amount 1 field is interpreted as a currency amount per occupied area. 
Currency amount / Vacant area: Entry in the Amount 1 field is interpreted as a currency amount per vacant area. 
$/Unit (Multifamily Properties): Entry in the Amount 1 field is interpreted as a currency amount per unit. 
Percentage of Scheduled Multifamily Rent (Multifamily Properties): Entry in the Amount 1 field is interpreted as a percentage of scheduled multifamily rent. 
Percentage of Total Multifamily Revenue (Multifamily Properties): Entry in the Amount 1 field is interpreted as a percentage of total multifamily revenue. 
Percentage of Rental Revenue: Entry in the Amount 1 field is interpreted as a percentage of rental revenue. Rental revenue is potential base rent, including step rent, with deductions for absorption and turnover vacancy and free rent. CPI increases are then added to result in total rental revenue. 
Percentage of Total Tenant Revenue: Entry in the Amount 1 field is interpreted as a percentage of total tenant revenue. Total tenant revenue is lease‐related income outside of the concept of “base rent.” Examples include percentage rent, parking rent (tied to leases), and expense recoveries. 
Percentage of Tenant Market Rent: Entry in the Amount 1 field is interpreted as a percentage of the applied tenants’ market rent over time. 
Percentage of Effective Gross Revenue: Entry in the Amount 1 field is interpreted as a percentage of effective gross revenue. 
Percentage of Other: Entry in the Amount 1 field is interpreted as a percentage of another revenue or expense. This allows you to link the calculation of expenses to other amounts in the projection. This is useful for management fees and other administrative costs that are calculated as a percentage of specific revenues or expenses associated with the operations of the property. The percentages can be applied on a expense group to have an effect on each expense. 
Percentage of Other x Amount 2: you can specify the percentage of another revenue or expense in the Amount 1 field, and multiply it by the entry in the Amount 2 field. 
Percentage of Market: Entry in the Amount 1 field is multiplied by the applied tenants' market rent over time. Note if no tenants are applied, the expense is calculated as zero. 332 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Sub‐lines: Specify that the expense is comprised of any number of additional expenses. When you choose this option, enter the additional expenses on the lines below. Sub‐line expense lines is indented under the primary expense. Note: Certain fields, such as Frequency, Amount 2, Inflation, and Fixed % is disabled for all percentage selections in the How Input field. When non‐operating expenses are used in percent of other calculations and are recovered or included in operating expenses or capital expenses, they will affect valuations. See Also How Input Calculation Examples Amount 1 Enter the amount to be allocated or click to display a monthly input window where you can enter amounts that vary over time. If you selected % of Other in the How Input field, click to display a window listing the revenues and expenses to which you can link this item. Frequency Select the frequency in the pick list. You may choose from the following options: 
Annually  Monthly Amount 2 The Amount 2 field is only available if you selected Amount 1 x Amount 2 or Percentage of Other x Amount 2 in the How Input field, and if the Use Amount 2 Modeling Policy is enabled. Enter the amount to be allocated for the second amount or click the to display a monthly input window where you can enter amounts that vary over time. Area Measure This field is only available if you select an area‐based input method (Currency Amount/Rentable Area, Currency Amount/Occupied Area, Currency Amount/Vacant Area) in the How Input field. Select the area measure you want to use in the calculation. You may choose from the following options: 
Building Total: Building total is used for the area measure. 
Office Total: Office total is used for the area measure. 
Retail Total: Retail total is used for the area measure. 
Industrial Total: Industrial total is used for the area measure. 
Storage Total: Storage total is used for the area measure. 
Alternate Building Total: Alternate building total is used for the area measure. 
Custom Area Measure: Custom area measures are created on the Area Measures tab. For more information, see Area Measures. Fixed % By default, capital expenditures are entered as an annual amount that is assumed to be 100% fixed and inflated by the expense inflation rate. To use a fixed percentage other than 100%, enter the percentage in the Fixed % field. 333 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Fixed Percentage Calculation Examples Apply to Tenants Select a method for applying the expense item to tenants. You may choose from the following options: 
No: Expense item will not be applied to tenants. Note if the Traditional Valuation modeling policy is turned on, the expense item is apportioned across all tenants based on each tenant's potential rent. 
All Tenants: Entire amount of the expense item is applied to each tenant. 
Select Tenants: Entire amount of the expense item is applied to selected tenants and/or tenant groups. Applied Tenants Click to select tenants and/or tenant groups. Note: This field will only be available if you select the Select Tenants option in the Apply to Tenants field. Select the tenants you want to include then click OK to finish or Cancel to close this window. See Also Rent Roll 334 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 How Input (Applied Tenants) If you select either the All Tenants or Select Tenants option in the pick list of the Apply to Tenants field, the context of the How Input selections will change to a tenant specific context. Select an input method in the pick list in the How Input field. Choose from: 
Amount 1: Entered amount is applied on a per tenant basis. 
Amount 1 X Amount 2: Product of the entries in the Amount 1 and Amount 2 fields is applied on a per tenant basis. 
Amt/Rentable Area: Entered amount is applied to and multiplied by each tenant’s area during occupied and downtime periods. 
Amt/Occupied Area: Entered amount is applied to and multiplied by each tenant’s occupied area during occupied periods. 
Amt/Vacant Area: Entered amount is applied to and multiplied by each tenant’s vacant area i.e. the area during downtime periods. 
% of Rental Revenue: Entered percentage is applied to the tenant’s rental revenue. Tenant rental revenue includes base rent, fixed steps, CPI, free rent, and miscellaneous rent. 
% of Total Tenant Revenue: Entered percentage is applied to the tenant’s total revenue. Tenant total revenue includes base rent, fixed steps, CPI, free rent, miscellaneous rent, percentage rent, and recoveries. 
% of Effective Gross Revenue: Entered percentage is applied to the tenant’s total revenue. See Also How Input Calculation Examples Traditional Valuation Discount Rate Enter a discount rate or select the default option Use Property Rate in the pick list. Include in Resale Select this option to include the discount rate in the resale calculation and to enable the Resale Discount Rate field. Resale Discount Rate Enter a discount rate or select the default option Use Property Rate in the pick list. Timing Start Date Select the start date method. You may select from the following options in the pick list: 
335 Analysis Begin (Default): Expense item is calculated starting on the analysis start date. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Specified Date: Expense item is calculated starting on the date you specify. 
Valuation Date: Expense item is calculated starting on the PV/IRR date (1st of the month). 
On All Voids: Expense item is calculated starting when voids occur. 
On Current Void: Expense item is calculated starting on the current pre‐lease void period. Pre‐lease voids exist when the available date is not the same as the lease begin date. 
On Expiry Voids: Expense item is calculated starting on re‐letting voids after the expiry/break of the current lease. 
On Lease Start/Renewal: Expense item is calculated starting on the start date of the base lease and subsequent renewal leases. 
On Lease Start/Renewal with Void: Expense item is triggered if a letting or reletting is preceded by a void period. The assumption is that these lettings and relettings are not lease renewals and that the investor may incur higher costs for a reletting. Note leases starting on the valuation date are treated as leases without voids. 
On Lease Start/Renewal without Void: Expense item is triggered if there is no void period immediately before the lease start. The assumption is that lettings or relettings without voids are lease renewals rather than lettings to new tenants. Renewals are considered cheaper than full lettings. Note leases starting on the valuation date are treated as leases without voids. 
On Initial Lease Start: Expense item is calculated starting on the start date of the base lease. Note the cost will not be triggered at the start of any subsequent renewals. 
On Lease End/Break: Expense item is calculated starting on the expiration or break of the base lease and renewal leases. 
On Renewal: Expense item is calculated at the start of renewal leases, once the base lease has come to an end. Date Enter or select a date in the drop‐down calendar. This field is available only if Specified Date is selected in the Start Date field. Start Date Adjustment Select the start date adjustment method you want to use in the drop‐down list. You may select from the following options: 
None: The system will not allow you to enter a number in the Adjustment Months field. 
Offset: Enter a number in the Adjustment Months field that is used to offset the start date. Offsetting payments will affect both the begin and end of payments. 
Delay: Enter a number in the Adjustment Months field that is used to delay the start date. Delaying payments will only affect the begin date of payments. Adjustment Months Enter a number for adjustment months. See Also Start Date Adjustment Calculation Examples 336 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Repeat Select the frequency method you want to use in the pick list. You may select from the following options: 
Monthly: Expense item appears on a monthly basis. 
Quarterly: Expense item appears on a quarterly basis. 
Semi‐Annually: Expense item appears on a semi‐annual basis. 
Annually: Expense item appears on an annual basis. 
Single Payment: Expense item appears as a single payment. See Also Repeating Payments Calculation Examples End Date Select the end date method you want to use in the drop‐down calendar. You may select from the following options: 
None: Analysis end date is used as the end date. 
Specified Date: Choose a date in the adjacent Date field. 
For the Next: Enter a number in the Duration Months field that is added to the start date. 
End of Event: Cost ceases at end of the trigger event. The system will automatically increase or reduce the number of payments if the tenant void periods are changed. 
Lease Expiry/Break: Cost ceases on the earlier of lease expiry or break date. Date Enter or select a date in the drop‐down calendar. This field is available only if Specified Date is selected in the End field. Duration Months Enter a number for duration months. Inflation Inflation % Use the drop‐down arrow to select the Inflation Rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the detailed Inflation window. Note that if you enter detailed inflation, Annual inflation entries will represent increases to amounts that occur in the Inflation Month. Monthly inflation entries will represent increases to amounts in the month of the inflation entry. The first column of the detailed Inflation window is determined by the Allow Inflation in Year One option on the Modeling Policies window. If the 337 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 option is selected, the first column is the first year of the analysis; if it isn't selected, the first column is the second year of the analysis. 
Zero Inflation Rate: Increase by a zero inflation rate. 
General Inflation Rate: Increase at the general inflation rate. 
Market Inflation Rate: Increase at the market inflation rate. 
Expense Inflation Rate: Increase at the expense inflation rate. 
CPI Inflation Rate: Increase at the CPI inflation rate. Amortization Start Date Select the start date for amortizing capital expenses. You may choose from the following options: 
None: Expense will not be recoverable. 
Analysis Begin: Expense is included in recovery, amortized from the analysis start date. 
Specified Date: Expense is included in recovery, amortized from the date that you choose in the Date field. See Also Amortized Expense Calculation Examples Recovery Structures Date If you selected the Specified Date option in the Start Date field, you is able to enter or choose a date in the drop‐down calendar. Term (Months) Enter the number of months for amortization of the capital expense item. Interest Rate Enter a simple interest rate or click to enter interest rates that vary over time. Limits 338 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Limits Set a lower or upper monthly limit on the projected expense amount. If the projected monthly expense amount is less than the inflated lower limit or greater than the inflated upper limit, it is overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default expense inflation rate. Select one of the following options for each expense: 
None: No lower or upper limits is applied to the expense. 
Min: Only a lower limit is applied to the expense. 
Max: Only an upper limit is applied to the expense. 
Both: A lower and upper limit is applied to the expense. Basis Define the units of measurement for the Minimum and Maximum fields. If you make no selection, the default choice is $/SqFt/Month. You may choose from the following drop‐down options: 
$/Area/Month: Currency amount per area per month is used as the basis for the Minimum and Maximum fields. 
$/Area/Year: Currency amount per area per year is used as the basis for the Minimum and Maximum fields. 
$ Amount / Month: Currency amount per month is used as the basis for the Minimum and Maximum fields. 
$ Amount/Year: Currency amount per year is used as the basis for the Minimum and Maximum fields. Note: For all Hotel properties, the default value is $/Room/Month, and the drop‐down options available is $/Room/Month & $/Month. For all Multi‐family properties, the default value is $/Room/Month, and the drop‐down options available is $/Unit/Month & $/Month. Minimum Enter a monthly minimum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum Enter a monthly maximum limit amount if there is one. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. See Also Uplift Calculation Examples 339 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Usage Discounted Cash Flow Choose whether the item is included in the cash flow projection and used to calculate NOI. Choose from: 
Include (Default): Item is displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: Item will not be displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select Yes in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. Traditional Valuation Choose whether the item is used in traditional valuation calculations. Choose from: 
Include (Default): Include in traditional valuation calculations. 
Exclude: Exclude from traditional valuation calculations. Capitalization Valuation Note: The fields in this section will not be available if the How Input is set to Sub‐lines. Treatment Name Select a treatment name. Choose from: • Property default (default): Item is capitalized according to the values entered in the Property Default section of the Capitalization Valuation tab. • Select a treatment from the pick list, which is populated from the treatments defined in the Revenue and Expense Treatments section of the Capitalization Valuation tab. Note: If you select a treatment in this field and later delete it from the Revenue and Expense Treatments grid, the expense will revert to the property default. Treatment Displays the treatment associated with the treatment name you selected and is read‐only. Rate Displays the rate associated with the treatment name you selected and is read‐only. Duration Displays the duration associated with the treatment name you selected and is read‐only. Use Treatment Displays the Use Treatment value associated with the treatment name you selected and is read‐only. 340 Note: If Use Treatment is set to No, the expense is capitalized according to the property default settings. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Notes You can use this field to enter notes related to the expense. Click adding extensive notes. to open the Notes window for Groups Expense Groups The Expense Groups field allows you to associate the respective expense to any group. An expense can be associated to multiple groups. Click in the Expense Groups field and select the required expense group from the list of expense groups (listed alphabetically). Click OK to apply your selections or Cancel to discard them and close this window. 341 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Expense Groups Storage Revenues Parking Revenues 342 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Expense Groups Navigation: Property Editor>Inputs>Expenses>Expense Groups. Purpose The primary purpose of Expense Groups is to support the modeling of complex user recovery structures. Expense Groups are particularly important when there are expense stops, recovery limits or caps that apply to a group of expenses, rather than a single expense line item. Expense Groups are used to create groups or combinations of individual recoverable operating expenses. An Expense Group can include one, all or any combination of recoverable expenses. Note: Once an expense is used in a group it will no longer be available to be included in additional expense groups within the same recovery structure. See Also Short Cuts Non‐Operating Expenses Capital Expenses Operating Expenses You can add Expense Groups by clicking Add Record on the Ribbon. Group Code Enter the group code for the Expense Group. Expense Group Name Enter a name for the Expense Group. Note: If the Automatically Add Expenses to Newly Created Expense Groups modeling policy is in use, each new Expense Group will contain all available recoverable expenses in the Included Expenses display on the right. If the modeling policy is not in use, all available expenses will be shown in the Excluded Expenses section on the left side. 343 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Excluded Expenses (Unlabeled) This section on the left side of the window allows you to view expenses available to be included within an expense group. Select the expenses you want to include in the Expense Group. Add an Expense Highlight the expense and click Add. Adding All Expenses Click Add All to include all expenses in the expense group. Remove All Expenses Click Remove All to remove all expenses in the expense group. Remove an Expense Highlight the expense and click Remove. Included Expenses (Unlabeled) This section of the tab allows you to view expenses currently included in the currently selected Expense Group. To remove an expense, select it and click Remove. Remove All will remove all expenses shown in the Included Expenses display. Excluded expenses will be shown at the left of the screen in the Excluded Expenses display. Type Displays the type of each expense. Name Displays the name of each expense. Parent Account Number Displays the parent account number for each expense. Account Number Displays the account number for each expense. Account Type This field is auto‐populated with the account type from the account you select in the Account Number field. Year 1 Total The Year 1 Total is presented for convenience and auditing purposes only. Percentage Recoverable Verify the percentage recoverable for the expenses included in the group. For each expense included in the group, the default recoverable percentage will be the recoverable percentage as shown on the 344 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Expense screen. Note that changing the percentage recoverable entry for a group does not change the entry in the Recoverable % field on the Expense screen. Recoverable Amount Displays the recoverable amount for each expense. Hide Detail This option allows you to hide expense sub‐line detail. When this option is not selected (the default), all expenses, including sub‐lines, will be displayed in the Excluded Expenses section on the left side of the window. If you select a parent expense, all its child and detail (sub‐line) expenses will automatically be selected in the expense group. Detailed expenses are not displayed on Included Expenses section on the right side of the window unless you select them individually (i.e., if you select them as part of a parent expense they will not be displayed in the Included Expenses section). When you use this option to hide sub‐line expenses, only parent expenses will be displayed in the Excluded Expenses section on the left side of the window. To display and select detailed sub‐line expenses, clear the Hide Detail check box. To automatically add expenses to new expense groups, select Automatically add Expenses to new Expense Groups on the Recoveries tab of the Modeling Policies window. If you select this option, when you create a new expense group, available recoverable expenses that are not already included in any other expense group will be automatically added to the new expense group. 345 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Hotels: Operating Expenses Operating expenses are entered on the Operating tab. Click Add Record to add an operating expense. See Also Hotels: Non‐Operating Expenses Hotels: Capital Expenses General Account Number Click to select a new entry from the chart of accounts. Name Enter the name for the operating expense item. Amount How Input Select an input method in the pick list in the How Input field. Note certain fields, such as Frequency and Inflation will be disabled for all percentage selections in the How Input field. Choose from the following: 
Amount: Entry in the Amount field will be interpreted as a currency amount. 
Currency Amount / Room: Entry in the Amount field will be interpreted as a currency amount per room. 
Currency Amount / Occupied Room Night: Entry in the Amount field will be interpreted as a currency amount per occupied room night. 
Currency Amount / Available Room Night: Entry in the Amount field will be interpreted as a currency amount per available room night. 
Currency Amount / Area: Entry in the Amount field will be interpreted as a currency amount per area. Select the corresponding area measurement unit in the pick list in the Area Measure field. 
Percentage of Room Revenue: Entry in the Amount field will be interpreted as a percentage of room revenue. 
Percentage of Other: Entry in the Amount field will be interpreted as a percentage of another revenue or expense. This allows you to link the calculation of expenses to other amounts in the projection. 346 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Sub‐lines: Entry in the Amount field will specify that the expense will include additional expenses. When you choose this option, enter the additional expenses on the lines below. Sub‐line expense lines will be indented under the primary expense. 
Prop 13‐A: Interpret the expense as a California Proposition A expense and will be calculated as a percentage of the resale amount as well as any recovery of the adjusted expense. Note that only one Proposition 13 expense will be used in calculations. If you enter more than one expense as a Proposition 13 expense, only the first Proposition 13 expense will be used in calculations. 
Prop 13‐B: Interpret the expense as a California Proposition B expense and will modify the capitalization process by adjusting the net operating income (NOI) to remove the tax expense, add the tax rate to the cap rate, and calculate resale of the property based on the incremented cap rate. In the year following the resale, the Prop 13 B expense will be calculated by continuing to inflate the expense from the prior year. Note that only one Proposition 13 expense will be used in calculations. If you enter more than one expense as a Proposition 13 expense, only the first Proposition 13 expense will be used in calculations. See Also How Input Calculation Examples Amount Enter the amount to be allocated or click to display a monthly input window for amounts that vary over time. If you selected % of Other in the How Input field, click to display a window listing the revenues and expenses to which you can link this item. Frequency Select the frequency in the pick list. Choose from: 



Annually Monthly Weekly Nightly Area Measure This field is only available if you select Currency Amount/Area in the How Input field. Select the area measure you want to use in the calculation. Choose from the following: 






347 Building Total Office Total Retail Total Industrial Total Storage Total Alternate Building Total Custom Area Measure ‐ Note that custom area measures are created on the Area Measures tab. For more information, see Area Measures. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Timing Start Date Select the start date method you want to use. You may select from the following options: 

Analysis Begin (default) Specified Date Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the Start field. End Date Select the end date method you want to use. You may select from the following options: 

Analysis End (default) Specified Date Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the End field. Inflation Inflation % Use the drop‐down arrow to select the inflation rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click the button to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the detailed Inflation window. Click to display inflation rates that vary over time. Choose from: 
Zero Inflation Rate: Operating expenses will increase by a zero inflation rate. 
Expense Inflation Rate: Operating expenses will inflate at the expense inflation rate. 
General Inflation Rate: Operating expenses will inflate at the general inflation rate. 
Market Inflation Rate: Operating expenses will inflate at the market inflation rate. 
CPI Inflation Rate: Operating expenses will inflate at the CPI inflation rate. Limits Limits provide the ability to set a lower or upper monthly limit on the projected expense amount. If the projected monthly expense amount is less than the inflated lower limit or greater than the inflated upper limit, it will be overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default expense inflation rate. Select one of the following options for each expense: 
None: No lower or upper limits will be applied to the expense. 
Min: Only a lower limit will be applied to the expense. 
Max: Only an upper limit will be applied to the expense. 348 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Both: A lower and upper limit will be applied to the expense. Basis Select a basis unit of measure that will be used for the Minimum and Maximum fields. Choose from: 
$ Amount / Month: Currency amount per month will be used as the basis for the Minimum and Maximum fields. 
% / Room / Month: Percentage per room per month will be used as the basis for the Minimum and Maximum fields. Minimum If there is a monthly minimum limit amount, enter it in the Minimum field. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum If there is a monthly maximum limit amount, enter it in the Maximum field. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Note: Zero is the default value for these fields and will be treated as if no minimum or maximum is applied. Negative values will be ignored. Usage Discounted Cash Flow Choose whether the item will be included in the cash flow projection and used to calculate NOI. Choose from: 
Include (default): The item will be displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: The item will not be displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select Yes in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. 349 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Notes You can use this field to enter notes related to the revenue. Click adding extensive notes. to open the Notes window for See Also Hotel Non‐Operating Expenses Groups Expense Groups Enter a name or click 350 to select an expense group from previously created names. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Hotels: Non‐Operating Expenses Non‐Operating expenses are entered on the Non‐Operating tab. Click Add Record to add a non‐
operating expense. General Parent Account Number Displays the parent account number for each expense. Account Number Click to select a new entry from the chart of accounts. Account Type This field is auto‐populated with the account type from the account you select in the Account Number field. Name Enter the name for the operating expense item. Amount How Input Select an input method in the pick list in the How Input field. Note certain fields, such as Frequency and Inflation will be disabled for all percentage selections in the How Input field. Choose from the following: 
Amount: Entry in the Amount field will be interpreted as a currency amount. 
Currency Amount / Room: Entry in the Amount field is interpreted as a currency amount per room. 
Currency Amount / Occupied Room Night: Entry in the Amount field is interpreted as a currency amount per occupied room night. 
Currency Amount / Available Room Night: Entry in the Amount field is interpreted as a currency amount per available room night. 
Currency Amount / Area: Entry in the Amount field is interpreted as a currency amount per area. Select the corresponding area measurement unit in the pick list in the Area Measure field. 
Percentage of Room Revenue: Entry in the Amount field is interpreted as a percentage of room revenue. 
Percentage of Other: Entry in the Amount field is interpreted as a percentage of another revenue or expense. This allows you to link the calculation of expenses to other amounts in the projection. 351 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Sub‐lines: Entry in the Amount field will specify that the expense will include additional expenses. When you choose this option, enter the additional expenses on the lines below. Sub‐line expense lines is indented under the primary expense. See Also How Input Hotels Calculation Examples Amount Enter the amount to be allocated or click to display a monthly input window for amounts that vary over time. If you selected % of Other in the How Input field, click to display a window listing the revenues and expenses to which you can link this item. Frequency Select the frequency in the pick list. Choose from: 
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Annually Monthly Weekly Nightly Area Measure This field is only available if you select Currency Amount/Area in the How Input field. Select the area measure you want to use in the calculation. Choose from the following: 
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Building Total Office Total Retail Total Industrial Total Storage Total Alternate Building Total Custom Area Measure ‐ Note that custom area measures are created on the Area Measures tab. For more information, see Area Measures. Apply to Tenants Select a method for applying the expense item to tenants. Choose from the following: 
No: Expense item will not be applied to tenants. Note if the Traditional Valuation modeling policy option is turned on, the expense item is apportioned across all tenants based on each tenant's potential rent. 
All Tenants: Entire amount of the expense item is applied to each tenant. 
Select Tenants: Entire amount of the expense item is applied to selected tenants and/or tenant groups. The entire amount of the expense is applied to each tenant. Applied Tenants Click to select tenants and/or tenant groups. Note this field will only be available if you select the Select Tenants option in the Apply to Tenants field. Select the tenants you want to include then click OK to finish or Cancel to close this window. 352 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Timing Start Date Select the start date method you want to use. You may select from the following options: 
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Analysis Begin (default) Specified Date Date Enter or select a date in the drop‐down calendar. This field is available only if Specified Date is selected in the Start field. End Date Select the end date method you want to use. You may select from the following options: 
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Analysis End (default) Specified Date Date Enter or select a date in the drop‐down calendar. This field is available only if Specified Date is selected in the End field. 353 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation Inflation % Use the drop‐down arrow to select the Inflation Rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the detailed Inflation window. Click to display inflation rates that vary over time. Choose from: 
Zero Inflation Rate: Non‐operating expenses will not inflate. 
Expense Inflation Rate: Non‐operating expenses will inflate at the expense inflation rate. 
General Inflation Rate: Non‐operating expenses will inflate at the general inflation rate. 
Market Inflation Rate: Non‐operating expenses will inflate at the market inflation rate. 
CPI Inflation Rate: Non‐operating expenses will inflate at the CPI inflation rate. Limits Limits Limits provide the ability to set a lower or upper monthly limit on the projected expense amount. If the projected monthly expense amount is less than the inflated lower limit or greater than the inflated upper limit, it is overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default expense inflation rate. Select one of the following options for each expense: 
None: No lower or upper limits is applied to the expense. 
Min: Only a lower limit is applied to the expense. 
Max: Only an upper limit is applied to the expense. 
Both: A lower and upper limit is applied to the expense. Note: If the Input method is Amount, you cannot enter limits for an individual amount, hence the Limits fields are disabled. Minimum If there is a monthly minimum limit amount, enter it in the Minimum field. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum If there is a monthly maximum limit amount, enter it in the Maximum field. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Note: Zero is the default value for these fields and is treated as if no minimum or maximum is applied. Negative values are ignored. 354 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Usage Discounted Cash Flow Choose whether the item will be included in the cash flow projection and used to calculate net operating income (NOI). Choose from: 
Include (Default): The item will be displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: The item will not be displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select Yes in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. Notes You can use this field to enter notes related to the revenue. Click adding extensive notes. to open the Notes window for 355 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Hotels: Capital Expenses Capital expenditures are entered on the Capital input tab. Click Add Record to add a capital expense. General Account Number Click to select a new entry from the chart of accounts. Name Enter the name for the capital expense item. Amount How Input Select an input method in the pick list in the How Input field. Choose from: 
Amount: Entry in the Amount field is interpreted as a currency amount. 
Currency Amount / Room: Entry in the Amount field is interpreted as a currency amount per room. 
Currency Amount / Occupied Room Night: Entry in the Amount field is interpreted as a currency amount per occupied room night. 
Currency Amount / Available Room Night: Entry in the Amount field is interpreted as a currency amount per available room night. 
Currency Amount / Area: Entry in the Amount field is interpreted as a currency amount per area. Select the corresponding area measurement unit in the pick list in the Area Measure field. 
Percentage of Room Revenue: Entry in the Amount field is interpreted as a percentage of room revenue. 
Percentage of Other: Entry in the Amount field is interpreted as a percentage of another revenue or expense. This allows you to link the calculation of expenses to other amounts in the projection. 
Sub‐lines: Specify that the expense is comprised of any number of additional expenses. When you choose this option, enter the additional expenses on the lines below. Sub‐line expense lines will be indented under the primary expense. Certain fields, such as Frequency and Inflation will be disabled for all percentage selections in the How Input field. See Also How Input Calculation Examples 356 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Amount Enter the amount to be allocated or click to display a monthly input window for amounts that vary over time. If you selected % of Other in the How Input field, click to display a window listing the revenues and expenses to which you can link this item. Frequency Select the frequency in the pick list. Choose from: 
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Annually Monthly Weekly Nightly Area Measure This field is only available if you select Currency Amount/Area in the How Input field. Select the area measure you want to use in the calculation. Choose from the following: 
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Building Total Office Total Retail Total Industrial Total Storage Total Alternate Building Total Custom Area Measure ‐ Note that custom area measures are created on the Area Measures tab. For more information, see Area Measures. Timing Start Date Select the start date method you want to use. You may select from the following options: 
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Analysis Begin (default) Specified Date Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the Start field. End Date Select the end date method you want to use. You may select from the following options: 
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Analysis End (default) Specified Date Date Enter or select a date in the drop‐down calendar. This field will be available only if Specified Date is selected in the Start field. 357 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation Inflation % Use the drop‐down arrow to select the Inflation Rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the detailed Inflation window. 
Zero Inflation Rate: Capital expenses increase by a zero inflation rate. 
General Inflation Rate: Capital expenses inflates at the general inflation rate. 
Market Inflation Rate: Capital expenses inflates at the market inflation rate. 
Expense Inflation Rate: Capital expenses inflates at the expense inflation rate. 
CPI Inflation Rate: Capital expenses inflates at the CPI inflation rate. Limits Limits provide the ability to set a lower or upper monthly limit on the projected expense amount. If the projected monthly expense amount is less than the inflated lower limit or greater than the inflated upper limit, it will be overridden with the inflated limit amount in the cash flow projection. Limits inflate by the default expense inflation rate. Select one of the following options for each expense: 
None: No lower or upper limits will be applied to the expense. 
Min: Only a lower limit will be applied to the expense. 
Max: Only an upper limit will be applied to the expense. 
Both: A lower and upper limit will be applied to the expense. Basis Select a basis unit of measure that will be used for the Minimum and Maximum fields. Choose from: 
Currency Amount / Month: Currency amount per month will be used as the basis for the Minimum and Maximum fields. 
% / Room / Month: Percentage per room per month will be used as the basis for the Minimum and Maximum fields. Minimum If there is a monthly minimum limit amount, enter it in the Minimum field. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Maximum If there is a monthly maximum limit amount, enter it in the Maximum field. Click to display a Monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. 358 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: Zero is the default value for these fields and will be treated as if no minimum or maximum is applied. Negative values will be ignored. Usage Discounted Cash Flow Choose whether the item will be included in the cash flow projection and used to calculate net operating income (NOI). Choose from: 
Include (Default): The item will be displayed on the cash flow reports and used in the calculation of NOI. 
Reference Only: The item will not be displayed on the cash flow reports and will not be used in the calculation of NOI. To view the item in reports, select Yes in the pick list of the Print Reference Items field in the Report Options window of the Cash Flow and Budget Comparison reports. Notes You can use this field to enter notes related to the revenue. Click adding extensive notes. 359 to open the Notes window for © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 360 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Repeating Payments ‐ Calculation Examples Annual ‐ Repeat Quarterly Amount 1 field entry = 12,000 Frequency field selection = Annual Repeat field selection = Quarterly Resulting Payment = 3,000 every third month from trigger until event end Annual ‐ Repeat Monthly Amount 1 field entry = 12,000 Frequency field selection = Annual Repeat field selection = Monthly Resulting Payment = 1,000 every month from trigger until event end Annual ‐ Repeat Semi‐Annually Amount 1 field entry = 12,000 Frequency field selection = Annual Repeat field selection = Semi‐Annually Resulting Payment = 6,000 every sixth month from trigger until event end Monthly ‐ Repeat Monthly Amount 1 field entry = 12,000 Frequency field selection = Monthly Repeat field selection = Monthly Resulting Payment = 12,000 every month from trigger until event end Quarterly ‐ Repeat Quarterly Amount 1 field entry = 12,000 Frequency field selection = Monthly Repeat field selection = Monthly Resulting Payment = 12,000 every third month from trigger until event end Semi‐Annually ‐ Repeat Semi‐Annually Amount 1 field entry = 12,000 Frequency field selection = Semi‐Annually Repeat field selection = Semi‐Annually Resulting Payment = 12,000 every sixth month from trigger until event end Frequency Disabled ‐ Repeat Semi‐Annually Amount 1 field entry = 12,000 Frequency field selection = Disabled Repeat field selection = Annually 361 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Resulting Payment = 12,000 every year from trigger until event end Frequency Disabled ‐ Repeat Semi‐Annually Amount 1 field entry = 12,000 Frequency field selection = Disabled Repeat field selection = Single Payment Resulting Payment = 12,000 on trigger until event end Frequency Disabled ‐ Repeat Monthly Amount 1 field selection = Varies Frequency field selection = Disabled Repeat field selection = Monthly Resulting Payment = Inflated amount for each month from trigger until even end Frequency Disabled ‐ Repeat Quarterly Amount 1 field entry = Varies Frequency field selection = Disabled Repeat field selection = Quarterly Resulting Payment = Inflated amount for the trigger month multiplied by three applied every third month from trigger until event end Frequency Disabled ‐ Repeat Semi‐Annually Amount 1 field selection = Varies Frequency field selection = Disabled Repeat field selection = Semi‐Annually Resulting Payment = Inflated amount for the trigger month multiplied by six applied every sixth month from trigger until event end Frequency Disabled ‐ Repeat Annually Amount 1 field selection = Varies Frequency field selection = Disabled Repeat field selection = Semi‐Annually Resulting Payment = Inflated amount for the trigger month multiplied by three applied every twelfth month from trigger until event end Frequency Disabled ‐ Single Payment Amount 1 field selection = Varies Frequency field selection = Disabled Repeat field selection = Single Payment Resulting Payment = Inflated amount annualized at the trigger 362 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rent Roll Navigation: Property Editor>Inputs>Tenants>Rent Roll. Purpose The Rent Roll tab is used to model existing tenant leases, including leased area, lease start and end dates, base rent, fixed steps, consumer price index (CPI) increases, free rent periods, percentage rents, recoveries, leasing costs, and market renewal assumptions. You can also use the Rent Roll tab to speculatively lease vacant space (alternatively, you can model vacant space on the Space Absorption tab). Name Reference General Rental Income CPI GAAP Rent Percentage Rent Recoveries Miscellaneous Items Leasing Costs Security Deposit Market Leasing Traditional Valuation Capitalization Valuation Tenant Classifications Notes Note: When you update a profile, such as a Market Leasing profile, or a Free Rent profile, that is linked to the Rent Roll, the changes will be reflected on the Rent Roll. If you attempt to use a Market Leasing profile value that is invalid, you will receive an error message notifying you that the value has not been used. If this occurs, you will need to correct the entry on the Market Leasing profile, or use another value on the Rent Roll. If you make changes to the Rent Roll, those changes will not affect any linked profiles. See Also Short Cuts To show or hide the Reports window (i.e., to maximize the Rent Roll), click the Reports button in the Ribbon. To add a tenant, click the Add Record button in the Ribbon or right‐click in the input area and choose Add Record from the right‐click menu. To duplicate one or more tenants, choose Duplicate Records or Duplicate Plus Records from the Ribbon or from the right‐click menu. 363 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 You can sort tenant leases in ascending or descending order automatically by clicking on the column headers (e.g., Name, Suite, Lease Status). You can group tenant leases dynamically by dragging and dropping any of the column headers to the area just above the Tenants grid labeled “Drag a column header here to group by that column.” Name The Name section allows you to enter general information, including tenant name and suite for tenants. Include Displays only if a tenant record is part of a template. Click this checkbox to automatically include the tenant record as part of any property set up using this property template. Note the Lease Status field can only be set to Contract or Speculative. Active Click the check box to include a tenant in a template. Structure Image This column (represented as ...) will display links for connections between base leases and any associated option periods. If no connections exist, this column will be blank. Name Enter the name of this tenant. Suite Enter the suite number associated with this tenant. Reference Lease ID You must set up a unique ID for each tenant prior to importing in order to view lease IDs. Lease IDs are used to import actuals/prior budget amounts for tenants (in conjunction with an account number), for example base rent, tenant improvements, leasing commissions. General The General section allows you to enter information pertaining to the lease status, lease type, size, start, and lease term/expiration for tenants. Tenure Select the lease tenure from the pick list: 
Freehold (default): The system will use the freehold settings for the tenure. 
Custom Ground Leases: The system will use the specified ground lease settings for the tenure. Note: For option, holdover, month‐to‐month, and contract renewal leases, the Tenure field will not be available and will use its parent tenant’s tenure. 364 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Lease Status Select the status in the pick list in the Lease Status field: 
Contract: The tenant is under contract and occupies space in the building. 
Speculative: The tenant is not currently in the building. 
Custom Lease Status: This option includes any custom lease statuses you have created. For more information, see Global Categories: Managing Classifications. Certain reports provide sorting, filtering, and calculation options by lease status. Lease Type Select a lease type in the pick list for this tenant: 
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Antenna Billboard Drop‐box ATM Residential Other Office Retail Industrial Storage Note: If custom lease types have been defined, they will be available in the Lease Type field in addition to the options listed above. For more information on custom lease types, see Global Categories: Managing Classifications. Affects Occupancy You can enable/disable occupancy calculation for certain leases to model revenues like parking, storage, etc. on the Rent Roll without affecting occupancy: • Yes: (Default) Include area in all occupancy calculations. • No: Exclude area from all occupancy calculations. Note: ValDCF Users can import Affects Occupancy inputs for custom lease types, and occupancy calculations are the same as the original model. Note: This functionality is not compatible with AE 10.5 (and earlier) property models. Area Selecting this field will display the Area Schedule at the bottom of the screen. You can also click the button to enter an area that varies over time. For more information on the Area Schedule, see the Area Schedule section in the Rental Income section below in this topic. Alternate Area Enter the amount of rented space for the alternative area for the tenant. 365 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Available Select/type a method for calculating the availability date: • Analysis Begin: Select analysis start as the availability date. • Specified Date: Select to specify an availability date. • Relative Date: Type a positive number directly in the field to specify the number of months to offset from the Analysis date. For example, if the Analysis Date is 6/1/15 and you type 1, the Available date changes to 7/1/15. Note: If you use relative dates for Available and Start, changes to the Available Date automatically change the Start Date. Available Date Type/select an availability date. Start Select/type a method for calculating the start date: • Available Date: Select the availability date as the start date. • Specified Date: Select to specify an availability date. • Relative Date: Type a positive number directly in the field to specify the number of months to offset from the Available date. For example, if the Available Date is 7/1/15 and you type 1, the Start Date changes to 8/1/15. Start Date Type/select a start date. Lease Execution Enter the lease execution date in this field. This allows you to specify the date on which the lease is signed and the contract is enforceable. ARGUS Enterprise will only consider space available for lease when an executed lease has not been entered for that space. For example, enter January 1, 2013, as 1/1/13 or 1/1/2013. ARGUS Enterprise will provide the proper date format (mm/dd/yyyy). Start Enter the contractual or speculative date the lease begins (i.e., when a tenant starts paying rent for a property). For example, enter January 1, 2013, as 1/1/13 or 1/1/2013. ARGUS Enterprise will provide the proper date format (mm/dd/yyyy). Leases can be entered with a start date on any day of the month. For leases that start later than the first of the month, the rent will be pro‐rated. Click the down‐arrow to display a calendar from which you can select a date. 366 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Term Length Unit Select the term length unit: • Term/Date: If you select this option, the Term/Expire field will be enabled, and you can use it to enter the end date for the lease. • Market: Entry from the associated Market Leasing profile will be used. Term / Expire Enter the contractual or speculative end date of the lease as a date or a term. For example, enter December 31, 2013, as 12/31/13 or 12/31/2013. ARGUS Enterprise will provide the proper date format (mm/dd/yyyy). Lease terms can be entered in a variety of ways. For example, a lease term of 3 years and 0 months can be entered as 3/00 or 3. An entry of 12/09 in the Term/Expire field will be calculated by ARGUS Enterprise as a term of 12 years and 9 months and not as December 9. For a 9‐month lease term, enter 00/09 or 0/9 in the Term/Expire field. Entering only 9 will be calculated as 9 years. The lease end date can be entered on any day of the month and the rent will be pro‐rated automatically. End Displays the end date of the lease, depending upon your entry in the Term/Expire field. Lease Breaks This field allows you to associate a lease break schedule to the tenant. To assign lease breaks, click the in the Lease Breaks field. See Also Lease Breaks Rental Income The Rental Income section allows you to enter information pertaining to base rent, step rent increases, CPI increases, and free rent for the tenants on the Rent Roll. Base Rent Unit Select the base rent unit associated with this tenant. You may choose from the following options: 
Amount per square unit per year ($/SF/Year): If you select this option, the entry in the Base Rent field will be assigned as a currency amount per square unit per year to calculate the base rent. 
Amount per square unit per month:Entry in the Base Rent field will be assigned as a currency amount per square unit per month to calculate the base rent. 
Amount per year ($/Year): Entry in the Base Rent field will be assigned as a currency amount per year to calculate the base rent. 
Amount per month ($/Month): Entry in the Base Rent field will be assigned as a currency amount per month to calculate the base rent. 367 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Percent of market (% of Market): If you select this option, ARGUS Enterprise will calculate the base rent by multiplying the percentage entered in the Base Rent field by the market rent for new tenants as defined in the selected Market Leasing profile. 
Percent of market (with step amounts): If you select this option, ARGUS Enterprise will calculate the base rent by multiplying the percentage entered in the Base Rent field by the market rent for new tenants (or the renew market rent for option tenants) as defined in the selected Market Leasing profile. The step rent amounts from the Market Leasing profile will then be applied to the calculated value. Note: The % of Market method for calculating base rent and reviews is based on the renewal market rate for option leases unless the option lease is linked to a Market Leasing profile with Total Prior Rent selected in the Renewal Mkt Rent field. In these cases, the base rent or review will be based on the new market rent. Note: To select the default unit of measure for Base Rent, select an option from the Base Rent Input field in the Tenants tab of the Modeling Policies window. Base Rent Enter the contractual rent amount or percentage according to your selection in the Base Rent Unit field. Click the button to enter rent reviews or rent that changes over time. Note: To enter rent reviews, use the Base Rent Window. There are two different methods to enter step rent increases: 1. Base Rent Window: Use this option when you have a one‐time increase or increases that happen at different increments or times. 2. Fixed Steps Unit column: Use this option when a lease has a rent increase that will repeat either annually or monthly on the anniversary of the lease start date. Fixed Steps Unit To enter fixed steps, select the unit associated with the step amounts. Choose from: 
None (default): If you select this option, the rent will not increase, and the Step Amounts field will not be available for entry. 
Amount per square unit per year ($/SF/Year): If you select this option, the rent will increase by the amount per square unit per year that you enter in the Step Amounts field. 
Amount per square unit per month ($/SF/Month): If you select this option, the rent will increase by the amount per square unit per month that you enter in the Step Amounts field. 
Amount per year ($/Year): If you select this option, the rent will increase by the amount per year that you enter in the Step Amounts field. 
Amount per month ($/Month): If you select this option, the rent will increase by the amount per month that you enter in the Step Amounts field. 
Percentage Increase (% Increase): If you select this option, the rent will increase by the percentage of the base rent that you enter in the Step Amounts field. 368 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Step Amounts Enter the step amount or percentage. If you enter a fixed step amount or percentage directly on the Rent Roll, depending on your selection in the Fixed Steps Units field, it will repeat either annually or monthly on the anniversary of the lease start date. See Also Step Amounts Calculation Examples Payment Schedule Select a payment schedule in the pick list. You may choose from the following options: 
Monthly: This row allows you to edit the Payment Day field. 
English Quarter Days 1st Quarter Day = 25th March 2nd Quarter Day = 24th June 3rd Quarter Day = 29th September 4th Quarter Day = 25th December  Scottish Quarter Days  1st Quarter Day = 28th February  2nd Quarter Day = 28th May  3rd Quarter Day = 28th August  4th Quarter Day = 25th November  Crown Quarter Days  1st Quarter Day = 5th January  2nd Quarter Day = 5th April  3rd Quarter Day = 5th July  4th Quarter Day = 5th October  Quarterly: This row allows you to edit the Payment Day and Payment Month fields. Quarterly dates will be auto‐populated based on your selections in the Payment Day and Payment Month fields. 
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Half Yearly: This row allows you to edit the Payment Day and Payment Month fields. 
Annually: This row allows you to edit the Payment Day and Payment Month fields. See Also Payment Schedule Calculation Examples Rental Value Unit Rental value is the rent which results if a rent review causes a change to the rent paid. Rental Value Unit affects the market leasing blended rate for any option that you choose other than Market Leasing Value. You can choose to have rental value assigned by the market rent in the Market Leasing profile or by entering your own value. To enter a rental value, select the rental value unit in the drop‐down list in the Rental Value Unit field: 
Market Base Rent: The Market Leasing profile will assign the rental value and rental value inflation. This is the default selection for new leases. 
Amount per square unit per year ($/SF/Year): Your entry in the Rental Value field will adjust the rent by that amount per square unit per year. 369 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Amount per year ($/Year): Your entry in the Rental Value field will adjust the rent by that amount per year. 
Amount per square unit per year ($/SF/Month): Your entry in the Rental Value field will adjust the rent by that amount per square unit per month. 
Amount per month ($/Month): Your entry in the Rental Value field will adjust the rent by that amount per month. 
Area Schedule: The Rental Value field will display the total rental value calculated in the Area Schedule grid. 
Market Rental Value: The rental value will be determined by the entry in the Rental Value field in the Market Leasing profile. Note: If you select Market in the Use Market Or Prior field, the rental value entered will be used when calculating market rent instead of the blended new and renewal market rates. See Also Rental Value Calculation Examples Area Schedule You can use the Area Schedule to record multiple areas of different values in order to calculate the rental value. The Area Schedule detail grid appears when you select the Area field in the General column group or the Rental Value Unit and Rental Value fields in the Rental Income column group. You can add, duplicate, and delete rows on this grid by right clicking in the grid. General Order Enter or change a number and click the Order column header to sort line items by order number. If you add additional rows, the system will add the new line item at the bottom of the grid and assign the next sequential number. Area Type Select an area type to use to calculate rental value in the drop‐down list: 
Standard (default): Model office spaces, for instance, where a tenant occupies a single floor, which is rented at a single market rate. The system will calculate the value in the Rental Value/Year field by multiplying the adjusted rate per year by the area. This option is used for property types for which the equivalent rental value (ERV) is a single value for the entire space. 
ITZA (in terms of zone A): Only used for zone rent in retail properties where different areas of a store are assigned different ERV rates. The system will calculate the value in the Rental Value/Year field by multiplying the adjusted rate per year by the area. For example, assume you have an ITZA (In Terms of Zone A) with four zones and a 50% reduction. The rentable area at the front of the shop is calculated at the ERV rate specified, and the 370 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 subsequent three zones are automatically calculated using a 50%, 25% and 12.5% rate of the initial ERV specified for Zone A. 
Car Parking: Select this option to ensure that the parking rental income will be added to the overall market rent. For instance, you could model 200 car parking spaces with a market rent of £ 1000 each. If you select this option, the system will calculate the value in the Rental Value/Year field by multiplying the number of units by the unit rent per year. This option is only used when the rental value is given as an amount per unit. 
Site: Select this option to model a very large area to be leased as a single rentable space. If you select this option, the system will treat the value in the Rental Value/Year field as a single unit. This option allows you to model any additional rentable space as a single unit. 
ITZA Adjustment: Select this option to increase or decrease the total ITZA calculation. If you select this option, the system will calculate the value in the Rental Value/Year field by multiplying your entry in the +/‐ % Adjust field by the sum of all ITZA rental values. 
Total Adjustment: Select this option to adjust the total market rental value, including all ITZA, Standard and Parking lines in the Area Schedule. If you select this option, the system will calculate the value in the Rental Value/Year field by multiplying your entry in the +/‐ % Adjust field by the sum of all rental values. See Also Area Calculation Examples Principal Zone Enter a name for the principal zone that subsequent line items will reference. For instance, if you are entering multiple line items that refer to Zone A, you would enter Zone A in the Principal Zone field for each of the line items. This field will be available if you select the ITZA option in the Area Type field. Name Enter a name for the line item that will identify the area or zone. For instance, if you are using the ITZA option in the Area Type field, you create the name "Zone A" for the first line item. You could then label subsequent line items "Zone B," "Zone C," and "Remainder." Floor Enter or select the floor number that you want to associate with the line item in the pick list: 
G (default): Associate the line item with the ground floor. 
1 ‐ 10: Associate the line item with one of the levels one through ten. 
Mezz: Associate the line item with the mezzanine level. 
B1: Associate the line item with level one of the basement. 
B2: Associate the line item with level two of the basement. 
B3: Associate the line item with level three of the basement. Area Enter a number to designate the area being leased in a particular zone or single area. This field will be available if you selected the Standard or ITZA options. 371 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rental Value Rate Enter a currency amount for the rental value rate. This field will be available if you selected the Standard or ITZA options. Note: You can select Add Multiple Records to create a group of line items that will be auto‐calculated relative to Zone A. As the result, your entry in the Rental Value Rate field for the first line item (Zone A) in the group will be duplicated and read only in the subsequent Rental Value Rate fields in the group. % of Rate The percentage of rate refers to what portion of the rental value rate the tenant is expected to pay for a given zone. Zones farther from the front generally command lower rents. Enter a number to stipulate what portion of the rental value rate for Zone A will be used to calculate the rental value per year of a given area. This field will be available if you selected the Standard or ITZA options. % Position The percent of position refers to the distance of a given zone from Zone A. Enter a number to designate the distance of a given zone from Zone A and thus what portion of the rental value rate for Zone A will be used to calculate the rental value per year of a given zone. This field will be available if you selected the ITZA option. +/‐ % Adjust Enter a positive or negative number to increase or decrease the rental value rate used to calculate the rental value per year of a given zone. This field will be available if you selected the Standard, ITZA Adjustment, or Total Adjustment options. Adjusted Rate / Year Displays the calculated result of the adjusted rate/year. This field will be available if you selected the Standard or ITZA options. Units Enter the number of units for parking or sites. This field will be available if you selected the Car Parking or Site options. Unit Rent / Year Displays the calculated result of the unit rent per year. This field will be available if you selected the Car Parking or Site options. Rental Value / Year Displays the calculated result of the rental value per year. This field will be available if you selected the Standard, ITZA, Car Parking, Site, ITZA Adjustment, or Total Adjustment options. Rental Value Enter the amount per square unit per year or the amount per year. To enter changing amounts, click the button. Note this field is not available if you select Market Leasing Value in the Rental Value Unit field. Rental value is also used to calculate the potential rent according to the following conditions: 372 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
If rental value equals the market leasing value and Blend Calculated Market Rate is selected, potential rent will be calculated using the blend of new and renew base rent. 
If rental value equals the market leasing value and Blend Calculated Market Rate is not selected, potential rent will be calculated using the new base rent. 
If you select either the $/SF/Year or $/Year option, the amount entered in the Rental Value field will be used for calculating potential rent. See Also Blended Rental Value Calculation Examples Note: The calculation of potential rent is determined by the settings in the Modeling Policies under the Tenants section. If the Intelligent Renewals option is selected in the Modeling Policies and rental value is specified in the Market Leasing profile, rental value will be treated in following ways: 
If Use Lesser Of is selected in the Use Market OR Prior field, the rental value entered will be used to compare with prior rent instead of the market leasing blended rate. 
If Use Greater Of is selected in the Use Market OR Prior field, the rental value entered will be used to compare with prior rent instead of the market leasing blended rate. 
If Prior is selected in the Use Market OR Prior field, the rental value entered will not be used in the calculation. 
If Market is selected in the Use Market Or Prior field, the rental value entered will be used when calculating market rent instead of the blended new and renewal market rates. See Also Detailed Rental Values Market Leasing Intelligent Renewals Quick Reference Rental Value Inflation Specify the rental value inflation method in the pick list. To enter changing amounts, click the Choose from: button. 
No Inflation Rate: If you select this option, rental value will increase by a zero inflation rate. 
Custom: If you select this option, you can enter a custom inflation rate for rental value. 
General Inflation Rate: If you select this option, rental value will increase by the general inflation rate. 
Market Inflation Rate: If you select this option, rental value will increase by the market inflation rate. 
Expense Inflation Rate: If you select this option, rental value will increase by the expense inflation rate. 
CPI Inflation Rate: If you select this option, rental value will increase by the CPI inflation rate. 373 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Free Rent (Months) Specify the free rent unit for a tenant who is to receive free rent in the pick list. Choose from: 
Months: To use this method, enter the number of months of free rent in the Free Rent field. It will be distributed at the beginning of the lease term. To enter a partial month of free rent, use decimals. For example, half a month of free rent would be entered as 0.5. 
Market: Select this option to use the free rent on the associated Market Leasing profile. 
Custom: Select the Free Rent profile set up in the Free Rent tab. Note: Free rent is automatically applied to base rent, fixed steps, and CPI rent increases unless you choose a Free Rent profile. See Also Free Rent Profiles Free Rent Detail Free Rent Enter an amount for free rent. To enter changing amounts, click the button. CPI The CPI section allows you to enter CPI information pertaining to increases, inflation rate/index, index value overrides, start value date, and current monthly amounts for the tenants on the Rent Roll. CPI Increases Select the timing for CPI increases: 
None: If you select this option, CPI increases will not be applied. 
Each Calendar Year: If you select this option, CPI increases will be applied at the beginning of each calendar year. 
Each Lease Anniversary: If you select this option, CPI increases will be applied at the beginning of each lease year. 
At Mid Lease: If you select this option, CPI increases will be applied at the mid‐point of each lease. 
Indexed Review: If you select this option, CPI increases will be applied based on the entry in the Inflation Rate/Index field. Selecting Indexed Review enables the Inflation Rate/Index field. 
Market: Entry from the Market Leasing profile will be used. 
Custom CPI Increase Category (custom timing): This includes any custom CPI Increase categories you may have created. For more information on this option, see CPI Increases. See Also CPI Increases 374 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation Rate / Index Select the CPI inflation rate/ index in the pick list in the Inflation Rate / Index field. Choose from: 
No Inflation Rate: If you select this option, rental value will increase by a zero inflation rate. 
General Inflation Rate: If you select this option, CPI will be inflated at the general inflation rate. 
Market Inflation Rate: If you select this option, CPI will be inflated at the market inflation rate. 
Expense Inflation Rate: If you select this option, CPI will be inflated at the expense inflation rate. 
CPI Inflation Rate: If you select this option, CPI will be inflated at the CPI inflation rate. 
Custom Global Inflation Rate: This option includes any custom global inflation index categories you have created. CPI Index Value Override Enter a value that will override the option selected in the Inflation Rate/Index field. CPI Start Value Date Type a start value date for CPI. The system uses this date to apply the CPI increase each calendar year. CPI Specified Start Value Specify a start value for CPI. CPI Months Offset Value Type a number for offset months. Current Monthly CPI Type the current CPI rent paid for leases which began prior to the analysis. GAAP Rent Select a method for calculating the GAAP rent. Policies. Note: To enable the GAAP Rent fields, you must select Use Straight Line/GAAP Rent in the Modeling GAAP Rent Basis Select the basis for calculating GAAP rent. You may choose from the following options: • Amount / SF: If you select this option, the GAAP rent will be calculated by multiplying the value in the Amount field by the value in the Area field. • Annual Amount: If you select this option, the GAAP rent will be equal to the value in the Amount field. • Calculate (default): If you select this option, the GAAP rent will be calculated using a straight line adjustment, which is the difference between the passing rent and the average rent. 375 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Amount See Also Use Straight‐Line GAAP rent in Modeling Policies GAAP Rent Calculation Examples Percentage Rent The Percentage Rent section includes information pertaining to sales %, sales amount unit, sales amount, breakpoint, and break amount. If tenant level percentage rent information is available, it can be modeled on the Rent Roll. The property type must be Retail or Mixed Use including Retail for the percentage rent columns to be available. Sales % Basis If you want to base calculations on a sales percentage, select the sales percentage basis in the pick list in this field. You may choose from the following options: 
None: If you select this option, no percentage rent will be calculated. 
Percent: If you select this option, you can enter a percentage in the Sales % field that will be used to calculate percentage rent.. 
Continue Prior: If you select this option, the inputs for the previous term will be used to calculate percentage. 
Detailed/Multiple: If you select this option, you will be able to enter Tenant Sales Categories on a grid on the lower portion of the window. Each of these categories will be independently calculated. For more information, see Tenant Sales Categories. 
Market: If you select this option, the entries from the Market Leasing profile will be used in the Sales %, Sales Amount Unit, Breakpoint, and Basis Amount fields to calculate percentage rent. Sales % Enter the sales overage percentage for this tenant. Click the enter a percentage that varies over time. button to display the Sales % window to See Also Detailed Sales Percentages Sales Amount Unit Select the sales amount unit to be used in calculating sales percentage rent. 
Continue Prior: If you select this option, the methods in effect at the end of the prior lease will be used to calculate the percentage rent for the new lease term. 
Amount per square foot ($/SF): If you select this option, you will be able to enter an amount per square unit in the Sales Amount field that will be used calculate the percentage rent. 
Annual amount (Annual $): If you select this option, you will be able to enter an annual amount in the Sales Amount field that will be used calculate the percentage rent. 376 Note: If you select Continue Prior in a base lease record, no percentage rent will be calculated. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Sales Amount Enter the sales amount or click the button to enter a sales amount that varies over time or inflates using an alternative Inflation Rate category. See Also Detail Sales Amounts Percentage Rent Calculation Examples Breakpoint The breakpoint is the sales volume which must be achieved prior to the payment of any percentage rent. Percentage rent will be paid only on sales that exceed the breakpoint. The calculation methods for deriving the breakpoint are: 
Continue Prior: If you select this option, percentage rent will be calculated based on the methods in effect at the end of the prior lease, and these methods will be used for the new term. 
Amount/Area: If you select this option, percentage rent will be calculated based on sales volume that exceeds the rate per area entered. 
Annual Amount: If you select this option, percentage rent will be calculated based on sales volume that exceeds the annual amount entered. 
Natural: If you select this option, the percentage rent will be calculated based on the natural breakpoint. The natural breakpoint is the result of adding base rent, step rent, and CPI. 
Zero: If you select this option, percentage rent will be calculated based on total sales volume. Note: Selecting Continue Prior for an option lease is equivalent to duplicating the input to the Sales Amount Unit and Sales Amount fields or the Breakpoint and Break Amount fields from the previous term. Break Amount Enter the breakpoint amount. Click the breakpoints that vary over time. button to display the Breakpoint Amount window to enter Recoveries The Recoveries section allows you to specify recovery information for tenants in the rent roll. Structure Select the appropriate recovery structure for this tenant. 
Net: If you select this option for the recoveries, all recoverable expenses are paid by the tenant based on their proportionate share of the building area. 
Base Year Stop: If you select this option for the recoveries, tenants with leases that begin after the analysis start will pay their pro‐rata share of any increases over the amount of reimbursable expenses in the first year of the lease. Tenants with leases that begin before the analysis start will pay their pro‐rata share of any increases over the amount of reimbursable expenses in the first year of the analysis. 
Base Year Stop ‐1: If you select this option for the recoveries, the expense stop will be established by the amount of recoverable expenses in the recovery year prior to year the lease begins. If you select this method and the lease begins before the analysis, the expense stop will be set in the same 377 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 manner as the existing base year stop recovery method. If you select this method and the lease begins during the first analysis year yet after the start of the second recovery year, the expense stop will be established by the recoverable expenses that occur within the first recovery year. 
Base Year Stop +1: If you select this option for the recoveries, the expense stop will be established by the amount of recoverable expenses in the recovery year following the year the lease begins. Note if you select this method and the lease year is before the analysis start date, yet within the first recovery year, then the expense stop will be set to equal the recoveries from the second recovery year. If you select this method and the lease year is before the analysis start date and prior to the start of the first recovery year, then the expense stop will be set in the same manner as the existing base year stop. 
Stop Amount: If you select this option, you can enter the building stop amount. This tenant will reimburse all recoverable expenses over the building stop amount entered based on their proportionate share of the building area. 
Stop Amount per Area: If you select this option, you can enter the building stop amount per area. This tenant will reimburse all recoverable expenses over the building stop amount per area entered based on their proportionate share of the building area. 
Fixed Amount: If you select this option for the recoveries on the existing lease, enter the annual recovery amount that will be paid by the tenant each year. The fixed amount can be a single amount or vary over time. The fixed amount is a tenant amount not a building amount. 
Fixed Amount per Area: If you select this option for the recoveries on an existing lease, enter the annual amount/area recovery that will be paid by the tenant each year. The fixed amount per area can be a single amount or vary over time. The fixed amount per area is a tenant amount per area not a building amount per area. 
None: If you select this option, no recoveries will be calculated for the tenant. 
Market: Entry from the Market Leasing profile will be used. 
User Recovery Structures: In addition to the options above, you can also create user‐constructed recovery structures. These provide you with the ability to create custom recovery structures which apply different recovery methods to individual expenses or expense groups. This flexibility allows you to model virtually any recovery structure you might encounter in a commercial real estate lease contract. See Also Space Absorption Amount The Amount field allows a recovery amount to be entered; however, it is only available if you selected a fixed or stop amount in the Structure field. This includes structures that require a simple fixed or stop amount per area. Click the button to enter fixed or stop amounts that vary over time, as well as inflation rates associated with these recovery amounts. Miscellaneous Items The Miscellaneous Items section allows you to link miscellaneous rent, expenses, and other items to tenants you specify. 378 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Miscellaneous Rent You can link miscellaneous revenues to a specific tenant, tenants, or pre‐defined tenant groups. Choose from: 
None (default): This option will not enable the Detail window. 
Detailed per Multiple: This option will enable and make visible the Detail window, which will provide a grid for defining miscellaneous rent items. Miscellaneous Tenant Rent Detail Window (unlabeled) The Detail window appears below the Rent Roll grid if you select the Detailed/Multiple option in either the Miscellaneous Rent and/or Incentives field. General Account Number Enter an account number to be associated with the record. Name Enter an account number to be associated with the record. Amount How Input Select an input method in the pick list. You may choose from the following options: 
Amount 1: If you select this option, you will be able to enter an amount in the Amount 1 field. 
$/Tenant Area: If you select this option, you will be able to enter an amount per tenant area in the Amount 1 field. 
% of Rent: If you select this option, you will be able to enter a percentage of rent in the Amount 1 field. Amount 1 Enter either a number or a percentage (depending upon your selection in the How Input field). Note if you click the button, it will open an amount‐time list grid for varying amounts. Frequency Select an input method in the pick list. This field will not be available if % of Rent is selected in the Amount field or if there are variable amounts entered for the Amount 1 field. Choose from: 

Annually (default) Monthly Rent Components Select a rent component record in the pick list. This field will not be available unless the % of Rent option is selected in the Amount 1 field. The default for this field is Default Rent Components. 379 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation Inflation % Enter an inflation rate or select one of the inflation references in the pick list. This field will not be available if the % of Rent option is selected in the How Input field. Choose from: 
Zero Inflation Rate: If you select this option, rental value will increase by a zero inflation rate. 
Custom Inflation Rate: If you select this option, rental value will increase by a custom inflation rate you specify. 
General Inflation Rate: If you select this option, the general inflation rate will be used for the inflation rate. 
Market Inflation Rate: If you select this option, the market inflation rate will be used for the inflation rate. 
Expense Inflation Rate: If you select this option, the expense inflation rate will be used for the inflation rate. 
CPI Inflation Rate: If you select this option, the CPI inflation rate will be used for the inflation rate. Limits Limits Set a lower or upper monthly limit on the projected miscellaneous rent amounts. You may choose from the following options for each expense: 
None (default): If you select this option, no lower or upper limits will be applied to the expense. 
Min: If you select this option, only a lower limit will be applied to the expense. 
Max: If you select this option, only an upper limit will be applied to the expense. 
Both: If you select this option, a lower and upper limit will be applied to the expense. Basis Define the units of measurement for the Monthly Minimum and Monthly Maximum fields. If you make no selection, the default choice will be $/SqFt/Month. You may choose from the following drop‐down options: 
$/SqFt/Year: If you select this option, the unit of measurement for the Monthly Minimum and Monthly Maximum fields will be currency per square area per year. 
$/SqFt/Month: If you select this option, the unit of measurement for the Monthly Minimum and Monthly Maximum fields will be currency per square area per month. 
$/Tenant Area/Year: If you select this option, the unit of measurement for the Monthly Minimum and Monthly Maximum fields will be currency per tenant area per year. 
$/Tenant Area/Month: If you select this option, the unit of measurement for the Monthly Minimum and Monthly Maximum fields will be currency per tenant area per month. Minimum Enter a monthly minimum limit amount if there is one. Click the button to display a monthly limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. 380 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Maximum Enter a monthly maximum limit amount if there is one. Click the button to display a monthly Limit input window where you can enter amounts that vary over time or override the inflation rate associated with the limit amount. Notes Notes Enter a note related to this record or click the button to open the Notes window. Incentives You can link incentives to a specified tenant. Incentives are costs paid by the owner on behalf of the tenant. For example, an owner may pay a portion of a tenant's moving expenses or a tenant's early termination fees in order to free up the tenant from a previous lease. You may choose from the following options: 
None (default): This option will not enable the Detail Pane. 
Detailed/Multiple: This option will enable and make visible the Detail window, which will provide a grid for defining incentive items. Miscellaneous Incentives Window (unlabeled) The Detail window appears below the Rent Roll grid if you select the Detailed/Multiple option in either the Miscellaneous Rent and/or Incentives field. Each row represents an incentive cost paid by the owner on behalf of the tenant. General Account Number Enter an account number to be associated with the record. Project ID Enter the project ID for this incentive. Name Enter an account number to be associated with the record. Amount How Input Select an input method in the pick list. You may choose from the following options: 
Amount 1: If you select this option, you will be able to enter an amount in the Amount 1 field. 
$/Tenant Area: If you select this option, you will be able to enter a currency amount per tenant area. 381 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Amount 1 Enter either a numeric or percentage value (depending upon your selection in the How Input field). Frequency Enter the percentage value for frequency or click the button to open an amount‐time list grid where percentages can be entered for a range of months starting two years prior to the lease begin and continuing for the entire term of the lease. Inflation Inflation % Enter an inflation rate or select one of the inflation references in the pick list. Note inflation will only be applied to the lease start date and using the Timing field to extend payments into a different inflation year will not result in inflated payments. Choose from: 
Zero Inflation Rate: If you select this option, rental value will increase by a zero inflation rate. 
Custom Inflation Rate: If you select this option, rental value will increase by a custom inflation rate you specify. 
General Inflation Rate: If you select this option, the general inflation rate will be used for the inflation rate. 
Market Inflation Rate: If you select this option, the market inflation rate will be used for the inflation rate. 
Expense Inflation Rate: If you select this option, the expense inflation rate will be used for the inflation rate. 
CPI Inflation Rate: If you select this option, the CPI inflation rate will be used for the inflation rate. Recovery Recoverable % Enter a numeric value for the recoverable percentage. Note that recovery of incentives will not be grouped with expense recoveries on reports, nor will it be abated if free rent is configured to offer free recovery periods. You will not be able to create periods with free incentive recovery. Note: Recovery of any incentive amounts will be spread out over the remaining term of the lease starting from the date they hit the cash flow. Notes Enter a note related to this record or click the button to open the Notes window. Note: When an option lease is created for a lease where the Detailed / Multiple option is selected for the Incentives field, the contents of the Detail grid will be duplicated in the newly created lease except in the case where varies is selected for the Amount 1 field. The corresponding field for the new lease will be populated with the last value from the amount‐period editor grid from the base lease. External ID Enter an external ID. 382 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Leasing Costs The Leasing Costs section allows you to enter information pertaining to tenant improvements, leasing commissions, and commission timing for the tenants on the Rent Roll. Improvements Unit Select the unit of measure to be used for tenant improvements. You may choose from the following options: 
None: If you select this option, the Improvements and Improvements Timing will not be available. 
Currency Amount ($ Amount): Entry in the Improvements field will be calculated as a currency amount. 
Currency Amount per Area ($ / Area): If you select this option, the entry in the Improvements field will be calculated as a currency amount per area. 
% of Rent (Year 1): If you select this option, tenant improvements will be calculated by multiplying the entry in the Improvements field by the base rent (but not step rent, free rent, or CPI) in the first twelve months of the lease. When the lease starts before the analysis, no tenant improvements will be calculated. When a lease term begins in the middle of a month, the lease term will not round to the nearest full month. e.g., A lease beginning on January 15, 2013 will end on January 14, 2014. In the event that a lease has an active break, tenant improvements will be calculated on the full lease term rather than the time until the break. 
Market: If you select this option, base leases will be calculated using the entry in the New TI field on the Market Leasing profile. Option leases, contract renewal leases, and holdover leases will be calculated using the entry in the Renew TI field on the Market Leasing profile. The improvements timing will correspond with the entry in the TI Timing field on the Market Leasing profile. 
If you have created tenant improvement categories on the Tenant Improvements tab, they will be listed here. If you select one of the tenant improvement categories, the Improvements and Improvements Timing fields will be disabled. Improvements Enter the amount or percentage that will be used to calculate tenant improvements. The calculation method is determined by the selection in the Improvements Unit field. Improvements Timing The default entry of 100% in the Improvements Timing field indicates that the entire improvements amount should occur in month one of the lease. However, the improvements amount can be distributed across the lease term by entering the percentage to be paid in each month. Click the button in the Improvements Timing field to enter percentages that vary over time. See Also Tenant Improvements Calculation Examples Commissions Unit Select the commissions unit to be associated with this tenant. You may choose from the following options: 
383 None: If you select this option, no commission will be applied. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
$ Amount: If you select this option, ARGUS Enterprise will interpret the entry in the Commissions field as a fixed commission amount. 
$ / SF: If you select this option, ARGUS Enterprise will interpret the entry in the Commissions field as a fixed commission rate per square unit. 
1st Month + %: If you select this option, ARGUS Enterprise will interpret the entry in the Commissions field as a percentage of the remaining months in the term to be added to 100% of month 1 rent. For example, if you select this option on a 5‐year lease term, and then enter 2% in the Commissions field, 100% of the first month, and 2% of remaining 59 months will be applied. 
Fixed %: If you select this option, a percentage of the entire lease value over the term will be used (e.g., 4% of the total rent and steps less free rent over the 5 year lease term). 
% by Lease Year: If you select this option, you can specify a percentage rate for each year of the lease term (e.g., 5% of year 1, 4% of year 2, 3% of year 3, etc.). 
# of Months at Initial Base Rent: If you select this option, you can specify the number of months for lease amount based on the initial rent (e.g., Initial Base rent multiplied by # of months = commission). Any changes in step rent / free rent will not reflect commissions as they only depend on initial base rent. 
Market: If you select this option, leasing commissions for base leases will be calculated using the entry in the New LC field on the Market Leasing profile. Commissions for option leases, contract renewal leases, and holdover leases will be calculated using the entry in the Renew LC field on the Market Leasing profile. The timing will correspond with the entry in the LC Timing field on the Market Leasing profile. 
Custom Lease Commissions Category: If you have created a Lease Commissions category that includes specific income streams, you can select that option here. Commissions The default payment type is Fixed %. All Leasing Commissions are paid at the beginning of the lease. Leasing Commission percentages are applied to base rent, plus fixed steps, less free rent. Commissions Timing The default entry of 100% in the Commissions Timing field indicates that the entire commissions amount should occur in month one of the lease. However, the commissions amount can be distributed across the lease term by entering the percentage to be paid in each month. Click the button in the Commissions Timing field to enter percentages that vary over time. Security Deposit The Security Deposit section allows to select from security deposit records that have been entered in the main Security Deposits window. Security Deposit Select the security deposit record you want to use to calculate security deposits for the main lease term in the pick list. Note that once the lease expires, the input under the leasing profile will be used. None is the default selection. 384 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Market Leasing The Market Leasing section allows information pertaining to market leasing, expiration, renewal probability, and override% to be entered for tenants on the rent roll. Market Leasing Select the Market Leasing profile to be associated with this tenant. Market Leasing profiles contain market rents and other leasing assumptions that will be used to project revenues and leasing costs upon expiration of the current lease contract. See Also Market Leasing Upon Expiration Select the expiration assumption associated with this tenant. You may choose from the following options: 
Market: If you select this option, renewals will be processed based on the renewal probability in the Market Leasing profile (weighted average calculations of new and renewal rates for market rents, tenant improvements, leasing commissions, etc.) 
Reabsorb: If you select this option, no renewal will occur and the space will remain vacant unless leased separately on the Rent Roll or Space Absorption window. 
Renew: If you select this option, ARGUS Enterprise will assume a 100% renewal probability for the current renewal period. A new speculative lease will be created based on the renewal market entries in the Market Leasing profile. 
Vacate: If you select this option, ARGUS Enterprise will assume a 0% renewal probability for the current renewal period. A new speculative lease will be created based on the new market entries in the Market Leasing profile. 
Option: If you select this option, ARGUS Enterprise will create an additional, linked, lease record to represent a renewal option that is linked to the base tenant lease; the terms of the option are then modeled on the Rent Roll like other leases. 
Contract Renewal: If you select this option, ARGUS Enterprise will create an additional, linked, lease record with the same term as the base tenant lease. The ending base rent for the initial lease will be the base rent for the entirety of the new linked lease until new entries have been made. Free rent dates will be calculated. All other fields will be copied from the initial record. 
Month to Month: If you select this option, ARGUS Enterprise will create an additional, linked, lease record to represent a month‐to‐month lease with a default term of 12 months. The ending base rent for the initial lease will be the base rent for the entirety of the new linked lease until new entries have been made. Free rent dates will be calculated. All other fields will be copied from the initial record. 
Hold Over: If you select this option, ARGUS Enterprise will create an additional, linked, lease record to represent a hold over period with a default term of 12 months. The ending base rent for the initial lease will be the base rent for the entirety of the new linked lease until new entries have been made. Free rent dates will be calculated. All other fields will be copied from the initial record. 385 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Renewal Probability Override (Renew Prob.) Enter the renewal probability associated with this tenant or select the Defined on Profile option in the drop‐down list. Months Vacant Override For cases in which the market conditions differ from the months vacant assumption in the associated market leasing profile, this field allows you to override those assumptions for a specific rollover. When the default option, Defined on Profile, is selected, the months vacant entered on the Market Leasing profile will be used. To override the entry on the Market Leasing profile, enter a number for vacant months. Free Rent Override Enter a number for free rent months or select the default option Defined on Profile to use the free rent assumption in the associated market leasing profile. See Also Market Leasing Profiles Traditional Valuation The Traditional Valuation section allows you to enter tenant information pertaining to UK traditional valuations. See Also Capitalization Yields Cap Group Select a cap group in the pick list to apply a pre‐defined method and rates. You can create a cap group in the Traditional Valuation>Capitalization Yields tab. You may also select Override to edit the method and rates. 
None: If you select this option, the Method field will not be available. 
Override: If you select this option, you will be able to select a traditional valuation method in the pick list of the Method field. Method Select a method for calculating the capitalization yield in the drop‐down list. Choose from: 
Hardcore (default): Uses the Hardcore method to calculate the capitalization yield. 
Term & Revision: Uses the Term & Reversion method to calculate the capitalization yield. 
Initial Yield: Uses the Initial Yield method to calculate the capitalization yield. See Also Modeling Policies 386 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Hardcore/Term Rate Enter a percentage for the hardcore/term rate. Click to enter rates that vary over time. Click OK to apply your changes. Click Cancel to discard them and close this window. Marginal/Reversion Rate Enter a percentage for the marginal/reversion rate. Click the time. button to enter rates that vary over Froth Rate Enter a percentage for the froth rate. Note that froth and the equivalent yield are inversely proportionate i.e. if you enter a higher froth rate, the system will calculate a lower equivalent yield and vice versa. Note since froth is over market rental value, Traditional Valuers typically enter a slightly higher rate for the froth level than for the hardcore level. Resale Cap Group Select a cap group in the pick list. You can create a cap group in the Traditional Valuation>Capitalization Yields tab. Froth Basis Froth basis is the watermark above which additional rents are considered "froth" or above market sustainable levels. Select a froth basis in the pick list. See more information on froth basis in the Base Rent window topic. Choose from: 
None: System ignores the froth basis. 
Date: System uses a selected date as the froth basis. 
First Review: System uses the first rent review as the froth basis. 
Second Review: System uses the second rent review as the froth basis. 
End of Lease: System uses the end of the lease as the froth basis. 
Break Through: System uses the break through rate as the froth basis. 
1st After Break Through: System uses the first event after breakthrough growth rate is reached as the froth basis. 
First Event: System uses the first event as the froth basis. 
Second Event: System uses the second event as the froth basis. Froth SF Type a percentage for the froth sinking fund. Froth Tax on SF Type a percentage for the taxes on the froth sinking fund. See also Sinking Fund Modeling Policy. 387 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Froth Date First select Date as the Froth Basis then select a froth date in the drop‐down calendar. This date will be used as the froth basis, so that you can define a specific date for the system to start calculating froth. Breakthrough Growth Enter a percentage for breakthrough growth. Minimum Uplift Enable/disable a minimum uplift. Choose from: • Enabled: Uses the minimum uplift you set up in the Base Rent Window. • Disabled: Ignores the minimum uplift you set up in the Base Rent Window. CPI Select whether to enable indexation in the pick list. You may choose from the following options: 
Disabled: If you select this option, CPI will not be included in the valuation. 
Until First Review: If you select this option, CPI will included in the valuation until the first review. 
Until End of Lease: If you select this option, CPI will be included in the valuation until the end of the lease. Capitalization Valuation This section allows information pertaining to capitalization valuation to be entered for tenants on the rent roll. Treatment Select a treatment. Choose from: • Automatic (default): If you select this option, the following fields will use the values selected in the Capitalization Valuation Overrides tab or in the Property Default section of the Capitalization Valuation tab. • Manual: If you select this option, you must manually fill out the remaining fields in the Capitalization Valuation section. Name When the Treatment is set to Automatic, • If there is a lease type override defined in the Capitalization Valuation Overrides tab that matches the tenant's lease type, and the Use Treatment field is set to Yes, the Name value associated with the defined lease type override will be used. • If there are no matching lease type overrides, the Name field will be set to Property Default. When the Treatment is set to Manual, you may manually enter a name for the treatment. 388 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Capitalization Rate When the Treatment is set to Automatic, • If there is a lease type override defined in the Capitalization Valuation Overrides tab that matches the tenant's lease type, and the Use Treatment field is set to Yes, the Capitalization Rate associated with the defined lease type will be used. • If there are no matching lease type overrides, the Capitalization Rate field will be set to the value defined in the Property Default section of the Capitalization Valuation tab. When the Treatment is set to Manual, you may manually enter a capitalization rate. Click the to enter capitalization rates that vary over time. button Discount Rate When the Treatment is set to Automatic, • If there is a lease type override defined in the Capitalization Valuation Overrides tab that matches the tenant's lease type, and the Use Treatment field is set to Yes, the Discount Rate associated with the defined lease type will be used. • If there are no matching lease type overrides, the Discount Rate field will be set to the value defined in the Property Default section of the Capitalization Valuation tab. When the Treatment is set to Manual, you may manually enter a discount rate. Click the enter discount rates that vary over time. button to Vacancy Rate When the Treatment is set to Automatic, • If there is a lease type override defined in the Capitalization Valuation Overrides tab that matches the tenant's lease type, and the Use Treatment field is set to Yes, the Vacancy Rate associated with the defined lease type will be used. • If there are no matching lease type overrides, the Vacancy Rate field will be set to the value defined in the Property Default section of the Capitalization Valuation tab. When the Treatment is set to Manual, you may manually enter a vacancy rate. Click the enter vacancy rates that vary over time. button to Miscellaneous Rent When the Treatment is set to Automatic, • If there is a lease type override defined in the Capitalization Valuation Overrides tab that matches the tenant's lease type, and the Use Treatment field is set to Yes, the Miscellaneous Items associated with the defined lease type will be used. • If there are no matching lease type overrides, the Miscellaneous Items field will be set to the value defined in the Property Default section of the Capitalization Valuation tab. 389 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 When the Treatment is set to Manual, Choose from: • Property Default (default): If you select this option the miscellaneous rent will be included or excluded based on the value in the Property Default section of the Capitalization Valuation tab. • Include: If you select this option, miscellaneous items will be included in the capitalization valuation calculations. • Exclude: If you select this option, miscellaneous items will be excluded from the capitalization valuation calculations. Income to Capitalize When the Treatment is set to Automatic, • If there is a lease type override defined in the Capitalization Valuation Overrides tab that matches the tenant's lease type, and the Use Treatment field is set to Yes, the Income to Capitalize associated with the defined lease type will be used. • If there are no matching lease type overrides, the Income to Capitalize field will be set to the value defined in the Property Default section of the Capitalization Valuation tab. When the Treatment is set to Manual, Choose from: • Property Default (default): If you select this option the Income to Capitalize value will be the value in the Property Default section of the Capitalization Valuation tab. • Market: If you select this option, the market rent will be capitalized. • Passing: If you select this option, the passing rent will be capitalized. Tenant Classifications This section of the window is only available if custom Tenant Classifications have been defined. See Also Global Categories: Managing Classifications Set Classifications If custom Tenant Classifications have been defined, you can select them by clicking the button. On the resulting Tenant Classification window, click the Add button, select the classification in the pick list in the Classification field, and then select the value in the pick list in the corresponding Value field. When you finish, click the OK button to return to the Rent Roll window. Notes The Notes section allows you to enter notes related to the Rent Roll. To display the Notes window, click the attached to this tenant. 390 button. This allows you to enter notes that you want to have © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rental Income ‐ Calculation Examples Base Rent = (Base Rent Unit X Base Rent) Amount per square unit per year Entry in the Base Rent field = 100 Area = 2,000 sf Base Rent = 100 X 2,000 = $200,000 per year Amount per square unit per month Entry in the Base Rent field = 100 Area = 2,000 sf Base Rent = 100 X 2,000 = $200,000 per month Amount per year Entry in the Base Rent field = 125,000 Base Rent = $ 125,000 per year Amount per month Entry in the Base Rent field = 15,000 Base Rent = $ 15,000 per month Amount per square unit per month Entry in the Base Rent field = 100 Area = 2,000 Base Rent = 10 X 2,000 = $ 20,000 per month Percent of Market Entry in the Base Rent field = 105% Market Rent = 100,000 per year Base Rent = 100,000 X 105% = $ 105,000 per year Percent of Market (with step amounts) Entry in the Base Rent field = 105% Market Rent = 100,000 per year Base Rent = 100,000 X 105% = $105,000 per year Step 1 = 1 % of Market = 5% = 100,000 X 1.05 = 105,000 Step 2 = 1 % of Market = 5% = 105,000 X 1.05 = $ 110,250 391 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rent Review ‐ Calculations Amount X Base Rent X Frequency or Amount X Step Rent X Frequency Example ‐ Amount / SF / Year Amount = 9 SF = 2,500 Base Rent (Rent Review) = 9 X 2,500 = $22,500 per year Example ‐ Amount / SF / Month Amount = 4 SF = 1,500 Step Rent (Rent Review) = 4 X 1,500 = $6,000 per year Example ‐ Amount / Year Amount = 15,000 Base Rent (Rent Review)= $15,000 per year Example ‐ Amount / Month Amount = 5,000 Step Rent (Rent Review) = $5,000 per month Example ‐ % of Market: Market = 50,000 % = 95% Step Rent (Rent Review) = 50,000 X .95 = $47,500 Example ‐ Indexed Review Annual Rent = 40,000 CPI = 3% CPI Method = Lease Year Step Rent (Rent Review) = 40,000 X (1+.03) = $41,200 (at start of new lease year) Example ‐ % of Sales Review Sales Volume = 200,000 % of Sales = 8% Step Rent (Rent Review) = 200,000 X .08 = $16,000 Example ‐ Partial Ratchet Higher Base Rent = 50,000 Step = 5,000 CPI = 3% Free Rent = 12,000 Market Rent = 60,000 392 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Ratchet Higher = Base + Step + CPI � Free or Market Rent = (50,000 + 5,000 + 1500) ‐ (12000) = 44,500 Since Market Rent at 60,000 is the higher of the two, market rent will be used for the ratchet higher. Example ‐ Partial Ratchet Lower Base Rent = 50,000 Step = 5,000 CPI = 3% Free Rent = 12,000 Market Rent = 60,000 Ratchet Lower = Base + Step + CPI � Free or Market Rent = (50,000 + 5,000 + 1500) ‐ (12000) = 44,500 Since partial total rent at 44,500 is lower, partial total rent will be used for the ratchet lower. Example ‐ Full Ratchet Higher Base Rent = 50,000 Step = 5,000 CPI = 3% Recoveries = 2,500 Free Rent = 12,000 Market Rent = 60,000 Full Ratchet Higher = Base + Step + CPI + Recoveries ‐ Free = (50,000 + 5,000 + (.03 X 50,000) + 2,500) ‐ 12,000 = 47,000 Since Market Rent at 60,000 is the higher of the two, market rent will be used for the ratchet higher. Example ‐ Full Ratchet Lower Base Rent = 50,000 Step = 5,000 CPI = 3% Recoveries = 2,500 Free Rent = 12,000 Market Rent = 60,000 Full Ratchet Higher = Base + Step + CPI + Recoveries ‐ Free = (50,000 + 5,000 + (.03 X 50,000) + 2,500) ‐ 12,000 = 47,000 Since Total Rent at 47,000 is the lower of the two, Total Rent will be used for the ratchet lower. Example ‐ Average Prior Rent Base Rent = 50,000 Percentage Rent = 19,000 Avg. Prior Rent = (Base Rent + Percentage Rent) / 12 = (50,000 + 19,000) / 12 = $5,750 per month 393 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rental Value Unit ‐ Calculations Rental Value/year = (Area X Rental Value Rate) per Rental Value Unit selection Amount per square unit per year Area = 900 Rental Value Rate = 50 Rental Value = Rental Value/year = 900 X 50 = $45,000 per sqf per year Amount per year Area = 900 Rental Value Rate = 50 Rental Value = Rental Value/year =900 X 50 = $45,000 per year 394 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Space Absorption Navigation: Property Editor>Inputs>Tenants>Space Absorption. Purpose The Space Absorption tab provides you with the capability to rapidly sub‐divide and lease large areas of vacant space in a property using a simple set of assumptions and a market leasing profile. By describing the available area, the average leased area of available spaces, the date the space is available and begins leasing, as well as the absorption period or months between leases, the system can automatically generate speculative leases to match your assumptions. See Also Short Cuts Changes to market assumptions, such as market rents, inflation rates, and leasing costs are dynamically incorporated into the leasing strategy for vacant or newly constructed space, facilitating the modeling process for development projects, renovations or repositioning investment opportunities. Click the Add Record on the Ribbon to create a space absorption record. Enable The Enable section allows you to select the Auto Generate option for the space. Auto Generate This option toggles on or off the display of the absorption leases automatically created in the lower detail portion of the screen. General The General section allows you to enter the name for the space. Name Enter a description for the absorption space, such as “Vacant Office” or “Expansion Space.” This description will be used for each of the leases automatically generated from your entries on the Space Absorption tab. Tenure Select the lease tenure from the pick list. You may choose from the following options: 
Freehold (default): If you select this option, the system will use the freehold settings for the tenure. 
Custom Ground Leases: If you select this option, the system will use the specified ground lease settings for the tenure. 395 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: For option, holdover, month‐to‐month, and contract renewal leases, the Tenure field will not be available and will use its parent tenant’s tenure. Actual Type of Lease Select the type of lease you want to generate for the space. You may choose from the following: 
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Office Retail Industrial Storage Antenna Billboard Drop‐box ATM Residential Other Market The Market section allows you to select market leasing assumptions for the space. Market Leasing Select a Market Leasing profile in the pick list in the Market Leasing field. The rates in the selected market leasing profile will be used to determine base rent, fixed steps, CPI increases, free rent, percentage rents, recoveries, tenant improvements, leasing commissions, and term length for the new leases generated by the system. Areas The Areas section allows information pertaining to Area to Lease and Average Lease Area to be entered for the space. Area to Lease Enter the total vacant space available to be leased using the selected lease profile. Average Lease Area Enter the size (area measure) of each the speculative leases to be created. Dates The Dates section allows you to enter information related to the timing of the leases that will be created for the space. Available Select a method for calculating the availability date. Choose from: • Analysis Begin: Uses analysis start as the availability date. • Specified Date: Allows you specify an availability date. 396 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Date Available Type/select an availability date. Start Select a method for calculating the start date. Choose from: • Available Date: Uses the availability date as the start date. • Specified Date: Allows you specify an availability date. Start Date Type/select a start date. Absorption Months Enter the number of months it will take for the vacant space (Area to Lease) to be leased up. Months Between Leases Enter the number of months between consecutive leases (e.g., quarterly leases would require 3 months between leases). Note: Provide an entry for either Absorption Months or Months Between Leases. The system will automatically calculate the entry in the other field. Leases to generate The Leases to Generate section allows you to enter information pertaining to the number of leases for the space. # of Leases The number of leases to generate will be automatically determined, based on the entry in the Area to Lease field and the Average Lease Area field. Detail Click the Details on the Ribbon to display the lower portion of the Space Absorption tab. While this information cannot be edited directly, it can be modified by changing the assumptions in the upper portion of the screen. Name Displays the name of the absorption lease in read‐only format. Suite Displays the suite lease‐up status in read‐only format. 397 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Reference Lease ID You must set up a unique ID for each tenant prior to importing in order to view lease IDs. Lease IDs are used to import actuals/prior budget amounts for tenants (in conjunction with an account number), for example base rent, tenant improvements, leasing commissions. General Tenure Displays the tenure type in read‐only format. Lease Status Displays the lease status in read‐only format. Lease Type Displays the lease type in read‐only format. Area Displays the average lease area to be absorbed in read‐only format. Available Displays the availability date for each absorption lease in read‐only format. Lease Execution Displays the lease execution in read‐only format. Start Displays the start date in read‐only format. Term Length Unit Displays the term length unit in read‐only format. Term/Expire Displays the term expiration period as years/months in read‐only format. End Displays the end date for the absorption period in read‐only format. Lease Breaks Displays the assumption for lease breaks in read‐only format. Rental Income Base Rent Unit Displays the base rent unit in read‐only format. 398 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Base Rent Displays the base rent in read‐only format. Fixed Steps Unit Displays the fixed steps unit in read‐only format. Step Amounts Displays the step amounts in read‐only format. Payment Schedule Displays the payment schedule in read‐only format. Rental Value Unit Displays the rental value unit in read‐only format. Rental Value Displays the rental value in read‐only format. Rental Value Inflation Displays the rental value inflation in read‐only format. Free Rent Unit Displays the free rent unit in read‐only format. Free Rent Displays the number of free rent months in read‐only format. CPI CPI Increases Displays the how often the consumer price index (CPI) increases in read‐only format. Inflation Rate/Index Displays the inflation Rate/index in read‐only format. CPI Index Value Override Displays the CPI index value override in read‐only format. CPI Start Value Date Displays the CPI start value date in read‐only format. CPI Specified Start Value Displays the CPI specified start value in read‐only format. Current Monthly CPI Displays the current monthly CPI in read‐only format. 399 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Percentage Rent Sales % Basis Displays the sales percentage basis in read‐only format. Sales % Displays the sales percentage in read‐only format. Sales Amount Unit Displays the sales amount unit in read‐only format. Sales Amount Displays the sales amount in read‐only format. Breakpoint Displays the breakpoint in read‐only format. Break Amount Displays the break amount in read‐only format. Recoveries Structure Displays the recovery structure in read‐only format. Amount This field is grayed out. Miscellaneous Items Miscellaneous Rent Displays the selection for miscellaneous rent in read‐only format. Incentives Displays the selection for incentives in read‐only format. Leasing Costs Improvements Unit Displays the improvements unit in read‐only format. Improvements Displays the improvements in read‐only format. Improvements Timing Displays the improvements timing in read‐only format. 400 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Commissions Unit Displays the commissions unit in read‐only format. Commissions Displays the commissions in read‐only format. Commissions Timing Displays the commissions timing in read‐only format. Security Deposit Security Deposit Displays the selection for security deposit in read‐only format. Market Leasing Market Leasing Displays the market leasing profile in read‐only format. Upon Expiration Displays the upon expiration market assumption in read‐only format. Renew Prob. Override Displays the market assumption for the renewal probability in read‐only format. Months Vacant Override Displays the number of vacant months. This field is grayed out if you are using the market leasing profile. Free Rent Override Displays the free rent override. Override Months Displays the number of override months in read‐only format. This field is grayed out if you are using the market leasing profile. Traditional Valuation Cap Group Displays the cap group in read‐only format. Method Displays the valuation method in read only format. Hardcore/Term Rate Displays the hardcore/term rate in read‐only format. 401 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Marginal/Reversion Rate Displays the marginal/reversion rate in read‐only format. Froth Rate Displays the froth rate in read‐only format. Froth SF Displays the froth sinking fund in read‐only format. Resale Cap Group Displays the resale cap group in read‐only format. Froth Basis Displays the froth basis in read‐only format. Froth Date Displays the froth rate in read‐only format. This field is grayed out if None is selected in the Froth Basis field. Breakthrough Growth Displays the breakthrough growth rate in read‐only format. This field is grayed out if None is selected in the Froth Basis field. Minimum Uplift Displays the selection for minimum uplift in read‐only format. CPI Displays the selection for CPI Increases in read‐only format. Capitalization Valuation Treatment Displays the treatment type as selected in the Rent Roll, automatic or manual. Name Displays the treatment name as selected in the Rent Roll, Property Default or the name created by the user. Capitalization Rate Displays the cap rate as entered in the Valuation>Capitalization Valuation tab. Discount Rate Displays the discount rate as entered in the Valuation>Capitalization Valuation tab. Vacancy Rate Displays the vacancy rate as entered in the Valuation>Capitalization Valuation tab. 402 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Miscellaneous Rent Displays Include or Exclude as selected in the Valuation>Capitalization Valuation tab. Income to Capitalize Displays Market or Passing as selected in the Valuation>Capitalization Valuation tab. Tenant Classifications Set Classifications Displays any set classifications in read‐only format. Notes Notes Displays notes associated with the lease record in read‐only format. External ID External ID Displays the lease name as entered in the Name field in the Absorption grid, followed by its number in the series, e.g. 2 of 8. See Also Space Absorption Quick Reference 403 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Recovery Structures Navigation: Property Editor>Inputs>Tenants>Recoveries. Purpose Every building has operating expenses which typically include real estate taxes, insurance, utilities and maintenance. Often, leases require a tenant to pay all or some portion of these operating expenses. The owner of the building typically pays these expenses and then seeks reimbursement from the tenants according to the recovery formula stated in the lease(s). A recovery is the tenant reimbursement of building expenses initially paid by the landlord. The formula for determining the recovery might not be the same for all of the operating expenses and the recovery formulas might not be the same for all tenants in the building. Some tenants might not be required to pay any recoveries at all. Recoveries generally do not apply to tenants in residential properties as the tenants pay unit related expenses, such as utilities, directly and often do not reimburse the landlord for property expenses like taxes or insurance. Therefore, if the property type is set to Multifamily no recovery input will be available. If the property type is set to Mixed Use/Multifamily, recovery input will be available for the non‐residential leases only. The following types of recovery structures are available in ARGUS Enterprise: 
System Recovery Structures: These are system standard methods including none, net, base year stop, expense stops on an area or amount basis, fixed recovery amounts, and amounts per area. 
User Recovery Structures: User‐constructed recovery structures provide the ability to create custom recovery structures which apply different recovery methods to individual expenses or expense groups. This flexibility allows you to model virtually any recovery structure you might encounter in a commercial real estate lease contract. You can create User Recovery Structures on the Recoveries tab. Both types of recovery structures can be assigned to tenants from the Recoveries tab, or by selecting the desired structure for individual tenants directly on the Rent Roll. See Also Short Cuts 404 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Recovery Structures Enter general information about the recovery structure and to specify the structure to be used for a tenant or tenants. Structure ID Enter an alpha‐numeric identifier for recovery structures that you create. Name The first several rows represent system recovery structures which are standard system selections available in every ARGUS model by default. You cannot modify or delete these selections. Note: The Recovery Structures area only displays the Fixed Amount/Area, Fixed Amount, Stop Amount/Area, and Stop Amount method labels on this screen. The amounts for each of these methods are entered on the Rent Roll screen for each tenant. The following system recovery structures are available: 
Net: All recoverable expenses are paid by the tenant based on their proportionate share of the building area. 
Base Year Stop: All recoverable expenses are paid by the tenant based on their proportionate share of the building area over a stop amount, which is the amount of annual recoverable expenses in the base year, or first year, of the lease calculated by the system. If the tenant’s lease begins prior to the analysis start date and you select Base Year Stop, the calculated stop will use all reimbursable expenses in the first year of the analysis. 
Stop Amount: Enter the building stop amount. Tenants for whom you select this method will reimburse all recoverable expenses over the building stop amount entered based on their proportionate share of the building area. 
Stop Amount/Area: Enter the building stop amount/area. Tenants for whom you select this method will reimburse all recoverable expenses over the building stop amount/area entered based on their proportionate share of the building area. 
Fixed Amount: Enter the annual recovery amount that will be paid by the tenant each year. The fixed amount can be a single amount or it can vary over time. The fixed amount is a tenant amount not a building amount. 405 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Fixed Amount/Area: Enter the annual amount/area recovery that will be paid by the tenant each year. The fixed amount/area can be a single amount or it can vary over time. The rate entered varies according the amount of area under lease, not according to the entire building area. 
None: No recoveries will be calculated for the tenant. 
Market: Select the tenants to be included in the Market calculation. 
Base Year Stop +1: Expense stop will be established by the amount of recoverable expenses in the recovery year following the year the lease begins. Note if you select this method and the lease year is before the analysis start date, yet within the first recovery year, then the expense stop will be set to equal the recoveries from the second recovery year. If you select this method and the lease year is before the analysis start date and prior to the start of the first recovery year, then the expense stop will be set in the same manner as the existing base year stop. 
Base Year Stop ‐1: Expense stop will be established by the amount of recoverable expenses in the recovery year prior to year the lease begins. If you select this method and the lease begins before the analysis, the expense stop will be set in the same manner as the existing base year stop recovery method. If you select this method and the lease begins during the first analysis year yet after the start of the second recovery year, the expense stop will be established by the recoverable expenses that occur within the first recovery year. 
User Recovery Structures: You can also create user‐constructed recovery structures. These provide you with the ability to create custom recovery structures which apply different recovery methods to individual expenses or expense groups. This flexibility allows you to model virtually any recovery structure you might encounter in a commercial real estate lease contract. Gross Up % This field is not available for system recovery structures. Expenses recovered using system recovery structures will not be grossed up. This capability is only available for user recovery structures. Assign Tenants You can assign recovery structures to tenants by clicking in the Assign Tenants field. A Tenants screen will appear listing each of the available tenants and the current structure assignments which can be altered by selecting the desired tenant and clicking Add or Add All. You can remove tenants from a recovery structure assignment by clicking the Remove or Remove All. You may assign tenants to only one recovery structure at a time. You may also modify the recovery structure assigned to a tenant directly on the Rent Roll screen. 406 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Creating a User Recovery Structure User Recovery Structure Click Add Record on the Ribbon to create a new user recovery structure. Name Enter a descriptive name for the new user recovery structure. It is advisable to use names that are not similar to the system recovery structures (e.g., Net). Gross Up% Enter the gross up percentage, if any, associated with the user recovery structure. Some lease contracts stipulate that expenses are grossed up to a certain occupancy percentage (e.g., 95%) for the purposes of expense recoveries. The gross up percentage will only impact expenses with a variable portion (e.g., less than 100% fixed). 407 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenants You can assign user recovery structures to tenants by clicking in the Tenants field. A Tenants screen will appear listing each of the available tenants and their current structure assignments which can be altered by selecting the desired tenant and clicking the Add or Add All buttons. You can remove tenants from a recovery structure assignment by selecting the tenant, and then clicking Remove or Remove All. Tenants may be assigned to only one recovery structure at a time. After assigning one or more tenants to a recovery structure, their names will appear in the Assign Tenants field of the Recoveries screen for review and tracking purposes. Recovery Methods The Recovery Methods section allows you to enter information pertaining to the recovery of an individual expense or group. Click Add Record on the Ribbon to add a new recovery method to a user recovery structure. Expense or Group Select an individual operating expense or expense group from the drop‐down list. For more information on expense groups, see Expense Groups. Note: It is possible to include the recovery of an expense, or expense group containing the same expense, more than once in the same recovery structure. Take care to avoid “double counting” an expense in a recovery structure. Account Optionally, enter an account code for this recovery method or select an account code from the Chart of Accounts by clicking . Method Details The Method Details section allows you to enter detailed information about the recovery structure. Pay During Free Rent If recoveries are not paid during free rent periods, click the Pay During Free Rent check‐box to deselect the option. Recovery Calc Select a recovery type from the drop‐down menu. Choose from the following options: 
None: No recoveries will be calculated for the tenant. 
Base Year Stop: Tenants with leases that begin after the analysis start will pay their pro‐rata share of any increases over the amount of reimbursable expenses in the first year of the lease. Tenants with leases that begin before the analysis start will pay their pro‐rata share of any increases over the amount of reimbursable expenses in the first year of the analysis. 
Base Year Stop ‐1: Expense stop will be established by the amount of recoverable expenses in the recovery year prior to year the lease begins. If you select this method and the lease begins before 408 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 the analysis, the expense stop will be set in the same manner as the existing base year stop recovery method. If you select this method and the lease begins during the first analysis year yet after the start of the second recovery year, the expense stop will be established by the recoverable expenses that occur within the first recovery year. 
Base Year Stop +1: Expense stop will be established by the amount of recoverable expenses in the recovery year following the year the lease begins. Note if you select this method and the lease year is before the analysis start date, yet within the first recovery year, then the expense stop will be set to equal the recoveries from the second recovery year. If you select this method and the lease year is before the analysis start date and prior to the start of the first recovery year, then the expense stop will be set in the same manner as the existing base year stop. 
Fixed Amount: Enter the annual recovery amount that will be paid by the tenant each year. The fixed amount can be a single amount or vary over time. The fixed amount is a tenant amount not a building amount. 
Fixed Amount/Area: Enter the annual amount/area recovery that will be paid by the tenant each year. The fixed amount/area can be a single amount or vary over time. The fixed amount/area is a tenant amount/area not a building amount/area. 
Net: All recoverable expenses are paid by the tenant based on their proportionate share of the building area. 
Stop Amount: Enter the building stop amount. This tenant will reimburse all recoverable expenses over the building stop amount entered based on their proportionate share of the building area. 
Stop Amount/Area: Enter the building stop amount/area. This tenant will reimburse all recoverable expenses over the building stop amount/area entered based on their proportionate share of the building area. 
User Recovery Structures: You can also create user‐constructed recovery structures. These provide you with the ability to create custom recovery structures which apply different recovery methods to individual expenses or expense groups. This flexibility allows you to model virtually any recovery structure you might encounter in a commercial real estate lease contract. Amount If you select a Fixed Amount or a Stop Amount in the Recovery Type field, enter the appropriate fixed or stop amount, as a currency or currency per area amount. Click to enter amounts that vary over time. Tenant Area Type If you select a Fixed Amount/Area or a Stop Amount/Area in the Recovery Type field, select tenant area type from the pick list in this field. Choose from: 
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Standard Alternate Recovery Allocation If you selected a stop‐related method in the Recovery Calc field, select a recovery allocation type from the drop‐down menu. Choose from: 
409 Fixed Percentage: Tenant’s recovery share will be calculated for the specified percentage on expenses. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Pro‐Rata Rentable Area: Net rentable area for the building will be used as the denominator in the pro‐rata share calculation. 
Pro‐Rata Occupied Area: Total occupied area for the building will be used as the denominator in the pro‐rata share calculation. 
Enter Denominated Area: Only the tenant’s recovery share for the specified area will be calculated, overriding the pro‐rata share calculation for building/operating area. Area Measure If you selected an area measure based recovery allocation method ‐‐ either Pro‐Rata Rentable Area, or Pro‐Rata Occupied Area ‐‐ in the Recovery Allocation field, select the area measure from the pick list in the Area Measure field. Choose from: 
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Building Total Office Total Retail Total Industrial Total Storage Total Alternate Building Total Custom Area Measure ‐ Note that custom area measures are created on the Area Measures tab. For more information, see Area Measures. Denominated Area If you selected Enter Denominated Area in the Recovery Allocation field, enter the building area that will be used in the pro‐rata share calculation for tenants under this recovery structure. Allocation % If you selected Fixed Percentage in the Allocation Type field, enter the allocation percentage that will be used as the pro‐rata share percentage for tenants under this recovery structure. Include in Capitalization Valuation Choose from: • Include: Include this recovery structure item in the capitalization valuation. • Exclude: Exclude this recovery structure item from the capitalization valuation. Expense Adjustments The Expense Adjustments section allows you to model administrative fees and expense contributions for anchor tenants. Reimburse After If you wish to reduce expense amounts used as the basis for recovery calculations for a group of tenants, select the tenant group from the pick list. The calculated recovery amount for the relevant expenses paid by tenants in the selected group is known as the "anchor contribution." When you select a tenant group in this field, recovery calculations will be reduced by the anchor contribution. 410 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 When the expense pool for tenants with an entry in the Reimburse After field (i.e., an "In‐line" recovery method) is not identical to the anchor expense pool, a factor will be applied to the anchor contribution before deducting it from the In‐line expense pool. Calculating the Common Expense Factor for an In‐line recovery method in a particular recovery year: Determine the anchor expense pool. o
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Identify the expenses reimbursed by the members of the Tenant Group selected in the Reimburse After field. This is the anchor expense pool. 
Calculate the total expense amount for the anchor pool for the year in question. Determine the common expense pool. o
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From the expenses selected in the In‐line recovery method, take only the ones which were also members of the anchor expense pool. This is the common expense pool. 
Note that the common expense pool must only include the share of each expense that is duplicated in both the anchor expense pool and the in‐line expense pool. 
Calculate the total expense amount for the common expense pool for the year. o
The common expense factor is equal to the ratio of the total amount of the common expense pool divided by the total amount for the anchor expense pool. o
When the user has selected the Recoveries Modeling Policies option to Calculate Monthly, the common expense factor will vary monthly and will represent the ratio of the monthly common expenses to the monthly anchor expenses. Calculating the recovery: o
Multiply the anchor contribution for a given year by the common expense factor for that year. o
Deduct the modified anchor contribution from the in‐line pool and calculate the recovery as normal. See Also Tenant Groups Admin Fee The Admin Fee field allows you to specify an administrative fee. The expense amount used as the basis for the recovery calculations will be increased by the percentage entered in this field. By default, anchor contributions will be deducted prior to calculating the administrative fee. To calculate the administrative fee on the entire expense basis, select the Calculate Admin Fee Before Deduction of Anchor Contribution option on the Modeling Policies window. See Also Modeling Policies Limits The Limits section allows you to enter minimum and maximum limits for the recovery structure. 411 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Min. (Floor) Amount Units The floor is the amount the recovery cannot fall below. If the calculated recovery for the expense or group is lower than the floor, the tenant reimbursement will be the floor amount. If the calculated recovery for the expense or group is higher than the floor amount, the floor amount will be ignored. By default, the floor will inflated by the general inflation rate for the property. Choose from: 
None: Min. (Floor) Amount field will not be available, and you will not be able to enter a floor. 
Amount: Interpret the entry in the Min. (Floor) Amount field as an annual amount. 
Amount/Area: Interpret the entry in the Min. (Floor) Amount field as a amount/area. Min. (Floor) Amount Enter a floor amount corresponding to the unit you selected in the Min. (Floor) Amount Units field. Use button to display the detail entry screen to revise or remove inflation or to enter a floor that varies over time. Max. (Ceiling) Amount Units The ceiling is the amount the recovery cannot exceed. If the calculated recovery for the expense or group is lower than the ceiling, the ceiling will be ignored. If the calculated recovery for the expense or group is higher than the ceiling, the tenant reimbursement will be the ceiling amount. By default, the ceiling will inflate by the general inflation rate. Choose from: 
None: Max. (Ceiling) Amount field will not be available, and you will not be able to enter a ceiling. 
Amount: Interpret the entry in the Max. (Ceiling) Amount field as an annual amount. 
Amount/Area: Interpret the entry in the Max. (Ceiling) Amount field as an amount/area. Max. (Ceiling) Amount Enter a ceiling amount corresponding to the unit you selected in the Max. (Ceiling) Amount Units field. Use to display the detail entry screen to revise or remove inflation or to enter a ceiling that varies over time. Max. Increase (Cap) Units The cap is the amount the recovery is allowed to increase over the prior year. The cap is based on the original calculated recovery and cumulatively capped each year for comparison with the current year calculated recovery. No inflation is applied to the cap. Choose from: 
None: Max. Increase (Cap) Amount field will not be available, and you will not be able to enter a maximum increase. 
Amount: Interpret the entry in the Max. Increase (Cap) Amount field as an annual amount. 
Amount/Area: Interpret the entry in the Max. Increase (Cap) Amount field as an amount/area. 
Percentage: Interpret the entry in the Max. Increase (Cap) Amount field as a percentage. Max. Increase (Cap) Amount Enter a cap amount corresponding to the unit you selected in the Max. Increase (Cap) Units field. Use to display the detail entry screen to enter a cap that varies over time. 412 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Percent Rent This section of the window allows you to deduct a calculated percentage of recoveries from the amount of percentage rent paid. Offset % A percentage rent offset is an amount calculated as a percentage of recoveries that is deducted from the amount of percentage rent paid to the landlord. The offset percentage can be different for each of the recovery methods included in a single recovery structure. For example, the offset percentage for CAM expenses might be 100%, whereas the offset for real estate taxes might be 0%. Values entered in this field as a negative will be added to percentage rent; values entered as a positive will be subtracted. When you select a recovery method with an offset percent, the tenant's percentage rent calculation will be reduced by their recovery payment multiplied by the percent offset for the recovery. The frequency for the offset calculation is determined by the selection on the Modeling Policies window. If Calculate Monthly is selected, the offset will be calculated on a monthly basis. Otherwise, the offset calculation will use the Recovery Year Average. i.e., The offset will always equal the monthly recovery value when looking at reports. See Also Modeling Policies 413 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Multifamily Tenants Navigation: Property Editor>Inputs>Tenants>Multifamily The Multifamily tab in the Tenants section is present only if the property type is multifamily or mixed use with multifamily. This section allows for modeling based on units. These types of properties include, but are not limited to, apartments, senior assisted living communities, mobile home parks, storage units, and boat slips. Note: Multifamily properties display only Multifamily and Security Deposit Tenants tabs. Name The Name section allows you to enter names for the multifamily tenants. Name Enter the description of multifamily units. The description will be printed on reports exactly as entered. General The General section allows you to enter information about the multifamily tenants. Area/Unit Enter the amount for area/unit for multifamily units. Total Units Enter the number of multifamily units. Use the over time. button to specify that the number of units varies 414 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Occupied Units The Occupied Amounts section allows you to enter information related to occupied multifamily units. Initial Occupancy Enter a number to specify the number of occupied units out of the total units entered at the start of the analysis period. These units are considered non‐vacant, unabsorbed, and unavailable for lease. Max Occupancy Enter a number to specify, at the start of analysis, the number of units to absorb and the number of units that are not occupied and not absorbed. Current Rent Unit Select the unit of measure to be used to calculate the current rent. Choose from: 
$ / Unit / Month (default): If you select this option, the current rent will be equal to the amount entry in the Amount field multiplied by the current market rental rate. 
% Market: If you select this option, the current rent will be equal to the percentage entry in the Amount field multiplied by the current market rental rate. Current Rent Enter the amount for monthly rental rate. You can also enter amounts that vary on a monthly basis with varying units of measure by clicking the button. In the Detailed Current Rent window, make your selection from the Unit of Measure field. See Also Multifamily Current Rent Multifamily Detailed Current Rent Calculation Examples Free Rent Enter a number that specifies the average number of months of free rent for occupied units during the current term. Enter the number of months of free rent that will be applied to the unit type upon each rollover. Free rent will be applied to the current term as well as occupied unit rollovers if None is selected in the Market Leasing field. You can also enter amounts that vary over time by selecting the button. Note: If free rent varies on a monthly basis, it will be applied to the initially occupied units as well as to units that roll over if None is selected for the Market Leasing field. Concessions % Enter any additional concessions for the unit type as a percentage of scheduled multifamily rent. Use the button to specify that the percentage varies over time. 415 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Vacancy Allowance Enter a percentage for vacancy allowance. Use the button to specify that the percentage varies over time. The default calculation basis for vacancy allowance is economic occupancy, but you can change the calculation basis to physical occupancy in the Tenant tab of the Modeling Policies. Credit Loss % Enter any credit loss to be applied to the unit type as a percentage of scheduled multifamily rent less additional concessions. Use the button to specify that the percentage varies over time. Security Deposit Select a security deposit record to use for calculating the main lease in the current record in the pick list. Unit Rollover The Unit Rollover section allows you to enter method, average terms, and detailed information. Method Select the absorption method in the pick list. Choose from: 
Evenly: If you select this option, all units will be rolled to market over the specified average term. 
Detailed: If you select this option, you can enter the number of units that will roll to market in each month of the projection. Avg. Term (Mos.) Enter the average term (as a number of months) of the unit type lease. This field is not available if you selected Detailed in the Method field. Detailed Enter the number of units that will roll to market each month of the projection, or use the button to build in seasonality and vary the number of units rolling to market over time. This field is not available if you selected Evenly in the Method field. Market Leasing A market leasing profile allows you to apply market rates and other tenant assumptions to the rollover of tenant areas when the current leases reach their expiration. A Market Leasing profile must be applied to each tenant. Market leasing profiles serve two key purposes. The first is to group leasing assumptions to be applied to a tenant area when the current lease contract for that space expires. The second use for the profile is for speculative leasing, or Space Absorption, of vacant space. If there is a block of vacant space in the property, the model can use a set of market leasing assumptions to lease that space as one or more separate speculative lease contracts. 416 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Market Leasing Select a market leasing profile to create a link between the multifamily record and the market leasing record. Note: The Market Leasing profile is applied to the occupied units when they rollover. The number of units that rollover are determined by the Unit Rollover fields: Method, Avg. Term (Mos), Detailed. Market Rent Unit Select the unit of measure for market rents in the pick list. The default unit of measure for rents can be set on the Modeling Policies screen. Choose from: 
$/Unit/Month: If you select this option, the unit of measure will be currency per unit per month for the Market Rent field. 
$/SF/Month: If you select this option, the unit of measure will be currency per square foot per month for the Market Rent field. Market Rent Enter the monthly amount for market rent. This field will only be available if None is selected in the Market Leasing field. See Also Multifamily Detailed Current Rent Calculation Examples Improvements Unit Select the unit of measure that will be used for the Improvements field in the pick list. This field will be available and applied to units when they rollover if None is selected in the Market Leasing field. The default unit of measure for rents can be set on the Modeling Policies screen. Choose from: 
$/Unit: Entry in the $/Unit field will be interpreted as a fixed currency amount per leased unit. 
$/Area: Entry in the $/Area field will be interpreted as a fixed currency amount per leased area. Improvements Enter the amount of improvements per unit to be paid upon the rollover of each unit when None is selected for Market Leasing. Use the button to specify that the amount of improvements per unit varies over time or to override the default improvements inflation rate. 
$/Unit: Entry in the $/Unit field will be interpreted as a fixed currency amount per leased unit. 
$/Area: Entry in the $/Area field will be interpreted as a fixed currency amount per leased area. See Also Tenant Improvements Calculation Examples 417 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Commissions Unit Select the unit of measure for leasing commissions to be paid upon the rollover of each unit when None is selected for Market Leasing in the pick list. The default selection is $/Unit. All leasing commissions are paid at the beginning of the lease. Leasing commission percentages are applied to base rent plus fixed steps less free rent. Choose from: 
Fixed %: Entry in the Fixed % field will be interpreted as a percentage of the entire lease value over the term (e.g., 4% of the total rent, including steps, less free rent over the 5 year lease term). 
$/Unit: Entry in the $/Unit field will be interpreted as a fixed commission rate per leased unit. 
$/Area: Entry in the $/Area field will be interpreted as a fixed commission rate per leased area. 
# Months: Entry in the # Months field will specify the number of months of rent to be used for the fixed commission amount. Commissions Enter the amount per unit commission to be paid upon the rollover of each unit when None is selected in Market Leasing. This field will be available and applied. Use the button to specify that the amount of commission per unit varies over time or to override the default commissions’ inflation rate. See Also Commissions Calculation Examples Absorption The Absorption section allows you to enter method, average terms, and detailed information. Begin Absorb Enter or select a date in the drop‐down calendar under the button to indicate when units begin lease. If Maximum Occupancy is selected in Current Occupancy, this field will not be available. Months to Absorb Enter the number of months needed to lease up to max occupancy. If left at zero, it is assumed that all vacant units will be leased as of the date entered in the Begin Absorb field. The number of vacant units is determined by the difference between maximum occupancy and current occupancy. Free Rent Enter a number of months for free rent that will be applied to all absorption leases at the start of their terms. You can also enter amounts that vary over time by selecting the button. For absorbed units that rollover, the blended Market Leasing profile free rent values will be used found on the Multifamily Market Leasing window. If no Market Leasing profile is specified, the free rent value under the Occupied Amounts column group will be applied to absorbed units that rollover. 418 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Improvements Unit Select the unit of measure that will be used for the Improvements field in the pick list.. You can enter market rents monthly or annually in whole currency amounts (e.g., $ Amount/Month) or amounts per area measurement unit (e.g., $/SF/Year). The default unit of measure for rents can be set on the Modeling Policies screen. After rollover, the improvements on the Multifamily Market Leasing window will be applied if a Market Leasing profile is selected. If a Market Leasing profile is not selected, the improvements unit found under the Market Leasing column group in the Multifamily Market Leasing window will be applied to absorbed units that rollovers. You may select from the following options: 
$/Unit: Entry in the $/Unit field will be interpreted as a fixed currency amount per leased unit. 
$/Area: Entry in the $/Area field will be interpreted as a fixed currency amount per leased area. Improvements Enter the amount of improvements per unit for vacant units that will absorb and for absorbed units that will rollover when None is selected for Market Leasing. Use the button to specify that the amount of improvements per unit varies over time or to override the default improvements inflation rate. For absorbed units that rollover, the blended Market Leasing profile improvements values on the Multifamily Market Leasing screen will be used. If no Market Leasing profile is specified the improvements value under the Market Leasing column group found on the Multifamily window will be applied to absorbed units that rollover. See Also Tenant Improvements Calculation Examples Commissions Unit Select the unit of measure for the Commissions field in the pick list. You can enter market rents monthly or annually in whole currency amounts (e.g., $ Amount/Month) or amounts per area measurement unit (e.g., $/SF/Year). The default unit of measure for rents can be set on the Modeling Policies screen. You may select from the following options: 
Fixed %: Entry in the Fixed % field will be interpreted as a percentage of the entire lease value over the term (e.g., 4% of the total rent, including steps, less free rent over the 5 year lease term). 
$/Unit: Entry in the $/Unit field will be interpreted as a fixed commission rate per leased unit. 
$/Area: Entry in the $/Area field will be interpreted as a fixed commission rate per leased area. 
# Months: Entry in the # Months field will specify the number of months for the lease amount. Commissions Enter the amount per unit commission to be paid for vacant units that absorb and for absorbed units that rollover when None is selected for Market Leasing. Use the button to specify that the amount of commission per unit varies over time or to override the default commissions’ inflation rate. Absorption Security Deposit Select from the security deposit records that have been entered in the main Security Deposits window. 419 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Absorption Term Enter the number of months that the absorption lease term will last from the time the unit is absorbed. Note the number of vacant units is determined by the difference between maximum occupancy and current occupancy. Fractional units will not be leased until the sum of accumulate fractional units is equal to one full unit. 420 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Groups Navigation: Property Editor>Inputs>Tenants>Tenant Groups. Purpose Tenant Groups allow you to create groups of tenants that can be used to define occupied area measurements and to designate anchor tenants for reimbursable expense purposes. See Also Short Cuts Area Measures Recovery Structures You can add individual Tenant Groups by clicking the Add Record on the Ribbon. You can also click the Add All button to add all the Tenant Groups or the Remove All button to exclude all the Tenant Groups. Group Code Enter a group code for the tenant group. Tenant Group Name This section of the window allows you to enter a name for the tenant group. Tenant Group Name Enter a descriptive name for the tenant group. Excluded Tenants (left side) Displays a list of tenants in the property. Name / Suite / Lease ID / Current Tenant Group Select the tenants to be included in the tenant group. If the Use Lease ID modeling policy is in use, then the Lease ID field will be included in this section. To include a tenant in the group highlight the expense and use the Add button to the right of the Excluded Tenants display. To remove a tenant, select it and click the Remove button. Excluded tenants will be shown at the left of the screen in the Excluded Tenants display. Included Tenants (right side) This section of the tab allows you to view tenants currently included in the tenant group. Name Displays the tenant name as read‐only. 421 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Suite Displays the suite number as read‐only. Lease ID Displays the Lease ID as read‐only. 422 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Ground Leases Navigation: Property Editor>Inputs>Tenants>Ground Leases. Purpose Each ground lease describes a tenant lease offered by landlords to tenants for the purpose of re‐letting the property to other sub‐tenants. Ground leases are similar to sub‐leases and are offered by the freeholder to occupational tenants. Occupational tenants sign a ground lease with the freeholder to lease space in the freeholder's property. The freeholder, in turn, holds a long‐term lease to the property as stipulated by the government. You can add details to the property’s ground leases to model a valuation and discounted cash flow based on market assumptions. Cash Flow Calculating cash flow from a ground lease is similar to calculating a normal tenant lease with the following exceptions: 1. The ground lease defines the demise of the units that are held under that ground lease. Therefore when the ground leases expires, all rights to the cash flow produced by the underlying tenants expire for the landlord. This means all cash flows for the child units will be truncated at the ground lease expiry date. 2. All income or expenditures attached or associated to those tenants after ground lease expiry will be ignored. 3. All other expenditures not associated to specific tenants will still be included in calculations. 4. When Geared is selected for base rent, the base rent gearing will calculate the rent for that review or step using the gearing options held within the main ground lease. 5. Resale calculations will proceed normally but with the above modifications. Traditional Valuation A ground lease can be calculated using the following two approaches: 1. The ground lease is treated as, in essence, a negative tenant producing a capital value that is then subtracted from the gross value of the property. This approach uses the yields selected for the ground lease to value the tenure. Using this approach, ground leases are valued to their expiry date using the standard traditional valuation mechanism. 2. The ground lease is treated like an operating cost, apportioned between the tenants within that ground lease and subtracted from the gross tenant rents to produce a net tenant rent that is valued normally using the traditional valuation. The apportionment will follow the selection in the Deduction Apportioned By field in the ground lease grid. See Also Short Cuts 423 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Name Enter a name for the lease. Reference Lease ID You must set up a unique ID for each tenant prior to importing in order to view lease IDs. Lease IDs are used to import actuals/prior budget amounts for tenants (in conjunction with an account number), for example base rent, tenant improvements, leasing commissions. General Start Select a start date in the drop‐down calendar. Term/Expire Enter the number of years and months for the expiration term. End The end date is auto‐populated based on your entries in the Start and Term/Expire fields. Rental Income Base Rent Unit Select a unit type in the pick list. Choose from: 
$/SF/Year: Base rent is calculated based on currency per square foot per year. 
$/SF/Month: Base rent is calculated based on currency per square foot per month. 
$/Year: Base rent is calculated based on currency per year. 
$/Month: Base rent is calculated based on currency per month. 
% of Market: Base rent is calculated based on a percentage of market rent. 
Geared: Base rent is calculated based on your entry in the Gearing % field. Base Rent Enter an amount for the base rent or click to enter base rent amounts that vary over time. See Also Ground Lease Rent Schedule How Input Calculation Examples Fixed Steps Unit Select the fixed steps unit you want to use in the pick list. Choose from: 
None: Fixed steps will not be calculated and the Step Amounts and Payment Schedule fields will not be available. 
$/SF/Year: Fixed steps is calculated based on currency per square foot per year. 424 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
$/SF/Month: Fixed steps is calculated based on currency per square foot per month. 
$/Year: Fixed steps is calculated based on currency per year. 
$/Month: Fixed steps is calculated based on currency per month. 
% Increase: Fixed steps is calculated based your entry in the Step Amounts field. Step Amounts Enter an amount for step rent. See Also Step Amounts Calculation Examples Payment Schedule Select a payment schedule type in the pick list. Choose from: 
Monthly: This row allows you to edit the Payment Day field. 
English Quarter Days 1st Quarter Day = 25th March 2nd Quarter Day = 24th June 3rd Quarter Day = 29th September 4th Quarter Day = 25th December  Scottish Quarter Days  1st Quarter Day = 28th February  2nd Quarter Day = 28th May  3rd Quarter Day = 28th August  4th Quarter Day = 25th November  Crown Quarter Days  1st Quarter Day = 5th January  2nd Quarter Day = 5th April  3rd Quarter Day = 5th July  4th Quarter Day = 5th October  Quarterly: This row allows you to edit the Payment Day and Payment Month fields. Quarterly dates are auto‐populated based on your selections in the Payment Day and Payment Month fields. 
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Half Yearly: Allows you to edit the Payment Day and Payment Month fields. 
Annually: Allows you to edit the Payment Day and Payment Month fields. See Also Payment Schedule Calculation Examples Rental Value Unit Select the value unit you want to use in the pick list. Choose from: 
$/SF/Year: Rental value is calculated based on currency per square foot per year. 
$/Year: Rental value is calculated based on currency per year. 425 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rental Value Enter an amount for rental value or click to enter rental value amounts that vary over time. See Also Detailed Rental Values Rental Value Calculation Examples Rental Value Inflation Select the inflation rate category in the pick list you want to apply to the rental value or click inflation rates that vary over time. Choose from: 
No Inflation Rate: Zero inflation rate is applied to the rental value. 
General Inflation: General inflation rate is applied to the rental value. 
Market Inflation: Market inflation rate is applied to the rental value. 
Expense Inflation: Expense inflation rate is applied to the rental value. 
CPI Inflation Rate: CPI inflation rate is applied to the rental value. to enter See Also Market Inflation Gearing Gearing is paying a percentage of the money the occupational tenant makes in rent to the freeholder. Geared Timing Select a timing type to begin gearing in the pick list. Choose from: 
Varies: If you select this option, geared timing will depend upon entries made in the Ground Lease Rent Schedule. 
When Rent Changes: If you select this option, geared timing will begin at the next rent change date. Note any changes you make in Tenant rents (including base, step, and CPI) will cause a base rent record to be created that mirrors those changes. 
None: If you select this option, geared timing will not be used, and the other gearing fields will not be available. Geared To Select a timing type to stop gearing in the pick list. Choose from: 
Tenant Market Rent: If you select this option, base rent/stepped rent records will be geared to the sum of the annualized market rents at the gearing event date of the tenants who have this tenure as their parent. 
Gross Rents: If you select this option, base rent/stepped rent records will be geared to the passing gross rent (Base, Step, CPI, and %Rent) of the tenants who have this tenure as their parent. 
Net Rents: If you select this option, base rent/stepped rent records will be geared to the passing gross rent (Base, Step, CPI, and %Rent) minus the associated operating expenses of the tenants who have this tenure as their parent. Note that the associated revenue costs are those that have been applied to the tenants underneath this tenure. 426 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Gearing % Enter a percentage for gearing. Fixed Core Ground Rent Enter an amount for the fixed core ground rent. This amount is added to the gearing amount calculated above to produce the final geared amount that is then subject to the entry in the Minimum Ground Rent field. Minimum Ground Rent Enter an amount for minimum ground rent. Traditional Valuation The Traditional Valuation section will only be available if you have selected the Traditional Valuation option in the General tab of the Modeling Policies. Calculation Basis Select a calculation basis type in the pick list. Choose from: 
Deduction from Gross Income (Default): If you select this option, the Deduction Apportioned field will be available. 
Capitalization: If you select this option, the capitalization fields will be available. Deduction Apportioned Select a method for apportioning the deduction from gross income. Note that the apportionment is recalculated based on each month’s rental income. Choose from: 
Equally: If you select this option, the deduction from the ground lease's gross income will be equally apportioned amongst the tenants associated with this ground lease. 
Tenant Market Rent: If you select this option, the deduction from the ground lease's gross income will be apportioned by tenant market rents. 
Gross Rent (default): If you select this option, the deduction from the ground lease's gross income will be apportioned by the passing gross rent (Base, Step, CPI, and %Rent) of the tenants who have this tenure as their parent. 
Net Rent: If you select this option, the deduction from the ground lease's gross income will be apportioned by passing gross rent (Base, Step, CPI, and %Rent) minus revenue cost of the tenants who have this tenure as their parent. Cap Group Select a cap group in the pick list. Choose from: 
None: If you choose this option, no cap group will be selected. 
Override: If you choose this option, you can enter cap group data in the Traditional Valuation section. 
Custom Groups: You can also choose any custom cap group that you have previously created in the Capitalization Yields tab. 427 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Cap Yields Method Select a method in the pick list. Choose from: 
Hardcore: If you select this method, the hardcore method will be used to calculate the traditional valuation for the ground lease by applying a single rate to all varying lease income and adding a layer rate to the marginal income. The hardcore method values rental income in layers. The lowest risk “core” income is valued into perpetuity at the hardcore rate, and any anticipated future uplifts in income are valued at the same rate and discounted to a present value. 
Term & Reversion: If you select this method, the term and reversion method will be used to calculate the traditional valuation for the ground lease. The term and reversion valuation method applies different capitalization rates to current ("term") and future ("reversion") income flows to reflect the relative security of these income flows. Rental income is valued in period steps, applying the term rate to the current income, which is deemed to be lower risk income, over the period of its duration. A reversion rate is then applied to more uncertain future income likely to be received on rent review or reversion, discounted to a present value. 
Initial Yield: If you select this method, the initial yield method will be used to calculate the traditional valuation for the ground lease by assuming zero or a market rent when actual passing rent is zero. The Initial Yield method applies a capitalization rate to the current net rental income at the valuation date and values this income into perpetuity. This method effectively ignores future changes in income. Hardcore/Term Rate Enter a percentage for the hardcore/term rate. Click the This opens a new window. button to enter rates that vary over time. Marginal/Reversion Rate Enter a percentage for the marginal/reversion rate. Click the time. A window similar to the one described above opens. button to enter rates that vary over Froth Rate Enter a percentage for the froth rate. Froth SF Enter a percentage for the froth sinking fund. This is the amount that will be taken from the froth rent and added to the sinking fund. Froth Tax on SF Enter a percentage for the froth tax on the sinking fund. See Also Modeling Policies Resale Cap Group Select a resale cap group by name in the pick list. Choose from: 428 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
None: No resale cap group will be selected. 
Custom Groups: Choose any custom cap group that you have previously created in the Capitalization Yields tab. See Also Cap Yields Froth Basis Froth basis is the watermark above which additional rents are considered "froth" or above market sustainable levels. Select a froth basis type in the pick list. Choose from: 
None: Does not use a froth basis. 
Date: Allows you to enter/select a date in the Froth Date field. 
First Review: Uses the first rent review as the froth basis. 
Second Review: Uses the second rent review as the froth basis. 
End of Lease: Uses the end of the lease as the froth basis. 
Break Through: Uses the break through rate as the froth basis. 
1st After Break Through: Uses the first event after break through growth rate is reached as the froth basis. 
First Event: Uses the first event as the froth basis. 
Second Event: Uses the second event as the froth basis. Froth Date First select the Date option in the Froth Basis field. Type/select a date to be used as the froth basis in the drop‐down calendar. Breakthrough Growth First select Break Through or 1st After Break Through in the Froth Basis field. Type a percentage for the breakthrough growth rate. This growth rate, added to the base rent, can be used as a froth basis so that rates above this amount are considered froth. Minimum Uplift Enable/disable a minimum uplift. Choose from: • Enabled: Uses the minimum uplift you set up in the Base Rent Window. • Disabled: Ignores the minimum uplift you set up in the Base Rent Window. 429 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Notes The Notes section allows you to enter notes related to the ground lease. To display the Notes window, click to this ground lease. . This allows you to enter notes that you want to have attached 430 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Security Deposits Navigation: Property Editor>Inputs>Tenants>Security Deposits. Purpose You can specify the amount of security deposits and whether they are refundable or non‐refundable. When you create security deposits profiles, you will be able to reference them for individual tenants on the Rent Roll and Market Leasing windows. See Also Short Cuts You can model tenant security deposits in the following ways: 
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Amount or number of month's rent Percentage to be refunded or retained Interest income derived from security deposits Refundable and non‐refundable security deposits on a tenant by tenant basis You can use the Security Deposits tab for the following property types: 
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Office Retail Industrial Mixed Use (Office/Retail) Mixed Use (Office/Industrial) Mixed Use (Office/Multifamily) Mixed Use (Retail/Multifamily) Multifamily See Also Rent Roll Market Leasing Tenants Multifamily General This section contains identifying information for the security deposit profile. 431 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Name Enter a name to describe the security deposit profile. This will be added in Rent Roll, Market Leasing, and Multifamily grids. Refundable This section contains information regarding the refundable portion of the security deposit profile. Unit Select the unit you want to use for refundable security deposits in the pick list. Choose from: 
None: If you select this option, the Amount field will not be available. 
Months: Entry in the Amount field will be multiplied by the base rental revenue in the first month of the lease. 
$ Amount: Entry in the Amount field will be multiplied by the number of units per lease. 
$ / Area: Entry in the Amount field will be multiplied by the lease size in month one of the lease. For multifamily properties, it will be multiplied by the number of units per lease. See Also Security Deposit Calculation Examples Amount Enter the amount to be used in conjunction with the Unit field to determine the Refundable Deposit amount. This field is disabled if the Unit field is set to None. Interest Rate Enter the interest rate that will be earned on the deposit amount. The default is 0. This field is disabled if the Unit field is set to None. % to Refund Enter the percent of the original deposit amount that you want to refund to the tenant upon lease expiration. The default is 0. This field is disabled if the Unit field is set to None. Non‐Refundable This section contains information regarding the non‐refundable portion of the security deposit profile. 432 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Unit Select the unit you want to use for non‐refundable security deposits. You may choose from the following options in the pick list: 
None: If you select this option, the Amount field will not be available. 
Months: Entry in the Amount field will be multiplied by the base rental revenue in the first month of the lease. 
$ Amount: Entry in the Amount field will be multiplied by the number of units per lease. 
$ / Area: Entry in the Amount field will be multiplied by the lease size in month one of the lease. For multifamily properties, it will be multiplied by the number of units per lease. Amount Enter the non‐refundable deposit amount to be used in conjunction with the Unit field to determine the non‐refundable deposit amount. This field is disabled if the Unit field is set to None. See Also Security Deposit Calculation Examples 433 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Payment Schedules Navigation: Property Editor>Inputs>Tenants>Payment Schedules. Purpose You can specify various types and frequency timing for tenant payment schedules. General This section contains identifying information for tenant payment schedules. Name Enter a name to describe the payment schedule. Payment Type Select a payment type from the drop down‐list. Choose from: 
In Advance: Payment will be made at the start of the selected period. 
In Arrears: Payment will be made at the end of the selected period. Payment Day Enter a number or select it in the pick list for the payment day. Payment Month Enter or select a payment month in the pick list. 1st Quarter Day The first quarter day is automatically populated from the start of the analysis period. 2nd Quarter Day The second quarter day is automatically populated from the start of the analysis period. 3rd Quarter Day The third quarter day is automatically populated from the start of the analysis period. 4th Quarter Day The fourth quarter day is automatically populated from the start of the analysis period. 434 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Investment Property Purchase Navigation: Property Editor>Inputs>Investment>Property Purchase. Purpose The Property Purchase tab is where you can enter optional information used to calculate certain cash‐
on‐cash metrics and returns, such as the internal rate of return (IRR). Purchase Information The Purchase Information section allows you to enter information related to the purchase of the property. Purchase Date Displays the Analysis Begin Date, which is assumed to be the date on which this property was purchased. This assumption is used in the calculation of IRR. You cannot change this date directly on the Property Purchase tab. To change the analysis start date, you must do so on the Property Description tab. Purchase Price Select a method in the pick list for calculating the purchase price. Choose from: • Enter Price (default): Entry in the Purchase Price field will be the exact price you paid for the property. • PV Net of Costs: Entry in the Purchase Price field will be the unleveraged (before debt financing) present value of the price you paid for the property, adjusted for closing costs. • Net Value (Traditional): Entry in the Purchase Price field will be the traditional value of the price you paid for the property. • Capitalization Value: Entry in the Purchase Price field will be the capitalization value of the price you paid for the property. 435 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Direct Cap Value: Entry in the Purchase Price field will be the direct cap value of the price you paid for the property. Closing Costs Enter any closing costs you paid for the property. Total Price Displays the total price for this property. This is the sum of the entries in the Purchase Price and Closing Costs fields (if any were entered). Less Debt Amount Displays the debt balance for this property as of the purchase date. Equity Displays the calculated equity as of the purchase date by deducting the Debt Amount from the Total Price. Closing Costs The Closing Costs section allows you to enter closing costs as an amount or a percentage of the total purchase price. Name Name Enter a name for the closing cost you want to include in the purchase price. Amounts How Input Select an input method for how the closing cost amount will be calculated. Choose from: 
436 $ Amount: Entry in the Amount field is used to calculate the closing cost as a currency amount. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
% Purchase Price: Entry in the Amount field is used to calculate the closing cost as a percentage of the purchase price. 
% Total Price: Entry in the Amount field is used to calculate the closing cost as a percentage of the total price. 
Vendors Fees %: Entry in the Amount field is used to calculate the closing cost as a percentage of the purchase price to pay vendors fees. 
Stamp Duty %: Entry in the Amount field is used to calculate the closing cost as a percentage of the purchase price to pay stamp duty taxes. Amount Enter an amount or a percentage depending on your selection in the How Input field. See Also How Input Calculation Examples Purchase Notes The Notes section allows you to enter notes for the property in the text box. 437 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Debt Financing Navigation: Property Editor>Inputs>Investment>Debt Financing. Purpose The Debt Financing tab allows you to enter optional information used to model an unlimited number of existing or prospective loans. This information is used to calculate debt service payments, as well as certain metrics and returns, such as loan to value (LTV) and debt coverage ratios. See Also Short Cuts Quick Start‐ Balloon Payments General The General section allows you to enter general information about the property debt. Name Enter a name to describe the loan. Loan Type Select the loan type. Choose from: 
Amortizing: Calculate both principal and interest loan payments. 
Interest Only: Calculate only interest loan payments. Note you must select the Interest Only option in order to fund operating deficits. Loan Details The Loan Details section allows information pertaining to Amount, Take Out Loan, Beginning Amount, Cap Rate, LTV%, and Interest Rate to be entered for the property debt. How Input Enter the method you want to use to calculate the loan. You may choose from the following options: • $ Amount: Entry in the Amount field will be the total loan amount. • Cap Rate / LTV %: Entry in the Cap Rate and LTV% fields will be used to calculate the loan amount. • Take Out: Entry in the Take Out Loan field will be the loan amount. • % of Other: Window will open where you can select a value as How Input and enter a percentage. • % of Adopted Valuation: Loan amount will be the entered percentage of the property value as of the valuation date. 438 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: The date used to value the property depends on the calculation method you select in the Calc Method field of the Property Resale tab. If you select the Capitalization Valuation or Discounted Cash Flow method, the valuation date will be the PV/IRR date (entered in the Present Value tab). If you select the Traditional Valuation method, the valuation date will be the Valuation Date (entered in the Traditional Valuation: Calculation tab). Take Out Loan Select the name of the loan which will be refinanced by this debt note. Note This field is only available if you select Take Out Loan in the How Input field. Amount Type the amount or percentage you want to use to calculate the loan. Click vary over time. 439 © 2015 ARGUS Software, Inc. to enter amounts that Product User Manual ARGUS Enterprise 11.0 Max Loan Amount The default option is None. Type the amount that will calculate: • Undrawn Loan Amount= Max. Loan Amount‐Proceeds‐Fund Operating Deficit • Drawn Amount = Outstanding Balance The system will show undrawn amounts and max loan amounts on the following reports: • Cash Flow • Input Assumptions Note: If the outstanding balance exceeds the max loan amount, the system displays a warning icon and the message, "The outstanding balance is more than the max loan amount."
440 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: A take out loan will ignore the max loan amount. Cap Rate Enter the capitalization rate used to calculate property value for the initial funding of a loan‐to‐value debt note. LTV% Enter the loan to value ratio used to calculate the initial funding of this note. This ratio will be applied to the property value based on the entry in the Cap Rate field to determine the initial funding. Interest Rate Enter a simple interest rate or click varies over time. to display the Interest Rate window to enter an interest rate that Interest Rate Editor You can specify the interest rate at each interval in the analysis period. Date You can change the date for the interest rate interval. 441 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Month You can enter the month of the interest rate interval. Amount You can enter varying interest rates. Loan Timing The Loan Timing section allows you to enter information related to the timing of the loan. Loan Date The Loan Date can be used in one of the following ways: 
Analysis Begin: Analysis begin date entered on the Property Description window is used to determine the loan date. 
Specified Date: Begin Date field is made available to enter a specific date on which the loan is to begin. Existing loans on the property can be modeled back to their original start date, or the current loan balance can be entered as of the Analysis Begin Date. Begin Date If you selected Specified Date in the Loan Date field, enter the loan date here. Amortize Start The amortize start date can be: • A number of months after the loan start date (EX: Type 6 for six months) • A specific start date (EX: Type 06/2015) Payment Schedule Select a payment schedule: • Monthly (Default) • Quarterly • Semi‐Annually • Annually Loan Term (Mo) Enter the loan term in months. The system will automatically change the entry in the End Date field to match the loan term. 442 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 End Date Enter a specific number of months until the end date, or enter a defined end date if one is available. The default in the system is (120) months (ten‐year loan). The system will automatically change the entry in the Loan Term (Mo) field to match the end date. Calculation Options The Calculation Options section allows you to enter information related to the calculation of the property debt. Item to Calc Select an item to calculate in the pick list. This field is only available if an amortizing loan is being modeled. You may choose from the following options: 
Payment (default): Automatically determine the amortization term. 
Amortization Term: Enter an amount in the Initial Payment field to calculate the amortization term. Initial Payment If you selected Amortization Term in the Item to Calc field, enter the amount in the Initial Payment field. The system will automatically determine the amortization term for the loan. Amortization Type Select a loan amortization period or percentage. • Same as Loan Term: Uses the loan term. • Specify Months: Uses the number of months entered in the Amort. Term (Mo) field. • % of Drawn Loan: Multiplies the value you enter in the Amortization % field by the drawn loan amount. • % of Outstanding Balance: Multiplies the value you enter in the Amortization % field by the outstanding balance. Amort. Term (Mo) This field is only available if you selected Specify Months in the Amortization Type field. Type the number of months for this term. The default is the value entered in the Loan Term (Mo) field. Calc Method Select a method: 
12 Months (default): The monthly interest rate is the annual interest rate divided by twelve. 
360 Days: The effective interest rate is the monthly interest rate multiplied by 365 divided by 360. 443 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Semi‐Annual: Semi‐annual interest compounds interest twice a year and applies payments monthly. Amortization % This field is only available if you selected Amortization % in the Amortization Type field. Type the amortization percentage for this term or click the to type percentages that vary over time. See Also Amortized Expense Calculation Examples Additional Principal The Additional Principal section allows you to add an additional principal amount and related items for the property debt. Additional Principal If Additional Principal is required, select Yes. Add’l Principal Amount This field is only available if you select Yes in the Additional Principal Basis field. Enter any additional principal payments to be factored into the loan computations. Click the button to enter additional principal by period. Recalc Pmt (Add’l Prin.) Select Yes to recalculate the payments needed to amortize the new principal balance over the same term. Select No to continue making the originally scheduled payments in spite of the increased principal balance. Fund Operating Deficits This field is only available if you selected Interest Only in the Loan Type field. If you use this option, cash flow deficits will be funded by the loan. The following options are available for selecting the frequency and indicating whether funding is to be before or after the debt service: 
No: Cash flow deficits will not be funded by the loan. 
Monthly (After D/S): Cash flow deficits will be funded by the loan on a monthly basis after debt service. 
Monthly (Before D/S): Cash flow deficits will be funded by the loan on a monthly basis before debt service. 
Quarterly (After D/S): Cash flow deficits will be funded by the loan on a quarterly basis after debt service. 
Quarterly (Before D/S): Cash flow deficits will be funded by the loan on a quarterly basis before debt service. 444 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Annually (After D/S): Cash flow deficits will be funded by the loan on an annual basis after debt service. 
Annually (Before D/S): Cash flow deficits will be funded by the loan on an annual basis before debt service. Loan Costs The Loan Costs section allows you to enter items related to the cost of the loan. Loan Cost Select whether loan costs will be entered as a percentage of the loan amount or as a simple currency amount. Choose from: 
None: Loan costs will not be included in reports. 
Percent: Loan costs will be included in reports as a percentage. 
Amount: Loan costs will be included in reports as an amount. 
Detail or Multiple: A grid will become available in the Detail Window that allows you to specify multiple fees. NOTE: The Detail Window is only visible when this field is selected. Detail Window For Multiple Fees Description Type a name or description for the fee. How Input Select a method for calculating finance fees: 
Amount 1: Entry in the Amount 1 field will be interpreted as a simple currency fee charged by the lender. Note the ellipsis is disabled for Amortizing and Interest only debt. It is available for equity and other debt. 
% of Drawn Amount: Entry in the Amount 1 field will be interpreted as a percentage fee of the amount of capital that has been drawn from the instrument. 
% of Undrawn Amount: Entry in the Amount 1 field will be interpreted as a percentage fee of the amount of capital that is available but has not been drawn from the instrument. 
% of Max Loan Amount: Entry in the Amount 1 field will represent a percentage fee of the value entered as the Max Loan Amount. The maximum percentage value that can be entered is 100. 445 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Amount 1 Type a numeric value that corresponds to your selection in the How Input field. Frequency Select the fee timing: 
Same as Loan Payment Schedule (default): Fee is paid corresponding with the loan payment schedule. 
First Draw Only: Fee is paid only upon the first draw of capital. 
At End of Loan: Fee is paid at the end of the loan. 
Single Instance: Fee is paid only one time, as specified in the Instance Date field. The default date will be the date specified in the Earliest Contribution Date field. 
Annually: Fee is paid once per year, from Analysis start, until the loan is repaid, as specified in the Start Date and Periods. 
Semi‐Annually: Fee is paid twice per year, from Analysis start, until the loan is repaid, as specified in the Start Date and Periods. 
Quarterly: Fee is paid once per quarter, from Analysis start, per year until the loan is repaid, as specified in the Start Date and Periods. 
Monthly: Fee is paid monthly, from Analysis start, until the loan is repaid, as specified in the Start Date and Periods. Instance Date Type an instance date. This field will only be available if Single Instance is selected in the Frequency field. Include in Loan Choose whether to include loan costs in the value of the loan: • Yes • No Loan Cost Amount Type a currency amount based on the selection in the Loan Cost field. These costs will appear on the Cash Flow report in the Financing section. Loan Cost % Type a percentage based on the selection in the Loan Cost field. These costs will appear on the Cash Flow report in the Financing section. Include In Loan To finance the loan cost, select Yes. 446 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Reporting The Reporting section allows you to specify reporting options for the property debt. Show Loan Proceeds The following options are available for displaying proceeds on reports: 
No: Proceeds will not be displayed on the report. 
Yes (Month Prior): Only the prior months proceeds will be displayed on the report. 
Yes: All proceeds will be displayed on the report. 447 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Other Debt Navigation: Property Editor>Inputs>Investment>Other Debt. Purpose You can enter debt expenditures and reserve amounts beyond principal and interest on the Other Debt tab. See Also Short Cuts Note: You will not have the ability to define sub‐line accounts on the Other Debt tab or the Chart of Accounts. General Account Number Click to select a new entry from the chart of accounts. Name Enter the name associated with this account number. Amount Amount 1 Enter the amount to be allocated or click amounts that vary over time. to display a monthly input window where you can enter Frequency Select the frequency in the pick list. Choose from: 
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Annually Monthly Inflation Inflation % Use the drop‐down arrow to select the Inflation Rate category you want to adjust. You can enter a custom inflation rate by selecting a custom category in the pick list. Inflation rates are calculated based on the rate selected. Inflation Rate categories are set up in Market Inflation. Click to enter the inflation rates for the selected category. To reset inflation rate amounts, click Reset on the detailed 448 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation window. Note that if you enter detailed inflation, annual inflation entries will represent increases to amounts that occur in the inflation month. Monthly inflation entries will represent increases to amounts in the month of the inflation entry. The first column of the detailed Inflation window is determined by the Allow Inflation in Year One option on the Modeling Policies window. If the option is selected, the first column will be the first year of the analysis; if it isn't selected, the first column will be the second year of the analysis. Notes To add any additional information regarding an expense being included/not included for the cash flow projection, click in the Notes field and enter any information. flow reports. 449 Note: When you enter items under the Other Debt tab, they will be listed in the debt service section of cash © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Valuation Assumptions Navigation: Property Editor>Inputs>Valuation>Assumptions. Purpose The Assumptions tab allows you to manage intervals used in various valuation reports in a central location to facilitate changing settings so that reports will display useful valuation comparisons. Timing You can select the dates for your valuation. Valuation Date (PV/IRR Date) Select the valuation date. Choose from: • Analysis Start (default): Valuation date is the date entered in the Analysis Begin Date field in the Description tab. • Specified Date: Enter your desired valuation date in the field below. Date for Traditional Valuation window. Note: These fields are only visible when you have Traditional Valuation selected in the Modeling Policies Select the traditional valuation date. Choose from: • Analysis Start (default): Traditional valuation date is the date entered in the Analysis Begin Date field in the Description tab. • Valuation Date: Traditional valuation date is the date you selected in the Valuation (PV/IRR Date) above. • Specified Date: Enter your desired traditional valuation date in the field below. General Select the valuation method you want to use. 450 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Adopted Valuation Select a valuation method. Choose from: • Discounted Cash Flow (default): Discounted cash flow (DCF) method is used. This method is primarily used for properties in the US. • Traditional Valuation: Traditional valuation method is used. This method is primarily used for properties in the UK. • Capitalization Valuation: Capitalization valuation method is used. This method is primarily used for properties in Australia. • Mid Point Valuation: Mid‐point between two valuation methods is used. You may also click to open a window in which you can enter values that change over time. For more information about entering values in this window, see the Varying Rate Windows section of Getting Started. Mid Point Valuation Note: This field is only enabled if you have selected Mid Point Valuation in the Adopted Valuation field. Select the two methods for which you want to calculate the mid point. You may choose from the following options. • DCF and Capitalization Valuation (default): Mid point between the discounted cash flow and capitalization valuation methods are used. • DCF and Traditional Valuation: Mid point between the discounted cash flow and traditional valuation methods are used. • Capitalization Valuation and Traditional Valuation: Mid point between the capitalization valuation and traditional valuation methods are used. • Average All: All three methods (discounted cash flow, capitalization valuation, and traditional valuation) are averaged. Sensitivity Intervals Adjust the intervals used in various resale calculation methods. Cap Rate Interval Adjust the cap rate up or down in percentage steps. The default is .5%. Note adjustments will apply to properties that have one of the net operating income (NOI) options as the resale calculation method. Resale Amount Interval Adjust the resale amount interval up or down in percentage steps. The default is .5%. Note adjustments will apply to properties that have one of the following options in the Amount field selected as the resale calculation method: Inflate Purchase Price, Enter Sale Price, $/Building Area. 451 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Gross Income Multiplier Interval Adjust the gross income multiplier interval up or down in percentage steps. The default is .5%. Note adjustments will apply to properties that use the Gross Income Multiplier option as the resale calculation method. Purchase Price Interval Enter the purchase price interval for all resale calculation methods. The default is $50,000. Discount Rate Interval Enter the discount rate interval. The default is .5% IRR Target Enter the internal rate of return (IRR) target. The default is 10%. See Also Valuation Reports Intervals used for Present Value Reporting: Adjust the intervals used in present value calculation methods. Discount Rate Interval Adjust the discount rate interval up or down in percentage steps. The default is .5%. See Also Valuation Reports Discount Rate Calculation Examples 452 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Direct Capitalization Navigation: Property Editor>Inputs>Valuation>Direct Capitalization. Purpose The Direct Capitalization tab provides you with the ability to calculate a property value by capitalizing the first year net operating income (NOI). The Net Operating Income is calculated for a twelve month period beginning on the date entered in the Valuation Date (PV/IRR Date) field in the Assumptions tab. The NOI to capitalize may be adjusted by the Gross‐Up Occupancy % on the Property Resale window. Note: The rate you enter in the Direct Cap Rate field will override the capitalization rates for all properties in the portfolio. Rate The Rate section allows you to enter the direct cap rate for the property. Direct Cap Rate Enter the direct cap rate to be used for calculating the direct cap value for the property. 453 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Results The Results section displays the calculated Direct Capitalization results for the property. The results will include the following: 
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454 Net Operating Income Occupancy Gross Up Adjustment NOI to Capitalize Divided by Direct Cap Rate Direct Cap Value © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Capitalization Valuation Select Capitalization Valuation in the General tab of the Modeling Policies window to view the Capitalization Valuation and Capitalization Valuation Overrides tabs in the Property Editor. On the Capitalization Valuation tab, you can enter default rates for producing a capitalization valuation in the following sections: 
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Property Defaults Allowances Period Revenue and Expense Treatments Property Defaults Valuation Date (PV/IRR Date) Select the date of valuation in the pick list. This field is linked to the PV/IRR Date field on the Present Value tab. Updating one will update the other. Choose from: • Analysis Begin: The valuation date will be the same as the date your analysis begins. • Specified Date: Enter or select the valuation start date. Capitalization Rate Enter the capitalization rate. Click to open a varying rate window in which you can enter rates that vary over time. In the example below, 6% has been entered in the first year (2015) and 9% has been entered in the year following the end of the analysis period (2025). 455 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Initial Capitalization Rate Displays the capitalization rate at the beginning of your valuation period. The field is read‐only. You can change this value by entering a new value in the first year of the time varies window. In the example below, 6% has been entered in the first year as the initial cap rate. 456 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Terminal Capitalization Rate Displays the capitalization rate at the end of your valuation period. This period will be the shorter of the Valuation Date plus Length of Analysis (Description tab) or the Valuation Date plus Property Resale Hold Period (Property Resale tab). The rate for the month following this period is displayed as the terminal cap rate. The field is read‐only. You can change this value by entering a new value in the last year of the time varies window, which is the year following the last year of the analysis period. In the example below, 9% has been entered in the first year as the initial cap rate. Discount Rate Enter the discount rate to be used in the capitalization valuation. This entry does not change the discount rate (APR) on the Present Value tab, which is used for calculating the discounted value of the 457 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 operational cash flows. Click to open a window in which you can enter discount rates that vary over time. In the example below, 10% has been entered as the discount rate for the first year (2015), 9% for the subsequent years of the analysis (2016 ‐ 2024), and 8.5% for the year following the analysis end (2025). Vacancy Rate Enter the vacancy rate. This entry does not change the general vacancy rate (APR) entered on the General Vacancy tab, Click to open a window in which you can enter vacancy rates that vary over time. In the example below, 10% has been entered as the discount rate for the first year (2015), 12% for the subsequent years of the analysis (2016 ‐ 2024), and 7% for the year following the analysis end (2025). 458 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Miscellaneous Items Enter whether or not to include miscellaneous rent in the capitalization valuation calculation in the pick list. You may choose from the following options: • Include: Include miscellaneous rent in the capitalization valuation calculation. • Exclude: Exclude miscellaneous rent from the capitalization valuation calculation. Income to Capitalize Enter the type of income to capitalize in the pick list. You may choose from the following options: • Market (default): The market income will be capitalized. The value for market rent comes from the Rental Value field in the Rent Roll for contracted tenants and from the Rental Value field in the Market Leasing tab for speculative tenants. In addition to market rent, market income is composed of percentage rent, fixed steps, CPI, miscellaneous rent (if you have chosen to include it), and recoveries. The values for these fields come from the Market Leasing tab. • Passing: Passing income is capitalized. Passing income includes base rent, percentage rent, fixed steps, CPI, miscellaneous rent (if you have chosen to include it), and recoveries. These values are entered on the Rent Roll. 459 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Allowances Period You can dictate a period of time during which the capitalization valuation calculation is capturing allowances. Allowances usually affect the property's value negatively and include tenant improvements, leasing commissions, free rent, incentives, and capital expenses. Property Default The allowances period is the time during which allowances will be included in the Capitalization Valuation calculations. Enter the number of months of allowance or select Analysis End in the pick list. Free Rent Enter the number of months of free rent from 0 to 999 or select a method in the pick list. Choose from: • Property Default (default): All free rent offered during the number of months entered in the Property Default field is included. • Analysis End: All free rent offered on or before the last day of your analysis is included. See Also Free Rent Profiles Tenant Improvements Enter the number of months for tenant improvements or a select a date in the pick list. Choose from: • Property Default (default): All tenant improvements made during the number of months in the Property Default field will be included. • Analysis End: All tenant improvements made on or before the last day of your analysis is included. See Also Tenant Improvements Calculation Examples Leasing Commissions Enter the number of months from 0 to 999 for leasing commissions or a select a date in the pick list. Choose from: • Property Default (default): All leasing commissions paid during the number of months entered in the Property Default field will be included. • Analysis End: All leasing commissions paid on or before the last day of your analysis is included. See Also Lease Commission Categories Leasing Calculation Examples Incentives Enter the number of months from 0 to 999 for incentives and incentive recoveries or select a date in the pick list. You may choose from the following options: 460 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Property Default (default): Include all incentives offered during the number of months in the Property Default field. • Analysis End: Include all incentives offered on or before the last day of your analysis. Capital Expenditure Enter the number of months for which you want to include capital expenses. Choose from: • Property Default (default): Include all capital expenses paid during the number of months in the Property Default field. • Analysis End: Include all capital expenses paid on or before the last day of your analysis. • Manually enter a number of months from 0 to 999. Revenue and Expense Treatments You can add revenues and expenses for which you want to specify overrides in this section. There are two default treatments in the system, Operating Default and Capital Default. Their names cannot be changed and the option for the Use Treatment field cannot be changed from Yes. The Operating Default treatment will apply to all operating expenses and revenues, and the Capital Default treatment will apply to all capital expenses. If you want to override the property default of a revenue or expense, you can create a new treatment in this tab. Note: You cannot apply treatments to non‐operating expenses. If you want to apply a treatment to an expense, enter the expense on the Operating or Capital tab rather than the Non‐Operating tab. General Treatment Name The treatment name you enter is displayed in the Cash Flow report. Enter the name you want to use for your treatment. You may want to use the name of the expense or revenue to which the treatment applies. See Also Property Reports Treatment Treatment Enter the type of treatment you want to add. You may choose from the following options: • Capitalize (default): Treat revenues and expenses to which this treatment is assigned as capitalized. In other words, the revenues and expenses included in the treatment will appear in the Market Value before Adjustments section of the Capitalization Valuation report. • Discount: Treat revenues and expenses to which this treatment is assigned as adjustments in the Capitalization Valuation report. 461 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Exclude: Exclude the revenues or expenses to which the treatment is applied from the Capitalization Valuation report. The Rate and Duration columns will not be available. Rate Enter a rate between 0% and 100% or select the Property Default option in the pick list. If the treatment method is set to Capitalize, the capitalization rate is overridden. If the treatment method is set to Discount, then the discount rate is overridden. Click to enter rates that vary over time. In the following example, 8% has been entered in the first year (2015), and 9% has been entered for all subsequent years (2016‐2025) of the analysis period and the year following the analysis end (2025). Duration Enter a number or months from 0 to 999. The default value is 12. This field can be edited when Treatment is set to Discount Rate. Use Treatment You can model different scenarios by switching between treatments. You may choose from the following options: • Yes (default): Capitalization valuation calculation uses the treatment rates for the revenues or expenses to which the treatment is assigned. 462 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • No: Capitalization valuation calculation uses the property default for the revenues or expenses to which the treatment is assigned. Applying a Treatment to Revenue or Expense When you have finished creating the treatment, go to the appropriate revenue or expense tab and apply the treatment. For example, if you wanted to override the property default for a parking revenue, you would do the following: 1. Create a treatment in the Capitalization Valuation tab. 2. Go to the Capitalization Valuation section of the Parking Revenues tab 3. Select the treatment to apply to the desired revenue. See Also Capitalization Valuation Overrides Capitalization Valuation Reports 463 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Resale Navigation: Property Editor>Inputs>Valuation>Property Resale Purpose The Property Resale tab provides you with the ability to calculate multiple resale values used as the exit or reversionary values in the present value analysis. If you enter multiple values, you can specify a default value for roll‐ups and reporting. Resale valuation can be based on net operating income (NOI) adjusted for occupancy, and can be further adjusted by the leasing costs in the applicable resale year. Furthermore, the resale date can be linked to a defined holding period, or independently assigned to a fixed calendar date. Resale valuation can also be calculated using a gross income multiplier. If you enter a multiplier, it will be applied to the stabilized income to produce the gross resale amount. Note: There is no way to model the option to Add back Free Rent or any rows from the Adjustments grid for NOI Adjustments in ARGUS Valuation – DCF, so any such inputs in the property model will be lost during an export to the .SF file format. See Also Short Cuts General Default When you enter multiple resale methods on the Property Resale tab, this option determines the method that will be used in roll‐ups and in summary reports. Name/Description Use this field to enter a name or description for the resale method. Calculation Method The Calculation Method section allows you to specify various factors that affect the calculation of the value of the property. Date of Sale The Hold Period automatically populates the Date of Sale, which is the time basis for the resale calculation. 464 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calc Method Select the calculation method used to calculate the sales proceeds and selling costs. Choose from: 
CAP NOI (12 Months After Sale): Capitalize net operating income for twelve months after the sale date in order to calculate the gross sale price and net sale price. 
CAP NOI (Avg. Sale and Next Yr.): Capitalize net operating income for the average of the NOI in the sale year and the NOI in the year after the sale in order to calculate the gross sale price and net sale price. 
CAP NOI (Year of Sale): Capitalize net operating income based on the year of sale in order to calculate the gross sale price and net sale price. 
CAP Effective Gross Rents (12 Months After Sale): Capitalize net effective gross rents (effective gross revenue ‐ recoveries) for twelve months after the sale date in order to calculate the gross sale price and net sale price. 
CAP Stabilized Income: Capitalize stabilized income by converting the CAP rate you enter into a multiplier in order to calculate the gross sale price and net sale price. Apply your selections and entries in the Stabilized Income Begin, # Months, and Stabilized Income Definition fields. 
Inflate Purchase Price: Inflate the purchase price (over the number of hold years till the resale date)in the Inflation field in order to calculate the gross sale price and net sale price. 
Enter Sale Price: Enter a sale price in the Amount field, which will be used as the gross sale price and net sale price. 
$ / Building Area (SF): Multiply the building area by the number entered in the Amount field to calculate the gross sale price and net sale price. 
Gross Income Multiplier: Apply your selections and entries in the Stabilized Income Begin, # Months, and Stabilized Income Definition fields to calculate the gross sale price and net sale price. 
Traditional Valuation: Apply your selections in the Traditional Valuation modeling policies in order to calculate the gross sale price and net sale price. This selection makes the Cap Group field available, where you can select either Per Lease or a Cap Group by name in the pick list. The Results pane will display the gross sale price (including leasing and capital costs). It will then subtract the total selling costs to calculate the net sale price. 
Capitalization Valuation: Apply your selections in the Capitalization Valuation tab to calculate the gross sale price and net sale price. The Results pane will display the terminal cap rate and the market value before adjustments. It will then subtract any adjustments to calculate the gross sale price. Any selling costs will be subtracted from the gross sale price to calculate the net sale price. Note: If you select Capitalization Valuation, the following fields are disabled: Inflation, Amount, Cap Rate, Multiplier, Stabilized Income Begin, #Months, Stabilized Income Definition, Add Back Free Rent, Gross Up Occupancy Basis, Gross up Occupancy %, Subtract TIs, and Subtract LCs. 
Leasehold Interest: Apply your selections in the Ground Lease tab to calculate the gross sale price by subtracting the leasehold adjustment from the freehold sale price in the Results pane. Note currently, you can only share one leasehold across all tenants in the property model. See Also Modeling Policies 465 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inflation Enter the inflation percentage to inflate the resale price of this property. The Inflation field is only available if you select Inflate Purchase Price in the Calc Method field. Enter the inflation percentage applied to the resale price of this property. Amount Enter the amount for the resale price of this property. See Also Resale Method Calculation Examples Cap Rate Enter the cap rate percentage to be applied to the resale price of the property. Click the enter cap rates that vary over time. This opens a new window. button to Single Value If you click Single Value, the value you enter in a cell will be entered only in that cell. Copy Across and Down If you click Copy Across and Down, the value you enter in a cell will be copied to all the cells in subsequent rows and columns to the end of the chart. 466 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: The Copy Across and Down button is selected by default. If you don't want the value you enter to be copied to the end of the chart, click Single Value before you enter a value in a cell. Copy to End If you click Copy to End, the value you enter in a cell will be copied across the rest of the row to the end of the chart. Copy Column to End If you click Copy Column to End, the column you have selected will be copied across all subsequent columns to the end of the chart. Linear Smooth Select the cell you want the smoothing to start on. Then hold down the Ctrl key and click the cell you want the smoothing to end on. Click the Linear Smooth button to overwrite all the values in between the first and last cell with even increments in the rate. For example, in the screenshot above, the first cell displays a rate of 6%, and the last cell displays a rate of 7%. All the rates in between are even increments between 6 and 7. Reset The Reset Amounts button will reset the amounts back to the way they were before you opened the window. When you are finished, click OK to apply your changes or Cancel to discard them and close this window. Note: The Cap Rate field will only be enabled if you have one of the following resale methods selected: CAP NOI (12 Months After Sale), CAP NOI (Avg. Sale & Next Yr.), CAP NOI (Year of Sale), or CAP Effective Gross Rents (12 Months After Sale). Multiplier Enter the multiplier to be applied to the resale price of the property. Click vary over time. method. to enter multipliers that Note: The Multiplier field will only be enabled if you have selected Gross Income Multiplier as the resale See Also Varying Rate Windows section of Getting Started Cap Group Select the cap group option for traditional valuation. Choose from the following: 
Per Lease (default): Calculate the traditional valuation on a per lease basis. 
Hardcore: Calculate the traditional valuation based on the hardcore method. 
Term and Reversion: Calculate the traditional valuation based on the term and reversion method. 
Initial Yield: Calculate the traditional valuation based on the initial yield method. 467 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Cap Yields Modeling Policies Stabilized Occupancy Stabilized Income Begin Select a date to represent stabilized occupancy to be used as the basis for the resale calculation when using the gross income multiplier. # Months Enter the number of months you want to use for stabilized occupancy. Stabilized Income Definition Define stabilized income by clicking and selecting revenue line items to include or exclude. The following rules will apply when processing added lines after the stabilized income definition has been set: 
If a parent line is selected to include all of the children lines, all new lines added as children will also be included in the stabilized income definition. 
If a parent line is deselected, all new lines added as children will not be included in the stabilized income definition. 
If parent line is mixed (some children are selected and some are not selected), all new lines added as children will not be included in the stabilized income definition. 468 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Adjustment Add Back Free Rent Select this option to add free rent back into the resale calculation. Gross‐up Occupancy Basis Select how you want to gross up or down the net operating income (NOI) to a specified target occupancy rate. ARGUS Enterprise will perform the gross up calculation as follows: 
None: NOI will not be adjusted to a target occupancy percentage. 
% of Occupancy: NOI will be adjusted, up or down, by the ratio of the gross up occupancy percentage to the average occupancy percentage for the resale year (i.e,. NOI x Gross Up %/Average Occupancy %). 
Lag Vacancy: Calculation will be performed as follows: 1. ARGUS will calculate the tenant NOI revenue. The value is equivalent to the effective gross revenue less total other revenue for the resale year. 469 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 2. To the tenant NOI revenue, ARGUS will add the market value of downtime, which is the rent lost during void periods between lease terms. This calculation will use tenant rental values or new and renewal market rents as appropriate, and is impacted by the Blend Calculated Market Rate option on the Modeling Policies window. The Market Value of Downtime calculation includes base rent, fixed steps, CPI, recoveries, and percentage rent, but does not include free rent. 3. To the tenant NOI revenue, ARGUS will also add the average value of vacant space. Vacant space uses the average base rent for the tenants in the building during the month of resale and includes base rent, fixed steps, CPI, recoveries, and percentage rent, but does not include free rent. Rent for vacant space is calculated between the date available and the lease start date, relative to the resale year. 4. To the tenant NOI revenue, ARGUS will also add back the general vacancy allowance in the year of resale. 5. ARGUS will then calculate the adjusted tenant NOI revenue by multiplying the total grossed up tenant NOI revenue by the occupancy gross up percentage. 6. ARGUS will then calculate the total occupancy gross up adjustment by subtracting the tenant NOI revenue from the adjusted tenant NOI revenue. If the gross up occupancy percentage entered lowers the adjusted NOI revenue to be below the tenant NOI revenue then the effect is to gross down, as the result of this calculation will be negative. Gross‐up Occupancy % Enter a percentage to be used to gross up or down the NOI. Deductions Click the to open the Deductions Popup. Click the Include check box next to each deduction item and type the # Months for: • Absorption and Turnover Vacancy • Free Rent • Tenant Improvements • Leasing Commissions • Capital Expenses
470 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Click OK. to finish. Note: If you treated TIs and/or LCs as Operating Expenses, they will be accounted for twice and lower the resale value. Option: You can enter them as deductions or select Capital Expenses for Modeling Policies>Tenants>Calculate TIs/LCs. Note: If you import avux files from previous versions of ARGUS Enterprise in which Subtract TIs or Subtract LCs were selected, the system will import them as 12 month deductions. Hold Period Specify the hold period for the property. You may choose from the following options: 
Length of Analysis (Default): Project the resale to occur at the end of the analysis period. 
Fixed Date: Project the resale to occur on a date that you enter in the Fixed Date field. 
Hold Years: Project the resale to occur at the end of the hold years you enter in the Hold Years field. Hold Years Enter the number of hold years that will override the analysis period. Fixed Date Specify an exact date that will override the analysis period. Adjustments The Adjustments field allows you to make various adjustments to the resale calculation for associated costs or fees that are not represented in the property cash flow or standard selling costs. To add an adjustment, click in the Adjustments field to display the Adjustments window. See Also Resale Adjustments Results The Results section displays the property resale results for the property based on the options selected in the Calc Method field. 471 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Present Value Navigation: Property Editor>Inputs>Valuation>Present Value. Purpose The Present Value tab allows for the calculation of a value for the property based upon a discount rate and discounting interval or method to be applied to the projected cash flows and the property resale value over the period defined by the present value/internal rate of return (PV/IRR) date and the property resale holding period. You can enable rights to view and/or edit this input area by selecting the Property Editors section of the Permission window in Security Roles. See Also Security Roles Valuation Reports Discount The Discount section allows you to enter the discount rate and discount interval information for the property. Discount Rate (APR) Enter the discount rate (APR) to be used when calculating the discounted value of the operational cash flows and the reversion or property resale. Discount Method Select the frequency for which the cash flows are to be discounted. Choose from: 
Monthly: Discount cash flows on a monthly basis. 
Monthly in Advance: Discount cash flows monthly in advance. Note that the system will use 0/12 for period one. 
Quarterly: Discount cash flows on a quarterly basis. 
Semi‐Annual: Discount cash flows on a semi‐annual basis. 
Annual: Discount cash flows on an annual basis. See Also Present Value Calculation Examples 472 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Increment Discount Rate You can add/subtract each increment to adjust the current discount rate input. Next to each numeric text box, the adjusted rates are displayed corresponding to each item. In each text box, you may enter a minimum value of ‐100% and a maximum value of 100%. 
Unleveraged Cash Flow Rate: The entry in this field adjusts the discount rate used for calculating the PV for cash flow results (without subtracting debt service). 
Unleveraged Resale Rate: The entry in this field adjusts the discount rate used for calculating the PV for unleveraged resale results (without subtracting debt service). 
Leveraged Cash Flow Rate: The entry in this field adjusts the discount rate for calculating the PV for leveraged cash flow results (subtracting debt service). 
Leveraged Resale Rate: The entry in this field adjusts the discount rate for calculating the PV for leveraged resale results (subtracting debt service). See Also Present Value Calculation Examples Timing The Timing section allows you to enter the PV/IRR date, analysis date, and fixed date information for the property. PV/IRR Date The PV/IRR Date represents the date used to calculate the property present value and IRR. Choose from: 
Analysis Date: Analysis begin date is used when calculating the property present value and IRR. Therefore, the Fixed Date field is not available for input. 
Specified Date: Enter a month and year in the field below that will be used to calculate the property present value and IRR. Note: This field is linked to the Valuation Date (PV/IRR Date) field on the Capitalization Valuation tab. Updating one will update the other. 473 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Capitalization Valuation Overrides To view this tab, select the Capitalization Valuation option on the General tab in the Modeling Policies window. The Capitalization Valuation Overrides tab allows you to override the property defaults displayed in the Capitalization Valuation tab. General Displays the names of the overrides and the types of leases to which they apply. Name Enter a name for the override. Applies To Select the lease type you want to override in the pick list. To view or make changes to the available types of leases, see Managing Classifications. Treatment Displays how the overrides affect specified lease types. Capitalization Rate You may either choose Property Default in the pick list or enter a rate. Click for different valuation dates. This opens a new window. 474 © 2015 ARGUS Software, Inc. to enter different rates Product User Manual ARGUS Enterprise 11.0 Enter the capitalization rates you want in the appropriate cells. By default, all cells display a rate of 0%. For more information about entering rates in the window, see the Varying Rate Windows section of Getting Started. Click OK to apply your changes. Discount Rate You may either choose Property Default in the pick list or enter the discount rate. Click that vary over time. to enter rates Vacancy Rate You may either choose Property Default in the pick list or enter the vacancy rate. Click that vary over time. to enter rates Miscellaneous Rent Select a method for including or excluding miscellaneous items in the pick list. Choose from: • Property Default (default): Include/Exclude miscellaneous rent according to your property default selection. • Include: Include miscellaneous rent in the capitalization valuation calculation. 475 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Exclude: Include miscellaneous rent in the capitalization valuation calculation. Income to Capitalize Select the classification of income you want to capitalize in the pick list. Choose from: • Property Default (default): Capitalize the income you selected in the Income to Capitalize field in the Capitalization Valuation tab. • Market: Capitalize the market income taken from the Rental Value field in the Market Leasing profile of the lease being valued. • Passing: Capitalize passing income taken from the Rent Roll. Passing Rent includes base rent, percentage rent, fixed steps, Consumer Price Index (CPI), miscellaneous rent, and recoveries paid. Use Treatment Model different scenarios by easily switching between treatments. Select a method of using treatment in the pick list. Choose from: • Yes (default): If the Use Treatment field is set to Yes, the capitalization valuation calculation will use the treatment rates for the revenues or expenses to which the treatment is assigned. • No: If the Use Treatment field is set to No, the capitalization valuation calculation will use the property default for the revenues or expenses to which the treatment is assigned. Note: You can only apply one treatment to a single lease type. See also Capitalization Valuation Capitalization Valuation Reports 476 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Traditional Valuation Traditional Valuation: Calculation Navigation: Property Editor>Inputs>Traditional Valuation>Calculation The Calculation tab allows you to calculate targeted values based on traditional valuations. Traditional Valuers are able to goal seek in order to calculate an equivalent yield based on various target values. The equivalent yield is a collection of different cap rates assigned to various tenants in the property model. After calculating the desired equivalent yield, the Valuer can choose the Force EY button to change all the various yields in the property model to match the equivalent yield. Note: It is recommended that you copy the property model prior to choosing the Force EY button since this process will permanently change the model by "forcing" the yields for all tenants in the property model to match the equivalent yield. See Also Modeling Policies Capitalization Yields Acquisition Costs Assumptions In this section, you can select a key performance indicator (KPI) then enter a value to goal seek. The system will then iterate the equivalent yield until the required value is found. Once the value is found, the valuation will be displayed in the Net Value field as if it were the natural valuation. 477 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Valuation Date Select a valuation date in the pick list. This date is used to define the equivalent rental value (ERV), set the date for discounting capital costs back to the valuation date, and provide the basis for rent valuation. Choose from: 
Analysis Begin Date: Valuation date will be set to the date you selected in the Analysis Begin Date field in the Analysis section of the Property Description tab. 
PV/IRR Date: Valuation date will be set to the date that you selected in the PV/IRR Date field in the Timing section of the Present Value tab. 
Specified Date: Enter or select a date in the drop‐down calendar of the Valuation Date Selector. Valuation Date Selector (unlabeled) Select Specified Date to make this field available. Enter or select a date from the drop‐down calendar. Goal Seek Option Select an option for calculating goal seek results. Choose from the following: 
None: The Target Value field will be disabled. 
Gross Value: Iterates the capgroup yields until the gross value matches the value entered in the Target Value field. 
Net Value: Iterates the capgroup yields until the net value matches the value entered in the Target Value field. 
Equivalent Yield %: Iterates the capgroup yields until the equivalent value matches the value entered in the Target Value field. 
Initial Yield %: Iterates the capgroup yields until the initial yield matches the value entered in the Target Value field. 
Reversion Yield %: Iterates the capgroup yields until reversionary yield matches the value entered in the Target Value field. 
Running Yield %: Iterates the capgroup yields until the running yield matches the value entered in the Target Value field. Target Value Depending upon your selection in the Goal Seek Option field, you may enter an amount or percentage for the target value of the property. Target Date Select a target date in the drop‐down calendar. Calculate Goal Seek Click this button to calculate the equivalent yield according to the value entered in the Target Value field. Force EY Click this button to permanently change all of the yields in the property model to match the Equivalent Yield result in the Calculation Results section. 478 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calculation Results In this section, you can review calculation results based your selection in the Goal Seek Option field and entry in the Target Value field. You can also choose the Say Value option and manually enter a property value. Gross Value Displays the Gross Value result. This value equals the total of the relevant tenant traditional valuation values minus any in place ground lease values. Capital Expenditure Displays the Capital Expenditure result. This value equals the total of the capital expenditures, discounted at the discount rates back to the valuation date. Acquisition Costs Displays the Acquisition Costs result. This value is calculated according to your selections in the Acquisition Costs and Capital Costs fields in the Traditional Valuation tab in the Modeling Policies. Net Value Displays the Net Value result. This value is calculated by adding gross value plus capital costs plus acquisition costs. Say Value Select this option to enable the Say Value field where you can enter a specific say value instead of using the standard rounding defined within the system. A Valuer may use this option to enter an alternative value to use for goal seek. Equivalent Yield Displays the Equivalent Yield result. This value is calculated according to your selection in the EY Value Target field in the Output Yield Assumptions section in the Traditional Valuation tab in the Modeling Policies. 479 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calculation: The steps to calculate the equivalent yield are as follows: 1. Using the hardcore method at a specific yield value 2. Iterate that value until the net value result falls within tolerance to the natural value. Tolerance is defined as the closer of the nearest single currency value or .001% of the original net value. Note: The Modeling Policies that affect the calculation of equivalent yield are as follows: E.Y. Targeted on net un‐rounded value in the E.Y. Value Target field in the Output Yield Assumptions section of the Traditional Valuation tab; E.Y. Targeted Say Value option in the E.Y. Value Target field in the Output Yield Assumptions section of the Traditional Valuation tab; Solve using trail E.Y. Rates to value froth rent option in the Froth Options field in the Output Yield Assumptions section of the Traditional Valuation tab; Solve using defined rates to value froth rent option in the Froth Options field in the Output Yield Assumptions section of the Traditional Valuation tab Equivalent Yield (Quarterly in Advance) Displays the Equivalent Yield (quarterly in advance) result. This value differs from the Equivalent Yield result in that Quarterly in Advance tables are used instead of the option defined in the Modeling Policies. Initial Yield Displays the Initial Yield result. This value equals the first net rent from the Running Yield section divided by the Running Yield result. Reversionary Yield Displays the reversionary yield result. This value equals the last non‐zero net rent from the Running Yield table divided by the Running Yield value. Running Yield Displays the running yield result. This value equals the basis for all yield value denominators as specified in the Running Yield Targets field in Traditional Valuations tab in the Modeling Policies. Contracted Net Rent Displays the contracted net rent. This value equals the net rent, taking into account outstanding rent reviews. Net Rent Displays the net rent. This value, at valuation date, is the first value from the Running Yield schedule. See Also Traditional Valuation Calculation Examples Running Yields This section will shows passing rents, today's rents annualized as they change across time with one row per rent change. You can use this information to model income increases or decreases over the life of the investment. 480 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Yield Date Displays the yield date as read‐only. Gross Rent Displays the gross rent as read‐only. Operating Expenses Displays the revenue costs as read‐only. Ground Lease Expenses Displays the head rent as read‐only. Net Rent Displays the net rent as read‐only. Annual Yield Displays the annual yield as read‐only. Quarterly Yield Displays the quarterly yield as read‐only. See Also Traditional Valuation Calculation Examples Hardcore Method Term and Reversion Method Top Slice Method Initial Yield Method 481 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Traditional Valuation: Acquisition Costs Navigation: Property Editor>Inputs>Traditional Valuation>Acquisition Costs The Acquisitions Costs tab allows you to model fees calculated on the residual net value amount (as defined in the property assumptions) and not on the gross value. In the UK, these fees may include land purchase tax or stamp duty in addition to agency and legal fees associated with the purchase. See Also Modeling Policies Calculation Capitalization Yields Note: If you are a US user of the system, you can switch off options and fields within ValCash that may not be relevant to your region by making changes in the Modeling Policies. VAT Elected for VAT Select/deselect Elected for VAT to define a property's VAT (value added tax) status regarding the treatment of acquisition costs. Choose from: • Selected: Ignores the VAT rate on acquisition costs in the Detailed Valuation report. When a property is "elected for VAT," it means that the VAT can be claimed back on the build cost and any costs incurred; therefore, the VAT rate is not applied to the acquisition costs in the report. • Deselected: Applies the VAT tax on acquisition costs in the Detailed Valuation report. When a property is "not elected for VAT," it means that the VAT must be paid on the build cost and any costs incurred; therefore, the VAT rate is applied to the acquisition costs in the report. 482 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 VAT Rate Type a rate that will be applied to the acquisition costs in the Detailed Valuation report. Capital Costs Trad. Val. Discount Rate Select the discount rate you want to use to calculate capital expenses. Use Equivalent Yield is the default option. Resale Discount Rate Select the discount rate you want to use to calculate the resale price. Use Equivalent Yield is the default option. Acquisition Costs grid Name Description Enter a description for the acquisition cost. Amounts How Input Select the input method you want to use to calculate your entry in the Amount field. Choose from: 
$ Amount: Entry in the Amount field will be calculated as a currency amount. 
% of Net Sale Price: Entry in the Amount field is calculated as a percentage of the net sale price. 
% of Gross Sale Price: Entry in the Amount field is calculated as a percentage of the gross sale price. 
Vendors Fees %: Entry in the Amount field is calculated as a percentage of the acquisition price for the purpose of paying vendors fees, which will be paid to the vendor’s representatives on purchase, including nonrecoverable VAT taxes. 
Stamp Duty %: Entry in the Amount 1 field is calculated as a percentage of the acquisition price for the purpose of paying stamp duty. Amount Enter a number or select an option in the pick list for the acquisition cost. Your entry will be interpreted as either a currency amount or percentage depending upon your selection in the How Input field. See Also Acquisition Costs Calculation Examples 483 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Traditional Valuation: Capitalization Yields Navigation: Property Editor>Inputs>Traditional Valuation>Capitalization Yields The Traditional Valuation tab allows you to attach a yield category specifying the traditional valuation approach used to value each tenant within the property. You can specify which yield category will be used against which tenant for the purposes of calculating the day one value of that tenant and the exit value of each of the tenants. See Also Modeling Policies Calculation Acquisition Costs Note: If you are a US user of the system, you can switch off options and fields within ValCash that may not be relevant to your region. Name Name Enter a name for the cap yield category. Method Method Select a method for calculating the capitalization yield in the drop‐down list. Choose from: 
Hardcore (default): Capitalization yield will be calculated by applying a single rate to all varying lease income and adding a layer rate to the marginal income. The hardcore method values rental income in layers. The lowest risk “core” income is valued into perpetuity at the hardcore rate and any anticipated future uplifts in income are valued at the same rate and discounted to a present value. 
Term & Reversion: Capitalization yield will be calculated by applying the reversionary yield at the next lease event or at the renewal date. The term and reversion valuation method applies different capitalization rates to current (‘term’) and future (‘reversion’) income flows to reflect the relative security of these income flows. Rental income is valued in period steps, applying the term rate to the current income, which is deemed to be lower risk income, over the period of its duration. A reversion rate is then applied to more uncertain future income likely to be received on rent review or reversion, discounted to a present value. 
Initial Yield: Capitalization yield will be calculated by assuming zero or a market rent when actual passing rent is zero. The Initial Yield method applies a capitalization rate to the current net rental income at the valuation date and values this income into perpetuity. This method effectively ignores future changes in income. 484 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Hardcore/Term Rate Enter a percentage for the hardcore/term rate. Click new window. to enter rates that vary over time. This opens a Single Value If you click Single Value, the value you enter in a cell will be entered only in that cell. Copy Across and Down If you click Copy Across and Down, the value you enter in a cell will be copied to all the cells in subsequent rows and columns to the end of the chart. Note: The Copy Across and Down button is selected by default. If you don't want the value you enter to be copied to the end of the chart, click the Single Value button before you enter a value in a cell. Copy to End If you click Copy to End, the value you enter in a cell will be copied across the rest of the row to the end of the chart. Copy Column to End If you click Copy Column to End, the column you have selected will be copied across all subsequent columns to the end of the chart. 485 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Linear Smooth To use the Linear Smooth button, first select the cell you want the smoothing to start on. Then hold down the Ctrl key and click the cell you want the smoothing to end on. Click the Linear Smooth button to overwrite all the values in between the first and last cell with even increments in the rate. For example, in the screenshot above, the first cell displays a rate of 6%, and the last cell displays a rate of 7%. All the rates in between are even increments between 6 and 7. Reset Amounts The Reset Amounts button will reset the amounts back to the way they were before you opened the window. When you are finished, click OK to apply your changes or Cancel to discard them and close this window. Marginal/Reversion Rate Enter a percentage for the marginal/reversion rate. Click to enter rates that vary over time. The reversion rate is the capitalization rate used to estimate the value of all future leases. See a reversion rate example as part of the Term and Reversion Method. Froth Rate Enter a percentage for the froth rate. See a froth rate example as part of the Hardcore Method. Froth Froth SF Enter a percentage for the froth sinking fund rate. This rate is used to determine how much of the froth (over‐rented value) will be set aside for the sinking fund. See a description and example for the sinking fund or the Sinking Fund Modeling Policy that allows you to apply/ignore Pannell's method. Froth Tax on SF Enter a percentage for the froth tax on the sinking fund. See Also Cap Yields Calculation Examples Hardcore Method Term and Reversion Method Top Slice Method Initial Yield Method 486 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Budget Budgeting and Actuals Navigation: Property Editor>Inputs>Property>Actuals. Navigation: Property Editor>Inputs>Property>Budget. Purpose The budgeting and actuals features in ARGUS Enterprise allow you to create detailed budgets, forecasts, and valuations in a collaborative environment across your entire organization. You can use these features to manage the budget and forecasting cycles of your assets and separate tasks between submission, review, acceptance, and approval. In addition, if you have a license for the Property Budget module of ARGUS Enterprise, the Budget button on the Ribbon provides additional budget‐related features on the Capital Expenses, Operating Expenses, and Miscellaneous Revenues tabs. See Also Portfolios Scenarios Highlight Rows/Cells For easy reference, you can use Control + click to highlight multiple cells within selected rows. There are additional short cut key combinations available for the Actuals and Budget screens. See Also Getting Started Hot Keys Actuals The Actuals tab is where you can import or manually enter actual expenses incurred by the property. Although actuals data is typically imported, you can also enter it manually. To enter data manually, click Add Record. See Also Report Impacts of Actuals Data 487 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Timing The timing options near the top left corner of the tab determine the timing of the date columns in the grid. To specify the timing, choose one of the following options: 
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Monthly Quarterly Semi‐annually Annually First Month to Display In addition to setting the timing, you can also specify the first month displayed in the grid by selecting a date in the First Month to Display field. Account Code Click and select an account code on the resulting window. Account Name If you selected an account code that exists on your Chart of Accounts, the account name associated with that code will automatically be entered in the Account Name field. Data Origin Displays the origin of the associated actuals data. You cannot edit this field; it is for information only. Date Columns Enter the actuals data in the corresponding date columns to the right. The data in these fields will be displayed on the corresponding detailed Expense windows. For more information on detailed Expense windows, see Current Budget / Reforecasting below. See Also Capital Expenses Operating Expenses Non‐operating Expenses Miscellaneous Revenues Budget The Budget tab is where you can enter budget information for the expenses incurred by the property. Although prior budget data is typically imported, you can also enter it manually. To enter data manually, click Add Record. 488 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Timing The timing options near the top left corner of the tab determine the timing of the date columns in the grid. To specify the timing, choose one of the following options: 
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Monthly Quarterly Semi‐annually Annually First Month to Display In addition to setting the timing, you can also specify the first month displayed in the grid by selecting a date in the First Month to Display field. Account Code Click the button and select an account code on the resulting window. Account Name If you selected an account code, the account name associated with that code will automatically be entered in the Account Name field. Data Origin Displays the origin of the associated prior budget data. You cannot edit this field; it is for information only. Date Columns Enter the prior budget data in the corresponding date columns to the right. The data in these fields will be displayed on the corresponding detailed Expense windows. For more information on detailed Expense windows, see Current Budget / Reforecasting below. See Also Capital Expenses Operating Expenses Non‐operating Expenses Current Budget / Reforecasting The Capital Expenses, Operating Expenses, and Miscellaneous Revenues windows are where you can reforecast your original budget assumptions. For users with a Budget license for ARGUS Enterprise, these windows include an additional Budget view, which allows you to display budget records, actuals, and account level notes without having to open multiple windows. To show or hide the Budget view, click Budget on the Ribbon. 489 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Budget View The following example shows the Budget View for the Miscellaneous Revenues window. Budget Tools You can toggle between the top grid and the Budget View by using the shortcut key Ctrl + B. Note you can customize the Budget View grid and save the state of that view for later use. Top Grid Hide Accounts Select/deselect this option to hide/show the top grid. Note that if you select Detail in the Ribbon, hidden accounts will reappear in the top grid. Alternatively, you may use the shortcut keys Ctrl + H. Group Accounts Click this button to group accounts by the parent account. You will be able to expand/collapse to view or hide sub‐accounts under each parent account. Alternatively, you may use the shortcut keys Ctrl + G. Timeframe Current Budget Year Select current budget year in the pick list. Your selection controls the first year that appears on the budget Miscellaneous Revenues, Operating Expenses, and Capital Expenses screens. Your selection does not affect the analysis start date or the reporting start date. 490 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Years to Display Select or enter the number of years to be displayed in the budget Miscellaneous Revenues, Operating Expenses, and Capital Expenses screens. Your selection does not affect the length of the projection or the reporting end date. Entry Functions Extend Value Select this option to extend the value to all future years until the end of the analysis period. Alternatively, you can use the shortcut keys Ctrl + U. Note you can enter/modify a single cell value without extending that value to the end of the analysis period. Copy Year Select a forecast row and click Copy Year to copy the row values to all future years until the end of the analysis period. Alternatively, you can use the shortcut keys Ctrl + Y , copy/paste commands, or click/drag a highlighted row to the target row. See Also Occupancy Calculation Examples Note: For multifamily properties, the occupancy rate is replaced by the total multifamily occupancy rate in the conversion calculation. Note: For Mixed Use (Office/Multifamily and Retail/Multifamily) properties, the conversion calculation uses the occupancy rate from the commercial tenants, except when the $/Unit option is selected in the How Input field. The $ / Unit option uses the total multifamily occupancy rate from the residential tenants in place of the occupancy rate to perform the conversion calculation. Budget Grid Account Number Enter or select the account by number in the pick list. Account Name The account name is auto‐populated from your selection in the Account Number field. Alternatively, you may select an account name in the pick list or enter the account name. Previous/Next Click the Previous or Next button to move to the previous/next account. Alternatively, you may use the shortcut keys Ctrl + Left/Right Arrows. Current Year Ending Displays the year and month of the currently active budget. How Input Displays the selected option from the How Input field in the expense grid. 491 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Show/Hide Rows You can choose to show or hide rows by clicking the Show/Hide Rows header and selecting/de‐selecting specific rows by name. Depending upon the available data in your model, the following rows may be available: 
Forecast: This row displays forecast data to the end of the period. 
Variance (B/F): This row displays variance data for budget vs. forecast to the end of the period. 
Variance % (B/F): This row displays variance data for budget vs. forecast, expressed as a percentage, to the end of the period. 
Variance (B/A): This row displays variance data for budget vs actuals, to the end of the period. 
Variance % (B/A): This row displays variance data for budget vs. actuals, expressed as a percentage, to the end of the period. 
Variance (A/F): This row displays variance data for actuals vs. forecast to the end of the period. 
Variance % (A/F): This row displays variance data for actuals vs. forecast, expressed as a percentage, to the end of the period. See Also Getting Started Notes Enter any notes in the Notes area you want linked to the selected account. 492 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Details View To view additional detail about the individual items on the window, you can select an item, and then click the Details on the Ribbon. Monthly Select this option to display line items on a monthly basis. Quarterly Select this option to display line items on a quarterly basis. Semi‐Annual Select this option to display line items on a semi‐annual basis. Annual Select this option to display line items on an annual basis. See Also Capital Expenses Operating Expenses Non‐operating Expenses Miscellaneous Revenues 493 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Budgeting and Actuals Navigation: Property Editor>Inputs>Property>Actuals. Navigation: Property Editor>Inputs>Property>Budget. Purpose The budgeting and actuals features in ARGUS Enterprise allow you to create detailed budgets, forecasts, and valuations in a collaborative environment across your entire organization. You can use these features to manage the budget and forecasting cycles of your assets and separate tasks between submission, review, acceptance, and approval. In addition, if you have a license for the Property Budget module of ARGUS Enterprise, the Budget button on the Ribbon provides additional budget‐related features on the Capital Expenses, Operating Expenses, and Miscellaneous Revenues tabs. See Also Portfolios Scenarios Highlight Rows/Cells For easy reference, you can use Control + click to highlight multiple cells within selected rows. There are additional short cut key combinations available for the Actuals and Budget screens. See Also Getting Started Hot Keys Actuals The Actuals tab is where you can import or manually enter actual expenses incurred by the property. Although actuals data is typically imported, you can also enter it manually. To enter data manually, click Add Record. See Also Report Impacts of Actuals Data 494 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Timing The timing options near the top left corner of the tab determine the timing of the date columns in the grid. To specify the timing, choose one of the following options: 
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Monthly Quarterly Semi‐annually Annually First Month to Display In addition to setting the timing, you can also specify the first month displayed in the grid by selecting a date in the First Month to Display field. Account Code Click and select an account code on the resulting window. Account Name If you selected an account code that exists on your Chart of Accounts, the account name associated with that code will automatically be entered in the Account Name field. Data Origin Displays the origin of the associated actuals data. You cannot edit this field; it is for information only. Date Columns Enter the actuals data in the corresponding date columns to the right. The data in these fields will be displayed on the corresponding detailed Expense windows. For more information on detailed Expense windows, see Current Budget / Reforecasting below. See Also Capital Expenses Operating Expenses Non‐operating Expenses Miscellaneous Revenues Budget The Budget tab is where you can enter budget information for the expenses incurred by the property. Although prior budget data is typically imported, you can also enter it manually. To enter data manually, click Add Record. Timing The timing options near the top left corner of the tab determine the timing of the date columns in the grid. To specify the timing, choose one of the following options: 495 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
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Monthly Quarterly Semi‐annually Annually First Month to Display In addition to setting the timing, you can also specify the first month displayed in the grid by selecting a date in the First Month to Display field. Account Code Click the button and select an account code on the resulting window. Account Name If you selected an account code, the account name associated with that code will automatically be entered in the Account Name field. Data Origin Displays the origin of the associated prior budget data. You cannot edit this field; it is for information only. Date Columns Enter the prior budget data in the corresponding date columns to the right. The data in these fields will be displayed on the corresponding detailed Expense windows. For more information on detailed Expense windows, see Current Budget / Reforecasting below. See Also Capital Expenses Operating Expenses Non‐operating Expenses Current Budget / Reforecasting The Capital Expenses, Operating Expenses, and Miscellaneous Revenues windows are where you can reforecast your original budget assumptions. For users with a Budget license for ARGUS Enterprise, these windows include an additional Budget view, which allows you to display budget records, actuals, and account level notes without having to open multiple windows. To show or hide the Budget view, click Budget on the Ribbon. 496 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Budget View The following example shows the Budget View for the Miscellaneous Revenues window. Budget Tools You can toggle between the top grid and the Budget View by using the shortcut key Ctrl + B. Note you can customize the Budget View grid and save the state of that view for later use. Top Grid Hide Accounts Select/deselect this option to hide/show the top grid. Note that if you select Detail in the Ribbon, hidden accounts will reappear in the top grid. Alternatively, you may use the shortcut keys Ctrl + H. Group Accounts Click this button to group accounts by the parent account. You will be able to expand/collapse to view or hide sub‐accounts under each parent account. Alternatively, you may use the shortcut keys Ctrl + G. Timeframe Current Budget Year Select current budget year in the pick list. Your selection controls the first year that appears on the budget Miscellaneous Revenues, Operating Expenses, and Capital Expenses screens. Your selection does not affect the analysis start date or the reporting start date. 497 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Years to Display Select or enter the number of years to be displayed in the budget Miscellaneous Revenues, Operating Expenses, and Capital Expenses screens. Your selection does not affect the length of the projection or the reporting end date. Entry Functions Extend Value Select this option to extend the value to all future years until the end of the analysis period. Alternatively, you can use the shortcut keys Ctrl + U. Note you can enter/modify a single cell value without extending that value to the end of the analysis period. Copy Year Select a forecast row and click Copy Year to copy the row values to all future years until the end of the analysis period. Alternatively, you can use the shortcut keys Ctrl + Y , copy/paste commands, or click/drag a highlighted row to the target row. See Also Occupancy Calculation Examples Note: For multifamily properties, the occupancy rate is replaced by the total multifamily occupancy rate in the conversion calculation. Note: For Mixed Use (Office/Multifamily and Retail/Multifamily) properties, the conversion calculation uses the occupancy rate from the commercial tenants, except when the $/Unit option is selected in the How Input field. The $ / Unit option uses the total multifamily occupancy rate from the residential tenants in place of the occupancy rate to perform the conversion calculation. Budget Grid Account Number Enter or select the account by number in the pick list. Account Name The account name is auto‐populated from your selection in the Account Number field. Alternatively, you may select an account name in the pick list or enter the account name. Previous/Next Click the Previous or Next button to move to the previous/next account. Alternatively, you may use the shortcut keys Ctrl + Left/Right Arrows. Current Year Ending Displays the year and month of the currently active budget. How Input Displays the selected option from the How Input field in the expense grid. 498 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Show/Hide Rows You can choose to show or hide rows by clicking the Show/Hide Rows header and selecting/de‐selecting specific rows by name. Depending upon the available data in your model, the following rows may be available: 
Forecast: This row displays forecast data to the end of the period. 
Variance (B/F): This row displays variance data for budget vs. forecast to the end of the period. 
Variance % (B/F): This row displays variance data for budget vs. forecast, expressed as a percentage, to the end of the period. 
Variance (B/A): This row displays variance data for budget vs actuals, to the end of the period. 
Variance % (B/A): This row displays variance data for budget vs. actuals, expressed as a percentage, to the end of the period. 
Variance (A/F): This row displays variance data for actuals vs. forecast to the end of the period. 
Variance % (A/F): This row displays variance data for actuals vs. forecast, expressed as a percentage, to the end of the period. See Also Getting Started Notes Enter any notes in the Notes area you want linked to the selected account. Details View To view additional detail about the individual items on the window, you can select an item, and then click the Details on the Ribbon. 499 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Monthly Select this option to display line items on a monthly basis. Quarterly Select this option to display line items on a quarterly basis. Semi‐Annual Select this option to display line items on a semi‐annual basis. Annual Select this option to display line items on an annual basis. See Also Capital Expenses Operating Expenses Non‐operating Expenses Miscellaneous Revenues 500 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Budgeting and Actuals: Copy Forecast The Copy Forecast wizard allows you to copy a forecast to your budget. Select a Portfolio and then click Copy Forecast to Budget in the Data section of the Ribbon to begin. Parameters window First Month of Forecast Choose a date for the first month of the forecast. You may enter the date or select it in the pick list. Note you may enter names or numbers for months. 501 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Last Month of Forecast Choose a date for the last month of the forecast. You may enter the date or select it in the pick list. Note you may enter names or numbers for months. Months Selected This number automatically updates to match your selections. Click Previous to return to the previous window. Click Cancel stop this process. Click Finish continue this process. 502 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 View Job Progress You can click on the Queue tab and select a task from the list to view the status of tasks. Queued Job Details You can review the details of the queued job. Click Close to close this window. Click Export to Excel to export this grid as a spreadsheet. 503 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Modeling Policies Navigation: Property Editor>Ribbon>Options>Modeling Policies. Purpose The Modeling Polices window is where you can specify defaults for certain inputs and calculation methods, as well as additional features and reports that can be enabled or disabled. See Also Global Report Options The following tabs are available within the Modeling Policies window: General Revenue and Expenses Tenants Recoveries Traditional Valuation Capitalization Valuation General tab The General tab allows you to specify defaults for general areas of the system. 504 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 505 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Sections The Sections area allows you to enable/disable tabs and calculate assured income. Traditional Valuation Select this option to enable the Traditional Valuation tabs and reports. Capitalization Valuation Select this option to enable the Capitalization Valuation tabs and reports. Calculate Assured Income Assured income is contracted (as opposed to speculative) income. Select this option to enable the following repertoire reports to display assured cash flow only: Cash Flow, Cash Flow Comparison, Cash Flow Detail, and Cash Flow Detail Comparison. Note: The Calculate Assured Income option will not be available for pure multifamily or hotel properties. For mixed multifamily and retail properties, the assured income will only be calculated for the retail tenants. Note: Selecting Calculate Assured Income in Modeling Policies will override the selection in the Portfolio Details tab. In other words, if you opt to calculate assured income at the property level, it is even if you have opted not to calculate it at the portfolio level. Vacancy & Credit Loss The Vacancy & Credit Loss section allows you to specify the default frequency for general vacancy and credit loss calculations. Calculation Frequency Select the frequency for general vacancy and credit loss calculations in the pick list: 
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Annually Monthly (default) Calculation Month Select a calculation month for vacancy and credit loss in the pick list: 506 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
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Analysis Date (default) January ‐ December Note: When upgrading from DCF15 to ARGUS Enterprise, the "Reporting Start Date" for reports will match your selection in the Calculation Month field. Inflation The Inflation section allows you to select inflation options for the property. Monthly Detail Inflation Select a method for applying inflation to revenues and expenses on a monthly basis: 
Expressed as Nominal Growth Factors (default): Varying monthly rates you enter in the Monthly Detail grid are compounded monthly and displayed as a single rate in the Effective Annual Rate row. 
Expressed as Annual Effective Growth Rates: Varying monthly rates you enter in the Monthly Detail grid are averaged over the year and displayed as a single rate in the Effective Annual Rate row. See Also Monthly Detail Inflation Calculation Examples Property Reports Inflate Market Rates Select inflation market rates timing: • Annually: Inflates market rates on a yearly basis. If you choose this option, there are no changes to any calculations. • Monthly: Inflates market rates on a monthly basis and defaults to starting in the second month of the analysis. If no monthly inflation rate is specified for a given month, the amount for that month will not be inflated. See Also Property Summary Allow Inflation in Year One You can allow inflation to be entered in the first year of the analysis. Market Leasing The Market Leasing section allows you to select expiration and renewal options. 507 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Use Intelligent Renewals You can choose to display/hide the Intelligent Renewals section in the market leasing and/or multifamily market leasing grids by checking the Use Intelligent Renewals option. See Also Intelligent Renewals Quick Reference Round Market Leases to start on the first day of the month You can choose to start market leasing profile leases one day after a previous lease expires. Note this option will only modify leases that terminate in the middle of the month. Rounding The Rounding section allows you to select rounding options. Vendor's Cost Net Rounding This value is used to calculate the basis for vendor's fees. It does not in itself update or change the net value. The default is None. AREA ERV Rounding This value is used to round the ERV calculated by the Area Schedule when used to populate the tenant market value. The default is None. 'Say' Value Rounding (Traditional Valuation) This value is used to round the net value produced by the traditional valuation to a 'say' value result. The default is None. See Also Round Market Leases Calculation Examples Save as Default Options To save the settings on the General tab and set them as the defaults for all new property models, click Save as Default Options. 508 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Revenues and Expenses tab The Revenues and Expenses tab allows you to specify defaults for revenues and expenses entered in the property. Revenue and Expense Use Account Numbers If you select Use Account Numbers, you will be able to assign account numbers to revenues and expenses. Activating this policy enables a new tab called Chart of Accounts under Property. 509 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Show Parent Account Numbers Select this option to display parent account numbers on revenues and expenses. Show Account Types Select this option to display account types on revenues and expenses. Use Fixed % for Recovery Gross Up only A fixed percentage of less than 100% entered for any operating expense can be ignored in the calculation of operating expenses, yet still be used in determining the currency amount in recovery calculations where a gross up percentage has been applied. This function is controlled by the Use Fixed % for Recovery Gross Up Only option. For any recoverable operating expense with a fixed percent of less than 100%, the fixed/variable calculation will not be made to determine the property operating expense. Instead, the amount entered for that operating expense will be the operating expense amount for the property. The fixed percent will be used only in the calculation of the recoverable amount of the operating expense when a gross up percentage is specified for the recovery calculation. Include Rollover Costs in Operating Expenses Unit improvements and leasing costs entered for multifamily properties and mixed use properties with a multifamily component can be included in the total operating costs of the property. This function is controlled by the Include Rollover Costs in Operating Expenses option. This option is not available in office, retail, industrial, office/retail, and office/industrial property models. Use Amount 2 Multiply Amount 1 by Amount 2 for revenue and expense items. Lock Revenues and Expense Entries Lock revenues and expense entries. Copy Year Default Select the default values for revenues and expenses in the pick list: 
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Use Forecast Values (default) Use Actual Values Prop 13 Initial Amount If you want to use a Proposition 13 calculation method for the asset, select the method you want to use in the pick list in this field. Choose from the following: 
Direct Cap Value (default for new properties): Direct cap value as of the analysis start will be used as the basis for the initial tax calculations. When using this option, the direct cap value will be computed using forecast data only. Any actual or budgeted data on the first year of the analysis will be ignored. 
Purchase Value: Purchase price is the basis for the initial tax calculations. 
Tax Assessment: Tax assessment is used is the basis for the initial tax calculations. Enter the tax assessment amount in the field to the right. 510 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
% of Leveraged PV: Leveraged present value is the basis for the initial tax calculations. 
% of UnLeveraged PV: Unleveraged present value is the basis for the initial tax calculations. Note if you select this option, expense calculations will be handled in the following ways: 
Calculation for Year 1 to Date of Sale is the same for both Prop13A and Prop13B expenses. 
Year 1 Prop 13 expense is determined by multiplying the tax rate input on the expenses input screen with the unleveraged present value (PV) of the property – total PV using the adjusted unleveraged cash flow (CF) and resale rates (adjusted rates = main discount rate + any adjustments). 
Year 1 Prop 13 expense inflates at the specified inflation rate for the expense item to calculate the rest of the periods until the Date of Sale. See Also Prop 13 Quick Reference Prop 13 Calculation Example Save As Default Options To save the settings on the Revenues and Expenses tab and set them as the defaults for all new property models, click Save as Default Options. Tenants tab The Tenants tab allows you to specify whether a line item related to interest earned through invested refundable deposits will be reported as part of the Other Tenant Revenue section or as part of the Capital Costs section. 511 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Base Rent Input The setting in the Base Rent Input field determines the default base rent unit for the property. The selection on this screen will affect all new base rent inputs, including tenants and market leasing profiles, but not existing market leasing profiles or tenant inputs, if any exist. In many markets, base rent is quoted on an annual basis (e.g., $12.00/SF per year). However, it is also common in some markets to state rents on a monthly basis. You can change the default to suit your particular needs. When entering base rent data for tenants, you can change the base rent unit on a tenant by tenant basis. 512 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Choose from: 
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Amount / SF / Year Amount / SF / Month Amount / Year Amount / Month % of Market % of Market (with Step amounts) Calculate Potential Rent The Calculate Potential Rent field determines how potential base rent is for vacancies, including vacancy periods between the date available and the lease begin date for leases on the Rent Roll and vacancy periods or downtime between lease terms. Choose from: 
Base Rent: Calculate potential rent based on the entry in the Rental Value field on the Rent Roll if there is one, or based on the Market Rent entries on the Market Leasing profile otherwise. The Upon Expiration assumption and the Blend Calculated Market Rate setting on the Modeling Policy screen determine whether new market or a blended new and renewal rate is used. 
All Tenant Income Less Free Rent: In addition to base rent, the potential base rent will include fixed steps, Consumer Price Index (CPI), recoveries, and percentage rent associated with the first 12 months of the subsequent lease term, which could be a lease on the Rent Roll for vacant space or a speculative lease created by a Market Leasing profile for void periods between lease terms. If this lease term is less than 12 months, these values will be annualized. Note: With both options, a corresponding Absorption & Turnover Vacancy will be deducted to offset the potential rent. Note that these two methods will have a different impact on the General Vacancy Allowance calculation. Blend Calculated Market Rate Determines whether the new and renewal market rents will be averaged by the renewal probability to determine the potential base rent and corresponding absorption and turnover vacancy during downtime between leases. If this option is not selected, the new market rent will be used, unblended, to project potential base rent between lease terms and prior to lease terms associated with the absorption of vacant space. Use Lease ID A Lease ID column can be enabled on the tenant Rent Roll. Enabling this feature provides an additional lease reference number which can be important for more advanced ARGUS Enterprise capabilities. Show Alternate Area Display the Alternate Area field on the Rent Roll. Use Straight Line/GAAP Rent Report the rent that can be recognized rather than the cash amount of rent paid. When you select this option, a Straight Line Adjustment will be added to the Cash Flow report to change the cash rent to book rent. Normally, book rent is the average rent paid over the lease. However, if the property is acquired after the lease start, it will only be averaged over the remaining lease term. 513 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also GAAP Rent Calculation Examples Use Acquisition Date in GAAP Rent Calculations Type a date to start calculating book rent. Reset CPI on changes to Base Rent Select this option to reset CPI to zero when any of the following conditions occur: 
Rent Review: Resets CPI to zero at the next rent review. 
Outstanding Review: Resets CPI to zero at the next outstanding review. 
Base Rent Change: Resets CPI to zero at the next base rent change. See Also Reset CPI Calculation Examples Use Prior Rental Value for Market Base Rent Select this option to make the market base rent equal to the prior rental value. Use Exact Increase Amount for CPI Increases When this option is selected, if the first increase is a specified amount/number of points, then the First Increase will match that amount/point number regardless of the actual index value. The same applies to Further Increases. Calculate a Full Year of CPI for Partial Year Leases (Calendar Increases Only) Select this option to calculate a full twelve months of CPI for the first increase when a lease covers only a partial year. This option does not require you to set up an index and CPI increases with specific dates. Timing for CPI Increases Select a timing basis for CPI: 
Use Lease Begin Date: Calculates CPI, starting from the lease start date. 
Use Analysis Begin Date: Calculates CPI, starting from the analysis start date. Rent for CPI Increases Select a rent period basis for CPI Increases: • Rent in Prior 12 Months (Default): Uses an averaged amount of the previous 12 months. • Rent at Time of Increase: Uses an annualized amount of the rent that occurs in the period of increase and includes base rent changes and step changes. Calculate Leasing Commissions As Select a method for calculating leasing commissions: • Capital Expenses • Operating Expenses 514 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calculate Tenant Improvements As Select a method for calculating tenant improvements: • Capital Expenses • Operating Expenses Impacts Treating TIs/LCs as operating expenses: • Causes TIs/LCs to appear above the NOI on the Cash Flow report. • Causes to TIs/LCs reduce NOI, since both are negative values, which affects valuations. • Impacts portfolio cash flow reports. Note: You can also enter LCs/TIs as deductions from the resale amount. Warning: Treating TIs/LCs as operating expenses counts them twice and lowers the resale value when it is based on NOI. Calculate Security Deposit Interest As Select a method for viewing security deposit interest in reports: • Operating Revenue • Capital Receipt Multifamily Vacancy Allowance Calc Basis You can enter a vacancy percentage over time in order to model empty units. You can also use the vacancy percentage to affect occupancy, so that expenses can be calculated based on the occupied units. • Economic Occupancy (Default): Reduces the Economic Occupancy by taking a flat amount off of the income. • Physical Occupancy: Vacancy Allowance field changes all unit based calculations by taking a percentage of the units, based on the entered values. You will see impacts to: Cash Flow Report Key Statistics • Average Physical Occupancy • Average Monthly Rent/Occ. Size • Average Monthly Rent/Occ. Unit Multifamily Occupancy Summary 515 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Occupied Units • Average Unit Occupancy Percentage Other Impacts • Economic adjustment will not appear because it is zero Unit Occupancy Report • Occupied Units • Average Unit Occupancy Percentage Unit Audit • Total Potential Multifamily Mkt Rent • Total Loss to Lease • Total Potential Rent after Loss to Lease • Total Vacancy Allowance • Total Free Rent • Total Scheduled Multifamily Rent • Total Credit Loss • Total Effective Rental Income • Total Unit Improvements Note: For a mixed use property, the multifamily vacancy allowance calculations will only change for the portion of the property that is multifamily. Note: If you are upgrading or importing a property model from an earlier version prior to 9.5, you will see a change in the multifamily occupancy because the Units field will no longer be linked to the vacancy allowance rate, given that it is set to Economic Occupancy by default in the Modeling Policies. Calculate General Vacancy Overrides By Select a calculation method in the pick list: Tenant groups: Calculates general vacancy overrides/non‐overrides separately, subtotals by group, then puts them in the Cash Flow report. See examples. 516 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property: Calculates all overrides as one total and all non‐overrides as a separate total and puts that number on the Cash Flow report. Note: If you are calculating based on property and you have a large amount of turnover vacancy in one group, so much that it takes overtakes the general vacancy of another group, the result will be zero. Save as Default Options To save the settings on the Tenants tab and set them as the defaults for all new property models, click Save as Default Options. Recoveries tab The Recoveries tab allows you to specify several policies concerning how recoveries is. 517 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 518 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Recoveries The Recoveries section allows you to specify default recovery type and gross up variable expenses for recoveries. Default Recovery Type This feature allows you to set the default recovery method for new tenants, as well as the default recovery method for an expense or expense group that is included in a new user‐defined recovery structure. See Also Recovery Structures Gross Up Variable Expenses for Recoveries Reimbursement calculations may be based on recoverable operating expenses at the projected occupancy or grossed up to any level of occupancy. A fixed percent is assigned when entering recoverable operating expenses. Selecting the Gross Up Variable Expenses for Recoveries option will not affect recovery calculations for any recoverable operating expenses entered as 100% fixed. For any recoverable operating expense with a fixed percentage of less than 100%, the gross up percentage entered in conjunction with Gross Up Variable Expenses for Recoveries becomes the default occupancy percentage used in determining the currency amount in recovery calculations. You must select Gross Up Variable Expenses for Recoveries in order to apply a gross up to any recovery calculations. Once you have selected Gross Up Variable Expenses for Recoveries, the corresponding field will be preset to 100%. This will be the default gross up percentage shown for all user‐defined recovery structures upon their initial creation. You can enter an alternate gross up percentage for any custom recovery structure. Entering a gross up percentage will not affect the calculation of the building operating expenses. Only the expense amounts used for recovery calculations will be affected. Gross Up Percent of Line This field allows you to specify whether applicable expense types will be treated as 100% fixed or 100% variable for the purpose of recovery gross‐up calculations. The following calculations only apply when calculating recoveries for expenses with the following input methods: 
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Percentage of Rental Revenue Percentage of Total Rental Revenue Percentage of Effective Gross Revenue Percentage of Other Percentage of Other x Amount 2 If you select 100% Variable in the pick list in the Gross Up Percent of Line field, the calculated expense amount will be treated as an input, and the calculated recovery amount will be adjusted for occupancy. If you select 100% Fixed, the calculated expense amount will be treated as an input and there will be no gross‐up adjustment. When you select an input method of either % of Other or % of Other x Amount 2 for a recovered expense and the % of Other input method includes at least one Percent of Line amount 519 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 that is affected by a grossed‐up expense, ARGUS Enterprise will calculate the expense amount based on the relevant cash flow lines before any gross‐up adjustments have been applied. The gross‐up will then be applied once at the end. ARGUS Enterprise uses the following calculation to gross‐up expenses for recovery purposes: Use Monthly Occupancy for Gross Up Use monthly occupancy in gross up calculations. Calculation Frequency Select the calculation frequency in the pick list. You may choose from: 
Annually: All monthly recovery payments in a given recovery year will be the same. 
Monthly: Recovery payments may vary on a monthly basis. Automatically Add Expenses to new Expense Groups Available recoverable expenses is automatically added to new expense groups. Available recoverable expenses are expenses that are not already included in any other expense groups. Apply Admin Fees As Specify whether to apply the administration fee as a percentage of the recoverable expenses or the recovery amount. You may choose from: % of Recoverable Expenses (Default) Decide how to apply administrative fees to recoveries. The administration fee is applied to the expense amount used for the recovery calculations. 
Calculate admin fee before deduction of Anchor Contribution: Administrative fee assessed on any recovery is on the entire expense basis rather than on the expense less the anchor contribution. If this option is not selected, anchor contributions will be deducted prior to calculating administrative fees. 
Calculate Base Year Stop Before Admin Fees: Calculation for the base year stop amount (and base year +/‐1) for tenants will use the base expense amount prior to adding the administration fee. % of Recovery Administration fee will be applied to the recovered amount. This addition to the recovery amount will be reflected in the net recovered amount in the Audit report. See Also Admin Fee Calculation Examples 520 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: If % of Recovery is selected, the Admin Fee line will be moved below the [=] Recovered Amount line. This will show how the Admin Fee is now calculated against the Recovered Amount. The [=] Net Recovered Amount line below the Admin Fee line will display the sum of the Recovered Amount + Admin Fee lines. Save as Default Options Save the settings on the Recoveries tab and set them as the defaults for all new property models. Traditional Valuation tab The Traditional Valuation tab allows you to specify several policies concerning how UK traditional valuations is. 521 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Valuation Acquisition Costs Select a basis method for calculating acquisition costs. You may choose from: 
Based on residual net unrounded value: Acquisition costs is calculated based on the residual, net unrounded value. 
Based on locked 'Say' value: Acquisition costs is calculated based on the say value. 522 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Acquisition Costs Capital Costs Select a basis method for calculating capital costs. You may choose from: 
Ordered before Acq. Fees in valuations: Capital costs are calculated before acquisition fees in the valuation. 
Ordered after Acq. Fees in valuations: Capital costs are calculated after acquisition fees in the valuation. See Also Capital Expenses Output Yield Assumptions Froth Options Select the policy for calculating froth rates in the pick list. You may choose from: 
Solve using defined rates to value froth rent: Equivalent yield for froth rent is calculated by using the froth yields. 
Solve using trial E.Y. rates to value froth rent: Equivalent yield for froth rent is calculated by replacing the froth yields with equivalent yield trial rates. Capital Costs Select the policy for calculating capital costs in the pick list. Choose from the following: 
Solve using trial E.Y. rates for capital cost discounting: Equivalent yield for capital costs is calculated by discounting based on equivalent yields. 
Solve using manual rates for capital cost discounting: Equivalent yield for capital costs is calculated by discounting based on the defined discount rate. E.Y. Value Target Select the policy for setting the E.Y. value in the pick list. Choose from the following: 
E.Y. target on net unrounded value: Target the standard net value when calculating the equivalent yield. This is accomplished by iterating the yield values until the process produces the same net value as the original natural value. 
E.Y. target on net rounded (say) value: Target the net rounded or say value when calculating the equivalent yield. This is accomplished by iterating the yield values until the process produces the same net value as the say value. Running Yield targets Select the policy for setting running yield values the pick list. Choose from the following: 
Gross Value: Running yield value is based on the gross value. 
Net Value + Acq. Costs: Running yield value is based on the net value added to acquisition costs. 
Net Value + Cap. Ex: Running yield value is based on the net value added to capital expenses. 523 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Say Value + Acq. Costs: Running yield value is based on the say value added to acquisition costs. 
Say Value + Cap. Ex: Running yield value is based on the say value added to capital expenses. 
Say Value + Acq. Costs + Cap Ex: Running yield value is based on the say value added to the acquisition costs and capital expenses. See Also Acquisition Costs Capital Expenses Valuation Tables Select the method for calculating valuation in the pick list: 
Annually in Arrears: Valuation is annually at the end of each year. 
Quarterly in Advance (EFF): Valuation is according to the effective rate on a quarterly basis at the beginning of each quarter. 
Quarterly in Advance (NOM): Valuation is according to the nominal rate on a quarterly basis at the beginning of each quarter. 
Monthly in Advance (EFF): Valuation is monthly according to the effective rate on a monthly basis at the beginning of each month. 
Monthly in Advance (NOM): Valuation is according to the nominal rate on a monthly basis at the beginning of each month. 
Actual: Valuation is according to actuals. Methods/Yields Hardcore Select the method for calculating yield in the pick list: 
Apply single hardcore rate to all income slices: Apply a single hardcore valuation rate to all income slices of traditional valuation models. 
Use marginal rate for income top slices: Apply a marginal rate for only the income top slices of traditional valuation models. T & R Method Select the method for setting the reversion assumptions in the pick list: 
Reversion assumes next event/review date: Assume the reversion will take place at the next event or specified rent review date. 
Reversion assumes expiry/renewal date: Assume the reversion will take place upon the lease expiration or renewal date. Next Event/Review definition Select the definition type for the next lease event or rent review from the pick list: 
Any Event (Step, Review, Index Step): Selections in the Methods/Yields section will be applied to any lease event. 
Rent Reviews only: Selections in the Methods/Yields section will only be applied to rent reviews. 524 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Initial Yield Method Select the method for calculating the initial yield in the pick list: 
Allow zero valuation rent: Use zero rent leases to calculate the initial yield. 
Apply market rental value if rent is zero: Apply market rental values to leases with zero rent to calculate the initial yield. Sinking Fund Sinking Fund Correction Select a method for calculating the sinking fund correction. This correction is used for determining a more accurate valuation for the property: 
Ignore Double SF Correction (Pannell's method): Divide the investment income into tranches, in which each part will require the provision of a separate sinking fund to recoup capital expenses.. Note leasehold valuations naturally suffer from an inherent error of doubling the sinking fund element. The interest and tax percentages relate to sinking fund contributions against leasehold property interests. 
Apply Double SF Correction (Pannell's method): Subtract the sinking fund value from the overall capital value over the full life of the investment. See Also Sinking Fund Calculation Examples Leasehold Sinking Fund Enter a percentage to be used for the leasehold sinking fund correction. Tax Rate Enter a percentage for the tax rate to be subtracted from the leasehold sinking fund. Save as Default Options To save the settings on the Traditional Valuation tab and set them as the defaults for all new property models, click Save as Default Options. Capitalization Valuation tab The Capitalization Valuation tab allows you to specify several policies concerning capitalization valuation. 525 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: This tab is only visible if Capitalization Valuation is selected on the General tab. Rent Reversion Select a method for calculating the difference between the passing rent and the market rent: • Static (default): Difference between the passing rent and the market rent is only calculated in the month of the valuation date. • Dynamic: Difference between the passing rent and the market rent is calculated in all the months of the reversion period. Allowances Select a method for calculating allowances. You may choose from: 526 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Lease Date Basis (default): Allowance cash flow includes all allowances for a lease (as long as the lease begins within the allowance period). Note: Some allowances may occur beyond the allowance period. • Cashflow Basis: Allowance cash flow includes any allowances that occur within the allowance period. Note: This may result in partial inclusion or exclusion of some allowances. Market Recoveries Select a method for calculating market recoveries. You may choose from the following: • Static (default): Annualized recoveries amount in the month of the valuation date is capitalized. • Dynamic: Sum of the recoveries for twelve months following the valuation date is capitalized. Percentage Rent Select a method for calculating percentage rent. You may choose from: • Static (default): Percentage rent in the month of the valuation date is capitalized. • Dynamic: Sum of the percentage rent for twelve months following the valuation date is capitalized. Save as Default Options To save the settings on the Capitalization Valuation tab and set them as the defaults for all new property models, click Save as Default Options. 527 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Level Reports Reports and Charts The reports listed below are available from the various tabs at the top of the window. For information on printing reports, see Printing Reports. See Also Report Options: Global Report Options: Property Summary Printing Reports Report Group Name Dashboard Property Valuation Unit (Multifamily) Tenant Audit 528 Reports Included 
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Property Summary Market Pricing Tenant Summary Cash Flow Executive Summary Assumptions Budget Comparison Month and Year to Date Variance IRR Matrix Value Matrix Resale Matrix Valuation & Return Summary Present Value Yearly Valuation Returns Over Time Unit Occupancy Unit Audit Unit Assumptions Lease Summary Lease Expiration Leasing Activity Tenant Cash Flow /LPV Retail Revenue & Sales Recovery Structures Detail Lease Break Options Occupancy ADR (Hotel) RevPAR (Hotel) Lease Audit Percentage Rent Audit © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
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Recovery Audit Expense Group Audit Loan Amortization Property Resale Income by Rent Review Rent Schedule Audit Summary Valuation Detailed Valuation Single Line Tenancy Schedule Area Analysis Valuation Audit • Capitalization Valuation Capitalization Valuation Reports Review • Inputs • Reversion Audit 
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Data Review Details Import Review Details Calculation Review Details Validation Listing Audit Log 529 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Printing Reports To print the currently displayed report, choose Print Report on the Ribbon. The resulting Print Preview window allows you to scale the report, change the margins and orientation, and export the report to a PDF file, as well as allowing you to preview the report. 530 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 531 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Dashboard Reports Navigation: Property Editor>Reports>Dashboard Reports ARGUS Enterprise includes the following dashboard reports: 
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Property Summary Tenant Summary Property Summary Navigation: Property Editor>Reports>Dashboard Reports>Property Summary The Property Summary report is a dynamic report providing instant feedback about a property model, including key cash flow and valuation results, as well as other important statistics and metrics regarding the property’s operating, financial and investment performance. With a click of your mouse, you can drill down on any hyper‐linked data element and review detailed supporting information or the data and input assumptions that drive the results. Any changes made to the model will instantly update the information presented on the Property Summary report. See Also Property Summary Report Options The Property Summary report is divided into six areas of interest: 
Property Information: Displays property information, building area, analysis dates, inflation rates, vacancy and credit loss rates, occupancy rates, and weighted average lease expiration (WALE) calculations. 
Summary Cash Flow (Year 1): Displays year‐one cash flow amounts and amounts per unit area. 
Purchase & Investment: Displays purchase price, closing costs, debt, and implied equity. 532 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Valuation & Yield: Displays unleveraged present value, direct cap value, resale cap rate, resale value, internal rate of return (IRR), and cash‐on‐cash yields. 
Capitalization Valuation: Displays the total market value before adjustments, allowances and adjustments, and the market value after adjustments. Note: When the Traditional Valuation modeling policy is selected, the Valuation & Yield area will include a traditional valuation date and a traditional valuation net value. 
Debt Financing: Displays current debt terms, debt payments, loan to value (LTV), and debt coverage ratios. 
Graphs: Displays an assortment of graphs including net operating income (NOI), Cash Flow, Occupancy, and Cash Flow Growth. Tenant Summary Navigation: Property Editor>Reports>Dashboard Reports>Tenant Summary The Tenant Summary report is a dynamic report providing instant feedback about tenants and the leasing characteristics of a model, including top five tenants and market leasing assumptions, as well as other important statistics and metrics regarding the property’s projected leasing activity and occupancy rates. With a click of your mouse, you can drill down on any hyperlinked data element and review detailed supporting information or the data and input assumptions that drive the calculations. Any changes made to the model data will instantly update the results presented on the Tenant Summary report. See Also Tenant Summary Report Options The Tenant Summary Report is divided into four areas of interest. 
533 Tenant Information: Displays the number of tenants, the occupancy, the average term, and the average lease rate. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Top 5 Tenants by Area: Displays the lease status, area, start and end dates, and rent for each of the property's top five tenants. 
Market Leasing Assumptions: Displays the assumptions about the term length, renewal probability, market rent, tenant improvements, and leasing commissions entered on the Market Leasing tab. 
Graphs: Displays graphs of the average occupancy percent and lease expirations. 534 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Reports Navigation: Property Editor>Reports>Property Reports ARGUS Enterprise provides the following property reports: 
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Cash Flow Executive Summary Assumptions Budget Comparison Month and Year‐to‐Date Variance Sources and Uses Cash Flow Navigation: Property Editor>Reports>Property Reports>Cash Flow The Cash Flow report presents the projected revenues, expenses, capital expenditures, leasing costs, debt service, and financing for the property, as well as deductions associated with absorption and turnover vacancy, vacancy loss, and credit loss. ARGUS Enterprise will automatically calculate key sub‐totals including Potential Gross Revenue, Effective Gross Revenue, Net Operating Income, Cash Flow before Debt Service, and Cash Flow after Debt Service. The format of this report will vary for mixed‐use properties. Many line items on this report are hyper‐linked to other reports. For instance, clicking on Potential Base Rent leads to the Lease Audit report, where you can examine potential rent on a tenant by tenant basis. You can use the options in the Report for field to create alternate versions of the Cash Flow report. The following options are available in the pick list: • Total Property (default): Report will show all transactions within the model. • Assured and Speculative Income: Report will show all assured and speculative income. • Assured Cash Flow: Show the assured portion of the cash flow. The tenant revenue section of the report will show assured income based on lease statuses set to contract or contract renewal. All non‐
tenant income and expense items will calculate the assured portion based on a pro‐rata share using the tenant income by lease status as the numerator. See Also Cash Flow Report Options 535 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: Prop 13‐B expense will not be included in the Cash Flow report for the year following the resale. Calculations 
Assured cash flow is determined by a ratio based on revenue to determine percentage of present value (PV). 
Lease Status is used to determine assured vs. speculative tenants. 
Pro‐rata calculations are used to calculate all other items (miscellaneous revenues, operating expenses, and property level capital items). 
Total tenant revenue by lease status is divided by the total tenant revenue for the total property to calculate the pro‐rata share by lease status. 
Pro‐rata calculation will be applied after all other calculations have taken place. 
Tenant mid‐month calculations will remain the same with the first and last months of the lease prorated for the partial month and the first month of the spec profile starting the following full month. 
Total rental revenue is calculated by lease status. 
Other Tenant Revenue is calculated by lease status. 
Total assured income is calculated by totalling rental revenue and other tenant revenue for the assured portion only. 
Total speculative income is calculated by totalling rental revenue and other tenant revenue for the speculative portion only. 
Total tenant revenue and potential gross revenue will be calculated for the entire property. 
If generating a report for assured cash flow only, the assured portion for these items will be displayed. 536 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Total other revenue will be calculated at the property level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 
Potential gross revenue will be calculated at the property level. 
Vacancy & credit loss will be calculated at the property level. 
If generating a report for assured cash flow only, the assured portion for this item will be displayed. 
Effective gross revenue will be calculated at the property level. 
Total operating expenses will be calculated at the property Level. 
Net operating income will be calculated at the property level. 
Total leasing & capital costs will be calculated at the property level. 
Cash flow before debt service will be calculated at the property level. 
Total before debt service will be calculated at the property Level. 
Cash flow after debt service will be calculated at the property level. 
Total financing (net) will be calculated at the property level. 
During the actuals period if the report is generated for assured & speculative income or assured cash flow, the actuals will appear in place of values for contract/contract renewal tenants. 
Speculative income during the actuals period only will be zero. 
During the budget period, the budget values are calculated based on the same pro‐rata share as the forecast values and appear in both the assured and speculative Income. Calculations Key Statistics The Key Statistics section of the report is only available in multifamily property types. This section can be displayed or hidden when viewing a multifamily Cash Flow report by changing the selection in the Print Multifamily Key Statistics field in the report options. You may choose from the following options: 
Total Units: The total number of units entered into the Multifamily tab. 
Units Absorbed/Rolling to Market: The number of units rolling to market during the report time period (when viewing the Cash Flow report annually, time period would be the reporting year). 
Average Physical Occupancy (Units): The vacancy percentage entered on the Multifamily tab. 
Average Economic Occupancy: The total multifamily revenue divided by potential market rent. Both of these values come from the Multifamily section of the Cash Flow report. 
Average Monthly Rent/Occupied Size: The total multifamily revenue divided by occupied size taking into consideration vacancy divided by unit area. 
Average Monthly Rent/Occupied Unit: The total multifamily revenue divided by occupied units taking into consideration vacancy. 537 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Rental Revenue The Rental Revenue section of the report contains elements related to rent revenue. This section includes the following: 
Potential Base Rent: The potential rent for the property. This number is derived from the combination of in‐place rent and the market value of the currently vacant spaces. 
Absorption & Turnover Vacancy: Loss in rent due to downtime between leases and current vacant space. 
Free Rent: Revenue loss due to downtime between leases and current vacant space. 
Straight Line Rent Adjustment: The difference between cash and generally accepted accounting principles (GAAP) calculations of base rent (GAAP average rent across all lease terms for the tenant including steps, free rent, & consumer price index (CPI) increases). 
Scheduled Base Rent: The actual passing rent. This is the potential rent minus vacancy and free rent. 
Total Rental Revenue: Scheduled base rent plus CPI revenue. Other Tenant Revenue The Other Tenant Revenue section of the report contains percentage rent and recovery revenue. This section will include the following: 
Percentage Rent: Rent from all retail sales. This is calculated based on the entries in the Percentage Rent section in the Rent Roll. 
Total Expense Recoveries: Reimbursement revenue from tenants. The tenants' reimbursements are calculated based on the selection in the Recoveries section of the Rent Roll. 
Total Other Tenant Revenue: The total revenue collected from the tenants. This is the total rental revenue plus the additional revenue from percentage rent and expense recoveries. Other Revenue Other revenue includes miscellaneous, parking, and storage revenues. Potential Gross Revenue The potential gross revenue is the total of all revenue before any subtractions are made for vacancy loss or expense outflows. Vacancy & Credit Loss The Vacancy and Credit Loss section will display the assumed loss due to rent defaults and other credit losses as well as loss due to unexpected vacancy. These values are calculated based on the entries on the General Vacancy and Credit Loss tabs in the Market section. Effective Gross Revenue Effective gross revenue is potential gross revenue minus vacancy and credit loss adjustments. Potential Market Rent Potential market rent is calculated as the number of units multiplied by the market rent entered on the Multifamily tab. 538 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Loss to Lease Loss to lease is the difference between schedule rent before vacancy and the potential market rent. Potential Rent Potential rent is calculated as the market rate for units that have rolled to market plus contract rate for remaining units. Vacancy Allowance Vacancy allowance is the potential rent after loss to lease multiplied by the % Vacancy entered on the Multifamily tab. (Vacancy is negative.) Free Rent Units rolling to market multiplied by market rent multiplied by number of months of free rent (free rent is negative). Scheduled Multifamily Rent Potential rent less vacancy allowance less free rent. Additional Concessions Percentage entered for concessions on Multifamily tab multiplied by the scheduled multifamily rent. Credit Loss Percentage entered for credit loss on the Multifamily tab multiplied by the selected multifamily rent less additional concessions. Operating Expenses The operating expenses are all expenses (regardless of recovery percentage) entered on the Operating tab in the Property section of the program. Net Operating Income Net operating income is the effective gross revenue minus the operating expenses. The NOI in the final year is used to calculate the resale value. Leasing Costs The Leasing Costs section is comprised of Tenant Improvements and Leasing Commissions. These are costs associated with leasing a space and are calculated based on entities in the Rent Roll and Market Leasing profiles. Unit Leasing Costs The amount entered on the Multifamily tab for the Improvements and Commissions multiplied by the number of rolling units. Capital Expenditures Capital expenditures are capital costs that appear on the Cash Flow report below the Net Operating Income. These are entered on the Capital tab in the Expenses section of the program. Cash Flow Before Debt Service The cash flow before debt service is calculated by subtracting the total leasing and operating costs from the net operating income. 539 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Debt Service The debt service section includes a breakdown of the other debt, interest, and principal payments and the total debt service. Cash Flow After Debt Service The cash flow after debt service is calculated by subtracting the total debt service from the cash flow before debt service. Property Information Displays the basic information for the property. Executive Summary Navigation: Property Editor>Reports>Property Reports>Executive Summary Like the Property Summary Cash Flow, the Executive Summary Report is a one page summary of key inputs, modeling assumptions, and calculated results for a property. It includes details and hyper‐links related to the purchase price, inflation rates, occupancy and absorption, vacancy and credit loss, and debt financing, as well as valuation results and investment returns. See Also Executive Summary Report Options 540 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calculations Property Information Displays the basic information for the property. Purchase Price/Acquisition This Purchase Price/Acquisition section displays the Gross and Net Purchase Price from the Investment window. 
Total Debt = Total Proceeds plus Total Deficit Funding 
LTV (Loan to Value) = Year one debt funding divided by the gross purchase price 
Total Equity = Net Purchase Price less Total Debt Property Assumptions (Year 1) Displays the basic rates entered for the property as of year one of the analysis. Operations (Year 1) Displays an overview of the first year's cash flow (starting from the Analysis Begin date) including a ratio of income to expenses. For a detailed explanation of the cash flow items, view the Cash Flow report. Occupancy Summary (Year 1) Displays the average occupancy in the first year of the analysis (starting from the Analysis Begin date), the area available for lease as of the beginning of the analysis, and the area that is leased up in the first year. WALE (as of PV/IRR Date) Displays the weighted average lease expiration (WALE) calculations by area and income as of the present value/internal rate of return date. See Also Weighted Average Lease Expiration Calculation Examples Debt Overview (As of Loan Start Date) The debt overview section provides the key details for any loans associated with the property. For a detailed breakdown of the debt calculations, view the Loan Amortization report. Valuation and Returns Key performance indicators regarding the investment can be found in the valuation and returns section of this report. Using the discount rate displayed here, the present value is calculated by discounting the cash flows and the resale value back to the analysis start date. To see an example calculation, view the Valuation & Return Summary report. 
Direct Capitalization Value = Year One NOI divided by Direct Cap Rate 
Direct Cap Rate is entered on the Valuation tab 
NOI Yield (Yr.1) = Year One NOI divided by Net Purchase Price For a detailed view of the internal rate or return (IRR) and an example calculation, view the IRR Matrix report. The optimal sale date is the analysis year in which you will receive the highest return for selling 541 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 the property. The IRR displayed here is the IRR that selling the property in the recommended year will produce. Assumptions Report Navigation: Property Editor>Reports>Property Reports>Assumptions The Assumptions Report presents inflation rate assumptions, vacancy and credit loss rates, as well as market leasing rates and assumptions as they inflate over time. Calculations Property Market Assumptions Displays inflation and market rates entered for the property. Profiles This displays will show each market leasing profile's new, renewal, and blended rates for each year of the analysis. This Show the inflated market values,making it a great report for auditing speculative tenants’ lease rates. Absorption Assumptions Displays assumptions pertaining to absorption including length of absorption period, improvements, and unit commissions. See Also Report Options: Assumptions 542 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Budget Comparison Navigation: Property Editor>Reports>Property Reports>Budget Comparison The Budget Comparison report summarizes three years of budget comparison information with up to three different variance calculations. For multi‐entity assets (e.g., office park, industrial park, mixed‐use complex), this report allows you to view a portfolio‐level report summarizing three‐year budget comparison information from one or more individual models with up to three different variance calculations. See Also Budget Comparison Report Options Note: Prop 13‐B expense will not be included in the Budget Comparison report for the year following the resale. Calculations Actuals Prior year actual data displays based on the report options date. Budget Current year budget data displays based on the report options date. Reforecast Current year forecasted data displays based on the report options date. 543 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Projected Following year forecasted data displays based on the report options date. Variance Actuals vs Budget Budget minus actuals (713,775 – 656,344 = 57,431). % Percentage of change between actuals and budget (57,431 ÷ 656,344 = 8.75%). Note: Variance results can be changed in Report Options in the Show Variance field. Month and Year‐to‐Date Variance Navigation: Property Editor>Reports>Property Reports>Month and Year to Date Variance The Month and Year‐to‐Date Variance report presents a comparison of budgeted or actual results to budgeted ones for the current month or for the year‐to‐date period. The report is broken into the following four sections. See Also Month and Year‐to‐Date Variance Report Options Note: Prop 13‐B expense will not be included in the Month and Year to Date Variance report for the year following the resale. Current Month Based on the date in Report Options, shows forecasted vs. budget data and the associated variance. Example: Total Expense Recoveries Reforecast: 58,842; Total Expense Recoveries Budget: 52,135; Variance Amount: Budget – Reforecast = 52,135 – 58,842 = ‐6,707; Variance %: Variance Amount ÷ Reforecast = ‐6,707 ÷ 58,842 = ‐11.40%; Year to Date Shows data for January through the date entered in Report Options. 544 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Example: If Begin Date in Report Options is set to June 2012, Year to Date will show the data from January through June of that year. Year to Date Results vs Prior Year to Date Results shows forecasted and prior year actuals data for January through the data entered in Report Options. Example: If Begin Date in Report Options is set to June 2012, Year to Date will show the data from January through June of that year. Second half of report when scrolling to the right: Current Month vs Prior Year Based on date in Report Options, shows forecasted data of the current year vs. actual data of the prior year and the associated variance. Example: Total Expense Recoveries Reforecast: 58,842; Total Expense Recoveries Prior Year Actuals: 57,327; Variance Amount: Budget – Reforecast = 57,327 – 58,842 = ‐1,514; Variance %: Variance Amount ÷ Reforecast = ‐1,514 ÷ 58,842 = ‐2.57%; Year to Date Results vs Prior Year to Date Results: Shows forecasted and prior year actuals data for January through the data entered in Report Options. Sources and Uses Navigation: Property Editor>Reports>Property Reports>Sources and Uses The Sources and Uses report describes the inflow/outflow of funds to the property and ends in the final years of the analysis. If you have access to a ValCash license and have been granted security permissions, you can use the Sources and Uses Report to: • Evaluate financing requirements • Evaluate cash on cash returns on a unleveraged/leveraged basis • Manage cash flows • View IRRs as of default resale date Note: For Multifamily properties, tenant improvements is renamed to unit improvements. For Mixed Use/Multifamily properties, tenant improvements and unit improvements are separated in the report. 545 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Sources of Capital Sources of Capital section includes: ∙ Net Operating Gains ∙ Debt Funding Proceeds ∙ Initial Equity Contribution ∙ Net Proceeds from sale ∙ Defined Sources of Capital ∙ Required Equity Contributions ∙ Total Sources of Capital Uses of Capital Uses of Capital section includes: ∙ Property Purchase Price ∙ Closing Costs ∙ Total Property Purchase Price ∙ Total Debt Service ∙ Tenant Improvements ∙ Leasing Commissions ∙ Capital Expenditures ∙ Debt Retirement ∙ Defined Uses of Capital ∙ Cash Flow Distributions ∙ Total Uses of Capital Unleveraged Cash on Cash Return Unleveraged Cash on Cash Return section includes: Cash to Purchase Price NOI to Book Value Leveraged Cash on Cash Return Leveraged Cash on Cash Return section includes: Cash to Initial Equity 546 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Unleveraged Monthly IRR Unleveraged Monthly IRR section includes: Unleveraged Monthly IRR Leveraged Monthly IRR Leveraged Monthly IRR section includes: DCF to AE Terms DCF AE Net Operating Gains Debt Funding Proceeds Initial Equity Contribution Net Proceeds from Sale Security Deposits Distributed Deposit Investments Earned Deposit interest Net Operating Income Loan Proceeds Equity Net realizable value Security Deposits Distributed Deposit Investments Earned Deposit interest Defined Sources of Defined Sources of Capitals Capitals Required Equity Required Equity Contributions Contributions Total Sources of Capital Total Sources of Capital Calculations Sources of Capital Loan Proceeds ∙ Display Beginning Balance as of report begin date for existing loans. ∙ Displays Future Loan proceeds generated after report begin date. Equity Displays value from Investment>Property purchase>Equity. Net realizable value Gross proceeds from sale – (adjustments + Costs + Fees) Note: Only applicable in month of default resale. Security Deposits Matches value from property cash flow report. Distributed Deposit Investments Matches value from property cash flow report. 547 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Earned Deposit interest Matches value from property cash flow report. Note: Displays when modeling policy Calculate Security Deposit Interest is set to Capital Receipt. Otherwise, interest is included in operating gains. Total Sources of Capital Net Operating Gains + Debt Funding Proceeds + Initial Equity Contribution + Net Proceeds from Sale + Security Deposits + Distributed Deposit Investments + Earned Deposit Interest. Example Year 1 $750,000 + $2,000,000 + $3,000,000 = $5,750,000 Required Equity Contributions Defined Uses of Capital ‐ Defined Sources of Capital. Note: If Defined Sources of Capital is greater than Defined Uses of Capital, this line does not report the difference. Total Sources of Capital Defined Sources of Capital + Required Equity Contributions. Amount is always positive Uses of Capital Property Purchase Price – Total Purchase Price including costs Net Operating Loss Total Debt Service ‐ Total debt service (includes other debt) Total Tenant Improvements Leasing Commissions ‐ Total Leasing Commissions Total Lease Break Tenant Penalties Incentives – Total Incentives Total capital expenditure Debt Retirement Balloon Payment + Prepayment Penalties Note: This line appears whether the debt retirement is paid off by the resale proceeds or not. Invested security deposits Matches value from property cash flow report. Deposit Refund Matches value from property cash flow report. Total Non‐Operating Expenses Sum of inputs from Expenses>Non‐Operating tab. 548 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Defined Uses of Capital Property Purchase Price + Net Operating Loss + Total Debt Service + Tenant Improvements + Leasing Commissions + Lease Break Penalties + Incentives + Capital Expenditures + Debt Retirement+ Non‐
Operating Expenses Cash Flow Distributions Defined sources of capital ‐ defined uses of capital If the Defined Uses of Capital amount is greater than the Defined Sources of Capital amount, ARGUS will not report it here. This amount will be reported on the Required Equity Contributions line. Total Uses of Capital Defined Uses of Capital + Cash Flow Distributions Unleveraged Cash On Cash Return Cash to Purchase Price & Costs Net Operating Income ‐ leasing and capital costs) / Property purchase price (inc. costs) NOI to Book Value Net Operating Income / (Property Purchase Price (inc Costs + Accumulated TI’s, LC’s and Capital expenses, lease break penalties, incentives) Leveraged Cash On Cash Return Cash to Initial Equity Cash Flow Distributions ‐ Net Proceeds from Sale + Debt Retirement)/ Initial Equity Contribution Note: Only include Debt Retirement when triggered on month of default resale. Do not include Debt Retirement from ballooned notes. Unleveraged IRR Based on discount method in Present Value tab (without Non‐Operating Expenses). Only show in the period of the default resale. Leveraged IRR Based on discount method in Present Value tab (without Non‐Operating Expenses). 549 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Valuation Reports Navigation: Property Editor>Reports>Valuation Reports The Valuation Report section is a summary of valuation and return information for your project. It includes the following valuation reports: 
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IRR (Internal Rate of Return) Matrix Value Matrix Resale Matrix Valuation & Return Summary Present Value Yearly Valuation Returns Over Time IRR Matrix Navigation: Property Editor>Reports>Valuation Reports>IRR Matrix The IRR Matrix report presents leveraged and unleveraged IRRs for a property based on a range of exit cap rates and going in cap rates. The purchase price and equity are listed for each going in cap rate, and the net sale price and net sale proceeds are listed for each exit cap rate. The central purchase price on the y‐axis comes from the Total Price field on the Property Purchase tab. The intervals above and below this purchase price are determined by the entries in the Purchase Price Interval fields on the Assumptions tab. The central exit cap rate in the x‐axis comes form the entry in the Cap Rate or Multiplier field on the Property Resale tab (depending on the selection in the Calc Method field of the same tab). The intervals to either side of this exit cap rate are determined by the entry in the Cap Rate Interval field in the Assumptions tab. See Also IRR Matrix Report Options IRR Calculation Examples Resale Methods The report varies depending on the option selected in the Calc Method field on the Property Resale tab. Capitalize NOI This variation of the report is generated when one of the following options is selected in the Calc Methods field on the Property Resale tab: CAP NOI (12 Months After Sale), CAP NOI (Avg. Sale & Next Year), CAP NOI (Year of Sale), or CAP Effective Gross Rents (12 Months After Sale). The first three line items under Sales Price Calculation for this option are as follows: • NOI to Capitalize: This is the net operating income, which comes from the Cash Flow report. It remains the same in each column. 550 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Divided by Cap Rate: The central rate is the percentage entered in the Cap Rate field in the Property Resale tab. The columns to the right and left show the cap rate increasing or decreasing by the interval selected in the Cap Rate Interval field on the Assumptions tab (.5% in this case). • Gross Sale Price: This is the NOI divided by the cap rate. Inflate Purchase Price This variation of the report is generated when Inflate Purchase Price is selected in the Calc Method field on the Property Resale tab. The first line item under Sales Price Calculation is Gross Sale Price. The central price is the Purchase Price (entered on the Property Purchase tab) inflated by the percentage in the Inflation field in the Property Resale tab. The columns to the left and right show the purchase price decreasing or increasing by the interval selected in the Purchase Price Interval field on the Assumptions tab. Enter Sale Price This variation of the report is generated when Enter Sale Price is selected in the Calc Method field on the Property Resale tab. The first line item under Sales Price Calculation is Gross Sales Price. The central price is the price entered in the Amount field on the Property Resale tab. The columns to the left and right show the resale price decreasing or increasing by the interval selected in the Resale Amount Interval field on the Assumptions tab. $ / Building Area This variation of the report is generated when $ / Building Area is selected in the Calc Method field on the Property Resale tab. 551 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 The first line item under Sales Price Calculation is Gross Sales Price. Each column displays the Amount (entered in the Property Resale tab) multiplied by the Building Area (entered on the Description tab). Gross Income Multiplier This variation of the report is generated when Gross Income Multiplier is selected in the Calc Method field on the Property Resale tab. The first three line items under Sales Price Calculation are as follows: • Stabilized Income: This is based on your selections in the Stabilized Occupancy section of the Property Resale tab. It remains the same in each column. • Gross Income Multiplier: The central number is the inverse of the number entered in the Multiplier field on the Property Resale tab. The columns to the left and right show the gross income multiplier decreasing or increasing by the interval in the Gross Income Multiplier Interval field on the Assumptions tab. • Gross Sales Price: This is the stabilized income multiplied by the gross income multiplier. Traditional Valuation This variation of the report is generated when Traditional Valuation is selected in the Calc Method field on the Property Resale tab. The first line item under Sales Price Calculation is Gross Sales Price. The central number is determined by your selections in the Traditional Valuation tab in Modeling Policies. The columns to the left and right show the resale price decreasing or increasing by the interval in the Resale Amount Interval field on the Assumptions tab. Capitalization Valuation This variation of the report is generated when you select Capitalization Valuation in the Calc Method field on the Property Resale tab. The first six line items under Sales Price Calculation are as follows: • Net Market Income: This is the net market income in the resale year, which is the amount in the resale year's Cash column on the Market Value before Adjustments line in the Capitalization Valuation report. It remains the same in each column. • Market Value before Adjustments & Allowances: This is the net market income multiplied by the exit cap rate. The central amount is the amount in the resale year's Value column on the Market Value Before Adjustments line item in the Capitalization Valuation report. The columns to the left and right show the results of the net market income multiplied by different cap rates. The cap rates increase or decrease by the interval in the Cap Rate Interval field on the Assumptions tab. • Reversion Adjustment: This is amount by which the rent was above or below market value. • Other Adjustments & Allowances: These are any non‐capitalized expenses, such as leasing commissions and tenant improvements. • Cap Market Value: This is the market value before adjustments and allowances minus the reversion adjustment minus other adjustments and allowances. 552 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Gross Sales Price: This is the same as the cap market value. Calculations IRR Matrix and Sales Price The table displays the unleveraged and leveraged IRRs based on using the net sale price or net sale proceeds values along the top of the graph and the purchase price or equity values along the left side of the graph. The top number in each cell is the unleveraged IRR. The bottom number is the leveraged IRR. The following line items are listed under Sales Price Calculation: The first few line items vary according to the option you selected in the Calc Method field in the Property Resale tab. The following line items are present in the report regardless of the calc method. • Adjustments to Sale: Displays any adjustments to the gross sales price. • Adjusted Gross Sales Price: Displays the gross sales price plus the previous adjustments to the sale. • Cost of Sales: Displays costs based on the net sale price. They can be commissions or closing costs. • Net Sale Price: Displays the final sales price, calculated as the adjusted gross sales price minus the cost of sales. • Loan Balance: Displays the balance left on the loan(s). • Net Sale Proceeds: Displays the proceeds, which are the net sales price minus the loan balance. Value Matrix Navigation: Property Editor>Reports>Valuation Reports>Value Matrix The Value Matrix report presents the unleveraged present value (PV), PV per square foot (SF), and derived going in cap rate for a property based on a range of exit cap rates and discount rates. Like the IRR Matrix Report, this report also presents the sales price calculation for each exit cap rate used. The central exit cap rate on the x‐axis comes from the Cap Rate or Multiplier field in the Property Resale tab (depending on the selection in the Calc Method field in the same tab). The intervals to either side of the central exit cap rate are determined by the selection in the Cap Rate Interval or Gross Income Multiplier Interval field in the Assumptions tab (again depending on the selection in the Calc Method field in the Property Resale tab). The central cash flow discount rate on the y‐axis comes from the Unleveraged Cash Flow Rate field on the Present Value tab. The central resale discount rate comes from the Discount Rate (APR) field in the same tab. The intervals above and below these central rates are determined by the selection in the Discount Rate Interval field in the Assumptions tab. See Also Value Matrix Report Options 553 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Resale Methods The Value Matrix report varies depending on your selection in the Calc Method field on the Property Resale tab. Capitalize NOI This variation of the report is generated when you select CAP NOI (12 Months After Sale), CAP NOI (Avg. Sale & Next Yr.), CAP NOI (Year of Sale), or CAP Effective Gross Rents (12 Months After Sale) in the Calc Method field in the Property Resale tab. The first three line items under Sales Price Calculation for this method are: • NOI to Capitalize: This is the net operating income, which comes from the Cash Flow report. It remains the same in all five columns. • Divided by Cap Rate: The central percentage is the value you entered in the Cap Rate field in the Property Resale tab. The columns to the right and left display the cap rate increasing or decreasing in .5% increments. • Gross Sale Price: This is the NOI to capitalize divided by the cap rate. • Adjustments to Sale: This is the adjustments to the sale, entered on the Property Resale tab in the Adjustments window. • Adjusted Gross Sales Price: This is the gross sale price minus any adjustments to sale. • Cost of Sales: This is the cost of sales, for instance a realtor's commission, and is entered on the Property Resale tab in the Adjustments window. 554 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Net Sale Price: This is the adjusted gross sales price minus cost of sales. This variation of the report is generated when Inflate Purchase Price is selected in the Calc Method field in the Property Resale tab. The first line item under Sales Price Calculation for this method is Gross Sales Price. The central price is calculated by inflating the purchase price (entered in the Purchase Price field in the Property Purchase tab) and inflating it by the percentage in the Inflation field in the Property Resale tab. Enter Sale Price This variation of the report is generated when Enter Sale Price is selected in the Calc Method field in the Property Resale tab. The first line item under Sales Price Calculation for this method is Gross Sales Price. The central price is the price entered in the Amount field in the Property Resale tab. The prices to the right and left are increasing and decreasing in .5% increments. $ / Building Area This variation of the report is generated when $ / Building Area is selected in the Calc Method field in the Property Resale tab. The first line item under Sales Price Calculation for this method is Gross Sales Price. This is the value entered in the Amount field in the Property Resale tab multiplied by the value in the Building Area field in the Description tab. Gross Income Multiplier This variation of the report is generated when Gross Income Multiplier is selected in the Calc Method field in the Property Resale tab. The first three line items under Sales Price Calculation for this method are: • Stabilized Income: This is based on your selections in the Stabilized Occupancy section of the Property Resale tab. • Gross Income Multiplier: This is the inverse of the number entered in the Multiplier field in the Property Resale tab. • Gross Sales Price: This is the Stabilized Income multiplied by the Gross Income Multiplier. • Adjustments to Sale: This is the sale adjustments entered in the Adjustments window of the Property Resale tab. • Adjusted Gross Sale Price: This is the Gross Sale price minus any sale adjustments. • Cost of Sales: This is the cost of sales entered in the Adjustments window of the Property Resale tab. • Net Sale Price: This is the Adjusted Gross Sale Price minus the cost of sales. Traditional Valuation This variation of the report is generated when Traditional Valuation is selected in the Calc Method field in the Property Resale tab. 555 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 The first line item under Sales Price Calculation is Gross Sales Price. The central number is the number entered in the Say Value field in the Calculation tab. The numbers to the right and left are increasing and decreasing in .5% increments. Capitalization Valuation This variation of the report is generated when Capitalization Valuation is selected in the Calc Method field in the Property Resale tab. The first six line items under Sales Price Calculation are: • Net Market Income: This is the net market income in the resale year. It remains the same in each column. • Market Value before Adjustments & Allowances: This is the net market income multiplied by the exit cap rate. • Reversion Adjustment: This is amount by which the rent was above or below market value. • Other Adjustments & Allowances: These are any non‐capitalized expenses, such as leasing commissions and tenant improvements. • Cap Market Value: This is the market value before adjustments and allowances minus the reversion adjustment minus other adjustments and allowances. • Gross Sales Price: This is the same as the cap market value. Calculations Pricing Matrix and Sales Price Calculation The table displays three key performance indicators based on using the exit cap rate along the top of the graph to calculate the resale value and the discount rate along the left side of the graph to discount both the cash flows and the resale back to the analysis start date. The top number in each cell is the unleveraged present value at the applicable rates. The middle number is the present value divided by the property size to produce the present value per SF. The third value in each cell is the going in cap rate, which is calculated by dividing the first year's NOI by the present value in that cell. Example: Going in Cap Rate = The NOI in the first year is 327,310, and the present value cell is 18,107,731. 327,310 ÷ 18,107,731= 1.81% The first few line items vary according to the option you selected in the Calc Method field in the Property Resale tab. The following line items are present in the report regardless of the calc method. • Adjustments to Sale: Displays any adjustments to the sale price to account for higher than average vacancy in the resale year. • Adjusted Gross Sales Price: Displays the gross sales price plus the adjustments to the sale. • Cost of Sales: Displays costs relating to the sale. They can be commissions or closing costs. • Net Sale Price: Displays the final sales price, calculated as the adjusted gross sales price minus the cost of sales. 556 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Resale Matrix Navigation: Property Editor>Reports>Valuation Reports>Resale Matrix The Resale Matrix report provides the required sale price given a prospective purchase price and IRR target. See Also Resale Matrix Report Options Calculations The central purchase price shown in the y‐axis equals the entry in the Purchase Price field on the Property Purchase tab. The other prices are increments from the central price. These increments are determined by the selection in the Purchase Price Interval field on the Assumptions tab. The central IRR in the x‐axis comes from the IRR Target field on the Assumptions tab. The other values on either side of the central IRR are increments determined by the selection in the Discount Rate Interval field on the same tab. • Going In Cap Rate:the NOI for the 12 month period starting on the PV/IRR date divided by the purchase price 557 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Required Gross Sale Price: the gross resale value which will produce the IRR value in the column header if the property was originally purchased using the purchase price in the row header • Exit Cap Rate: the NOI in the 12 month period beginning on the date of sale divided by the required gross sale price Valuation and Return Summary Navigation: Property Editor>Reports>Valuation Reports>Valuation and Return Summary The Value & Return Summary report presents a one page summary of the property valuation, including valuation assumptions, the sales proceeds calculation, returns and distributions, leveraged, and unleveraged cash flows, cash‐on‐cash returns, and capitalization valuation assumptions. Calculations Valuation Assumptions The Valuation section of the report displays the information entered in the Valuation tabs. It includes the present value (PV) calculation date, leveraged and unleveraged cash flow, and the date and costs of the sale. Sales Proceeds Calculation The property resale price is calculated differently based your selection in the Calc Method field in the Property Resale tab. For all calculations, the sale price adjustments are subtracted from the gross sale price to determine the net sale price. The loan balance is then subtracted to determine the proceeds from sale. Your entries in the Present Value tab are used to determine the PV of net sales price. To see the resale value at different cap rates and the breakdown of the resale calculation, see the IRR Matrix report. CAP NOI (12 Months After Sale) For this method, the gross sale price is determined by dividing the NOI from 12 months after the sale date by the Cap Rate entered in the Property Resale tab. 558 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 CAP NOI (Avg. Sale & Next Year) For this method, the gross sale price is determined by taking the average of the NOI from the sale date and the NOI from 12 months after the sale date. The average NOI is then divided by the Cap Rate entered in the Property Resale tab. CAP NOI (Year of Sale) For this method, the gross sale price is determined by dividing the NOI from the year of sale by the Cap Rate entered in the Property Resale tab. CAP Effective Gross Rents (12 Months After Sale) For this method, the gross sale price is determined by dividing the effective gross rents from 12 months after the sale date by the entered cap rate. Inflate Purchase Price For this method, the gross sale price is determined by inflating the amount entered in the Purchase Price field in the Property Purchase tab by the amount entered in the Inflation field in the Property Resale tab. Enter Sale Price For this method, the gross sale price is the value entered in the Amount field in the Property Resale tab. $ / Building Area (SF) For this method, the gross sale price is determined by multiplying the building area (entered in the Building Area field in the Description tab) by the number in the Amount field in the Property Resale tab. Gross Income Multiplier For this method, the gross sale price is determined by calculating the stabilized income from your selections in the Stabilized Income Begin, #Months, and Stabilized Income Definition fields in the Property Resale tab. The stabilized income is then multiplied by the number in the Multiplier field in the Property Resale tab to determine the gross sale price. Traditional Valuation For this method, the gross sale price is determined by your selections in the Traditional Valuation tab of the Modeling Policies window. Capitalization Valuation For this method, the gross sale price is determined by your selections in the Capitalization Valuation tab. Return Summary The return summary section of this report is an overview of the different key performance indicators including IRR and Present Value. • The unleveraged PV is calculated by discounting the cash flows and the resale back to the beginning of the analysis using the discount rate entered on the Valuation tab. • The initial investment is the net purchase price. • The net present value (unleveraged) is the total return unleveraged less the initial investment. 559 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • The assured income portion is revenue from contract tenants, speculative income is revenue from lease up and rollover assumptions made in the analysis, and net sales price is the percentage of the present value that is based on the resale value. • The leveraged and unleveraged IRRs are also included in this section. For a more comprehensive IRR report and to see an example calculation, view the IRR Matrix report. • The present value is also broken down between cash flow and resale and a relative percentage of the overall PV is given for both. • Present value is divided by the property size to produce the PV per SF. Capitalization Valuation Summary The Capitalization Valuation section of the report includes the capitalization, discount, and vacancy rates; capitalized income; allowances and adjustments; and market value. The Capitalization Valuation Summary section of the report only appears if you have selected Capitalization Valuation in the Modeling Policies window. Distributions of Net Proceeds The sale proceeds distribution section calculates the final proceeds from sale once any current loans and equity investments are paid back. Investment & Cash Flow Summary The Investment & Cash Flow Summary section of this report uses unleveraged cash flow and the initial investment to calculate a return on investment. • The first result column displays the unleveraged investment (purchase price) at the beginning of the analysis. • The next column lists the cash flows in each year of the projection. These values are then discounted to produce the present value of each year's cash flow, listed in the third column. • The present value is then used to calculate the unleveraged cash on cash return, listed in the fourth column. This is calculated by dividing the cash flow in each year by the initial investment. Example: Unleveraged Cash on Cash Return = Unleveraged Cash Flow December 2014: 1,921,257; Initial Investment: 14,520,000; Results = 1,921,257 ÷ 14,520,000 = 13.17% Present Value Navigation: Property Editor>Reports>Valuation Reports>Present Value The Present Value report presents a one page summary of the property valuation, including valuation assumptions, the investment, leveraged and unleveraged cash flows, and cash‐on‐cash returns. You can specify the reporting format as either Unleveraged Present Value or Leveraged Present Value in the Report For field. 560 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Present Value Report Options Note: Present value reports will include Per Room, Per Unit, or Per SF for hotel, multifamily, or other property types, respectively. Unleveraged Present Value (default) If you select this option, present value and cash‐on‐cash returns will be calculated based on total cash flow for the property, not including debt or equity. The following conditions will apply: 
Total present value will be displayed as Total Unleveraged Present Value in the report. 
The formula for unleveraged cash on cash return in the report will be as follows: NOI will be divided by the sum of property purchase price and the leasing and capital costs. 
If the Yes option is selected in the Include Purchase Price field, the total unleveraged net present value will be displayed in the report. 
If the Yes option is selected in the Include Purchase Price field, the purchase price will be added as year zero for the analysis period, and this value will be negative. 
If the No option is selected in the Include Purchase Price field, the report starts with year one in the analysis period column. Leveraged Present Value If you select this option, present value will be based on leveraged cash flows and cash‐on‐cash returns. The following conditions will apply: 
Total present value will be displayed as Total Leveraged Present Value 
The formula for the leveraged cash on cash return formula is as follows: The required equity contribution will be divided by the initial equity or cash flow distributions divided by the initial equity (calculated as purchase price minus debt funding in month one). 
If the Include Purchase Price option is selected, the total leveraged net present value will be displayed in the report. 561 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
If the Include Purchase Price option is selected, the purchase price will be added as year zero for the analysis period, and this value will be negative. 
If either the Include Purchase Price or Exclude Purchase Price option is selected, the Cash Flow column will be renamed to Cash Flow Available for Distribution. Calculations Percentage Value Distribution The values displayed for assured income, speculative income, and net sale price will match the percentage of PV‐assured income, percentage of PV‐speculative income, and percentage of PV‐net sales price, respectively from the Return Summary section of the Valuation & Return Summary report. Note: If cash flow and resale rates used are different, the following is an example footnote that will be displayed at the bottom of the report: "Resale discounting is 2 percentage basis point(s) higher than cash flow rates." See Also Property Reports Yearly Valuation Navigation: Property Editor>Reports>Valuation Reports>Yearly Valuation The Yearly Valuation report presents a time series with the property's valuation at specified intervals using various valuation methods. When you first open the report of after you have made a change in the inputs, you will see a hyperlink with the word Calculate in place of numbers in most of the fields after the first column. Click on one of these hyperlinks or the red phrase Click to calculate this report in the bottom left corner of the report, and the report will calculate the missing values. The report is divided into the following sections: • Cash Flow Summary • DCF Valuation • Capitalization Valuation • Mid Point Valuation • Adopted Valuation • Calculated Yields 562 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Cash Flow Summary The Cash Flow Summary section of the report displays the net operating income, capital expenditures and debt, and the cash flow available for distribution. The values for these line items come from the Cash Flow report. See Also Property Reports Net Operating Income Displays the net operating income, which is the Effective Gross Revenue minus Operating Expenses. Capital Expenditures Displays the property's total capital costs. Cash Flow Before Debt Displays the cash flow before debt, which is the Net Operating Income minus Capital Expenditures. Debt Service Displays principal and interest payments. Cash Flow After Debt Displays the cash flow after debt, which is the Cash Flow Before Debt minus Debt Service. Total Financing (Net) Displays incoming funding from debt, less any borrowing costs. Non‐Operating Expenses Displays the property's total non‐operating expenses. 563 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Cash Flow Available for Distribution Displays the cash flow available for distribution, which is the Cash Flow After Debt minus Non‐Operating Expenses. % Growth Prior Period Displays the percentage by which the Cash Flow Available for Distribution has grown compared to the prior period shown on the report. DCF Valuation The DCF (discounted cash flow) valuation section displays a summary of the discounted cash flow valuation and consists of the following components: Discount Rate ‐ Operations This line item presents the rate used to discount operating cash flows. It can be determined by adding the percentage in the Discount Rate (APR) field to the percentage in the Unleveraged Cash Flow Rate field in the Present Value tab. Discount Rate ‐ Resale This line item presents the rate used to discount the proceeds from resale. It can be determined by adding the percentage in the Discount Rate (APR) field to the percentage in the Unleveraged Resale Rate field in the Present Value tab. Resale Calculation Method Displays the resale calculation method you have selected in the Calc Method field in the Property Resale tab. 564 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 PV of Net Sale Price Displays the present value of the net sale price. The net sale price is displayed in the Property Resale tab. PV of Cash Flow Before Debt Displays the present value of the Cash Flow Before Debt. DCF Value Displays the sum of the previous two rows, which is the value of the property calculated using the discounted cash flow method. Capitalization Valuation The Capitalization Valuation section displays a summary of the capitalization valuation method and consists of the following components. Default Cap Rate Displays the default capitalization rate you selected in the Capitalization Valuation tab. Default Discount Rate Displays the default discount rate you selected in the Capitalization Valuation tab. 565 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Net Market Income Displays the projected market income on the valuation date. This value is also displayed in the Cash column of the Total Market Rent row of the Capitalization Valuation report. See Also Capitalization Valuation Reports Market Value Before Adjustments and Allowances Displays the total capitalized market revenue less any capitalized expenses. The value is also displayed on the Capitalization Valuation report. Reversion Adjustment Displays the total adjustment to market value for all leases that are paying above or below market rent. Other Adjustments & Allowances Displays any other adjustments and/or allowances to market value for items such as incentives or capital costs. Cap Market Value Displays the value of the property using the capitalization valuation approach. % Growth Prior Period Displays the percentage by which the Cap Market Value has grown compared to the prior period shown on the report. Mid Point Valuation The Mid Point Valuation section summarizes the value of the property using the selections in the Mid Point Valuation field in the Assumptions tab. Average Cap & DCF Values Displays the average of the two valuation methods you selected in the Mid Point Valuation field in the Assumptions tab. % Growth Prior Period Displays the percentage by which the Average Cap & DCF Values have grown compared to the prior period shown on the report. 566 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Adopted Valuation The Adopted Valuation section displays the results of the valuation method you selected in the Assumptions tab. Valuation Method Displays the valuation method you selected in the Adopted Valuation field in the Assumptions tab. Adopted Value Displays the value of the property using the valuation method you selected in the Assumptions tab. % Growth Prior Period Displays the percentage by which the Adopted Value has grown compared to the prior period shown on the report. Calculated Yields The Calculated Yields section displays the income, capital, and total yield percentages as well as the IRR five year and ten year holds. The Income Yield, Capital Yield, and Total Yield are calculated using different formulas depending on the section in the Return Calculation field in the Report Options. See Also Return Calculation Formulas Return Calculation Displays the selection in the Return Calculation field in the Report Options. IRR ‐ 5 Year Hold Displays the internal rate of return you would receive if you held the property for five years, starting at the date at the top of the column. IRR ‐ 10 Year Hold Displays the internal rate of return you would receive if you held the property for ten years, starting at the date at the top of the column. IRR Business Plan Hold Displays the internal rate of return you would receive for your holding period if your holding period is something other than five or ten years. Note: Prop 13 calculations for the Yearly Valuation report are not currently available. See Also Yearly Valuation Report Options 567 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Returns Over Time Navigation: Property Editor>Reports>Valuation Reports>Returns Over Time The Returns Over Time report presents total, income, and capital returns calculated over time at specified time intervals using your adopted valuation method (i.e., the default selection in the Calc Method field in the Property Resale tab). The report is divided into the following sections: • Amounts in Period • Annual Amounts at Resale Date • Resale Yields • Performance KPI's Note: Most of the line items always display N/A in the first column of the report. This happens because the first period is considered to be the starting point of the Returns Over Time calculations and acts mainly as a reference point. Each other date in the report is assumed to be the property's resale date, and calculations are only based on amounts given prior to that point in time. Because there is no previous period before the analysis start, most of the returns for the first period display N/A. Amounts in Period Displays the amounts paid and earned in the selected time period. Effective Gross Revenue Displays the property's effective gross revenue. This comes from the Cash Flow property report. Ground Lease Expenses Displays any ground lease expenses for the property. Ground lease expenses are entered in the Ground Leases tab. Operating Expenses Paid Displays the total amount of operating expenses paid in the time period. Operating expenses are entered in the Operating Expenses tab. Net Operating Income Displays the net operating income, which is Effective Gross Revenue minus Ground Lease Expenses minus Operating Expenses Paid. Total Leasing & Capital Costs (in period) Displays the total leasing and capital costs in the selected time period minus capital income received in the period. Leasing costs are entered in the Leasing Costs section of the Rent Roll. Capital costs are entered in the Capital Expenses tab. The first column (for the PV/IRR date) displays the value in the Total Price field on the Property Purchase tab. 568 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Total Leasing & Capital Costs (from start) Displays the cumulative leasing and capital costs from the analysis start date through the selected time period. Annual Amounts at Resale Date Displays the annual rates in force at the resale date. Effective Gross Revenue Displays the property's annual rate of gross income at the resale date (current rent without any deductions). This comes from the Cash Flow property report. Ground Lease Expenses Displays the annual rate of ground lease expenses in payment at the resale date. Ground lease expenses are entered in the Ground Leases tab. Operating Expenses Displays the annual value of repeated revenue costs minus the annual value of repeated revenue receipts at the resale date. Single costs (without repeats) are shown as face value. Costs repeated over the short‐term are shown as annual figures. Operating expenses are entered on the Operating tab. Revenues are entered on the Miscellaneous, Parking, and Storage tabs. Net Operating Income Displays the net operating income, which is tenant rents plus ground rents received minus ground lease expenses plus revenue items minus revenue costs paid. Market Rent Displays the total market rent for the property as of the resale date, ignoring payment timing. Market rent is entered in the Rental Value field in the Rent Roll. Market Inflation Displays the annual increase in the market rental value of the property at the resale date during the period measured, expressed as a percentage of the rental value from a year ago at the beginning of the period. (That is, for the first year it will be 0%, and after that it will be the current market rent divided by the market rent a year ago). MIt = [(NRt / NRt ‐ 1)‐1] x 100 MIt =Annual rate of market inflation at resale date, expressed as a percentage NRt = Net market rental value at resale date NRt‐1 = Net market value at resale date minus 1 year Gross Value Displays the gross sale price, which is calculated in the Property Resale tab, for most time periods. For the start date (period 0), the gross value depends on the Calc Method (selected in the Property Resale tab). • If the Calc Method = CAP NOI (12 Months After Sale), the gross value will be the first year's NOI capitalized at the resale cap rate (entered in the Cap Rate field in Property Resale tab). • If the Calc Method = CAP NOI (Avg. Sale & Nxt. Yr.), the gross value will be 0. 569 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • If the Calc Method = CAP NOI (Year of Sale), the gross value will be 0. • If the Calc Method = CAP Effective Gross Rents (12 Months After Sale), the gross value will be 0. • If the Calc Method = Inflate Purchase Price, the gross value will be the purchase price, which is entered in the Purchase Price field in the Property Purchase tab. • If the Calc Method = Enter Sale Price, the gross value will be the sale price entered in the Amount field in the Property Resale tab. • If the Calc Method = $ / Building Area, the gross value will be the price entered in the Amount field in the Property Resale tab times the size, which is entered in the Building Area field in the Description tab. • If the Calc Method = Gross Income Multiplier, the gross value will be determined by the entries in the Multiplier, Stabilized Income Begin, #Months, and Stabilized Income Definition fields in the Property Resale tab. • If the Calc Method = Traditional Valuation, the gross value will be the price in the Gross Value field in the Calculation tab. This is the value before capital expenditures (discounted exit capital costs) and acquisition costs have been deducted. • If the Calc Method = Capitalization Valuation, the gross value will be the first value calculated as shown on the Capitalization Valuation report. See Also Capitalization Valuation Reports Net Value Displays the net value, which is the gross value minus vendors' costs plus sale price adjustments. Net Value Change Displays the change in net value, which is the current net value minus the previous vet value in the time series. Net Value Change % Displays the net value change as a percentage. Net Value Change % = (Current Net Value / Previous Net Value) ‐ 1 Discounted Exit Capital Costs Displays the total value of the discounted capital costs falling after the item date. The discount rate used is entered in the Discount Rate field in the Capital Expenses tab. Only expenses with the Include in Resale check box (also in the Capital Expenses tab) selected will be used in this calculation. Note: The Discounted Exit Capital Costs line item will only display values if the Calc Method (selected in the Property Resale tab) is Traditional Valuation. If you are using a different Calc Method, the line item will display N/A. Selling Costs + Vendor Costs Displays the selling costs, which are entered in the Adjustments field in the Property Resale tab. 570 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Resale Yields This section of the report displays the IRR and yields you would get if you were to sell the property at the specified time. IRR (from start) Displays the unleveraged internal rate of return at the resale date. The unleveraged IRRs are displayed in the IRR Matrix report. Capitalization Rate Displays the capitalization rate entered in the Cap Rate field on the Property Resale tab if the default Calc Method is CAP or on the Capitalization Valuation tab if the default Calc Method is Capitalization Valuation. Note: If you are using a different Calc Method, the line item will display N/A. Initial Yield Displays the current net rent at the resale date divided by (gross sale price plus discounted exit capital costs plus acquisition costs). Equivalent Yield Displays the equivalent yield, which is the weighted average of the initial and reversionary yields based on the timing of the income received. Reversionary Yield Displays the reversionary yield. Reversionary yield = (net rent on final reversion) divided by (gross sale price plus discounted exit capital costs plus acquisition costs) Net Rent / Initial Value Displays the annual rate of net rent (effective gross revenue minus ground lease expenses) at the resale date divided by the net initial purchase price. ERV (Gross) Yield Displays the estimated rental value (ERV) yield. ERV yield = current market rent divided by (gross sale price plus discounted exit capital costs plus acquisition costs) Note: The Initial Yield, Equivalent Yield, Reversionary Yield, Net Rent / Initial Value, and ERV (gross) Yield line items will only display values if the Calc Method is Traditional Valuation. If you are using a different Calc Method, all these line items will display N/A. 571 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Performance KPIs This section of the report displays the key performance indicators for the specified time period. For the following formulas: CV = Net value at the end of period t CExpt = Capital expenditure (i.e., total leasing and capital costs) in period t NIt = NOI during period t Total Return Total Return = ( CVt – CV(t‐1) – CExpt + NIt ) x 100 ( CV(t-1) + CExpt )
Compound Mean Average Total Return This is the single rate needed to be applied year by year to get the same return produced by compounding all of the total return figures to date. Income Return Income Return = NIt x 100 ( CV(t-1) + CExpt )
Compound Mean Average Income Return This is the single rate needed to be applied year by year to get the same growth rate produced by compounding all the income return figures to date. Capital Growth Capital Growth = ( CVt – CV(t‐1) – CExpt ) x 100 ( CV(t-1) + CExpt )
Compound Mean Average Capital Growth This is the single rate needed to be applied year by year to get the same growth rate produced by compounding all of the capital growth figures to date. Capital Employed This is the value of assets held at the beginning of the computation period plus purchase, development, and other capital expenditures during the period. Capital employed is the denominator of the total return calculations. Capital Employed = CV(t‐1) + CExpt See Also Returns Over Time Performance KPIs Calculation Examples Returns Over Time Report Options 572 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Reports Navigation: Property Editor>Reports>Tenant Reports ARGUS Enterprise provides the following tenant reports: 
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Lease Summary Lease Expiration Leasing Activity Tenant Cash Flow /LPV (lease present value) Retail Revenue & Sales Recovery Structures Detail Lease Break Options Lease Summary Report Navigation: Property Editor>Reports>Tenant Reports>Lease Summary The Lease Summary Report is a presentation quality tenant rent roll for your property. It includes detailed tenant information, base rents and rent steps, consumer price index (CPI) terms, free rent periods, recovery data, leasing costs, market leasing, and renewal assumptions for base, option, and speculative lease periods. Note: If you enter $0 for rent in the first period, the Lease Summary Report will display $0 in the Rate Per Year, Amount Per Year, Rate Per Month, and Amount Per Month fields. If you want to model free rent, enter it in the Free Rent column in the Rent Roll and not as $0 in the first period. See Also Lease Summary Report Options 573 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Lease Expiration Report Navigation: Property Editor>Reports>Tenant Reports>Lease Expiration The Lease Expiration report presents lease expirations by fiscal or calendar year or by “Top 5 Tenants” status according to area, base rent, or effective rent. Metrics, including percentage of building area, base rent, effective rent, market rent, and the ratio of base rent and effective rent to market are presented for each expiring lease, as well as sub‐totals for the lease expiration period. Effective Rent Effective rent is composed of the following rent components: • Base Rent minus Free Rent • Step Rent • Miscellaneous Rent • Consumer Price Index (CPI) • Percentage Rent • Recoveries Note: For this report, the weighted average lease expiration (WALE) is calculated as of the report date. Note: Effective rent does not include security deposits or leasing costs. 574 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Lease Expiration Report Options Report for You can display report data by tenant/term. Choose from: • Top 5 Tenants: Display top five tenants according to expiring area. Vertical scrolling allows you to view the entire report. • Expires by Year: Display tenants in order of lease expiration. • All Terms: Display tenants, groups, or leases statuses with expiring area during the report period. Horizontal scrolling allows you to view the entire report. Export Report to Export the report to: • Excel • HTML • PDF Leasing Activity Report Navigation: Property Editor>Reports>Tenant Reports>Leasing Activity The Leasing Activity report presents tenant leasing activity by calendar or fiscal year. Sub‐totals for each calendar or fiscal year include total area, base rent, % of building area, and leasing costs. See Also Leasing Activity Report Options 575 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Cash Flow / LPV Report Navigation: Property Editor>Reports>Tenant Reports>Tenant Cash Flow/LPV The Tenant Cash Flow / LPV Report presents the projected cash flows and lease present value analysis for one or more tenants or tenant groups in the property. The net tenant cash flow is derived by deducting leasing costs from the total tenant rental revenue, including base rent, steps, CPI increases, free rents, percentage rents, and recoveries. The net tenant cash flows are then discounted for each period to determine the lease present value. Finally, a percentage of the total lease PV for each period’s net cash flow (e.g., year 1, year 2, etc.), as well as the percentage of the total lease PV attributable to each cash flow line item (e.g., total base rent over the lease term, total recoveries, etc.) is presented. At the top of the report, you can select an individual tenant or tenant group in the pick list. Alternatively, the Show All check‐box allows you to present results for all tenants sequentially on the report. Extensive Tenant Cash Flow / LPV Report Options are provided for report begin/end dates and the report year end month. Additional options are provided to hide the lease PV portion of the report or to analyze the generally accepted accounting principles (GAAP) adjusted cash flows. Lease Valuation Options include the ability to value net cash flows as of the tenant begin date, the report start date, the property PV date or any other specific calendar date. Additionally, the property discount rate can be overridden for this report, as well as the discounting interval. See Also Tenant Cash Flow/LPV Report Options 576 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report for Use the options in the Report for field to create alternate versions of the Tenant Cash Flow/LPV report. The following options are available in the pick list: 
All Tenants: Include all tenants for the property. 
Tenant Group: Report will allow you to select a specific tenant group in the Include field. 
Tenant Classification: Report will allow you to select a tenant classification in the Include field. 
Individual Tenant: Report will allow you to select a specific individual tenant in the Include field. 
System Classification: Report will allow you to select a custom lease status or lease type in the Include field. 
Ground Leases: Report will allow you to select a custom lease status or lease type in the Include field. Include Depending upon your previous entries, you will be able to choose from several options. Make your selections of records to include in the drop‐down list. 577 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Retail Revenue & Sales Report Navigation: Property Editor>Reports>Tenant Reports>Retail Revenue and Sales The Retail Revenue & Sales report presents sales volume and total income by tenant and calculates the ratio of the total income as a percentage of sales on a tenant by tenant basis. Note: There are no report specific options for the Retail Revenue & Sales Report. Recovery Structures Detail Report Navigation: Property Editor>Reports>Tenant Reports>Recovery Structures Detail The Recovery Structures Detail report is a dynamic tracking report that can be customized to present more or less detail pertaining to the collection of expenses and expense groups. Users can drill down to see the Recovery Structure detail at an expense/expense group level, or further down to the individual expense level, with details including the year 1 expense amount, the recoverable percentage, and the year 1 recoverable amount. Note: There are no report specific options for the Recovery Structures Detail report. 578 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Lease Break Options Report Navigation: Property Editor>Reports>Tenant Reports>Lease Break Options The Lease Break Options report is a summary of available and active lease breaks for tenants. 579 Note: There are no specific report options for the Lease Break Options report. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Unit Reports Navigation: Property Editor>Reports>Unit Reports ARGUS Enterprise includes the following unit reports: 
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Unit Occupancy Unit Audit Unit Assumptions Note: Unit reports are only available in multifamily property types. Unit Occupancy Navigation: Property Editor>Reports>Unit Reports>Unit Occupancy The Unit Occupancy report shows the occupied and available units for each year in the analysis. In addition, it shows the average unit occupancy percentage. It also shows the building total for occupied and available units, and the total average unit occupancy. See Also Miscellaneous Revenues Occupied Units Total number of occupied and absorbed units, by type, entered on the Multifamily tab. Each row is considered a new type of space. This is calculated by multiplying the total available units by the occupancy percentage. Available Units Total number of available units, by type, entered on the Multifamily tab. Each row is considered a new type of space. 580 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Average Unit Occupancy Percentage Calculated as 100% less the vacancy allowance percentage entered on the Multifamily tab. The resulting rate is the percentage that is multiplied by the available units to find the occupied units. Maximum Occupancy Total number of units available for rent. Occupancy Rate Occupied units divided by the maximum occupancy. After Vacancy Allowance Occupancy rate multiplied by (100‐Vacancy Allowance %). Unit Audit Navigation: Property Editor>Reports>Unit Reports>Unit Audit The Unit Audit report shows the potential multifamily market rent for each unit in the property. It also shows the loss to lease for each unit and the potential rent after loss to lease. In addition, it also shows the vacancy, free rent, scheduled rent, credit loss, effective rental income, and improvements for each unit in the property. Potential Multifamily Mkt. Rent Calculated as the number of units multiplied by the market rent entered on the Multifamily tab. Loss to Lease Difference between schedule rent before vacancy and the potential market rent. Potential Rent After Loss to Lease Calculated as potential multifamily market rent less loss to lease. Vacancy Calculated as potential rent after loss to lease multiplied by the percentage vacancy entered on the Multifamily tab. 581 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Free Rent Calculated as the units rolling to market multiplied by market rent multiplied by the number of months of free rent (free rent is negative). Scheduled Rent Calculated as potential rent after loss to lease less vacancy and free rent. Additional Concessions Percentage entered for concessions on the Multifamily tab multiplied by the scheduled multifamily rent. Credit Loss Percentage entered for credit loss on the Multifamily tab multiplied by the scheduled multifamily rent less additional concessions. Effective Rental Income Scheduled rent less additional concessions and credit loss. Improvements Improvements are calculated on spaces rolling to market. Multiply the amount entered by the number of units rolling multiplied by 12 for the annual rate. Leasing Costs Calculated on spaces rolling to market. Multiply the amount entered by the number of units rolling multiplied by 12 for the annual rate. Unit Assumptions Navigation: Property Editor>Reports>Unit Reports>Unit Assumptions The Unit Assumptions report shows the assumptions for each unit in the property. It includes the following information: 
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Total Units Units Rolled to Market Units at Market (End of Period) Initial Rental Rate Unit Market Rate Average Unit Rental Rate Vacancy Allowance % Unit Credit Loss % Unit Free Rent Months  Unit Improvements 582 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Number of Units Displays number of units entered by type. Units Rolled to Market Displays number of units rolling to market. Example: 120 Units, rolling to market evenly over 12 months ‐ means 10 units rolling to market each month. Units At Market (End of Period) Displays number of units at market rate as of the end of the month. Initial Rental Rate Displays initial rental rate as the current monthly rate/unit as entered on the Multifamily tab. Unit Market Rate Displays the Market Rate/Unit/Month rate as entered on the Multifamily tab. Vacancy Allowance % Displays the percentage vacancy entered on the Multifamily tab. Unit Concessions % Displays the concessions entered on the Multifamily tab (entered as a percentage). Unit Credit Loss % Displays the Credit Loss entered on the Multifamily tab (entered as a percentage). Maximum Occupancy Uses the corresponding monthly values entered in the Maximum Occupancy field. Current Occupancy Uses the corresponding monthly values entered in the Current Occupancy field. 583 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Units Expiring Displays the number of occupied units as they expire and the number of absorbed units. The following behaviors will apply to this field: 
When there is no Market Leasing Profile specified, the unit rollovers will be determined from the Unit Rollovers column group section of the Multifamily window. This is not a change in existing behavior. 
When a Market Leasing Profile is specified, rollover information will be obtained from the Unit Rollovers column group on the Multifamily window until all occupied units rollover. For future terms, the Multifamily Market Leasing window will be used to determine the number of future rollovers. 
Absorbed units are considered units that expire since they use the market rent. Units at Market Displays the cumulative sum of the expiring units. Initial Rent Rate Uses the first month rental rate of the lease, taken from the Current Rent field. Note if all units are vacant, this row will be blank. Unit Market Rate Uses the corresponding monthly values from the Market Rent field if no Market Leasing profile is specified. Alternatively, this row will use the corresponding monthly values of the New Market Rent and Renew Market Rent fields if a Market Leasing profile is specified. Unit Free Rent Months Displays the number of months of free rent entered on the Multifamily tab. Unit Improvements Displays the amount entered for improvements on the Multifamily tab. Unit Leasing Costs Displays the amount entered for commissions on the Multifamily tab. Absorbed Units Displays the number of units that are absorbed. 584 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Audit Reports Navigation: Property Editor>Reports>Audit Reports ARGUS Enterprise provides the following audit reports: 
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Occupancy Lease Audit Percentage Rent Audit Recovery Audit Expense Group Audit ADR (hotels only) RevPAR (hotels only) Loan Amortization Property Resale Income by Rent Review Rent Schedule Audit Input Assumptions Occupancy Report Navigation: Property Editor>Reports>Audit Reports>Occupancy The Occupancy report presents a year by year, month by month view of the area occupied and % occupancy of the property. 585 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Select an option from the Report for drop‐down list. Choose from: 
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Alternate Building Total Building Total First Floor Offices Industrial Total Office Total Retail Total Storage Total See Also Occupancy Report Options Calculations Additional statistics provided on the report include the average annual occupancy and total net rentable size by year. 
The total space occupied in each month of the analysis. 
The percentage of space occupied in each month of the analysis. This is the occupied size divided by the net rentable size. 
The total of the monthly columns divided by 12. 
The average property size in each year of the analysis. This is controlled by the Building Area field on the Property tab. Lease Audit Report Navigation: Property Editor>Reports>Audit Reports>Lease Audit The Lease Audit Report is a powerful tool for reviewing key cash flow totals, such as potential and scheduled base rent, recoveries and leasing costs, on a tenant by tenant basis. This useful report also includes area occupancy and market rents by tenant. See Also Lease Audit Report Options 586 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calculations Area This section shows the average area of the tenant's space. A tenant that is only in place for a partial analysis year will be calculated based on tenant size divided by 12 months and multiplied by the number of in‐place months. Potential Base Rent This section shows the total potential rent for each tenant. This number does not take vacancy loss or free rent into account. For example, proposed‐vacant suite’s potential base rent is calculated as 1,550 (tenant SF) * $25.50 (rent SF/yr) = 39,525. Lost Absorption/Turnover Rent Lost absorption/turnover rent is rental revenue that is not captured due to the space being vacant before a lease begins or down time between leases. For example, vacant space (1 of 13) does not begin their lease until the sixth month of the analysis, tenant size 5,000 SF × base rent is 25.50/ SF/yr = 127,500 ÷ 12 Months = 10,625 × 5 months = 53,125. Free Rent Free rent is the rental revenue that is lost due to the free rent allowance allocated to the tenant. Example: Tenant will receive 2 months of free rent at the beginning of their lease. This will be calculated by dividing their potential base rent by 12. In this case, 39,525/12 = 3,294. There are two months of free rent given in this example so 3,294 x 2 = 6,588. Straight Line Rent Adjustment The straight line rent adjustment is the difference between cash and book (GAAP) rent calculations. Scheduled Base Rent The scheduled base rent is the actual passing rent after the loss adjustments have been made. The calculation is potential base rent ‐ absorption & turnover loss and free rent. GAAP Rental Income Average of the rent including fixed steps and free rent for the lease term. Sales Volume Sales volume is the amount of revenue that the retail tenant is projected to make on an annual basis. Percent Rent Percent rent is the portion of the sales volume that is being paid back to the property owner as turnover rent. This will be calculated as (sales volume‐breakpoint) multiplied by sales percentage. Recoveries The amount of expense reimbursements that are being paid back to the property owner each year. This is calculated based on the recovery method applied to each tenant in the Rent Roll. 587 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Income Tenant income is the total revenue received from each tenant on an annual basis. This is scheduled base rent plus percentage rent plus recoveries. Tenant Improvements The total tenant improvements paid by the property owner as a lease incentive. Leasing Commissions The total leasing commissions paid by the property owner to the letting agent. Market Rent The blended value of the tenant's new and renewal market rent based on renewal probability. For example: Tenant Size = 30,000 SF Renewal Probability is 75% New Market Rent = $17.00 Renewal Market Rent = $16.15 Results = ($17.00 × 25%)+(16.15 × 75%) × tenant size of 30,000 = 490,875 The blended rate will then inflate based on the market inflation rate. ADR Navigation: Property Editor>Reports>Audit Reports>ADR The ADR Report is only available in hotel property types. It allows you to view the average daily rate for hotel properties. 588 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Percentage Rent Audit Report ‐ Standard and Detailed Navigation: Property Editor>Reports>Audit Reports>Percentage Rent Audit The Percentage Rent Audit Reports are a handy tracking tools for percentage rent calculations. On a tenant by tenant basis, the report presents base rents, sales volumes, breakpoints, overage percentages, percentage rents due, and percentage rents per unit area. The detailed version of this report, which you can display by selecting Detail in the Report Format field on the Report Options window, view the calculations for sales categories, layers, and offsets for each tenant in detail. Calculations Area This section shows the tenant area. 589 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Base Rent per SF This section shows the tenant base rent as entered on the Rent Roll. Total Base Rent This section shows the base rent per SF multiplied by the size multiplied by 12. Sales Volume Sales volume is the amount of revenue that the retail tenant is projected to make on an annual basis. Breakpoint This section shows the breakpoint entry method. This can be a fixed amount or a calculated (natural) value. Percent This section shows the percentage of retail sales, over the breakpoint, which the tenant must pay to the property owner. Calculated Break This section shows the annual sales breakpoint. This is the retail sales volume below which the tenant does not pay a percentage. This can be entered as a fixed amount or as a natural breakpoint. A natural breakpoint will be calculated as base rent divided by the overage percentage. % Rent Due Percentage rent due is the amount of percentage rent that the tenant will be obligated to pay in a given year. This is calculated as (sales volume ‐ breakpoint) multiplied by sales percentage. Note: The detailed version of this report, which you can display by selecting Detail in the Report Format field on the Report Options window, views the calculations for sales categories, layers, and offsets for each tenant in detail. RevPAR Report Navigation: Property Editor>Reports>Audit Reports>RevPAR The RevPAR report is only available in hotel properties. It allows you to view the revenue per available room. 590 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: While there are no report specific options for the RevPAR report, the Global Report Options can be used to view the report on a calendar or fiscal year end basis. Recovery Audit Report Navigation: Property Editor>Reports>Audit Reports>Recovery Audit The Recovery Audit report is a highly flexible and powerful tool for auditing complex recovery structures and recovery calculations. This expandable and collapsible report details the recovery calculations on a tenant‐by‐tenant, expense‐ by‐expense basis, including gross up’s, recoverable amounts, expense stops, allocation percentages, and limits, such as caps and floors. Only property‐level recovery actuals are available within ARGUS Enterprise. This report uses forecast data only. See Also Recovery Audit Report Options 591 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calculations The following calculations are included within the report: 
Tenant name, suite number, area measure, recovery amount. 
The number of months the tenant occupies the space in each year of the analysis. 
Average monthly recoverable amount the tenant owes. 
Period (lease term) and lease start and end dates, recovery amount. 
The name of the recovery structure allocated to the tenant. 
This report is a detailed breakdown of how each tenant is paying their reimbursable expenses throughout the analysis. 
The first expense group within the recovery structure. 
The reimbursement method of the expense group on the previous line. A base year stop or fixed stop amount will calculate the tenant's pro rata over the stop. A net recovery type indicates that the tenant will pay their share of the total property expenses. 
The allocation type. The default pro rata calculation (tenant size/property size) is identified by “pro rata.” A fixed percentage may also be entered. 
The individual expense breakdown between the fixed portion (static regardless of occupancy) and the variable portion (dynamic based upon the occupancy). The next line is the total of the two. 
The total recoverable amount to be applied to this tenant from this expense group. This number is determined by summing the total amount of each expense in this group. 
When a stop method is used, this line displays the stop amount that the tenant will reimburse over. 
The amount over the stop. This is the amount that the tenant is responsible for paying. 
The tenant's pro rata. By default this is calculated as tenant size divided by property size. A fixed percentage can also be entered. 
The amount that the tenant will pay towards this expense group. It is calculated by multiplying the net recoverable amount by the tenant's pro rata. 
The recovered amount divided by twelve months. 592 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
The breakdown of the second expense group included in the All Recoverable Expenses structure. 
The admin fees as a percentage of the recovery amount. 
The sum of the recovered amount + admin fee lines. Expense Group Audit Report Navigation: Property Editor>Reports>Audit Reports>Expense Group Audit The Expense Group Audit report is a powerful auditing tool that presents detailed information for each user recovery structure in the model, including details associated with each expense, expense group, and recovery method within a recovery structure. Furthermore, each expense is broken down into its fixed and variable components along with the assigned recovery method, allocation method, and gross up percentage. This report includes the breakdown of all groups in each recovery structure. Each structure is listed on the left, under which is listed the expense groups included in that structure and the individual expenses that are included in each expense group. This report uses forecast data only. Select a report group by name from the Report for pick list to display an Expense Group Audit report. Note: While there are no report specific options for the Expense Group Audit report, the report can be configured, via a drop down menu at the top of the report, to display the results for any single recovery structure or for all user structures within the model. Select the Show All check box to display all the expense groups in the audit report. Loan Amortization Report Navigation: Property Editor>Reports>Audit Reports>Loan Amortization The Loan Amortization report presents a simple loan amortization schedule for any one of the unlimited number of loans modeled in the property. This schedule includes beginning balances, proceeds, interest rates, amortized payments, interest payments, principal payments and ending balances on a periodic basis. 593 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Calculations Loan Name This section shows the name of the loan. Loan Type This section shows the type of loan. Loans can be set up as amortized or interest only. Loan Start Date This section shows the date on which the loan begins. Loan Term This section shows the loan term in months. Date This section shows the analysis periods in which the loan is active. Beginning Balance This section shows the loan balance at the beginning of each period. Proceeds This section shows the amount being borrowed with this loan. Interest Rate This section shows the interest rate for the loan. 594 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Interest Payments This section shows the interest payments made on the loan in each period. Balloon Payment This section shows the amount of the balloon payment made to pay off the balance of the loan. Fund Deficits This section shows the amount of funding provided to cover deficit (shortfall) cash flow during operations. Ending Balance The period end balance of the loan is shown in the final column. This is the outstanding balance of the loan calculated by subtracting principal and balloon payments from the beginning balance and adding any back and deficit funding in that period. Amortized Payments This section shows the total amortized payments including interest and principal for the amortized loan. Interest Payments This section shows the interest portion of the amortized payment. Principal Payments This section shows the principal portion of the amortized payment. Note: While there are no report specific options for the Loan Amortization report, the Global Report Options can be used to view the schedule on a monthly, quarterly, semi‐annual, or yearly basis. Property Resale Audit Report Navigation: Property Editor>Reports>Audit Reports>Property Resale The Property Resale Audit report provides you with the details of how the resale value of the property is calculated. 595 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: While there are no report specific options for the Property Resale Audit report, the Global Report Options can be used to view the report on a calendar or fiscal year end basis. Income by Rent Review Navigation: Property Editor>Reports>Audit Reports>Income by Rent Review The Income by Rent Review report displays information about mid‐lease rent reviews. Rent reviews are entered in the Base Rent window. Base Rent + CPI Displays the tenant's base rent plus consumer price index rent. $/ SF / Year Review Each of these line items displays the amount the rent has increased at the rent review. 596 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Total Rent Income Displays the total rental income (Base Rent + CPI + Each year's Rent Review). See Also Income by Rent Review Report Options Rent Schedule Audit Navigation: Property Editor>Reports>Audit Reports>Rent Schedule Audit The Rent Review Audit report displays each component of a tenant's current rent and whether current rent or market rent wins each review. If you have selected Partial Ratchet Higher or Full Ratchet Higher in the Base Rent window, the higher rent wins the review. If you have selected Partial Ratchet Lower or Full Ratchet Lower, the lower rent wins the review. Current Rent Displays the components of the current passing rent. Base Rent + Steps Displays the base rent plus any step rent. Rent is entered in Rental Income section of the Rent Roll. CPI Increases Displays any consumer price index increases. CPI increases are entered in the CPI section of the Rent Roll. Recoveries Displays the recoveries paid by the tenant. Recoveries are entered in the Recoveries section of the Rent Roll. Total Current Rent(Monthly) Displays the total monthly passing rent (Base Rent + Steps + CPI Increases + Recoveries). 597 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Area Displays the tenant's area. The area is entered in the Area field of the Rent Roll. Current Rent/Area(Monthly) Displays the tenant's monthly rent per area. Current Rent/Area(Annual) Displays the tenant's annual rent per area, which is the monthly rent times 12. Market Rent(% of Mkt): Displays the market rent and the percentage of market rent that the tenant pays. Market Rate/Area Displays the market rate per area. % of Market Displays the percentage of market rent the tenant is paying. Market Rate After Adjustment Displays the calculated market rent based on the % of Market. $ Amount Review Calc Displays the rent as a total amount, area, and amount per area. Entered Amount (Annual) Displays the total annual rent entered in the Rent Roll. Tenant Area Displays the tenant's area. New Market Rate Displays the amount per area, which is the Entered Amount divided by the Tenant Area. Results of Review Displays whether the current (passing) or market rent wins the review. Current or Market Displays which rent (current or market) wins the review. New Base Rent Displays the new base rent based on which rent won the review. See Also Rent Schedule Audit Report Options 598 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Input Assumptions Navigation: Property Editor>Reports>Audit Reports>Input Assumptions You can view all inputs in a ValCash property model in order to audit AE models. Reviewing input assumptions allows you to: • Discover user input errors. • Identify questionable inputs that result in financial outcomes you disagree with. Note: The Input Assumptions reports will not include a Chart of Accounts. Note: Certain report sections will be included/excluded according to property type. Report Layout In each section: • First Column • Second Column 599 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Reports: Review Navigation: Property Editor>Reports>Review To access the review reports, select the Review tab in the Reports section of the Property Editor. ARGUS Enterprise has a unique data validation review option. Once you have completed any amount of data input, the program provides an automated review of potential input errors that may have a material impact on the cash flows and valuation. Identical column headers will be displayed for the following reports: 
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Data Review Details Import Review Details Calculation Review Details Validation Listing Audit Log Item Name Displays the item name. You can collapse/expand specific areas on the list. Icon Displays the warning icon. Severity Displays the severity level. Message Displays the messages specific to that item if you expand the item. If there are no warnings or errors, this column will not be displayed. Data Review Details Navigation: Property Editor>Reports>Review>Data Review Details This Data Review Details report will describe relevant warnings regarding input data. Click the arrow to the left of each item in the Item Name column to display information in the other columns. 600 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Import Review Details Navigation: Property Editor>Reports>Review>Import Review Details The Import Review Details report describe transformation issues or limitations with respect to data imported from external sources, such as ARGUS Valuation‐Cashflow. Click the arrow to the left of each item in the Item Name column to display information in the other columns. Some examples of problems this feature will reveal are as follows: 
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601 Leases that run well over the length of the projection Auto‐lease past the system default of 99 months Date formats entered incorrectly Leases with start dates which come after their end dates Residual Sale date which precedes the analysis start date Negative area measure entries Percentage entries which exceed 100% Occupancy in excess of 100% Tenants assigned generic base year stops whose lease begins prior to the analysis start date Market Rental Rates which may be excessively high (i.e. over 1,000) The same account number used more than once. © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 See Also Data Import Validation Rules Calculation Review Details Navigation: Property Editor>Reports>Review>Calculation Review Details The Calculation Review Details report describes issues regarding general calculation results expectations. Click the arrow to the left of each item in the Item Name column to display information in the other columns. See Also Rent Roll Multi‐Family Rent Roll Validation Listing Navigation: Property Editor>Reports>Review>Validation Listing The Validation Listing report describes issues regarding general input parameters. Click the arrow to the left of each item in the Item Name column to display information in the other columns. Audit Log Navigation: Property Editor>Reports>Review>Audit Log The Audit Log will display several columns of audit data that you can use to inspect the history and nature of changes made to property asset models within a specified scenario over time. Standard sorting and filtering are available. 602 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 The following commands are available in the Audit section of the Ribbon: Purge Audit Log If you have Edit privileges, the Purge Audit Log button will allow you to purge the Audit Logs before a specified date. Export Asset Version The Export Asset Version button will allow you to export the property model as an AVUX file. Export to Excel The Export to Excel button will allow you to export the property model as an Excel file. From/To Dates Enter a start and end date in the From and To fields. Click Search to call up the audit trail for those dates or to refresh the view. Location View the file location information for the specific portfolio, scenario, and property asset. Name View the name for the property asset. Version View the update version of the property asset. 603 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 User View the name of the user who made the changes. Time Stamp View the time stamp when changes were made. Audit Trigger View the trigger that caused the audit of the change. Audit Level View the audit level associated with the trigger. AE Version View the version of ARGUS Enterprise used to make the changes. Description View the description of the property asset. See Also Audit Trail 604 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Traditional Valuation Development Express Reports Navigation: Property Editor>Reports>Trad. Val. DevEx. Reports ARGUS Enterprise provides the following traditional valuation reports: 
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Summary Valuation Detailed Valuation Single Line Tenancy Schedule Area Analysis Valuation Audit Summary Valuation Navigation: Property Editor>Reports>Trad. Val. DevEx. Reports>Summary Valuation The Summary Valuation report presents property valuations and values for equivalent yield, initial yield, and reversion yield. 605 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Property Address Displays the property address. External ID Displays the property external ID. Gross Valuation Displays the total of the tenant traditional valuation minus any in place ground lease values. Capital Costs Displays the total of the capital expenditures, discounted back to the valuation date. Net Value Before fees Displays the net value before fees are subtracted. Net Valuation Calculated as gross valuation plus (capital costs + acquisition costs) Say Generated based on your entry in the Say Value field in the Traditional Valuation > Calculation tab. Equivalent Yield Equivalent yield calculated using the relevant valuation tables defined within the modeling policies. The mechanism to calculate the equivalent yield is to value the whole property using the Hardcore method at a specific yield value and then iterate that value until the net value result falls within tolerance to the natural value. Tolerance is the closer of either the nearest single currency value, or alternatively, .001% of the original net value. Initial Yield (Valuation Rent) Calculated using the defined vendors fees within the acquisition costs using the rounded net value as a basis. See Also Modeling Policies Reversion Yield Calculated by net rent divided by the say value. Total Valuation Rent Calculated by gross rent plus (capital + acquisition costs) Total Rental Value Displays the total rental value. Capital value per Area Displays the capital value per area. 606 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 True Equivalent Yield Displays the true equivalent yield. Initial Yield Displays the first net rent from the Running Yield table divided by the running yield value Total Contracted Rent Displays the total contracted rent. Number of Tenants Displays the number of tenants. Running Yields Date Displays the date for each running yield calculation. Gross Rent Displays the gross tenant rents. Operating Expenses Displays the total for the operating expenses. Ground Lease Expenses Displays the total for ground lease expenses. Net Rent Calculated by gross rent plus (operating expenditure + ground lease values) Annual Calculated by Net Rent divided the Running Yield Value. Quarterly Calculated by ((4*n/Abs(Y)/(4*n/Abs(Y)‐1))4) ‐1 ) * 100 Where n=NetRent , Y=RunningYieldValue Detailed Valuation Navigation: Property Editor>Reports>Trad. Val. DevEx. Reports>Detailed Valuation The Detailed Valuation report presents a valuation for each tenant's rent according to the valuation period. 607 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Valuation Date This date is used to define when the ERV is defined, which date to discount capital expenditure back to, and the basis of the rent valuation. Property Address Displays the property address. External ID Displays the external ID. 608 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Region Displays the region. Sector Displays the sector. Property Type Displays the property type. Description/Notes Displays any notes entered. Valuation Tables This line displays the payment schedule selection. Valuation Gross Valuation Displays the total of the relevant tenant traditional valuation minus any in place ground lease values. Capital Expenses Displays the total capital expenses. Net Value Before Fees Displays Net value before fees are subtracted. Net Valuation Gross Value + Capital Costs + Acquisition Costs. Say Generated based on your entry in the Say Value field in the Traditional Valuation > Calculation tab. Equivalent Yield Calculated using the relevant valuation tables defined within the Modeling Policies. The mechanism to calculate the equivalent yield is to value the whole property using the Hardcore method at a specific yield value and then iterate that value until the net value result falls within tolerance to the natural value. Tolerance is the closer of either the nearest single currency value, or alternatively, .001% of the original net value. Initial Yield (Valuation Rent) Calculated using the defined vendors fees within the acquisition costs using the rounded net value as a basis. Reversion Yield Calculated by net rent divided by the say value. Total Valuation Rent Calculated by gross rent ‐ (capital + acquisition costs) 609 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Total Rental Value Displays the total rental value. Capital Value per Area Calculated by capital value divided by the area. True Equivalent Yield Displays the true equivalent yield. Initial Yield (Contracted Rent) Displays the initial yield for contracted rent. Total Contracted Rent Displays the total contracted rent. Number of Tenants Displays the number of tenants entered in the Rent Roll. Running Yields Basis for all yield value denominators. This uses the Running Yield Targets field in the Modeling Policies > Traditional Valuation > Output Field Assumptions section. Date Displays the date for each running yield calculation. Gross Rent Displays the gross tenant rents. Operating Expenses Displays the total for operating expenses. Ground Lease Expenses Displays the total for Ground Lease expenses. Net Rent Gross rent plus (operating expenditure + ground lease values) Annual Calculated by net rent divided by the running yield value. Quarterly Calculated by ((4*n/Abs(Y)/(4*n/Abs(Y)‐1)4 ‐1 ) * 100 Where n=NetRent , Y=RunningYieldValue Acquisition costs Displays the total acquisition costs. Gross Valuation Displays the total of the relevant tenant traditional valuation minus any in place ground lease values. 610 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Capital Expenses Displays the total of the capital expenditures, discounted back to the valuation date. Net Value Before Fees Displays the net value before fees are subtracted. Net Valuation Gross Value + (capital costs + acquisition costs). Say Generated based on your entry in the Say Value field in the Traditional Valuation > Calculation tab. Equivalent Yield Calculated using the relevant valuation tables defined within the modeling policies. The mechanism to calculate the equivalent yield is to value the whole property using the Hardcore method at a specific yield value and then iterate that value until the net value result falls within tolerance to the natural value. Tolerance is the closer of either the nearest single currency value, or alternatively, .001% of the original net value. See Also Modeling Policies Initial Yield (Valuation Rent) Calculated using the defined vendors fees within the acquisition costs using the rounded net value as a basis. See Also Modeling Policies Total Rental Value Displays the total rental value. Capital value per Area Displays the capital value per area. True Equivalent Yield Displays the true equivalent yield. Initial Yield (Contracted Rent) Displays the initial yield for contracted rent. Total Contracted Rent Displays the total contracted rent. Number of Tenants Displays the number of tenants entered on the Rent Roll. 611 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Single Line Tenancy Schedule Navigation: Property Editor>Reports>Trad. Val. DevEx. Reports>Single Line Tenancy Schedule The Single Line Tenancy Schedule report presents tenant information on a single line of detail. Property Displays the property name. Tenure Displays the tenure as either freehold or leasehold + tenure name. Tenant Name Displays the tenant name. Lease ID Displays the lease ID. Suite Displays the suite number. ITZA Area Calculated by the sum of retail zones' area measures multiplied by their percentage position. Standard Area Calculated by the sum of the non‐retail zones’ area measures. Start Date Displays the lease stat date. Term Displays the length of the lease in years/months format. Expiry Displays the lease end date. 612 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Active Break Displays the lease break date when the Active field is selected. Earliest Termination Displays the next soonest lease break date in the Rent Roll when the selection in the Lease Break options is either Tenant or Landlord or Tenant. Next Review Displays the base rent change date when the selection in the Type field is Outstanding Review (if it is the first review prior to or on the valuation date). Contracted Rent Displays the contracted rent per year. Valuation Rent Calculated by contracted rent plus any outstanding rent review or CPI changes. Rental Value Displays the market rental value per year. Area Analysis Navigation: Property Editor>Reports>Trad. Val. DevEx. Reports>Area Analysis The Area Analysis report presents the rental value rate derived from the entries in the area schedule on the Rent Roll. Valuation Date This date is used to define when the ERV (market rent) is defined, which date to discount capital expenditure back to, and the basis of the rent valuation. Property Displays the property type. Tenure Displays the tenure as either Freehold or Leasehold + Tenure Name. Tenant Name Displays the tenant name. 613 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Lease ID Displays the lease ID. Lease Type Displays the lease type. ITZA Area Calculated by the sum of retail zones’ area measures multiplied by their percentage position. Standard Area Calculated by the sum of the non‐retail zones’ area measures. Parking Displays the number of units used for parking revenue. Total Displays the tenants rented area from the Rent Roll. ZA Rate Displays the rental value input given to the ITZA record which has a percentage position of 100%. Valuation Rent Rate The line is calculated by the valuation rent divided by the total area. Rental Value Rate Calculated by the rental value divided by the total area. Valuation Rent Calculated by Contracted Rent + Any Outstanding Rent Review or consumer price index (CPI) changes. Rental Value Displays the market rental value per year. Valuation Audit Navigation: Property Editor>Reports>Trad. Val. DevEx. Reports>Valuation Audit The valuation audit report presents the value of each slice for each tenant. 614 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Date Displays the date the report was created. Valuation Date This line item displays the date as of which the valuation has been calculated. Gross Valuation Displays the total value of the property. Capital Costs Displays any capital costs associated with the property. Net Valuation/Say Calculated by Gross Valuation ‐ Acquisition Costs ‐ Capital Costs. Tenant Displays the tenant's name. Valuation Method Displays the traditional valuation method used for the tenant. Date Displays the slice starting date. Slice Type Displays the type of slice used. Years Displays the number of years encompassed by the slice. Mths Displays the number of months (in addition to years) encompassed by the slice. Days Displays the number of days (in addition to months and year) encompassed by the slice. Rent Free Deductions Displays any free rent given to the tenant. Gross Rent Displays the total rent paid by the tenant. Revenue Costs Displays any costs paid. Head Rent Displays the rent paid to the property owner by the primary lease holder. Net Rent Calculated by Gross Rent ‐ Revenue Costs ‐ Head Rent. 615 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Top Slice Displays the value of the top slice. Valuation Rent Calculated by contracted rent plus any outstanding rent review or CPI changes. Yield Displays the yield percentage. PV Factor Displays the present value factor. YP Factor Displays the years purchased factor. Value Duration Displays the number of days the slice encompasses. Slice Value Displays the slice value. 616 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Capitalization Valuation Reports Navigation: Property Editor>Reports>Capitalization Valuation Reports ARGUS Enterprise includes the following capitalization valuation reports: 
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Capitalization Valuation Inputs Reversion Audit Note: The Capitalization Valuation report tab is only displayed if you have selected Capitalization Valuation in the Modeling Policies window. Capitalization Valuation Navigation: Property Editor>Reports>Capitalization Valuation Reports>Capitalization Valuation The Capitalization Valuation report displays a time series with information about the market and passing rent as well as any allowances and adjustments that affect the property's market value. Market Value Before Adjustments (unlabeled) Displays the property's market value before any adjustments are made to it. Market Base Rent Displays the market base rent, which is entered in the New Base Rent field in the Market Leasing tab. Market Recoveries Displays the market recoveries, which are entered in the Recoveries section in the Market Leasing tab. Market Percent Rent Displays the market percentage rent, which is entered in the Percentage Rent section in the Market Leasing tab. The Market Percent Rent line item will only be displayed for Retail, Mixed Use (Office/Retail), or Mixed Use (Retail/Multifamily) properties. Total Capitalized Market Rent Displays the total market rent, which is the sum of market base Rent, market recoveries, and market percent rent. 617 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Vacancy Allowance Displays the property's vacancy allowance, which is entered in the General Vacancy tab. Total Market Vacancy Allowance Displays the sum of all vacancy allowances. Capitalized Revenues Displays all capitalized revenues. Capitalized revenues have Capitalize selected in their Treatment fields. See Also Miscellaneous Revenues Parking Revenues Storage Revenues Total Capitalized Revenues Displays the sum of all capitalized revenues. Capitalized Expenses Displays all capitalized expenses. Capitalized expenses have Capitalize selected in their respective Treatment fields. Only operating and capital expenses are included. Non‐operating expenses are never capitalized. See Also Operating Expenses Capital Expenses Total Capitalized Expenses Displays the total of all capitalized expenses Market Value before Adjustments Displays the total market value before adjustments, which is Total Capitalized Market Rent minus Total Market Vacancy Allowance plus Total Capitalized Revenues minus Total Capitalized Expenses. Adjustments and Allowances (unlabeled) The next section of the report includes allowances and adjustments. • Allowances: Include incentives, incentive recoveries, tenant improvements, leasing commissions, and free rent. These values can be entered in the Rent Roll or in the Market Leasing tab. • Adjustments: Include expenses and revenues for which the Treatment field on the Capitalization Valuation tab is set to Discount. Rent Reversion Adjustment Displays the difference between the passing rent and the market rent. This type of adjustment can be positive or negative, depending on whether market rent is higher or lower than the passing rent. Free Rent Displays the total amount of free rent given. Free rent is entered in the Free Rent field in the Rent Roll and in the New Free Rent field in the Market Leasing tab. 618 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Tenant Improvements Displays the amount of money spent on tenant improvements. Tenant improvements are entered in the Improvements Unit, Improvements, and Improvements Timing fields in the Rent Roll and in the TI Unit, New TI, and TI Timing fields in the Market Leasing tab. Leasing Commissions Displays the amount of money spent on leasing commissions. Leasing commissions are entered in the Commissions Unit, Commissions, and Commissions Timing field in the Rent Roll and in the New LC Unit, New LC, and LC Timing fields in the Market Leasing tab. Total Allowances Displays the sum of the Free Rent, Tenant Improvements, and Leasing Commissions line items. Revenue Adjustments Displays any revenues for which the Treatment field is set to Discount. Total Revenue Adjustments Displays the sum of all revenue adjustments. Expense Adjustments Displays any operating expenses for which the Treatment field is set to Discount and all non‐operating expenses. Total Expense Adjustments Displays the sum of all expense adjustments. Capital Expenditures Displays any capital expenses for which the Treatment field is set to Discount. Total Capital Expenditures Displays the sum of all capital expenses. Downtime Displays rent lost due to vacancy. Total Downtime Displays the sum of all downtime. Total Allowances and Adjustments Displays the sum of all allowances and adjustments. Market Value Displays the difference between the Market Value before Adjustments and the Total Allowances and Adjustments. See Also Capitalization Valuation Report Options 619 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Inputs Navigation: Property Editor>Reports>Capitalization Valuation Reports>Inputs The Inputs report displays the information entered on the Capitalization Valuation tab and the Capitalization Valuation Overrides tab. Property Defaults Displays information about the property's default settings. The values for this section are entered on the Capitalization Valuation tab. Allowances Period Displays information about the allowances period. The values for this section are entered on the Capitalization Valuation tab. Capitalization Valuation Overrides Displays information about any overrides for the capitalization valuation calculation. The values for this section are entered in the Capitalization Valuation Overrides tab. Revenue and Expense Treatments Displays information about how revenues and expenses will be treated in the capitalization valuation calculation. The values for this section are entered on the Capitalization Valuation tab. Note: There are no specific options for the Inputs report. 620 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Reversion Audit Navigation: Property Editor>Reports>Capitalization Valuation Reports>Reversion Audit The Reversion Audit report displays information about a tenant's market rent and passing rent. This report has two filters: • Tenant: Select the tenant by suite number and name in pick list. If the property has no tenants, the Tenant field is not available. • Valuation Date: Select a valuation date in the pick list. The dates available begin with your selections in the Valuation Date (PV/IRR Date) fields, and they end with the analysis end date. Passing Income The Passing Income section of the report includes the elements that make up the passing rent. This section may include any and all of the following information, which is entered on the Rent Roll: 
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Base Rent Percentage Rent Miscellaneous Rent Fixed Steps Percent Increases Consumer Price Index (CPI) Recoveries The Total Passing Rent line item displays the sum of all the items in the Passing Income section. 621 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Market Income The Market Income section of the report includes the elements that make up the market rent. This section may include any and all of the following information, which is entered on the Market Leasing tab: 
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Base Rent Percentage Rent Miscellaneous Rent Percent Increases Recoveries Total Market Rent The Total Market Rent line item displays the sum of all the items in the Market Income section. Difference Displays the Total Passing Rent minus Total Market Rent. PV of Difference Displays the present value of the difference between the Total Passing Rent and Total Market Rent line items. See Also Present Value Calculation Examples Reversion Audit Report Options 622 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Custom Reports Navigation: Property Editor>Reports>Custom Report Name ARGUS Enterprise provides the ability to view reports that include both personalized views of information from ARGUS Enterprise and information from other sources. See Also Web Form Integration Repertoire Reports Custom Repertoire Reports Business App Toolkit Reports Customized tabs are available for selection. Select Report To access an individual report, select it in the pick list. You can edit the parameters of the report. Portfolio Select the name of the portfolio you want to view in the pick list of the Portfolio field. Properties Select the names of the properties you want to view in the pick list of the Properties field. 623 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Date Select the desired date in the drop‐down calendar of the Report Date field. Revenue/Expense Detail Select the level of detail for revenues and expenses you want to view in the pick list of the Revenue/Expense Detail field. Currency And Area Select the units of currency and area you want to view in the pick list of the Currency And Area field. Report Subtitle Enter a subtitle for the report in the Report Subtitle field. Scenario Select the scenario you want to view in the pick list of the Scenario field. Fiscal Year Start Select the month you want the fiscal year to start on in the pick list of the Fiscal Year Start field. First Column Data Type Select the type of data you want to see in the first column in the pick list of the First Column Data Type field. Options Select any additional options you want to see in the report in the pick list of the Options field. Export to Excel Select whether or not you want to export the report to Excel in the pick list of the Export to Excel field. You may choose from the following options. 
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Yes No After you select the parameters, click the View Report button. The report appears below the parameters. Forms and Datasheets To access an individual form or datasheet, select the corresponding tab. Forms and datasheets are editable from within ARGUS Enterprise. 624 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Add Record To create a new record, click Add Record. A form with blank fields appears. Fill out the fields in the form. Then click Save. The newly created record is added to the datasheet. Edit In Form To edit an existing record in Form View, select the corresponding box next to the record, then click Edit In Form. The form appears. Make your changes, then click Save. The values you edited are saved, and the screen returns to Datasheet View. Edit In Datasheet To edit an existing record in the datasheet, click Edit In Datasheet. The fields in the datasheet become editable. Make your changes, then click Save to save them. The Confirmation window appears with the message: "Records updated successfully." Confirmation window Click OK to close the Confirmation window. Delete Record To delete a record from the datasheet, select the corresponding box next to the record, then click Delete Record. The Message from web page window appears with the message: "Are you sure you want to delete the selected records?" 625 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Message from web page window Click OK to delete the selected records or Cancel to stop this process. Export To export the datasheet, click Export. You may export the datasheet to any of the following formats: 
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626 Xls Xlsx Pdf Rtf Csv © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options Report Options: Global To display and change global report options, choose the Report Options on the Ribbon. The Global Settings tab on the Report Options window allows you to change report settings globally. This tab is available regardless of the currently displayed report. The options that are available for specific reports depend upon the report that is currently displayed. For example, when the Property Summary is displayed, the Property Summary tab is available on the Report Options window; when the Cash Flow report is displayed, the Cash Flow tab will be available. See Also Report Options: Property Summary Report Options: Cash Flow Report Options: Lease Summary 627 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 628 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Dates The Dates section allows you to specify general reporting dates. Begin Date / As of Date This field allows you to indicate the date on which reporting is to begin. To enter a specific date, choose Enter Date and enter the date in the field to the right. If you want reporting to begin on the analysis start date, leave the default, Analysis Start, selected in this field. End Date This field allows you to indicate the date on which reporting is to end. To enter a specific date, choose Enter Date and enter the date in the field to the right. If you want reporting to end on the analysis end date, leave the default, Analysis End, selected in this field. Report Year End This field allows you to indicate the month on which you want the report year to end. To enter a specific month, select Enter Report Y/E and enter the month number (1‐12) in the field to the right. If you want the report year end to be the same as the property year end, leave the default, Same as Property Y/E, selected in this field. Printing Format The Printing Format section allows you to specify which information is to be included on reports. Use Selected Data The default option is Forecast Only. Print Interval Select the print interval you want to use in the report. Choose from the following: 
Monthly: Include data in monthly intervals. 
Quarterly: Include data in quarterly intervals. 
Semi‐Annually: Include data in semi‐annual intervals. 
Annually: If you select this option, the Include data in annual intervals. Annual Print Interval Begins If you want to specify a number of years until an annual print interval begins, select Enter Years and enter the number of years in the field to the right. The print interval will revert to yearly after the specified number of years. Print Periods and/or Dates Select a display option in the pick list: • Use Global Setting: Displays periods/dates according to global settings. • Both: Displays periods and dates in the header. • Dates only: Displays only dates in the header. 629 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Periods only: Displays only periods in the header. Print Account Number Select either Yes or No in this field to indicate whether account numbers will be included on reports. Print Amounts per Area Select either Yes or No in this field to indicate whether rates per unit area will be included on reports. Print Annual Totals Select either Yes or No in this field to indicate whether annual totals will be included on reports. Print Final Total Select either Yes or No in this field to indicate whether final totals will be included on reports. Print Row if Amounts are all Zero Select either Yes or No in this field to indicate whether rows containing only zeros will be included on reports. Print Date and Time Select either Yes or No in this field to indicate whether the print date and time will be included on reports. Percentages Display Format Select the format you want to use for percentages. Display Global Inflation Select Yes or No in this field to indicate whether the global inflation rates will be included on reports. Tenant Report Options This section allows you to specify settings for tenant reports. Tenants to Include This field allows you to select specific tenants to be included on reports. If you choose Selected Tenants, click the Select Tenants link to the right of the field to display a window where you can select specific tenants for tenant reports. Lease Periods to Include Choose the lease periods you want to include in the report. Choose from the following: 
All Lease Periods: If you select the this option, the Include lease period data by all lease periods. 
Base and Options: Include lease period data by base and options. 
Base Only: Include lease period data by base only. 
Market Only: Include lease period data by market only. 630 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Sort Order Choose the sort order for reports. Choose from: 
Screen Order: Sort data by screen order. 
Screen Order Descending: Sort data by screen order in descending order. 
Suite Number: Sort data by suite number. 
Suite Number Descending: Sort data by suite number in descending order. 
Tenant Name: Sort data by tenant name. 
Tenant Name Descending: Sort data by tenant name in descending order. Print Lease ID Select either Yes or No in this field to indicate whether you want to print Lease IDs on reports. Traditional Valuation Report Options This section allows you to specify settings for traditional valuation reports. Running Yields Select a frequency for displaying running yields. Choose from: 
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None Monthly Quarterly Annual All Show Costs Select whether to display costs. Choose from: 
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631 Yes No © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options: Property Summary To display and change report options, choose the Report Options on the Ribbon. The Global tab on the Report Options window allows you to change report settings globally. This tab is available regardless of the currently displayed report. The options that are available for specific reports depend upon the report that is currently displayed. For example, when the Property Summary report is displayed, the Property Summary tab is available on the Report Options window; when the Cash Flow report is displayed, the Cash Flow tab is available. See Also Report Options: Global Dashboard Reports 632 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 633 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Upper Chart The Upper Chart section allows you to change the display options on the upper portion of the Property Summary cash flow. Data Select the types of data you want to include in the report. Choose from the following: 
Annual Resale: Include data for annual resale. 
Average Occupancy: Include data for the average occupancy. 
Cash Flow Before Debt Service: Include data for cash flow before debt service. 
Cash Flow Before Loan Proceeds: Include data for cash flow before loan proceeds. 
Cash Flow Growth: Include data for cash flow growth. 
Debt Coverage Ratio: Include data for debt coverage ratio. 
IRR Leveraged: Include data for internal rate of return (IRR) leveraged. 
IRR Unleveraged: Include data for IRR unleveraged. 
Loan to Direct Cap Value: Include data for loan to direct cap value. 
Net Sale Price: Include data for net sale price. 
Net Sale Proceeds: Include data for net sale proceeds. 
NOI Growth: Include data for net operating income (NOI) growth. 
NOI vs Cash Flow: Include data for NOI vs cash flow. 
PV Cash Flow: Include data for present value (PV) cash flow. 
PV Cash Flow Including Residual Leveraged: Include data for PV cash flow including residual leveraged. 
PV Cash Flow Including Residual Unleveraged: If you select this option,the Include data for PV cash flow including residual unleveraged. 
PV Cash Flow Unleveraged: Include data for PV cash flow unleveraged. 
PV Residual: Include data for PV residual. 
PV Residual Unleveraged: Include data for PV residual unleveraged. Type Select the type of chart you want to use to represent data in the report. Choose from: 
Bar: Report will represent data using a bar chart. 
Area: Report will represent data using an area chart. Lower Chart The Lower Chart section allows you to change the display options on the lower portion of the Property Summary cash flow. Data Select the types of data you want to include in the report. Choose from the following: 634 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
Annual Resale: Include data for annual resale. 
Average Occupancy: Include data for the average occupancy. 
Cash Flow Before Debt Service: Include data for cash flow before debt service. 
Cash Flow Before Loan Proceeds: Include data for cash flow before loan proceeds. 
Cash Flow Growth: Include data for cash flow growth. 
Debt Coverage Ratio: Include data for debt coverage ratio. 
IRR Leveraged: Include data for IRR leveraged. 
IRR Unleveraged: Include data for IRR unleveraged. 
Loan to Direct Cap Value: Include data for loan to direct cap value. 
Net Sale Price: Include data for net sale price. 
Net Sale Proceeds: Include data for net sale proceeds. 
NOI Growth: Include data for NOI growth. 
NOI vs Cash Flow: Include data for NOI vs cash flow. 
PV Cash Flow: Include data for PV cash flow. 
PV Cash Flow Including Residual Leveraged: Include data for PV cash flow including residual leveraged. 
PV Cash Flow Including Residual Unleveraged: If you select this option,the Include data for PV cash flow including residual unleveraged. 
PV Cash Flow Unleveraged: Include data for PV cash flow unleveraged. 
PV Residual: Include data for PV residual. 
PV Residual Unleveraged: Include data for PV residual unleveraged. Type Select the type of chart you want to use in the report. Choose from the following: 
Bar: Report will represent data using a bar chart. 
Area: Report will represent data using an area chart. Printing Format Use Selected Data Select the display method you want to use for the report. Choose from the following: 
Use Global Setting: If you select the this option, the Use global setting data to determine values. 
Forecast Only: If you select the this option, the Use only forecast data to determine values. Display Global Inflation Select whether or not to display the global inflation rates (for general, market, expense, and CPI inflation) on the report. Choose from: • Use Global Setting (default): If you select this option the Use the global setting to determine whether or not to display the global inflation rates. 635 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 • Yes: Report will display the global inflation rates. • No: If you select this option, the global inflation rates may be modified to reflect the portion of an annual global rate that is directly relevant to the time period on the report. See Also Managing Inflation Rates 636 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options: Tenant Summary To display and change report options, choose the Report Options on the Ribbon. The Global tab on the Report Options window allows you to change report settings globally. This tab is available regardless of the currently displayed report. The options that are available for specific reports depend upon the report that is currently displayed. For example, when the Property Summary is displayed, the Property Summary tab is available on the Report Options window; when the Cash Flow report is displayed, the Cash Flow tab is available. See Also Report Options: Global Dashboard Reports Upper Chart The Upper Chart section allows you to change the display options on the upper portion of the Tenant Summary cash flow report. 637 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Data Select the data you want to include in the report. Choose from: 
Average Occupancy Percent: Include average occupancy percent. 
Lease Expirations: Include lease expirations. 
Lease Expirations by Type: Include lease expirations by type. Type Select the type of chart you want to use in the report. Choose from the following: 
Bar: Report will represent data using a bar chart. 
Area: Report will represent data using an area chart. Lower Chart The Lower Chart section allows you to change the display options on the lower portion of the Tenant Summary cash flow report. Data Select the data you want to include in the report. Choose from: 
Average Occupancy Percent: Include average occupancy percent. 
Lease Expirations: Include lease expirations. 
Lease Expirations by Type: Include lease expirations by type. Type Select the type of chart you want to use in the report. Choose from the following: 
Bar: Report will represent data using a bar chart. 
Area: Report will represent data using an area chart. Report Options The Report Options section allows you to choose how to calculate the weighted average lease expiration (WALE). WALE is a measure of a collection of leases to expiration events. It represents the measure of how many months will pass until the average unit of rentable area expires or until the average unit of passing rent expires. It is used as a measure of risk for lease income volatility Weighted Average Lease Expiration Select how you want to calculate the WALE. Choose from: • Weight by Tenant Area: If you select this option, the WALE will be the number of months that will pass until the average unit of rentable area expires. • Weight by Tenant Revenue: If you select this option, the WALE will be the number of months that will pass until the average unit of passing rent expires. See Also Weighted Average Lease Expiration Calculation Examples 638 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options: Cash Flow To display and change report options, choose the Report Options on the Ribbon. The Global tab on the Report Options window allows you to change report settings globally. This tab is available regardless of the currently displayed report. The options that are available for specific reports depend upon the report that is currently displayed. For example, when the Property Summary is displayed, the Occupancy tab is available on the Report Options window; when the Occupancy report is displayed, the Occupancy tab is available. See Also Report Options: Global Property Reports 639 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Dates The Dates section allows you to specify general reporting dates. Begin Date This field allows you to indicate the date on which reporting is to begin. To enter a specific date, choose Enter Date and enter the date in the field to the right. If you want reporting to begin on the analysis start date, choose Analysis Start. If you want to use the global settings, leave the default, Use Global Setting, selected in this field. 640 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 End Date This field allows you to indicate the date on which reporting is to end. To enter a specific date, choose Enter Date and enter the date in the field to the right. If you want reporting to end on the analysis end date, choose Analysis End. If you want to use the global settings, leave the default, Use Global Setting, selected in this field. Report Year End This field allows you to indicate the report year end. To enter a specific number of years, select Enter Report Y/E and enter the number of years in the field to the right. If you want the report year end to be the same as the property year end, choose Same as Property Y/E. If you want to use the global settings, leave the default, Use Global Setting, selected in this field. Printing Format The Printing Format section allows you to specify which information will be included on reports. Use Selected Data Select the data you want to use in the report. Your choice of data combinations will determine the values used. The options from which you may choose are dependent upon your current portfolio detail settings. Depending upon your settings, the following options may be available: 
Use Global Setting: If you select the this option, the system uses the global settings to determine values. 
Actual + Budget + Forecast: If you select the this option, the report will use actual, budget, and forecast data to determine values. 
Budget + Forecast: If you select the this option, the report will use budget and forecast data to determine values. 
Forecast Only: If you select the this option, the Use only forecast data to determine values. Include GAAP Adjustments Select either Yes or No in this field to indicate whether the adjustments for generally accepted accounting principles (GAAP) are to be included on the report. When Yes is selected, incentive amortization will be displayed instead of the cash incentive result. Print Interval Select the print interval you want to include in the report. Choose from: • Monthly • Quarterly • Semi‐Annually • Annually 641 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Annual Print Interval Begins If you want to specify a number of years until an annual print interval begins, select Enter Years and enter the number of years in the field to the right. The print interval will revert to yearly after the specified number of years. Print Periods and/or Dates Select a display option in the pick list: • Use Global Setting: Displays periods/dates according to global settings. • Both: Displays periods and dates in the header. • Dates only: Displays only dates in the header. • Periods only: Displays only periods in the header. Print Account Number Select either Yes or No to indicate whether to show account numbers. Print Amounts per Area Select either Yes or No in this field to indicate whether rates per unit area are to be included on the report. Print Annual Totals Select a method for displaying/removing annual totals. Choose from: • Use Global Setting (default) • Yes • No Note: Report settings are automatically stored for files exported to ARGUS Excel Add‐In. Print Final Total Select either Yes or No in this field to indicate whether final totals are to be included on the report. Print Row if Amounts are all Zero Select either Yes or No in this field to indicate whether rows containing only zeros are to be included on the report. Print Multifamily Key Statistics Select either Yes or No in this field to indicate whether the multifamily key statistics are to be included on the report. Print Multifamily Detail Lines Select either Yes or No in this field to indicate whether the multifamily detail lines are to be included on the report. 642 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Recovery Results Format Select the recovery results format you want to use in the report. Choose from: 
In Total: If you select this option, the Include recovery results data in total. 
By Account Number: If you select this option, the Include recovery results data by account number. 
By Recovery Method: If you select this option, the Include recovery results data by recovery method. 
By Operating Expense: If you select this option, the Include recovery results data by operating expense. Operating Expenses Format Select the operating expenses format you want to use in the report in the pick list. Choose from: 
Standard: Include operating expenses data in standard order. 
By Recoverable Amount: Break out operating expenses data into Recoverable and Non‐recoverable sections. Print Occupancy Summary Select either Yes or No in this field to indicate whether the tenant occupancy summary will be included on the report. Print Reference Items Select either Yes or No in this field to indicate whether any reference items will be included on the report. Level of Revenue/Expense Detail Select the level of detail for revenues and expenses you want to use in the report. Choose from: 
Show All: Include headers, accounts, and details for revenue and expenses. 
Show All ‐ Simple: Include headers and hide accounts and details for revenue and expenses. 
Show Accounts: Include accounts and details for revenue and expenses. 
Show Accounts ‐ Simple: Report will Include accounts and hide details for revenue and expenses. 
Aggregate All: Aggregates Rev/Ex data for revenue and expenses. See Also Capitalization Valuation Print Notes Select either Yes or No in this field to indicate whether expense notes will be included on the report. Percentage Rent Results Format Select the percentage rent results format you want to use in the report. Choose from: 
In Total: Include the total for percentage rent results. 
By Tenant Sales Category: Report will include percentage rent results by tenant sales category. 643 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Show Non‐Operating Expenses Select either Yes or No (default) to indicate whether you want to include non‐operating expenses in the report. Note: When non‐operating expenses are used in percent of other calculations, they will be included even if you select No in the Show Non‐Operating Expenses field. Print Amounts Per Occupied Room Select either Yes or No to indicate whether amounts per occupied room will be included in the report. This field is only available in hotel properties. Print Amounts Per Available Room Select either Yes or No to indicate whether amounts per available room will be included in the report. This field is only available in hotel properties. Print Amounts Per Room Select either Yes or No to indicate whether amounts per room will be included. This field is only available in hotel properties. Print Percentages Select either Yes or No to indicate whether percentages will be included. This field in only available in hotel properties. Print ADR Summary Select either Yes or No to indicate whether an average daily rate (ADR) summary will be included. This field is only available in hotel properties. Print RevPAR Summary Select either Yes or No to indicate whether a revenue per available room (RevPAR) summary will be included. This field is only available in hotel properties. Miscellaneous Rent Format Select the miscellaneous rent format you want to use in the report. Choose from: 
In Total: Include miscellaneous rent on one row within Rental Revenue below Scheduled Base Rent. This row will display the total of all miscellaneous rent for all tenants in the property. 
By Account: Include miscellaneous rent in a new section within Rental Revenue below Scheduled Base Rent. Entries with account numbers will be consolidated by them. Entries without account numbers will be consolidated by name. Incentives Format Select the incentives format you want to use in the report. Choose from: 
In Total: Include incentives data in total. 
By Account: Include incentives data by account number (if available) or name. 644 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options: Executive Summary To display and change report options, choose the Report Options on the Ribbon. The Global tab on the Report Options window allows you to change report settings globally. This tab is available regardless of the currently displayed report. The options that are available for specific reports depend upon the report that is currently displayed. For example, when the Property Summary is displayed, the Property Summary tab is available on the Report Options window; when the Cash Flow report is displayed, the Cash Flow tab is available. See Also Report Options: Global Property Reports 645 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 646 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Printing Format The Printing Format section allows you to specify which information is to be include on reports. Use Selected Data Select the data you wish to use in the report. Your choice of data combinations will determine the values used in the report. In Budget scenarios, the actuals and budget through dates are set at the scenario and locked at the property level to enforce uniformity. In non‐budget scenarios, the scenario level dates are not enforced at the property level so it is possible to have a portfolio with actuals and budget through dates that differ by property. The options from which you may choose are dependent upon your current portfolio detail settings. Depending upon your settings, the following options may be available: 
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Use Global Setting Actual + Budget + Forecast Budget + Forecast Actual + Forecast Forecast Only Display Global Inflation Select whether or not to display the global inflation rates (for general, market, expense, and CPI inflation) on the report. You may choose from the following options. • Use Global Setting (default): Use the global setting to determine whether or not to display the global inflation rates. • Yes: Report will display the global inflation rates. • No: If you select this option, the global inflation rates may be modified to reflect the portion of an annual global rate that is directly relevant to the time period on the report. See Also Managing Inflation Rates 647 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options: Assumptions To display and change report options, choose the Report Options on the Ribbon. The Global tab on the Report Options window allows you to change report settings globally. This tab is available regardless of the currently displayed report. The options that are available for specific reports depend upon the report that is currently displayed. For example, when the Property Summary is displayed, the Property Summary tab is available on the Report Options window; when the Cash Flow report is displayed, the Cash Flow tab is available. See Also Report Options: Global Property Reports 648 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 649 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Dates The Dates section allows you to specify general reporting dates. Begin Date This field allows you to indicate the date on which reporting is to begin. To enter a specific date, choose Enter Date and enter the date in the field to the right. If you want reporting to begin on the analysis start date, choose Analysis Start. If you want to use the global settings, leave the default, Use Global Setting, selected in this field. End Date This field allows you to indicate the date on which reporting is to end. To enter a specific date, choose Enter Date and enter the date in the field to the right. If you want reporting to end on the analysis end date, choose Analysis End. If you want to use the global settings, leave the default, Use Global Setting, selected in this field. Report Year End This field allows you to indicate the report year end. To enter a specific number of years, select Enter Report Y/E and enter the number of years in the field to the right. If you want the report year end to be the same as the property year end, choose Same as Property Y/E. If you want to use the global settings, leave the default, Use Global Setting, selected in this field. Printing Format The Printing Format section allows you to specify which information is to be included on reports. Print Interval Select the print interval you want to use in the report. Choose from the following: 
Monthly: Include data in monthly intervals. 
Quarterly: Include data in quarterly intervals. 
Semi‐Annually: Include data in semi‐annual intervals. 
Yearly: If you select this option, the Include data in yearly intervals. Annual Print Interval Begins If you want to specify a number of years until an annual print interval begins, select Enter Years and enter the number of years in the field to the right. The print interval will revert to yearly after the specified number of years. 650 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options: Budget Comparison To display and change report options, choose the Report Options on the Ribbon. The Global tab on the Report Options window allows you to change report settings globally. This tab is available regardless of the currently displayed report. The options that are available for specific reports depend upon the report that is currently displayed. For example, when the Property Summary is displayed, the Property Summary tab is available on the Report Options window; when the Cash Flow report is displayed, the Cash Flow tab is available. See Also Report Options: Global Property Reports 651 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Dates Begin Date This field allows you to indicate the date on which reporting is to begin. Choose from: 
Use Global Setting: Use the global settings for the begin date. 
Enter Date: Use the date you enter for the begin date. 
Analysis Start: Use the analysis start for the begin date. 652 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Years of Actuals Indicate whether you want to display one year or two years of actuals on the report. The number of actuals columns on the report depends upon the selection in this field. Years of Forecast Indicate whether you want to display one year or two years of projected data on the report. The number of projected data columns depends upon the selection in this field. Printing Format Include GAAP Adjustments Indicate whether you want to include incentive amortization, where applicable, instead of the cash incentive result. Note the display of amortization amounts will vary according to the selection in the Incentives Format field. Print Interval for Reforecast Select the print interval for the report. You may choose from the following options: 
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Monthly Quarterly Yearly Print Account Number Indicate whether you want to print account numbers on the report. Print Amounts Per Area Select the method you want to use for including amounts per area in the report. Choose from: 
All Data Sets: Use all data sets for amounts per area. 
Actuals: Use actuals data for amounts per area. 
Budget: Use budget data for amounts per area. 
Reforecast: Use reforecast data for amounts per area. 
Projected: Use projected data for amounts per area. 
None: Will not include data for amounts per area. Print Row if Amounts are all Zero Indicate whether you want to print rows when the corresponding amounts in those rows are all zeros. Recovery Results Format Select the recovery results format you want to use in the report. You may choose from the following options: 
In Total: If you select this option, the report will format recovery results data by total. 
By Account Number: Include recovery results data by account number. 
By Recovery Method: If you select this option, the report will format recovery results by recovery method. 653 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 
By Operating Expense: If you select this option, the report will format recovery results data by operating expense. Print Occupancy Summary Indicate whether you want to print the occupancy summary. Print ADR Summary Indicate whether you want to print an average daily rate (ADR) summary. Print RevPAR Summary Indicate whether you want to print a revenue per available room (RevPAR) summary. Print Reference Items Indicate whether you want to print memo items. Miscellaneous Rent Format Select the miscellaneous rent format you want to use in the report. Choose from: 
In Total: Include miscellaneous rent on one row within the Rental Revenue section below the Scheduled Base Rent row. This row will display the total of all miscellaneous rent for all tenants in the property. 
By Account: Include miscellaneous rent will in a new section within the Rental Revenue section below the Scheduled Base Rent row. Entries with account numbers will be consolidated by them. Entries without account numbers will be consolidated by name. Level of Revenue/Expense Detail Select the level of revenue and expense detail you want to include in the report. Choose from: 
Show All: Include headers, accounts, and details for revenue and expense data. 
Show All ‐ Simple: Include headers and hide accounts and details for revenue and expense data. 
Show Accounts: Include accounts and details for revenue and expense data. 
Show Accounts ‐ Simple: Report will Include accounts and hide details for revenue and expense data. 
Aggregate All: Aggregates data for revenue and expense data. Print Notes Indicate whether you want to print notes. Percentage Rent Results Format Select the percentage rent results format. Show Non‐Operating Expenses Select either Yes or No (default) to indicate whether you want to display non‐operating expenses in the report. 654 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Note: If you elect to show Non‐Operating Expenses, the report will (1) display Non‐Operating Expenses after net operating income (NOI) and above Capital Expenditure; and (2) calculate all totals after Non‐Operating Expenses to include them. Show Variance 1‐3 The Variance fields allow you to select the types of variance you want to include on the report. Once you have selected a variance, that selection will not be available in the next variance field. For example, if you select Actuals in the Variance 1 field, it will not be available for selection in the Variance 2 field. 
Actuals: Include variance for actuals data. 
Budget: Include variance for budget data. 
Reforecast: Include variance for reforecast data. 
Projected: Include variance for projected data. 
None (not available in Variance 1 field): Will not include variance from that field. Print Variance Select the method you want to use for representing variance in the report. Choose from: 
Amount: Report will represent variance as an amount. 
Percent: Report will represent variance as a percentage. 
Both: Report will represent variance as both an amount and a percentage. Miscellaneous Rent Format Select the format you want to use for displaying miscellaneous rent. You may choose from the following options in the pick list: 
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In Total By Account Incentives Format Select the incentives format you want to use in the report. You may choose from the following options: 
In Total: Include incentives data in total for all tenants in the property. 
By Account: Include incentives data by account number (if available) or name. 655 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options: Month and Year to Date Variance To display and change report options, choose the Report Options on the Ribbon. The Global tab on the Report Options window allows you to change report settings globally. This tab is available regardless of the currently displayed report. The options that are available for specific reports depend upon the report that is currently displayed. For example, when the Property Summary is displayed, the Property Summary tab is available on the Report Options window; when the Cash Flow report is displayed, the Cash Flow tab is available. See Also Report Options: Global Property Reports 656 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Dates Begin Date This field allows you to indicate the date on which reporting is to begin. Choose from: 
Use Global Setting: Use the global setting for the begin date. 
Enter Date: Use the date you enter for the begin date. 
Analysis Start: Use the analysis start for the begin date. Report Options Fiscal Year Start Select the month in which the fiscal year begins in the pick list in this field. First Column Data Type Select the type of data you want to display in the first column of the report. Choose from: 
Reforecast: Include reforecast data in the first column. 
Budget: Include budget data in the first column. Level of Revenue/Expense Detail Select the level of revenue and expense detail you want to use in the report. Choose from: 
Show All: Show headers, accounts, and details for revenue and expense data. 
Show All ‐ Simple: Show headers and hide accounts and details for revenue and expense data. 
Show Accounts: Show accounts and details for revenue and expense data. 
Show Accounts ‐ Simple: Show accounts and hide details for revenue and expense data. 
Aggregate All: Aggregates data for revenue and expense data. Show Non‐Operating Expenses Select either Yes or No (default) to indicate whether you want to display non‐operating expenses in the report. Note: If you elect to show Non‐Operating Expenses, the report will (1) display Non‐Operating Expenses after net operating income (NOI) and above Capital Expenditure; and (2) calculate all totals after Non‐Operating Expenses to include them. 657 © 2015 ARGUS Software, Inc. Product User Manual ARGUS Enterprise 11.0 Report Options: Sources and Uses
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Documents Needed For Evidence
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