RENT ROLL SECTION - ROLLOVER - PART ONE
Welcome to this video. In this video, I am going to cover the Rollover in Rent Roll Section in the ARGUS Excel Model. I will go through how to assign leasing profiles to tenants in this video.
Assigning Market Profiles
Let’s go to the rent roll tab. Two lease terms can be modeled out in the Argus Excel Model, which means that I can model whether there is a renewal or rollover 2 times for each tenant.
I am going to assign the major tenant market leasing profile to the first tenant – NBC Marketing Services as its size is greater than 10,000 square feet. I can see the progress bar flashes on the screen two times. That is the computer inputting major tenant leasing profile for the first rollover and second rollover automatically for me. Click on the Rollover button. I can see the rent has been filled out for me. The rent is 17 dollars, which is the market rent of the major tenant market leasing profile. The downtime period and free rent period are labeled for me and I can count 4 months downtime and 4 months free rent period. This 8-month rent is counted towards Gross Potential Revenue but they are subtracted as Absorption & Turnover Vacancy in the cash flow. Everything looks good. I am going to close the window.
Scrolling to the right. I can see 4 months downtime. Underwritten Renewal Probability of 65% matches what I input in the major tenant market leasing profile. Underwritten Tenant Improvement of $22 is the weighted average number from the major tenant market leasing profile. Total Underwritten Tenant Improvement is calculated as the Underwritten Tenant Improvement times NBC Marketing Services’ square feet, which is 48,174 times 22 equals to 1,059,828. Underwritten leasing commission, underwritten free rent, and underwritten lease term all match what I have input in the major tenant market leasing profile. Keep scrolling to the right. I can see the second rollover has also been automatically assigned the major tenant market leasing profile. The downtime, renewal probability, tenant improvement, and other variables are consistent with the major tenant market leasing profile.
Let’s scroll back a little bit. The second tenant has 2,507 square feet. This fits the definition of a minor tenant. Click on the Rollover button for the second tenant. I can see th e 19-dollar rent is already in place, which is what I input for the minor tenant market leasing profile. Let’s scroll back to the right. The downtime, renewal probability, tenant improvement, and other variables are consistent with the minor tenant market leasing profile. Going to the next tenant. About 1,200 square feet. Assign a minor tenant leasing profile. The next tenant is about 1,200 square feet. Assign a minor tenant leasing profile. This one is about 5,500 square feet. Assign a medium tenant leasing profile. The next three tenants are also medium tenants. BNP media occupies a space of about 17,000 square feet. Assign a major tenant market leasing profile. The next two tenants are medium tenants. And the next four tenants are minor tenants. Now I can see the power of the market leasing profiles. I can simply assign a profile in the drop-down menu and all the work is automatically done for me. I still got 4 empty suites left. I will cover them in the next video.
Thanks for watching this video. I will see you in the next one.