An ARGUS® DCF Power User Shares His Reasons Why ARGUS® DCF Should be used by Commercial Real Estate Brokers to create value and enhance their CRE business offerings.
1. ARGUS® is the industry standard for financial analysis.
As a part of my business model I create investment proforma’s. I do this using ARGUS® DCF/ENTERPRISE 10.5. My experience with REIT’s, institutional buyers and astute investors alike suggests a preference for an ARGUS® file (run) for financial proforma submittal as apart of their criteria of their investment considerations.
2. No better way to have a command of your leasing strategy. (I am a Landlord Representative)
I am a landlord representative, therefore I represent owners and sellers alike. During a lease up assignment I find ARGUS® to be exceptionally useful. The ideal situation is to set ARGUS® up right at the inception of your assignment so you can build an analysis as the data is new and fresh. This is a crucial time to master the project and take command of the financial future of the property on behalf of your client.
3. Best way to lay the groundwork for any future Offering Memorandum.
Lease Up Assignment
When a property has vacancy I create an ARGUS® analysis for that property. The analysis includes all revenues and expenses to the date of my inheritance of the assignment. I then create a strategy moving forward, during the lease up assignment, which better prepares the assets maximum disposition value.
Having all expenses accurately prepared in an ARGUS® DCF analysis allows many things to occur during the lease up assignment, some of those are:
- Market value projections of remaining vacant suites
- Studying CAM fees and their reductions to increase NOI
- Strategic lease ending dates to be staggered (I have created many odd termed leases of 4, 6, 7, 9, 11, 13 years in length) with the goal of controlling large percentage of the property renewing same year.
With the above steps in place, I have prepared for a very effective Offering Memorandum for disposition. I know that nobody will know that property better than I, after diligently combing over the numbers creating a sensitivity matrix analysis.
Passion for ARGUS®
For many years I have created ARGUS® financial analysis for many people throughout the US, I would be happy to discuss the opportunity to meet and exceed your investment analysis goals as well.
This blog is the beginning of a long series of how I create value using ARGUS® as part of my commercial real estate business model. I will share with you and include links to the many reports available, how I use them, what they are, why they are relevant and how I gain market confidence and your buyer’s confidence during asset disposition using……….ARGUS® DCF/ENTERPRISE 10.5.Using ARGUS® in my tool set is a service that sets my CRE business apart. Click To Tweet
Wishing you great success,
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