AE 9.5 and DCF 16 Product User Manual.pdf - ARGUS Software

ARGUS Enterprise 9.5 & Valuation DCF 16given to renewal leases regardless of the lease start date, enter 1 in the Renew Free Rent field.Otherwise, click the button 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 rentperiod by using a Free Rent profile. To use a Free Rent profile, you must create one on the Free Rent taband then choose it from the drop-down list in the Renew Free Rent field.See AlsoFree Rent ProfilesDetailed Free RentRecoveriesStructureSelect the recovery structure to be applied to the speculative lease from the drop-down list. The defaultis Continue Prior which will continue to use the recovery structure of the existing tenant includingallocation percentage, recovery stops, recoverable expenses, etc. Continue Prior: If you select this option, the recovery methods in effect at the end of the prior leasewill be used for each of the subsequent market leasing terms. Base year stops are not reset whenusing this method. Net: If you select this option for the recoveries, all recoverable expenses are paid by the tenant basedon their proportionate share of the building area. Base Year Stop: If you select this option for the recoveries, all recoverable expenses will be paid bythe tenant based on their proportionate share of the building area (NRA) over a stop amount which isthe actual amount of annual recoverable expenses in the base year (or first year of the lease). Stop Amount: If you select this option, you can enter the building stop amount. This tenant willreimburse all recoverable expenses over the building stop amount entered based on theirproportionate share of the building area. Stop Amount/Area: If you select this option, you can enter the building stop amount/area. This tenantwill reimburse all recoverable expenses over the building stop amount/area entered based on theirproportionate (pro rata) share of the building area. Fixed Amount: If you select this option, you can enter the annual recovery amount that will be paid bythe tenant each year. The fixed amount can be a single amount or vary over time. The fixed amount isa tenant amount not a building amount. Fixed Amount/Area: If you select this option, you can enter the annual amount/area recovery thatwill 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. None: If you select this option, no recoveries will be calculated for the tenant.Note: In addition to the options above, you can also create user-constructed recovery structures. Theseprovide you with the ability to create custom recovery structures which apply different recoverymethods to individual expenses or expense groups. This flexibility allows you to model virtually anyrecovery structure you might encounter in a commercial real estate lease contract. For moreinformation, see Recovery Structures.AmountThis field is disabled if you selected a recovery structure that doesn't require the entry of an amount.© 2013 ARGUS Software Inc. All Rights Reserved. 50