Annual WALT Forcast
As part of my business plan while determining the feasibility of Office investments, I've been trying to come up with a formula/table/way of calculating what the annual WALT would look like during the hold period of the asset.
Does anyone know of a way or the best methodology to calculate these forecasted WALT values? I've been working on a workbook that calculates this, but it starts getting pretty complex once you start considering renewal probabilities and changes in lease terms.
I feel like there should be a way of doing this in Argus, but I haven't seen or heard of a way of doing so.
Thanks!
I've never seen anyone forecast WALT, but you can view your rent roll "as of" a specific date in Argus. Just copy that out and calculate WALT based on that.
If you want this to be dynamic it’s going to get pretty complicated pretty fast. I don’t have one in front of me but if the lease audit spits out expiration date that’s probably the easiest to drop in a model and build your calc off of that. Most likely you’ll need to drop a tenant summary into excel and will have to build off of that. But will get pretty complex.
Don't think you can. When a lease rolls, you don't have another lease that takes its place in ARGUS (you can if toggle it). Without a lease you cannot get a walt. What you have is an average estimated cash flow as soon as leases start rolling.
Although thinking about this maybe you can? if you get a tenant lines summary report. Or you could make your own forecast on the renewal and space metrics on a one-by one basis, NOT in ARGUS.
To my knowledge nobody forecasts WALT, they only view the metric on in-place data to know how much time remains before they can increase rents or have to go out for renewal tenants. It’s not a dynamic calculation you typically forecast
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