ARGUS - Office - Single-Tenant Building, Multiple Floors

Hi, if I have a single-tenant building with five floors (Leases 25,000 sf per floor totaling 125,000 sf) but I expect the tenant to "give back" some space at the end of their lease term, how should I go about modeling this? Currently I have the spaces split up between 25,000 sf each. Each lease term is the same and the rent/sf is the same.

8 Comments
 

Thanks this helped a lot. Would you go with a similar strategy to handle subleasing? The single tenant is subletting multiple spaces/subdividing multiple floors. The sublet space lease expirations all occur before the official tenant's lease expiration.

 

Why would that affect your Argus? You still have an in-place lease with your tenant correct? Subleasing should effect the LXD.

Generally speaking though this is the best way to subdivide any larger suite into smaller ones.

Array
 

I'm assuming that some of the sublet space will execute leases at the end of the lessor's term so I wanted lower TIs for these units. I ended up using reabsorb and I think it turned out correctly.

 

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