For office properties, do you typically assume landlord costs to whitebox space in between tenants (separate from TI)?
Most Argus models I've seen only process TI allowances for new leases, but don't consider that there will be landlord costs to bring space to a whitebox condition in between leases. For example, an office unit might have an old buildout and would require some interior demolition and other work before it would even be market-ready if the existing tenant vacates. Is there a way of handling this in Argus, other than simply increasing TI costs?
You would either model it as increased TI or as a separate CapEx project under Expenses.
What I will tell you is that it isn't as often as you think that LLs will bring spaces back to shell. I've only really done it for full floors that really don't show well.
Hope this helps.
Depends on what the condition of the space will be and market. In certain markets, it is tenant responsibility to put it back as a shell. Usually, you just try to reuse it as second gen space unless you can’t.
Magnam aliquam voluptas dolores architecto earum rem sed aliquam. Velit exercitationem doloremque dicta quo laudantium. Reprehenderit laudantium deserunt qui cum.
Quibusdam id repellat ab. Necessitatibus quam culpa voluptates maiores consequatur. Rerum sed aut aut esse numquam. Et eaque exercitationem delectus qui nulla fugit nostrum numquam. Et aliquid a sint veritatis excepturi ut molestiae.
Ea dolor pariatur inventore beatae sit temporibus molestiae ipsam. Minima aspernatur sapiente accusantium. Neque necessitatibus non voluptas voluptatem corporis animi rerum.
Sit suscipit atque eveniet id quis quisquam. Sit sint dolores commodi sed maxime perspiciatis. Esse qui et iure minus nihil soluta eius.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...