For those that deal with institutional office brokerage space (i.e. deals with 35+ tenants), what's the best way to approach inputting everything into an Argus model?
I just did a building with 38 tenants and it was really overwhelmed just with the sheer number of tenants.
How can I make it more efficient? Do you look through leases and input into Argus as you go or do you compile everything into excel prior to inputting into Argus? Are you using a lot of expense groups? Do you create a recovery structure for each individual tenant, or try to group tenants together?
Appreciate any advice. I just started on a brokerage team and have not built a model with this many tenants. The way I went about it seems way to time consuming to sustain.
Based on the most helpful WSO content, here are some strategies to efficiently handle Argus modeling for institutional office brokerage with numerous tenants:
Compile Data in Excel First:
Use Expense Groups:
Create Recovery Structures:
Leverage Standardized Templates:
Incremental Input and Validation:
Utilize Argus Features:
By following these strategies, you can make the process of inputting data into Argus more efficient and manageable, even with a large number of tenants.
Sources: CRE Asset Management Learning Materials, Real Estate Development Modeling, How to choose what asset type to work with in investment sales?, Life in Acquisitions (Analyst/Associate), Open Source Argus
Building ARGUS from scratch is just part of paying your dues unfortunately. You can save a little time by adding a bunch of blank rows to start and then copy pasting in RSF, expiration etc...at once from a rent roll. But if we're talking $75mm+ purchase price, buyers are going to want to see detailed recovery methods for each tenant with however many expense groups that takes. Might get lucky where multiple tenants have the same rent escalations and recovery methods, might not... But if there's a big re-trade because you were lazy on the model you are toast.
Buillding an office model from scratch in Argus is no fun. Unfortunately no short cuts. It’s why the brokers generally take a model from the client and they check it / tweak it. The buyer of the building usually uses the model from the broker which they tweaked. AKA all these Argus models get passed down. There really is no shortcut if you need to build from scratch. Every tenant will have their own reimbursement structure. Occasionally you can reuse - ie.: all small tenants may just be expenses over a base year stop. But usually bigger tenants get more nuanced. You just need to read the relevant areas of the leases. As you do it more, you begin to learn the language and it becomes faster. Unfortunately, no good shortcuts.
I’ve seen firms outsource it if there is not a base model anywhere that exists.
As a frequent Argus user, I would say unfortunately there is no shortcut to make annoying input more efficient. As others say, you can copy and paste some information from Excel such as tenant name, rsf, LCDs etc. Other than that, I have not figured out a quicker way instead of passing the input work to analysts lol. I have done an NYC class B office with 99 tenants, which was a pain.
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