I'm learning Argus and can't figure out the best way to model legal fees related drafting new/renewal lease documents. I read that I can input them as a LC, but that won't really work if I enter LC's on a per SF basis.
Is there a way for me to model legal leasing fees in argus or is best to do it manually in Excel?
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Add leasing legal costs as a capital expense. This is the easiest way to do it. Then you can either hardcode what ever values you want for each year, or do it as a percent of rental revenue for the tenants/vacant suites you select by using the “% of other” drop down.
Thanks!
When I add the fee to the capital expense section, how do I get the fee to hit only when a lease expires? Some years there's only 1-2 leases expiring and other years there are 7-8, so I'd like the fee to correlate to the amount of leasing activity that takes place.
Unfortunately there’s no way to do that in Argus. You can make it as a percent of revenue every year or…most people do it manually in excel then plug it in, or just enter in a leasing legal contingency during the lease up period. I.e. for a decent sized office building, a few hundred thousand in years 1-3. The actual number obviously depends on the amount of lease up needed, the market, etc…
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