Modeling Growth
How would you model rent growth to only hit specific years in a model? Or to say only have the growth hit every 2/3/5 years etc.....
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The answer to your question seems really obvious, so much so I'm pretty sure I'm missing your actual question.
Are you asking physically how do you put that formula in excel or Argus? Or something else?
Yes, sorry for oversimplifying the question. What would be the formula in excel to only apply growth to those specific years?
Look up function that corresponds to a growth table, better off just manually entering it.
Growth table useful for modeling different case years: bear, bull, zero
Depending on time/optionality I expect to need I would probably just hardcode a rent growth table and have new leases mark to that.
If you want a lot of optionality I've done if statements like: if(MOD, proforma year, rent growth years)=0,rent growth * old market rent,old market rent * 1)
You set up a rent growth table using that and it checks year proforma year to see if its a multiple of whatever period of time between rent growth you want (2/3/5 whatever). MOD returns the remainder of a/b so if its lease year 5 and you want to grow market rent every 5 years the remainder would be zero and the formula would return TRUE on years 5 and 10 but not any other year.
Sorry for shit explanation
If you're working with Argus you just go into Market Rent inflation table and manually enter inflation in the years you want it and zeros in the years you dont.
Nested IF( statement if,year1,x%growth, if year2,y% growth, if year 3, z%growth. then end with brackets
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