I am new to CRE and just started working as an analyst for a REPE firm. I have never used Argus before but started using it today. I have a lot of questions and am hoping someone on WSO can help me out. I am working for a small firm in the Midwest and am the only analyst (only person that has an Argus license). The firm I am working for is looking to acquire office's (mainly high-rise's) through out the country. I would like to get some best practices from experienced individuals.
When presented with an OM & Argus file, do you create your own Argus file from scratch or just manipulate the Argus file that was provided? If you just manipulate, what are some key things to change/look for?
Additionally, I am having trouble finding any training on the latest version of AE (11.6.2). If anyone has any material, please let me know. I am thinking about purchasing some of the Argus e-learning material but am not sure if it will be helpful enough to justify the expense... Thoughts?
No reason to create a model from scratch, but chances are you will be tweaking basically every aspect of the model by the time you're through DD on a deal.
Key variables to look at are the MLAs (market leasing assumptions, so market rents / TIs / renewal %, etc.) and lease-up dates/assumptions of any vacant spaces. Those generally cause the biggest swings in your cash flow.
OpEx and expense pass throughs can require a decent amount of tweaking depending on how well put-together the model was, but you usually won't be able to change that stuff until you have access to the diligence materials.
Thanks for the comments
If you contact ARGUS support they should be able to send you copies of the AE training manual and the user guide. If not, PM me and I'll send it to you.
Echoing CRE questions, pay attention to growth rates and inflation numbers, time spaces go vacant in between leases, renewal rates, etc.
Yeah, definitely ask ARGUS for some training manuals since your firm is paying an arm and a leg. Also feel free to just hit up ARGUS help phone line with any question, over and over again.
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