Curious as if anyone on the commercial lending side has a template/uses a program that makes analyzing leases/rent rolls a little less cumbersome and time consuming outside of the initial data entry part?
Currently, my department has an excel spreadsheet where we enter basic lease info (start date, end date, gross rent of each lease, recoveries, property expenses, etc.). It will give you the easy formulaic data returns such as rent/SF, debt yield and so forth. My question is, does anyone have/use anything that will automatically tell you how much SF/Rental income is expiring during year 20xx along with any other useful data?
Today I wasted too much time entering about 60 leases for an industrial complex, and figured there has to be an easier way lol. Was manually documenting yearly expirations and other data and wasted a lot of time when i could have been furthering my underwriting.
I'm not familiar with Argus, would this solve this cumbersome and annoying process? Or is a program like that a little too much for the lending side?
Thanks in advance!
Work on the lending side, I have once reviewed over 300 leases for a 2.5 billion portfolio deal. Honestly, looking back I wonder why we just didnt outsource that to Situs or Spring 11 for lease abstracts.
We have an excel spreadsheet which serves as a template. We still manually input tenant name, rent, lease start/end dates, extension options, termination options, and a few other data points but the template also has formulas that automatically calculates rent/sf, lease term, time till rollover etc. Yes, it's boring data entry work, but once I got the hang of it, it was not too bad. I love it when all leases are from the same landlord and prepared by the same attorney, so they will have a similar format. After doing a couple- I will just know that for example on page 3, you will find the tenant name, sf, commencement/end dates, page 5-who pays for utilities, then its all fluff on page 6-15, and at the very end, look for termination options or renewal options. When I do this, I am not reading every word but just capturing key data points and moving on to the next one. Of course, its different for a single tenant deal where I am reading every word in the lease.
There are a couple of startups now in the lease abstract space and law firms are giving them a shot but it is not mainstream yet and there is still large amount of human oversight and data entry. I wonder if Situs or Spring 11 has a unique process given the volume they do. I would so love to use them just to get a peek into their processes and systems. I feel like many banks have also used them for underwriting once and then they just copied their models and templates.
When using Argus you can highlight and copy selected information (ie.: lease start and end, SF). Paste it into excel. And you can start using formulas etc for what you need. For instance, sumif to determine the amount of SF rolling in each year. If you don’t have the information in Argus, I am not familiar with software that does this.
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