Is ARGUS a must have in REPE?
Title says it all. Is it an automatic ding for REPE firms specifically if you cant do ARGUS? I hope people from REPE can answer this especially for an acquisitions role
Yes? Unless you're working for a multifamily firm, Argus is a used by most analysts/associates at every firm. Most likely would have an Argus exam during the interview process as well.
I'm not sure how it works for undergrad hires, they can't really be expected to know it. But other wise yes 100% required across the board.
In Europe it's not really used apart from appraisers, everything seems to be done on excel. Source: worked at a developer and an opportunistic fund
Which is tough for me, where all my experience in EU and I will be returning to the US and everyone expects it.
Exact same situatiuon here. Worked in Europe for the past 4 years after graduation. Free to chat some time?
I have worked in CRE and a value-add/opp fund in Asia, seems like its excel as well... Anyone else noted otherwise?
I mean, it is relatively cheap and easy to get trained/certified, so it can only boost your chances and make you more competitive. Thus, I advise anyone looking to get hired in institutional real estate to do it, as you really won't know if you need it or not until later on.
Personally, I think it would suck to not get considered for a role because of a lack of Argus on a resume, and that can absolutely happen.
If you're dealing with office, and a lot of retail, yes.
Solely Multifamily? No.
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I...don't know. Not a product type I touch.
I think we have industrial people here who can answer. I'd assume yes due to similarity to office, but it may be simple enough underwriting that you don't need it.
I am not personally sure, but Argus would be useful for industrial, it is just super useful for office and retail given their lease structures/terms/rollovers/etc. Industrial can be simpler, but Argus is still 100% useful even if modeling can be easier relative.
Agree, multifamily does not need it, really not that valuable.
Definitively helpful in industrial, especially when it comes to smaller boxes with a bunch of little tenants or when doing portfolios.
Depends on the type they specialize in. Single tenant? Probably won't be necessary.
Argus is useful and early on/while in school, I would recommend everyone get trained on it. You want the more generalist positions starting out.
For REPE I'd say yes. For CRE as a whole, it depends on the company & what it is involved in
what type of assets?
I'd say a large majority of shops use Argus just to model cash flows and then dump those into an excel model. For that purpose, Argus is really easy to learn, just have to figure out where all of the input pages are pretty much. Brokerage analysts probably use the other features of Argus more extensively. With that being said, I'd say you should probably learn as much of Argus as possible to be competitive for any principal job other than single tenant NNN shops and MF.
why isn't argus used for multifamily? Isn't all the absorption of vacant and rollover units tough to model in excel?
Nah.
You assume X is the renewal rate. Say it's 50%. Then you just model that half of the expiring leases renew at the renewal $ amount and half leave, and ultimately are re-leased at the market $ amount.
Try to take courses or something to put it on your resume to demonstrate you have a cursory understanding. My data point is been reached out to directly for roles based on my experience, would love to chat, blah blah and then told point blank we won't consider any further due to no professional Argus experience. Emphasis on professional, because that's after informing hiring managers in good faith that I have paid for continuing education courses at universities or resources to gain certifications because it's not something we use professionally (heavy Excel) and recognize that gap. It's not anyone's fault but just a data point from my experience
It really helps getting a job at some shops, but frankly, it isn't the most important skill in the world if you're not at a megafund. I feel like half of the REPE shops in NYC are either pure multi or close to it, and Argus is totally useless for multi. Also mostly useless if you end up at a net lease fund.
It's useful for retail and from what I understand it was more useful in industrial in the past, but these days the demand has led to tons of facilities either being single user or perhaps split between 2-4 users, so not a ton of need for it there either.
The only place Argus is a really needed skill IMO is if you're doing office investment, and even then, it isn't hard to pick up. You don't actually need to learn how to build models in Argus, just to put in assumptions and then pop out cashflows so that you're not sitting there trying to catch lease rolls and vlookup your way through a complicated date / rent schedule.
That said, putting 'Argus Certified' on your resume almost certainly helps with the job hunt at the analyst / associate level. For that reason alone, its probably worth doing.
Why is it useless for multifamily? Doesn't Argus have pretty good functionality to rollover and lease up vacant multifamily units?
If it does, it is completely unnecessary and no one in MF uses it. Modeling MF renewals isn't rocket science.
My sense is that you need it for office and retail in the US. Most European leases are close to NNN, and as such it is less of a thing in Europe.
Nope. Office and retail are dead. Kidding, yes you need it if your firm covers all asset classes,
Even at MF REPE on the debt side you likely won’t need it
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