Modeling Office w/out Argus

I'm trying to model a 20+ tenant flex-office complex and the firm I'm at this summer doesn't have Argus - it's not been a fun day. Essentially, I'm having a hard time getting a dynamic Excel model because of the reasons that Argus was created (i.e., intelligent renewals & differing reimbursement schedules), the reimbursements aren't particularly complex, but there aren't any NNNs either.

Any other monkeys modeled something similar successfully?

 
Most Helpful

I've had to do this before - I'd send you a model but I don't have it any longer (or if I do don't remember where I put it). The easiest way to do this is have an input section with different renewal probabilities, and then a dynamic lookup (Vlookup, Hlookup, or offset&match) which ties to tenant expiration dates and then term lengths of 2nd gen+ leasing/MLA's. This will take care of your weighted averages for downtime, absorption/turnover, free rent, GV, leasing costs, etc. Then for the reimbursements, you can just set up the various structures and then create a pick-list on a separate sheet that will auto-calc that DRM and hit it with the PRS of that tenant. Obviously, this will get more complex if there's something screwy in the leases, but usually office reimbursements aren't as nasty as retail. Then you can just do an if statement when the tenants roll based on their expiration date and then have the new MLA recovery structure kick-in. The less variation you have in the MLA recovery structures the easier this will be.

"Who am I? I'm the guy that does his job. You must be the other guy."
 

Thanks, great post.

This is essentially what I ended up doing. Still wish that we had Argus - any model with several quadruple-nested if statements makes me nervous, regardless of how many times I've audited it.

I come from down in the valley, where mister when you're young, they bring you up to do like your daddy done
 

Quia officiis porro autem et sed dolor voluptas. Labore tempora enim fugiat. Culpa suscipit consectetur sed optio. Ab quisquam nulla quod quia. Laboriosam velit ut id temporibus corporis aliquam eum id.

Est corrupti corporis accusantium quidem. Commodi reprehenderit ea perspiciatis inventore. Enim recusandae architecto iure porro et.

Sed temporibus eos iste ea. Est reprehenderit eum quia. Eum deleniti iste voluptatibus labore ea quos. Consequatur rerum qui ut omnis dolores excepturi et voluptatibus.

"Who am I? I'm the guy that does his job. You must be the other guy."

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
CompBanker's picture
CompBanker
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”