Hi all,
New guy both to the industry and here. I have been working in real estate for the past year trying to soak up as much knowledge as I can (just graduated from school last year). I have an excel test coming up for an analyst job for a retail brokerage team (good market, well known company). Unfortunately, I am not very familiar with retail as I have never worked in on the asset class.
I have been told that I will be given a 3 tenant rent roll along with year end historical expense statements. I will be tasked with making a:
- in place expense summary
-stabilized expense summary
Could anyone help me with what this would look like for retail? Tips or examples would be much appreciated as I really want to study to make sure I can pass this. Thank you!
Thank you Jiggy95 for the help on my first question!
Do you have any experience in Argus?
Somewhat. I took a course on it in school to make myself more competitive in the job market. However I currently work in multifamily so we predominantly use excel. The test will definitely be in excel (they have an argus test as well, but they told me they could teach argus to me more thoroughly and were only going to give an excel assessment). But thank you for the tips! I am used to breaking down T12s for multifamily, but just was wondering what nuances there were for retail. That does give me a better idea. Thank you for the response!
I'd say I specialize in Multi as well, Retail is pretty nuanced based on the type of retail your dealing with. But if you're already exposed to basic P&L mapping you'll do fine. Just don't touch the mouse when you are constructing the model, people get axed for doing that sometimes but just ask a bunch of questions.
Just know how to break down a Cash Flow Report
Rental Revenue -Potential Base Rent -Absorption/Turnover Vacancy -Scheduled Base Rent Other Income
Vacancy & Credit Loss
Operating Expenses -Parking -R&M -Cleaning -Signage -Taxes Mgmt fees
NOI
Leasing Costs - Tenant Improvements -Leasing Commisions
Cap Ex
Cash debt servive Cash Distributions
Thank you again everyone for the help. As a new guy to a lot of this terminology and to retail I really appreciate it.
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