Commercial real estate news and insights

This article will discuss a few terms often found in the prospectus for a real estate fund offering and cover what you need to know about the terms.

Jessica Leal, shares in detail how to use commercial property comparative analysis (sales comps) as modeled in ARGUS Enterprise for Cloud.

This article will take a look at a real estate investment prospectus and the major pieces of information that are included.

DataExchange, our global software solution that helps clients simplify their valuation management process, has officially joined the ARGUS family of software products and has a new name – ARGUS ValueInsight.

The most simplistic form of fund is an entity that is set up to acquire a single asset. On the opposite end of the spectrum are Real Estate Investment Trusts (REITs), which are public or private companies in which investors can purchase equity (stocks) of the company. This article will focus on a type of private equity fund structure that falls somewhere in the middle of the two mentioned above.

Apply these simple, yet effective, strategies and you’ll be on the right track to minimize vacancies, maximize revenue, and ultimately optimize your cash flows.

When you know where your multi-family assets stand, and you benchmark your performance against the industry - you can find opportunities to improve.

This article will discuss four major categories of risk you may encounter throughout your real estate career: core, core-plus, value-add, and opportunistic. But before we get to the risk types, we need to first look at some of the factors you can use to better classify each type of risk.

ARGUS Training Manager – Americas, Jessica Leal, shares her insights about the different types of real estate funds that exist in commercial real estate and the people involved.

Assuming that all commercial real estate is the same is not only a much too simplistic approach, but it can also be a dangerous approach. In this article we’ll discuss the major types of commercial real estate and the differences amongst them.

This article gives a high-level overview of what kind of mutual funds, private equity funds, debt funds, and real estate investment trusts are common in the real estate industry.

Jessica Leal, shares her insight about the basic concepts of development feasibility, and then she will walk through how this is modeled in ARGUS Developer.

ARGUS Training Manager – Americas, Jessica Leal, shares her insights about the basic concepts of development feasibility and calculating real estate development costs, and how both can be achieved through ARGUS Developer.

This article focuses on the financial aspects of the development process and will introduce you to some of the more common terms you’re likely to come across when working within real estate development.

This article will discuss two different methods for analyzing costs during the development process and will provide a breakdown of some of the specific costs associated with each method.

In this article, we’ll discuss five of the major components you should be aware of when considering whether or not to proceed with the development of a commercial real estate property.

Jessica Leal, shares her insight about the basic concepts of percentage rent, and why it would be negotiated in a lease, and then she will walk through how this is modeled in ARGUS Enterprise.

Jessica Leal, shares her insight about the basic concepts of the time value of money, and then she will walk through how this is modeled in ARGUS Enterprise.

There are an almost infinite number of variations that commercial leases can take, with each property type having their own nuances as to the structure of the leases. This article will discuss one such nuance that is primarily used for retail properties – percentage rent.

In this article we’ll focus on how to work with third-party data providers to supplement your internal data.

This article will begin with a discussion about the current state of data in most real estate firms, the challenges to transitioning from a legacy approach to data to a more modern approach, and will then provide some steps firms can take to begin creating a more data-driven operational structure.

Jessica Leal shares her insight about Triple Net Leases and how they affect commercial real estate rent roll, and then she will walk through how this is modeled in ARGUS Enterprise.

This article will explore four qualities of real estate data that provide challenges to fully automated valuation.

Jessica Leal provides her expertise regarding revenues and leases in commercial real estate and how they differ from residential revenue, and then she will walk through how this is modeled in ARGUS Enterprise.

ARGUS Training Manager – Americas, Jessica Leal, shares her insight about market leasing assumptions to see if a market is healthy or not when investing in commercial real estate, and then she will walk through how this is modeled in ARGUS Enterprise.

In this article we’ll dig into the concept of the time value of money and then show some examples of why it’s so important to understand why the timing of cash flows on an investment matter so much.

This article will explain what a triple net lease is, describe the specifics in more detail, and then cover some advantages and disadvantages for both owners and tenants.

Jessica Leal shares her insight about operating expenses and how it affects commercial real estate valuations, and then she will walk through how this is modeled in ARGUS Enterprise.

This article will discuss what is by highest and best use when it comes to the value of real estate.

Jessica Leal shares in detail what a cap rate is, and the function of a cap rate in the valuation of commercial real estate properties.

This article will review a few basic financial concepts and take a closer look at the Internal Rate of Return (IRR) method.

This article will discuss the various ways in which price per square foot is used, including the use case for the cost approach and the sales comparison approach to valuation.

This article will take a very high-level look at the process involved in reaching a valuation on a commercial real estate property.

This article will take a look at the estimated cost of replacing the property with a new property (cost approach or replacement method) as an alternative way to value commercial properties.

Jessica Leal, goes into detail about understanding the discount rate in commercial property valuation.

The main form of debt is the senior mortgage, but a less widely used form of debt is known as “mezzanine” debt. In this article we’ll describe what mezzanine debt is, how it works, and run through some simplified examples that illustrate the core investment concepts of mezzanine financing.

This article will discuss a comparable (comp), the two different types, and how to apply the information obtained from the comps analysis to the subject property.

This videos shows the DCF approach of real estate valuation by walking through how to model property variables in ARGUS Enterprise.

In this article we’ll look at one of the core components of the Net Present Value (NPV) method called the “discount rate” in order to better understand how the NPV works.

This article will briefly discuss the roles that NOI and revenue play in commercial real estate value and then analyze the role expenses play in the NOI equation.

This article will focus on three major indicators of the health of a real estate market: occupancy, lease/rental rates, and absorption.

The discounted cash flow (DCF) is the bedrock of valuation in the commercial real estate industry. While a thorough examination of each of the components in a DCF is beyond the scope of this article, we will review the process at a high level to illustrate parts of the process that an analyst needs to consider.

Are you able to quickly understand the impact on distributions, fund value and investor returns while negotiating with tenants? In the video below, Jessica Leal, ARGUS Training Manager – Americas, shows some quick tips and tricks on how to do this by using the Analysis Tab in ARGUS Enterprise.

This article will discuss the use of the debt yield (DY) ratio to underwrite loans for commercial real estate.

The global commercial real estate industry has seen significant shifts as a result of social distancing measures introduced to combat the spread of Covid-19. With remote working becoming the norm, retail shops and leisure facilities only recently re-opening (and with much caution), it is evident that 2020 has seen transformation in the property industry at a scale and speed never previously experienced.

Do you have the capabilities to easily apply, organize, and review multiple 'what-if' scenarios and their effects on your properties' KPIs? In the video below, Jessica Leal, ARGUS Training Manager – Americas, shows some quick tips and tricks on how to do this by using the Sensitivity Matrix in ARGUS Enterprise.

This article will focus on the analysis of revenue from leases and other income. While not exhaustive, it will provide a foundational overview of the components of leases and the effect that each of these components have on the value of the revenue stream from each lease.

In this article, we’ll talk about what net present value (NPV) is, why it’s important, how to calculate it when analyzing commercial real estate, and how to use NPV to make investment decisions.

Are you looking to take the tedious work out of reapplying common scenarios across your properties and portfolios? In the video below, Jessica Leal, ARGUS Training Manager - Americas, shows some quick tips and tricks on how to do this by using the Sensitivity Assumptions Filter in ARGUS Enterprise.

Net Operating Income (NOI) is a driving factor in determining the value of commercial real estate. Before getting into the importance of NOI, the role it plays in both short-term and long-term valuation, and how to analyze NOI, let’s walk through a simple example of how to determine the net operating income of a property.

This article will take a look at an alternative valuation method in commercial real estate, gross rent multiplier (GRM).

This article will discuss the process of determining an appropriate cap rate, accurately forecasting net operating income, and what factors need to be considered when adjusting the cap rate based on economic trends and real estate market indicators.

This article will discuss the three most common forms of commercial real estate valuation methods used in the industry.

In an uncertain real estate market, where real estate developments are under pressure from slowing sales rates, delayed construction timelines and worsening defaults—it's critical for property developers to stay on top of project cash flow through the entire life cycle.

Maximize your time with professional development by signing up for our virtual classrooms and connect with an ARGUS trainer.

This video shows how to use the batch update feature in ARGUS Enterprise, to make portfolio-wide changes among multiple properties.

Commercial property owners are always responding to changing economic conditions, the need to translate uncertainty into defined risk has never been more crucial.

Watch this presentation, "Guide to Understanding Your Data Flow," to gain insight on the integration landscape in the CRE industry and what you need to consider before embarking on your own integration project.

Alongside its recently released (Winter ’19) update, ARGUS Taliance is now officially integrated with ARGUS Enterprise. Starting now, send asset data from ARGUS Enterprise to ARGUS Taliance to facilitate forecasting from the asset level up to the fund level.

Around the world, leaders are getting further ahead of the competition using software to minimize the risk of budgeting and forecasting. Is your company falling behind?