Video | ARGUS Tips & Tricks: ARGUS Enterprise, Sensitivity Analysis – Batch Update
Our team at Altus Group is working from home, as are the majority of our customers. Katie Turnak, ARGUS Global Instructional Design Manager, made a short video focusing on tips and tricks in the Sensitivity Analysis – Batch Update feature in ARGUS Enterprise, that can help you save some much needed time.
Watch the video below as Katie shows how to use the batch update feature to make portfolio-wide changes among multiple properties, or read the entire transcript below.
“ARGUS Tips & Tricks: ARGUS Enterprise, Sensitivity Analysis – Batch Update,” Transcript
Hi, my name is Katie Turnak, and I’m the Global Instructional Design Manager here at Altus Group. During this time, we understand a lot of our clients are having to work from home or work remotely from the office. And in this video, we want to provide some tips and tricks.
This video will focus on tips and tricks found in our Sensitivity Analysis – Batch Update feature. The Batch Update feature allows a user to apply portfolio wide changes across multiple properties. This is a useful tool so you don’t have to spend time opening up each individual property and making adjustments. You can now open up multiple properties within this feature and adjust them accordingly. Let’s go ahead and get started and look at ARGUS Enterprise.
We currently have the US portfolio base scenario open. There are 12 properties within it. And in this example, I want to make adjustments to my Market Leasing Profiles and my speculative tenants currently entered into the Rent Roll. But to do that, I would either have to open up each individual property, make adjustments in each individual tab, and then go ahead and run reports; or I can use the Sensitivity Analysis Batch Update feature, which will allow me to open up all of the properties within a new scenario, apply these adjustments either globally or make individual adjustments across each property, and then view reports comparing it to the original base scenario.
To do this, I already have a Batch Update open. And in this Batch Update, I copied over all of the properties that were in the original US portfolio. In the bottom part of the screen, we have a portfolio application tabs that will allow us to make sensitivity adjustments to different sections within this portfolio.
Market Leasing Tab
In the first tab that we will be looking at, it’s the Market Leasing tab. The Market Leasing tab will have every single property that we have in this Batch Update, and within each property, all of their market leasing profiles. The top portion of the screen allows you to make global changes and apply them to all market profiles across all properties. In the bottom portion of the screen, you can go ahead and choose either Individual Market Leasing profiles or just specific properties to make adjustments to without having to apply a change to everything.
In this example, we’re going to use the top part of the screens to make adjustments to our base rent. Now in this case, we are going to adjust our base rent and decrease what we think the market rent is going to be. So for a new base rent, I’m going to adjust the percent of current value, and I’m going to change it to 90%, a 10% decrease.
Another item that I want to change, is during this time, we know it’s going to be harder to find tenants to move in. Spaces might be sitting vacant longer. To account for this longer vacancy, I’m going to adjust the Months Vacant drop-down by doing an adjustment of 2% of current value. And I’m going to increase the amount of time by 150%. You’ll notice that when I’m entering in values in the top portion, none of the values are changing on the bottom yet. And if I go ahead, I’m going to best fit just so we can see all these values. If we view the new base rent, and I click Apply, these new base rents have now decreased to a 90% value of their original amount. If I scroll out to the right, we have our Months Vacant, and there’s been a 150% increase. So lower base rents and a longer amount of downtime between leases it’s just step one that we want to do.
The next step is going to involve our Leasing tab. The Leasing tab is an area where we can apply changes to our speculative tenants entered into the tenants rental. This does not include our Space Absorption tab, as those tenants are going to be affected by the market leasing profiles.
In the Leases tab, we’re going to adjust the lease begin date for these speculative tenants. Notice, only the speculative tenants are showing as black. All of the contract tenants are grayed out. To make changes to a contract lease, you would have to go into the property in the tenant rental to make that adjustment.
In this case, I’m going to click on the drop down or Lease Begin, and I’m going to do an increment months. I’m going to push out the start dates for 10th. I’m going to go ahead and do 12-month start date for these speculative tenants and click Apply. Now pay attention to the Lease Begin Date field, and you’ll notice that those dates have now been pushed out 12 months.
Report: Compare Original Base Scenario to New Market Adjustments
OK, so we’ve adjusted the market leasing rents, and we’ve also adjusted the speculative tenants and the rentals. I’m now ready to look at a report that compares my original base scenario to these new market adjustments I’ve made.
The first step, we need to save and calculate, and then we see which files that are having changes being applied to. And I’ll go ahead and click Finish, and let it calculate. With it calculated, I can click Close.
And I’m going to navigate into my Reports tab located at the bottom of the screen. This is going to bring up my SSRS reports that we have seen before in Portfolio Level Reporting.
In the Open Report drop-down, I can choose to view a cash flow and operating performance. Now, since I created a Batch Update scenario, I want to compare it to my original scenario. Any report with the word comparison allows you to compare different properties, different portfolios, different scenarios with each other. And I’m going to select Cash Flow Detail Comparison.
When the Cash Flow Detail Comparison opens, we have key parameters we need to choose from. I’m going to choose All Properties, and I’m going to compare it to my US portfolio base scenario. So I want to see how the current market adjustments is going to compare to my base scenario. I’m going to make sure my key parameters are adjusted the way I want it and click Run Report.
With my report displaying, I’m going to hide my Key Parameters by clicking on the arrow to give it more space on my screen. And I noticed there are plus signs next to my line items. If I click on those plus signs, I’m able to see the different properties within this portfolio. So not only do I know the overall potential base rent variance, I know how much is coming from each property. This allows me to see that my current, my market adjustment scenario, minus my comparison, my base scenario from my original portfolio. I can run these reports and view different parameters within.
This is one of the tips and tricks of being able to make portfolio wide adjustments across the market assumptions within your Rent Roll and within your Market Leasing Profiles. I hope you enjoyed this video. Please check out our other videos located on the website.
For more tips and tricks, visit our ARGUS Community web page.