By Altus Group | May 3, 2021

ARGUS Training Manager – Americas, Jessica Leal, shares her insight about real estate asset classes or asset types, and then she will model them in ARGUS Enterprise. Watch the video or read the entire transcript below.

 

 

“Major Commercial Real Estate Asset Classes”

Hello, my name is Jessica Leal and I’m the Training Manager of our America’s region. And today we’re going to be talking about real estate asset classes or asset types within ARGUS Enterprise. Now, this video is serving as a bit of a follow-up to our Insights article, Major Commercial Real Estate Asset Classes.

And this article is great because it talks about some of the different asset classes within commercial real estate, such as office, retail, industrial, multifamily and hospitality. And it really breaks them down for you by asset class, giving you some additional information. So, what we’re going to do today is we’re actually going to get into ARGUS Enterprise (AE) and see some of the different ways to model these different asset classes.

Now, once you’re within ARGUS Enterprise and you are within a portfolio, when you’re creating a new property from scratch, you have the ability to pick-and-choose what property asset type this property is going to be. So, we have office. We have retail. We have industrial. We also have mixed-use properties, where it could be two different asset classes. So, office and retail, office-industrial, office-multifamily, retail-multifamily. Then at the bottom, we have multifamily and hotel. So, I can choose any one of these asset types, and I can create a property from scratch. And when we choose different asset types within ARGUS Enterprise, different modeling policies in different fields will actually pop up for us within the property based on what type of property we choose.

So, I actually have a few different property types that are open where we can kind of take a look at what that means. So, for instance, if we were to choose retail as our property type and you could see that right here, I have East Shopping Center, which is a retail property, there’s going to be different fields that pertain to retail properties. So, for instance, the tenants within a retail property typically may pay some sort of percentage rent. And you could see that if I go to the tenant rent roll, I have a percentage rent section. However, if I’m modeling an office property, so if I head right on into Atrium Office and I go to the tenants rent roll we’ll notice what’s not there because this is purely an office property. I don’t have any percentage rent field. If I needed it. Let’s say that I had an office property. But there was a retail portion of it. I would want to choose office and retail as my property type.

Now, if I was modeling an apartment complex, such as Meadow Apartments, which I’m going to click into right now, then you can see that the tenant section looks very different. Because in that tenants parent tab, I have a multifamily subtab, and within that multifamily subtab I can model my different unit types. I could say the area per unit, the total number of units, our initial occupancy, our max occupancy and the rent per unit per month. And so, the way that we model multifamily properties is, of course, very, very different from office and retail. And to expand on that as well, we have the ability to model hotels within ARGUS Enterprise, which, of course, hotels have their own unique way of being modeled.

When it comes to revenue, we have room revenue. So, it’s also different. We’re not modeling each individual tenant because of course, this is a hotel. And so, we have the ability to model our different types of rooms, how many rooms there are. So for instance, we could have King rooms, double-queen rooms, executive suites. You know, we have the ability to go in and model all of these different types of rooms in the number of rooms and the average daily rate. And so when it comes to modeling hotels, we have our own unique way of modeling that those revenues and those expenses.

And so, depending on what type of property you’re trying to model with an Argus enterprise, each one will have unique fields and unique options when it comes to modeling those different types of properties. And that is actually it for our insights video today. We do hope that you enjoyed it. And remember, if you have any questions about anything that we’ve covered or any questions over training, please feel free to reach out to us.

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