Lease Modeling Flashcards
7 cards from real ASC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Lease Modeling flashcards as text
In ARGUS Enterprise, what is the purpose of the 'Holdover' period setting on a lease?
Answer: Models the tenant occupying space month-to-month after lease expiration before a new lease begins
The holdover setting lets ARGUS model a gap period where the tenant stays at a holdover rent rate after the lease expires but before a new lease or vacancy is assumed.
Which ARGUS Enterprise setting determines whether tenant improvement costs are amortized or expensed in a single period?
Answer: Capital expenditure timing and amortization schedule in the TI input
ARGUS allows TI costs to be modeled as a lump-sum cash outflow at lease commencement or amortized over the lease term depending on the input methodology chosen.
When modeling a lease with an 'expense stop' in ARGUS Enterprise, the tenant pays:
Answer: All operating expenses exceeding the stop amount per square foot
An expense stop means the landlord pays operating expenses up to the stop threshold per square foot, and the tenant reimburses all amounts above that level.
What effect does a 'contraction option' exercise have on ARGUS Enterprise lease modeling?
Answer: Reduces the leased area by a defined amount, decreasing revenue from that tenant
A contraction option lets a tenant give back a portion of their space, which ARGUS models as a reduction in rentable area and corresponding revenue.
In ARGUS Enterprise, how is 'absorption and turnover vacancy' different from 'general vacancy'?
Answer: Absorption/turnover vacancy applies to specific leasing events; general vacancy is a portfolio-wide stabilized rate
Absorption and turnover vacancy captures the downtime between leases for specific spaces, while general vacancy is a blended market-level adjustment applied to total revenue.
When a lease in ARGUS Enterprise is flagged as 'speculative,' what does the model assume?
Answer: The space is currently vacant and will be leased under market leasing assumptions at a future date
A speculative lease flag tells ARGUS to treat that space as unleased and apply MLAs starting at the assumed lease-up date.
What is the impact of entering a 'rent abatement' mid-lease in ARGUS Enterprise rather than at commencement?
Answer: Revenue drops to zero or a reduced amount during the abatement months within the existing lease term
Mid-lease rent abatements reduce or eliminate revenue for specified months during the lease term without affecting the lease end date or recovery structure.