Practice Test Geeks(ASC) Argus Software Certification Practice Test
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Market Assumptions 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.

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  1. In ARGUS Enterprise, which market assumption drives the calculation of lease renewal probability for expiring tenants?

    Answer: Renewal probability percentage

    Renewal probability is the market assumption that determines the likelihood an expiring tenant will renew rather than vacate.

  2. When setting market leasing assumptions in ARGUS, what does 'months vacant' represent?

    Answer: Time between lease expiration and new tenant occupancy

    Months vacant (or downtime) is the assumed period a space sits empty between the departure of one tenant and occupancy by the next.

  3. A property analyst sets a market rent growth rate of 3% annually in ARGUS. How does this affect new leases signed in year three?

    Answer: New lease rents are inflated by 3% compounded over three years from the base market rent

    ARGUS applies the market rent growth rate cumulatively each year, so year-three new leases reflect market rent escalated by 3% compounded for three periods.

  4. Which input in ARGUS market leasing assumptions controls how quickly unleased space is expected to be absorbed by new tenants?

    Answer: Months of absorption

    Months of absorption specifies the time period over which vacant space is expected to be leased up at the market's assumed pace.

  5. In ARGUS, what is the typical effect of increasing the market rent growth rate assumption while holding all other inputs constant?

    Answer: Property value increases due to higher projected NOI

    Higher market rent growth produces higher projected rents on new and renewal leases, increasing NOI and therefore property value.

  6. When an ARGUS model uses a 'speculative lease' or 'market lease,' which set of assumptions governs the terms of that lease?

    Answer: Market leasing assumptions defined by the analyst

    Speculative or market leases draw their terms—rent, free rent, TI, and lease length—from the market leasing assumptions set by the analyst.

  7. A retail property in ARGUS has market leasing assumptions that include percentage rent. What additional input is required for percentage rent to calculate?

    Answer: Sales volume breakpoint

    Percentage rent requires a breakpoint (natural or artificial) above which the tenant pays a percentage of sales as additional rent.