Practice Test Geeks(ASC) Argus Software Certification Practice Test
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Property Valuation 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, a 'Blend & Extend' lease scenario typically involves:

    Answer: Averaging the remaining term and existing rent with a new extended term at adjusted rent

    A blend & extend combines the current below- or above-market lease with a new extension, effectively averaging rates and terms to keep the tenant in place.

  2. What does a property's 'Internal Rate of Return' (IRR) represent in ARGUS?

    Answer: The discount rate that makes the NPV of all cash flows equal to zero

    The IRR is the single discount rate at which the present value of all future cash flows, including reversion, exactly equals the initial investment.

  3. How does ARGUS handle a lease with a 'percentage rent' clause for a retail tenant?

    Answer: It adds overage rent above the natural breakpoint when tenant sales exceed a threshold

    Percentage rent is additional rent triggered when tenant sales exceed the natural or artificial breakpoint, supplementing base rent in retail properties.

  4. In an ARGUS valuation, 'Above/Below Market Leases' affect value because:

    Answer: Leases priced differently from market rent create value premium or discount relative to market

    Leases locked in above market add value relative to a mark-to-market scenario, while below-market leases reduce value until they expire and can be re-leased.

  5. Which ARGUS feature allows an analyst to model multiple economic scenarios (e.g., base, upside, downside) and compare resulting valuations?

    Answer: Scenario Manager

    The Scenario Manager in ARGUS Enterprise lets analysts create and compare alternative assumption sets to evaluate a range of potential outcomes.

  6. In ARGUS, 'Renewal Probability' affects the valuation model by:

    Answer: Weighting the likelihood that a tenant renews versus vacates, influencing projected cash flows

    Renewal probability governs how ARGUS splits projected cash flows between renewal scenarios and re-leasing scenarios, affecting both timing and value.

  7. When ARGUS calculates 'Gross Potential Rent' (GPR), it represents:

    Answer: The maximum scheduled rent if all space is leased at contract rates with no vacancy

    GPR is a theoretical maximum—the total rent receivable if every square foot were leased and all tenants paid their full contracted rent with zero vacancy.