ASC Lease Modeling 2

Question 1

In ARGUS Enterprise, what does the 'CPI' rent adjustment method use as its basis?

Accepted Answer

Consumer Price Index changes over a defined period

Answer

CPI adjustments in ARGUS tie rent escalations to the Consumer Price Index, reflecting real-world inflation-linked lease structures.

Question 2

When modeling a lease with a blend-and-extend scenario in ARGUS Enterprise, what typically changes in the cash flow?

Accepted Answer

Below-market rent is blended toward market with an extended term

Answer

Blend-and-extend combines current below-market rent with market rent into a blended rate while the tenant commits to a longer term.

Question 3

What is the function of the 'Base Year Stop' in a modified gross lease within ARGUS?

Accepted Answer

The landlord pays all expenses up to the base year amount; tenant pays increases above it

Answer

A base year stop means the landlord absorbs operating expenses up to the base year level and the tenant pays any expense growth beyond that.

Question 4

In ARGUS Enterprise, which input field controls how much free rent a new tenant receives at lease commencement?

Accepted Answer

Months Free Rent

Answer

The 'Months Free Rent' field in ARGUS specifies the number of months at the start of the lease where the tenant pays no base rent.

Question 5

When a tenant has a co-tenancy clause, how does ARGUS Enterprise typically model the rent impact if the anchor tenant vacates?

Accepted Answer

Rent is reduced to a specified alternative rate or percentage of sales

Answer

Co-tenancy provisions often allow a tenant to pay a reduced or percentage-of-sales rent if an anchor tenant leaves, which ARGUS can model as an alternative rent scenario.

(ASC) Argus Software Certification Practice Test

(ASC) Argus Software Certification Practice Test

ASC Lease Modeling 2