ASC Lease Modeling 3

Question 1

In ARGUS Enterprise, what is the purpose of the 'Holdover' period setting on a lease?

Accepted Answer

Models the tenant occupying space month-to-month after lease expiration before a new lease begins

Answer

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.

Question 2

Which ARGUS Enterprise setting determines whether tenant improvement costs are amortized or expensed in a single period?

Accepted Answer

Capital expenditure timing and amortization schedule in the TI input

Answer

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.

Question 3

When modeling a lease with an 'expense stop' in ARGUS Enterprise, the tenant pays:

Accepted Answer

All operating expenses exceeding the stop amount per square foot

Answer

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.

Question 4

What effect does a 'contraction option' exercise have on ARGUS Enterprise lease modeling?

Accepted Answer

Reduces the leased area by a defined amount, decreasing revenue from that tenant

Answer

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.

Question 5

In ARGUS Enterprise, how is 'absorption and turnover vacancy' different from 'general vacancy'?

Accepted Answer

Absorption/turnover vacancy applies to specific leasing events; general vacancy is a portfolio-wide stabilized rate

Answer

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.

(ASC) Argus Software Certification Practice Test

(ASC) Argus Software Certification Practice Test

ASC Lease Modeling 3