Argus Test Flashcards
1
Q
Once Budget and/or Actuals have been imported into AE from a 3rd party system, manual adjustments cannot be made in the Budget and/or Actuals tabs.
A
True
2
Q
Chart of Accounts section offers these levels:
A
Header, Account, Detail
3
Q
Classification types in AE
A
System, Property, Tenant
4
Q
Users in AE can have permissions assigned to them at the Portfolio, Scenario, and Property level.
A
True
5
Q
Which general vacancy calculation is found by adding the total tenant revenue + total other income?
A
% of potential gross revenue
6
Q
Both positive and negative inflation rates can be entered into AE.
A
True
7
Q
What is the extension of a property asset file in AE?
A
.avux
8
Q
Which Valadation tab’s primary purpose is to determine the current value of the property?
A
Direct Capitalisation
9
Q
It is possible to have multiple Property Resale Calculations active for a single property.
A
False
10
Q
What is the property resale value?
Analysis Length: 5 years Calc Method: CAP NOI (12 mos after sale) Year 5 NOI: $750,000 Year 6 NOI: $1,000,000 Cap Rate: 5.00%
A
$1,000,000 / 5.00% = $20,000,000
11
Q
Only one debt note can be entered into AE?
A
False
12
Q
If the analysis is 10 years long and you have a 30-year debt note, when will it balloon?
A
10 years
13
Q
When calculating a Market Leasing profile with he Upon Expiration set to Vacate, AE will __________.
A
Assume a 0.0% renewal probability
14
Q
With a 60% Renewal Probability, what Tenant Improvement rate will be calculated if a tenant rolls to Market in the first year of the analysis and New TI Rates are $20.00/SF and Renewal TI Rates are $10.00/SF?
A
New: 40% x $20.00 = $8.00
Renewal: 60% x $10.00 = $6.00
Total: $14.00/SF
15
Q
Upon Expiration classification _________ is described by: Renewals will be processed based on the renewal probability in the Market Leasing profile (weighted average calculations of new and renewal rates for market rents, tenant improvements, leasing commissions, etc.).
A
Market
16
Q
How many properties can be created/imported within portfolios?
A
Thousands
17
Q
What are the icons called in the row below the headers and how do they allow you to filter?
A
The icons are called the Resource Base Collection (RBC) and they allow a user to filter by alpha or numeric entries.
18
Q
Calculate the market rent rate in year 2 using the following information for a tenant that is set to ‘renew’ in the upon expiration field:
Renew probability: 50%
Market inflation rate: 5%
New market rent (year 1): $100/sqft/yr
Renewal market rent (year 1): $75/sqft/yr
A
$75 x 1.05 x .50 = $78.75
19
Q
If a tenant’s upon expiration is set to month-to-month, how many months of downtime will appear on the tenant cash flow?
A
0 months
20
Q
The weighted average is 6.4 for the months vacant in a market leasing profile. How many months of downtime will occur if a tenant was set to market upon rollover?
A
6 (system automatically rounds down)
21
Q
Which of the following is not included in the default leasing commissions fixed % calculation?
Base Rent
Fixed Steps
Free Rent
Recoveries
A
Recoveries
22
Q
Use the following assumptions to calculate the percentage rent:
Tenant size: 10,000 sqft Building size: 100,000 sqft Tenant annual rent: $50,000 Annual sales amount: $10,000,000 Sales %: 5% Breakpoint: Zero
A
$10,000,000 x .05 = $500,000
23
Q
A solution for consolidating and reporting property, tenant, portfolios, and scenario information contained within ARGUS Enterprise?
A
Portfolio reporting
24
Q
Properties can be filtered, sorted and grouped in the portfolios interface?
A
True
25
Users can define a varying building area over time by clicking the Building Area ellipsis.
True
26
The _______ tab allows users to upload numerous files to centralise the property documents.
Attachments
27
What is the maximum number of years an analysis length can be?
100 years
28
The report options button allows a user to change the print interval setting for specific reports.
False
29
The tenant reports - lease summary displays the following:
Only tenants entered in the rent roll
Only tenants entered in space absorption
Both tenants entered in the rent roll and space absorption
Both tenants entered in the rent roll and space absorption
30
Which of the following is not a property report?
Cash Flow
Executive Summary
Assumptions
Tenant Summary
Tenant Summary
31
The property reports - assumptions displays what information?
Market leasing profile, inflation rates, general vacancy rates
32
Which language is Argus NOT available in?
Portuguese
33
Calculate tenant A's recovery amount using the following assumptions:
Recovery structure: Net
Tenant A size: 2,500 sqft
Building area: 50,000 sqft
Operating expense total: $100,000
2,500/50,000 = 0.05 x $100,000 = $5,000
34
Calculate tenant B's recovery amount using the following assumptions:
Recovery structure: Net
Tenant B size: 10,000 sqft
Building area: 50,000 sqft
Operating expense total: $1,500,000
10,000/50,000 = 0.2 x $1,500,000 = $300,000
35
Calculate tenant C's recovery amount using the following assumptions:
```
Recovery structure: Base year stop
Tenant C size: 10,000 sqft
Building area: 100,000 sqft
Base year stop amount: $1,000,000
Current year expenses $1,500,000
```
10,000/100,000 = 0.10
$1,500,000 - $1,000,000 = $500,000
$500,000 x 0.10 = $50,000
36
Calculate tenant D's recovery amount using the following assumptions:
Recovery structure: $10.00 fixed amount/area
Tenant C size: 10,000 sqft
Building area: 100,000 sqft
Current year expenses $1,500,000
$10.00 x 10,000 = $100,000
37
Which recovery would you select to enter in a tenant that pays their net pro-rata share of all expenses over a specified stop amount?
Net
Fixed Amount
Fixed Amount/Area
Stop Amount
Stop Amount
38
Base Rent, Fixed Steps, and CPI increases all show up on their own lines on the Property cash flow report?
False
39
Property level detail can be separated out in portfolio level reports?
True
40
Calculate the operating expenses amount that will appear on the cash flow from the following assumptions:
Expense amount: $100,000
% variable: 25%
Occupancy: 50%
($100,000 x 75%) + ($100,000 x 25% x 50%) = $87,500
41
To make a revenue or expense a blind-line item, select the _______ option.
Reference only
42
Assume that a property's CAM expense is $50,000/yr and 60% fixed. The occupancy for the property is 80%. What is the operating expense amount that you enter in the operating expense tab?
$50,000
43
Assume that a property's CAM expense is $50,000/yr and 60% fixed. The occupancy for the property is 80%. What is the operating expense amount that appears on the cash flow?
($50,000 x 60%) + ($50,000 x 40% x 80%) = $46,000
44
In which tab would a user enter a non-recoverable operating expense?
Expense tab - non-recoverable
45
An operating expense can have a different % recoverable in the expenses - operating tab than it does in an expense group?
True (it's an override)
46
In the sensitivity analysis section, batch update allows a user to update a current scenario or to create a brand new one.
True
47
In space absorption, if a user has 20,000 sqft of vacant space and creates leases that are 6,000 sqft in size, how many leases will be generated and what size will they be?
4 total leases:
3 leases with 6,000 sqft each
1 lease with 2,000 sqft
48
It is not possible to enter in a mid-month lease start date.
False
49
Which of the following is not included in the % fixed leasing commissions calculation?
Base rent
Step rent
Free rent
CPI rent
CPI rent
50
What does the available date represent in the tenants - rent roll?
The date the space is available to lease
51
In the rent roll, which of the following is an option from the recovery structure drop-down?
None
Net
Fixed Amount
All of the above
All of the above
52
If 3 is entered in the free rent field in the tenants - rent roll, the tenant will receive:
3 months of free rent at the beginning of the first lease year
53
In the tenants - rent toll, which market leasing profile assumptions can be overrode by other fields?
Renewal probability
months vacant
Free rent
All of the above
All of the above
54
Once a property asset type is selected, it cannot be changed?
False
55
The analysis begin date defaults to the current month and year.
True
56
Which section in the navigation pane allows users to update a variety of different settings ranging from managing users to data import validation rules to report settings?
Property portfolios
Global Categories
Help
Control Panel
Control panel
57
Which of the portfolio application tools is best described by the following statement? This application allows users to create and view analytical charts and graphs based on a combination of properties from the portfolio.
Analysis
58
Market rent is $15/sqft in year 2022. What is market rent in 2025 with inflation of 5% in 2023 and 2024 and 3% in 2025?
$15 x (1+0.05)(1+0.05)(1+0.03) = $17.03
59
When calculating a market leasing profile with the upon expiration set to renew, AE ____________.
Assumes a 0% renewal
Takes a weighted average
Assumes the space goes dark
Assumes a 100% renewal
Assumes a 100% renewal
60
The upon expiration field within the market leasing profile allows us to select any overrides for past terms.
False
| can override future terms only
61
When you have one-time increases, or an increase that happens at different increments or times, utilise the fixed steps unit columns.
false
62
When entering an available date prior to the start date within the rent roll, AE will assume....
The space is available, but vacant until the start date.
63
The analysis start date is January 2022. A tenant's lease start date is March 2022. If we want to show the lost absorption/turnover rent for this tenant, what would be entered into the following fields?
Available Date: __________________
Start Date: _____________________+
Available Date: January 2022
| Start Date: March 2022
64
The lost absorption/turnover rent being reported for the months prior to a lease start will appear on the individual tenant cash flow/LPV report.
False
65
Determine percentage rent with the following information:
Tenant's size: 2,450 sqft
Tenant's rent: $13.00/sqft/yr
Tenant's percentage rent: 4.0%
Tenant's sales amount: $950,000
```
[(Sales Volume)-(Breakpoint)x(Sales %)]
[(950,000)-((2,450x13)/.04)}x.04
{950,000-(31,850/.04)]x.04
[950,000-796,250]x.04
153,750x.04
=$6,150
```
66
The % of total rental revenue method is calculated by taking the scheduled base rent + ______________.
CPI Increases
67
The general vacancy calculation frequency can be monthly or annually.
True
68
What is the general vacancy for this building:
Potential gross revenue: $9,600,000
Absorption & turnover vacancy: $230,000
% of potential gross revenue: 5.0%
```
[(PGR)+(Absorption&turnover)]x(VacancyRate)-(Absorption&turnover)
[(9,600,000)+(230,000)]x(.05)-(230,000)
9,830,000x.05-230,000
491,500-230,000
=$261,500
```
69
Calculate the utilities expense, using the following assumptions:
Property size: 35,000sqft
Utility expense: $0.15/sqft/year
Fixed %: 35%
Occupancy: 80%
[(Expense x Fixed%)+(Expense x Variable% x Occupancy%)]
[((35,000 x 0.15) x .35) + ((35,000 x 0.15) x .65 x .80)]
[(5,250 x .35) + (5,250 x .65 x .80)]
[(1,837.50) + (2,730)]
=$4,567.50
70
Assume that a property's CAM expense is $30,000 per year and 60.0% fixed. The occupancy of the property is 70.0%. What value should be entered in the amount1 field in the operating tab?
$30,000
71
Assume that a property's CAM expense is $30,000 per year and 60.0% fixed. The occupancy of the property is 70.0%. What is the operating expense amount that will appear on the cash flow report?
[(Expense x Fixed%)+(Expense x Variable% x Occupancy%)]
[((30,000) x .60) + ((30,000) x .40 x .70)]
[(18,000) + (8,400)]
=$26,400
72
Assume that a property's CAM expense is $30,000 per year and 60.0% fixed. The occupancy of the property is 70.0% and reimbursable expenses are grossed up to 100%. What is the operating expense amount that will appear on the cash flow report?
[(Expense x Fixed%)+(Expense x Variable% x Gross Up %)]
[((30,000) x .60) + ((30,000) x .40 x 1.0)]
[(18,000) + (12,000)]
=$30,000
73
Free rent, tenant improvements and leasing commission categories can be created in the market parent tab and applied in the rent roll or the market leasing levels.
True or False
True
74
When including free rent in the leasing commission calculation, is it added or subtracted within the formula?
subtracted
75
By default, when are leasing commissions paid within AE?
1st month of the 1st year
76
What is the default free rent formula?
Base Rent + Fixed Steps + CPI
77
By default, when is free rent given within AE?
The first months of the lease(s)
78
The gross sale price is calculated by taking the NOI to capitalise and dividing it by the ______________, when using CAPNOI (12 months after sale).
Cap Rate
79
A user can change the hold length for the property resale by selecting either hold years or a fixed date.
True
80
Calculate the resale value of the building using the following assumptions:
Resale method: Capitalize NOI
Cap rate: 6.5%
NOI: $784,567
Selling costs: 3.0% adjusted gross
NOI/Cap Rate
$784,567/.065 = $12,070,261.53
$12,070,261.53 x .03 = $362,107.85
$12,070,261.53 - $362,107.85 = $11,708,153.68
81
Parameters for the discount rate change interval on the IRR matrix report can be changed in the _____________ tab?
Assumptions
82
Within the investment tab, the ____________ tab is used to calculate debt notes outside of the AE system.
Other debt
83
AE can have a different term length for Amortization and the Loan.
True
84
Enter other debt information into the valuation tab.
False
85
Each time a filter is activated, the formula at the bottom of the screen is updated. To remove the filter, click the X to the left of the filter formula.
True
86
______________ is a solution for consolidating the reporting property, tenant, portfolio, and scenario information contained within the AE data warehouse.
Portfolio level reporting
87
Sensitivity analysis allows you to create scenarios and make edits to an individual property or all the properties within your portfolio simultaneously.
True
88
If actuals and budget data is entered manually, further updates can be made on the data. If actuals and budget data is imported in from a third party system, or by using XL4ADW, manual updates cannot be made.
True
89
Actuals and budget information can be viewed on a:
Monthly, quarterly, semi-annually, and annual basis
90
AE merges three industry standard solutions: Argus Valuation - DCF, Argus Asset Management, and Argus Valuation - Capitalisation.
True
91
What three industry standard solutions does AE merge?
Argus Valuation - DCF, Argus Asset Management, and Argus Valuation - Capitalisation
92
In AE you can utilise shortcut keyboard commands to navigate within certain sections of the program.
True
93
In AE, a user can add over 100 properties into a portfolio.
True
94
What are the benefits to utilising a chart of account?
Easier to track revenues and expenses, standardises portfolio for names of all expenses/revenues, helps with accounting system integration.
95
In AE, you can only assign one chart of accounts to a portfolio.
True
96
The discard changes option will discard only the last change you have made to the property record.
False - it will discard all changes made since the last time a save was executed.
97
Only users with appropriate permissions can access all the features in the control panel.
True
98
To lock down a specific property and restrict who can edit it, click the _________ button located in the AE ribbon bar.
Check out property
99
You can import and/or export v15DCF files from AE.
True
100
The expense inflation rate will be the default percentage for?
Operating expenses, non-operating expenses, and capital expenses
101
Every inflation category must be given a number, or it will default to the general inflation rate.
False
102
Free rent, by default, kicks in at the beginning of the ______.
Tenant's lease start date
103
The default recovery structure in AE is _______.
Net
104
The available date column in the tenants-rent roll represents the start of the tenant's lease.
False
105
By default, tenant improvements and leasing commissions are paid at the start of the tenant's lease.
True
106
The upon expiration field within the market leasing profile allows users to select a different market leasing profile to be used after the first market leasing term is over.
True
107
Contract renewal:
Utilizes the Renew Market Leasing profile terms
Utilizes the New Market Leasing profile terms
Inserts a new contract lease into the rent roll
Inserts a new contract lease into the rent roll
108
The inflation rates are displayed on which report?
Property summary
109
Which report displays New Market, Renewal Market and Weighted Average results?
Assumptions report
110
When your resale calculation is set to CAP NOI (12 months after sale), which year's NOI will be used when analyzing a 6-year analysis?
7th year
111
If 12% is a desired return, enter 12% in the _________ parent tab.
Valuation
112
The Present Value tab allows us to enter in a separate discount rate for the Leveraged and Unleveraged Cash Flow as well as the Leveraged and Unleveraged Resale Rate.
True
113
Use the following assumptions to calculate the Percentage Rent:
```
Tenant Size: 1,250 SF
Base Rent: $20/SF/Year
Annual Sales Amount: $2,000,000
Sales Percentage: 3%
Breakpoint: Natural
```
$35,000
114
To indicate that an expense should not be included in the cash flow projection nor used in the calculation of the NOI, select the ________ option.
Reference Only
115
Intelligent Renewals are used to specify that tenant leases be renewed using __________________.
Check all that apply.
Last Month's Rent Rate
Contract Rate
Weighted Market Renewal Rate
Market Rent in a different Market Leasing profile
All options
116
Users with the appropriate system rights and permissions can create ___________ values for Property and Tenant Classifications.
More than 100
117
A property with an analysis start date of January 2014 has Market Rent for both new and renewal tenants at $20.50/SF/Year. If a tenant rolls to market and a new lease begins in September 2018, what rent would ARGUS Enterprise use for the speculative tenant? Assume Market Rent Inflation is 4% beginning in the second year of the analysis.
$23.98
118
In the Portfolio section of the File tab, existing properties within the portfolios are displayed in the ___________ pane.
Properties
119
Enter any debt calculated outside of ARGUS Enterprise on the ________ tab under the Investment tab.
Other Debt
120
It is required to enter in a Property Name and Address for every property added within a portfolio.
False
121
Calculate the Operating Expense shown on the Cash Flow from the following assumptions:
Expense Amount: $0.45/SF/Year
Property Size: 65,000 SF
% Fixed: 45%
Occupancy: 82%
$26,354.25
122
To adjust the Base Rent when you have a one-time increase, or increases that happen at different increments, use the Fixed Steps Unit column.
False
123
The Fixed Amount/Area Recovery Method is calculated as:
The increases over an amount/area that will be paid by the tenant each year.
The annual amount/area, based on Property Size, that will be paid by the tenant each year.
The annual amount/area, based on Tenant Size, that will be paid by the tenant each year.
None of the Above
The annual amount/area, based on Tenant Size, that will be paid by the tenant each year.
124
For a tenant to pay a specific amount for an Expense, select the ______________ Recovery Method.
Fixed amount
125
Any type of item can be added in as a Miscellaneous Rent if they are directly related to the tenant.
True
126
Using the information below, calculate the amount that is eligible for recovery when using Gross Ups:
Utilities Expense: $16,500
% Fixed: 35%
% Occupied: 82%
% Grossed Up: 90%
$15,427.50
127
Which of the following are levels offered with the Chart of Accounts?
Check all that apply.
Parent/Header
Cashflow/GL Account
Detail/Job Costs
Revenue Costs
Parent/Header
Cashflow/GL Account
Detail/Job Costs
128
Percentage Rent fields are only available when _________ is selected as the property type.
Retail or Mixed Use that includes Retail
129
Assume a NOI of $946,250, cap rate of 10.5%, and a 3% selling costs. Capitalize the NOI to determine the Net Sales Price.
$8,741,548
130
A Portfolio may have _______ Chart of Accounts applied at a time.
One
131
Which of the following is a purpose for a Market Leasing profile?
To apply leasing assumptions to a tenant area when the current lease for that space expires
Speculative leasing or Space Absorption, of vacant space
Both A & B
None of the Above
Both A & B
132
Users can define a varying buliding area over time by clicking the Building Area ellipsis.
True
133
When entering an Available Date prior to the Start Date on the Rent Roll tab, AE assumes_______________________________.
The space is available, but vacant until the Start Date.
134
Enter the Property Resale information in the _______________ tab.
Valuation
135
___________ allows us to track who has been in the asset and what changes have been made to that asset.
Audit Log
136
Which of the following are a Classification type in AE?
Check all that apply.
This is a mulitiple choice question.
Property
Tenant
Region
System
Property
Tenant
System
137
Entering in a property address will allow a user to access a map of the location in AE.
False
138
________________ is a solution for consolidating and reporting property, tenant, portfolio, and scenario information contained within the ARGUS Data Warehouse.
Portfolio Level Reporting
139
How is Total Rental Revenue calculated?
Total Tenant Revenue + Total Other Income
Scheduled Base Rent + CPI Increases
Scheduled Base Rent + Total Other Income
Total Rental Revenue + Total Other Income
Scheduled Base Rent + CPI Increases
140
Which of the following are included in the default Free Rent calculation?
Check all that apply.
Base Rent
Fixed Steps
CPI Rent Increases
Recoveries
Base Rent
Fixed Steps
CPI Rent Increases
141
When leases roll to the Market Leasing profile, by default the rents do not inflate during the rollover term.
True
142
Non-Operating Expenses will fall below the Net Operating Income line on the Cash Flow.
True
143
When calculating a Market Leasing profile with the Upon Expiration set to Vacate, ARGUS Enterprise ___________________.
Assumes a 0% renewal probability.
144
Which of the following are included in the default Leasing Commission calculation?
Check all that apply.
Percentage Rent
Free Rent
CPI
Fixed Steps
Fixed Steps
Free Rent
145
Within ARGUS Enterprise, it is possible to copy items from Excel into AE.
True
146
Which of the following is considered a primary use for XL4ADW?
Check all that Apply.
Custom queries of results data
Import of new models and data
Modify modeling data in AE (Round Trip)
Review modeling data in AE (Input Assumptions)
Custom queries of results data
Import of new models and data
Modify modeling data in AE (Round Trip)
Review modeling data in AE (Input Assumptions)
147
When will the CPI Increase be applied to a tenant when the selected method is "Each Lease Anniversary"?
At the beginning of each lease year starting in the second year.
148
Which Recovery Structure would you select to enter in a tenant that pays their net pro-rata share of all expenses over a specified base stop?
Stop amount/area
149
The _______________ allows users to upload numerous files and URLs to centralize the location of property documents.
Attachments Tab
150
To change the Report Print Interval setting, click the __________ button.
Report Options
151
Which of the following are available methods for calculating General Vacancy?
Check all that apply.
This is a mulitiple choice question.
% of Potential Gross Revenue
% of Total Rental Revenue
% of Total Tenant Revenue
% of Effective Gross Revenue
% of Potential Gross Revenue
% of Total Rental Revenue
% of Total Tenant Revenue
152
Which of the following reports can be accessed by clicking Property Reports?
Check all that apply.
This is a mulitiple choice question.
Executive Summary
Budget Comparison
Cash Flow
Property Resale
Executive Summary
Budget Comparison
Cash Flow0
153
Using the information below, calculate the amount that will appear as the Operating Expense on Year 1 of the Cash Flow:
Utilities Expense: $16,500
% Fixed: 35%
% Occupied: 82%
% Grossed Up: 90%
$14,569.50 (using the occupied %, NOT the grossed up %)
154
What is the calculation for the Natural Breakpoint for Percentage Rent?
Base Rent / Sales Percentage
155
Use the following assumptions to calculate the General Vacancy for the property in Year 1 of the analysis if we are overriding Tenant 1 and a Percent of Potential Gross Revenue is the method being applied. There is no Absorption & Turnover in Year 1.
General Vacancy Rate: 5%
Total Potential Gross Revenue: $87,632
Tenant 1 Rental: $42,330
Tenant 1 Override %: 0%
$2,265
$3,000
$1,055
None of the Above
$2,265
156
What is the extension of a property asset file in ARGUS Enterprise?
.avux
