E-learning Topic ~ Tenant Representation
The only way to compare multiple leases for Tenant Representation with one file in planEASe is before tax utilizing the Lease Analysis. Lease Analysis only computes the Rev Revenue Pages. This training shows you how to make the Rev Revenue positive/negative, and combine them to accurately represent the lease. The main idea is to accurately represent what will happen to each lease, then compare them.
Training Topic Notes - This training topic shows you how you would enter leases from a tenant point of view into planEASe, and compare them.
+/-1. Starting Point - Entering General Information (File - New Assumptions)
Video 0:45 Minutes
Click on File/New Assumptions on menu bar.
Type in the specifications below, pressing enter after each completed entry, and click OK./p>
- Investment Name - 'Tenant Representation'
- Square Feet or Units - '100'
- Fiscal Year Starts on - 'Jan 1'
- Comments - Leave Blank.
+/-2. Entering the
Investment Page (Start Date and Holding Period)
Video 1:59 Minutes
- Price of Property - '1' (always 1 for tenant rep)
- Closing Costs - '0' (always 0 for tenant rep)
- Date of Acquisition - '1.10'
- Holding Period - '7'
- Inflation Rate - '3'
- Sale Price Method - Select "No Sale Price Computed" from the list (always 0 for tenant rep)
- Sale Price Parameter '0' (always 0 for tenant rep)
- Selling Costs '0' (always 0 for tenant rep)
Verifying Your Entries - Click on Basic button to bottom right,
and wait a second. When the Basic Analysis screen appears, choose the Vertical view
(at the bottom right of the screen). When done, click on Exit.
+/-3. Entering the
Investor’s Page (Tax and Present Value Discount Rates)
Video 1:47 Minutes
Tenant Representation is a Before Tax analysis.Two assumptions matter here:
- Make sure the General Vacancy Factor is '0'
- The Present Value Discount Rate Before Tax will is the discount rate that will be used when evaluating the leases.
+/-4. Lease 1 (Should the Tenant choose this lease?)
Video 8:46 Minutes
Assumptions for lease 1
- 10,000 SqFt
- Years 1-3= ($10.00/SqFt/Year)
- Years 3-6 = ($12.00/SqFt/Year)
- Year 7 = ($14.00/SqFt/Year)
- Expenses = ($2.00)/SqFt/Year at 3% Annual Growth (same as Inflation Rate)
- Taxes = ($0.50)/SqFt/Year at 3% Annual Growth (same as Inflation Rate)
- Moving Costs = None
- Security Deposit = ($10,000.00) One Time at Acquisition Date
- Security Return = $10,000.00 One Time at End of Lease
- (Enter '99' into Revenue Start Date)
+/-5. Lease 2 (Should the Tenant choose this lease?)
Video 2:50 Minutes
Assumptions for lease 2
- 10,000 SqFt
- Years 1-3.5 = ($12.00/SqFt/Year)
- Years 3.5-7 = 5% Increase
- Expenses = ($2.00)/SqFt/Year at 3% Annual Growth (same as Inflation Rate)
- Expense Stop = $1.00/SqFt/Year Flat
- Taxes = ($0.50)/SqFt/Year at 3% Annual Growth (same as Inflation Rate)
- Tax Stop = $0.25/SqFt/Year Flat
- Moving Costs = None
- Security Deposit = ($10,000.00) One Time at Acquisition Date
- Security Return = $10,000.00 One Time at End of Lease
- (Enter '99' into Revenue Start Date)
Transfer Pages Dialog - allows you to Copy and Delete Assumption Page Blocks within and between Assumption Sets. This means you never have to enter a multi-page lease or loan twice. Just copy it from the Assumption Set where you entered it to the current Assumption Set using this Transfer Pages capability. Using other capabilities here, you can replicate Page Blocks (like multi-page leases) and delete Page Blocks. If you have an Assumption Set with no pages of a particular type (for instance, no expense pages), you can copy a page of that type from another Assumption Set into the current Assumption Set. Use this capability without fear, because any changes you make can be eliminated by pressing the Cancel button or the Escape key.
+/-6. Compare (Compare as many leases as you want)
Video 6:02 Minutes
Compare using Lease Analysis
-
Creates summary and detail reports for leases in a Retail, Office, or Industrial analysis as well as lease abstracts for individual leases. Lease Analysis is also used to prepare Tenant Representation and Owner Representation presentations. Measures computed include Dollars, Present Value, Rentable Square Feet ($/RSF), and Usable Square Feet ($/USF).
Compare using Detail Analysis (revenue)
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Creates reports for the projection results in detail areas of: Depreciation, Capital Spending, Tax Credits, Draw and Repay, Loan Interest, Loan Principal, Debt Service, Amortized Points, Revenue, Taxable Income, Management Fee, Expense, and Taxable Expense.
+/-7. Other Sub Page Ideas (Add Free Rent and TI's)
Video 3:01 Minutes
Assuption Edit Screen
SubPages
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A SubPage is an assumption page where the Page Title begins with the ampersand character (&), the cash flows that are produced for that assumption page are added to the cash flows for the previous assumption page. This is very useful when planning for a single item requires more than one page.