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1. z er THp 0 be Back to the original assumptions vam ea Income Statement aaa ma l Select Report Income Statements form the menu Bar The Income Statement is the most complete report about your property in planEASe The controls at the bottom of the screen give you up to 1400 options of how to show this report Press the Key to see all your options The Gross Income area shows you a n what the leases would be producing if there were no vacancies All the Continuation and i To Market pages for a Tenant are combined together into one line item here The Gross Ta m E Income for a lease in this report will equal the total line in the Lease Analysis report for ae Ei 200 Meri Masha Local General the same lease if the Use Vacancy Factor option is left unchecked The Effective Income tlre nn LN Tear line is the amount of Income expected after the vacancy is subtracted If you scroll down 1 Tomah 1 Teit G PTE i Tak Peet bor nea kansi ri ba Pea Bssnki 2 Ta Merkel tne rT to the Sales Proceeds section the Sales Value line indicates the projected sale price leo stan that year based on the Sales Price Method Capitalization of Last Year s NOI with a Sales Price Parameter of 9 aS Fink gt i panlASe Assempiton Las Screen tutorbel_retall_ with paol e Pra Loma Han I lets rpm Tuto Yea Tin planEASe Market Profiles Retail Tutorial 800 959 3273 w
2. This completes your Depreciation Assumption Page for the building As you enter a specification a message appears at the bottom of the page explaining the entry Click on Depreciable Amount and you will see what entering 70 means Similarly click on Depreciable Life and you will see why you entered 39 planEASe permits you to enter any life or method so you can depreciate any type of item If a property you are analyzing has more depreciable items than this tutorial you can click on Edit Add Depreciation Page on the menu bar and repeat this process until all depreciable items are entered Check the Audit Window at the bottom left of the screen to view the cash flows you have just entered It should look as shown here The smaller value in the first and last year is due to application of the IRS s half month rule ha rr peterpan Adding Loans Se Aigo arena ae l Click on Loan Loan in the Assumption Page List to top right nee wes Baloo Payson Deut A Loan Assumption Page will appear to the top left EREE R Laan Moanin Shang M Pont Bionth one ted lean ihti oreo ag MM VY _ seer the decal E 2 Type in the specifications below pressing after each completed entry Loan Amount 757 Loan Interest Rate 8 Original Loan Period 20 Loan Points Charged 1 Leave all the other default values as is Your loan is now entered into your planEASe analys
3. OF e fon Fonts geia e roe SO itt Dieis breesiment futons Teak Tii lt Hanae Sensitivity Analysis Maybe Local General Renewal Probability WErSUS Rate of Return After Tax UWS HB HM Ge TE eS 1 Bire Lac ad Gmetad Reread Pa ciabha raph Eok a E Caines ioh E Fonta imn ioi Fy Fior Coda Lt rear f Heise reeperi futon Tem fan a i EEEEEEEEEE lt panlASe Sensitivity Analysis General Vacancy amp Credit Loss versus Rate of Return After Tax ene al y E Creda Lose Percent Graph enue D F Qika ioh Fanta geam fold Fg Mors Code it rear Hiei kremin in Weary T Page 11 Risk Analysis Panes ttt Local Hee Risk Analysis is another what if analysis function that allows you to vary many assumptions at _ the same time While it does not give the same precision as Sensitivity Analysis it does show oe brenn Os Le you the overall risk based on many factors Of course all related assumptions are being varied o at the same time Your planEASe User Manual contains an extensive section on the Risk et Mates Analysis methodology known as Monte Carlo Simulation bola 1 I Tenant Pha Feet bor rise bner in ba Peoi ay bry a l Click on the Exit button to the top right then click Risk to the bottom right Masaa bh D in the kersie A Click on Rev lpr Renew 100 Local Renew to the top right then click on TI s to Fries m top left th
4. information and click Paste to paste the Tax Rates Tax Rate First Year Federal 35 State 10 Tax Rate Following Years Federal 35 State 10 Capital Gain Rate Federal 15 State 0 Cost Recovery Recapture Rate Federal 25 State g The Investor s Assumption Page will appear to the top left The Investor s Assumption Page has default values entered Naturally all these values can be changed when you are doing your own analyses if need be to adjust the tax rates for an investor You can think of the Assumption Page List as a list of the names of pages in a 3 ring notebook You can move between the pages by clicking on their names in the List You may also use the and keys to move to the next or previous pages in the Assumption Page List planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com Page 2 Adding Depreciation scorer nase Pie d Anaie Repot Lbi s hisp l Click on Depr Depreciation in the Assumption Page List at the top right A Depreciation Assumption Page will appear to the top left hacaghae Mee ene emit re 2 Type in the specifications below pressing after each completed entry inet a Page Title Building Depreciable Amount 70 70 of Price of Property Depreciable Life 39 Leave all the other default values as is Gch a Page to Shoes the Jocurephne y Fetsd ireesiment futons Yami
5. will enter a small retail building for this tutorial 2 Type in the specifications below pressing after each completed entry and click OK Investment Name Retail Investment Tutorial ae ka eet areca bs Square Feet or Units 60000 Senta ce oe Comments Retail Investment Tutorial The Investment Name Retail Investment Tutorial will appear in all your reports The information in the Comments box is saved with the Assumption Set The other entries will appear later in your APOD Report if you have dauumgticn Set Specificaliom purchased the Reporting Extension You are now at the Assumption Edit ain EES Screen with the Investment Assumption Page showing top left We call this Ppp can m screen THE HUB You are now ready to begin entering the numbers for your a property into planEASe You can also move forward between fields by rane pressing the tab key Shift moves backwards Entering the Investment Page l Type in the specifications below pressing after each completed entry Price of Property 5000000 Closing Costs 1 1 of Property Price gantast taser Lan Screen Une Date of Acquisition 1 05 J January 2005 Holding Period 10 ee ss Inflation Rate a aaa in Sale Price Method Select Capitalize Last Year s NOI from the list eaten Sale Price Parameter aon aL Selling Costs 66 e E Peecent
6. 4 Click Add Profile in the middle Name this Local Profile Maybe Click OK Then enter the following General Renew New Renewal Probability 40 Market Rent 12 00 S sflyr 13 00 S sflyr Grow Rent Yes TI s 5 00 sf 20 00 sf Growth Method S SF Year Commissions 3 00 of Base Rent 6 00 of Base Rent Growth Rate 0 5 SF Year A nataments 0 0 oa ee vars End Charges 1 00 sf 2 00 sf D ea SaS StartCharges 1 00 sf 2 00 sf Life Commissions 5 00 Years Montte V t 3 Month Year 1 TI s 50 ome taeal ue Reimbursements Continue When a lease goes To Market with this profile it will WEIGH Renewal assumptions with New Tenant Assumptions eg a Renewal Probability of 40 means 40 of the Renew TI s value will be weighted with 60 of the New TI s value Renewal Probability is used to compute weighted values for Market Rent TI s Commissions Abatements End and Start Charges as well as Months Vacant In the case of Months Vacant the Renew value is assumed to be Zero 5 Click on OK to return to the assumption edit screen r Beara BOGS of he Frera Ti l be gitad eth 405 of the Pra T Notice that when you return to the Assumption Edit Screen the Market Profiles you have entered are added to the Assumption Page List with three pages for each Profile one for each column of values in the Profile The values may be edited either here or as you did in the Market
7. 7 6 229 6 415 6 608 Reimb Utilities 2 300 2 415 2 536 2 663 2 796 2 935 Reimb Property Taxes 8 333 8 500 8 670 8 843 9 020 9 201 Reimb Security 5 000 5 150 5 305 5 464 5 628 5 796 Reimb Insurance 1 700 1 751 1 804 1 858 1 913 1 971 Total 143 033 86 401 151 669 156 183 160 833 165 624 Total PV 135 154 72 894 114 249 105 044 96 582 88 802 RSF 14 30 8 64 15 17 15 62 16 08 16 56 PV RSF 13 52 7 29 11 42 10 50 9 66 8 88 Base Rent 0 0 0 0 120 000 To Market 144 927 147 585 152 012 156 573 1 267 606 Market TI s 59 703 0 0 O 111 203 Market Commissions 22 822 0 0 0 42 508 Reimb Maintenance amp Repair 6 806 7 010 7 221 7 437 65 344 Reimb Utilities 3 082 3 236 3 398 3 568 28 929 Reimb Property Taxes 9 385 9 572 9 764 9 959 91 248 Reimb Security 5 970 6 149 6 334 6 524 57 319 Reimb Insurance 2 030 2 091 2 154 2 218 19 489 Total 89 676 175 644 180 882 186 279 1 496 224 Total PV 42 930 75 075 69 031 63 474 863 234 RSF 8 97 17 56 18 09 18 63 149 62 PV RSF 4 29 7 51 6 90 6 35 86 32 Introduction This sample retail analysis is assumed to be from a potential buyer s perspective e Expenses the detailed list of expenses is on page 3 e Building occupies 70 of the property Depreciable life of 39 years 20 year loan to value ratio of 75 is available 8 Annual Interest amp 1 point amortized over the loan life Inflation Rate assumed 3 Holding Period 10 years The leases used in this tuto
8. Expense Growth Rate 0 at the inflation rate a Jase Click on the C button next to Annual Expense type the following information and 3 click Paste to paste the calculation into Annual Expense es ee eee Oe Rentable SF 60000 RSF Yr 0 5 Click on Edit Add Expense Page on menu bar then type in specifications below Page Title Insurance over default Expense title Expense Growth Method Choose Annual gt Inflation from the list i Expense Growth Rate 0 at the inflation rate TEE Click on the C button next to Annual Expense type the following information and click Paste to paste the calculation into Annual Expense Rentable SF 60000 plant Ae Assumption Leit Sereen Untitled RSF Yr 0 17 os ERSAY Unabhe EF g Click on Edit Add Expense of Income Page on menu bar then type in specifications below Page Title Management Fee over default Expense title E Expense Percentage 5 5 of the Effective Income _ Sl mag ae An Expense as Percentage of Effective Income Exp ei page is an aaret Year WO Expense Page SubType which allows you to specify a expense that plantASe Assertion at Screen United varies with Effective Income You may have as many Exp ei pages S in your Assumption Set as you require Exp ei pages are not reimbursable and will not show in the Reimbursements dialog box Exp ei pages are especially usefu
9. ManlASe Agsempiion Lie Screen tulorbel_retall_ 12 Pie dt Anais Repot lbie Hep Ebh E chee a Mahal Page Tiie i i k Ta Himi dme eee OEE Local Annual Reverut TA H Renew 100 Local a J Pvn Stet Cate Flerin Pred Taraa raih Hiho Than be 5 Gepa Foia ehhi 7 r Ths kohal pripa bo bas paad bo iha pabu eecliting chong poaa bison Flite Fe TE Girah Rogie Mesooeks it it ME J F developreent iota ped bor maea bough on Bre acquisition dais Peat 2B 108 ptt mt 7 I Heis kessieri Tutors Yami Tn Hebel kessieri Tutors Yemi Tn Here there is a 1 20 SqFt increase 2 Click on Edit Add Revenue Page on menu bar then type in specifications below ue after one year in the existing lease Page Title 103 Tenant C over default Revenue title contract When this lease ends we are Revenue Period 1 07 the indicates until date sure that they will NOT renew Revenue Growth Method Select Annual Year Selecting the Renew 0 profile will Revenue Growth Rate 12000 1 20 per square foot assume 3 Months Vacant no Click on the C button next to Annual Revenue type the following information and reimbursements 20 sf TI s and the click Paste to paste the calculation into Annual Revenue other new tenant assumptions we Rentable SF 10000 S RSF Yr 12 00 enki Click on Edit Add To Market Page on menu bar Select Renew 0 Local Manse Assempiion Lae Screen tuloriel_re
10. Profiles Dialog planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com Aad ni hol appkeable b Frie Astumpton Paged Adding Revenues First Lease in Detail l Click on Rev Revenue in the Assumption Page List to the top right Page Title 101 Tenant A over default Revenue title Revenue Period 1 06 Until 1 January 2006 Click on the C button next to Annual Revenue type the following information and click Paste to paste the calculation into Annual Revenue Rentable SF 10000 RSF Yr 12 00 This is just a simple flat No Growth Projected lease with a contract that ends on Dec 31st 2005 By entering an until date rather than one year into the Revenue Period the ending the revenue does not move with the Date of Acquisition on the Investment Page If you change the Date of Acquisition on the Investment Page from January 1 2005 to March 1 2005 this lease will still end on January 1 2006 when the lease contract ends Now that the lease ends we need to continue the space planning 2 Click on Edit Add To Market Page on menu bar then select Renew 100 Local from the Market Profile list By choosing Renew 100 Local this lease will continue using the assumptions entered into the Renew 100 Local Market Profile Renew 100 Local assumes a 100 Renewal Probability with TI s Commissions and Start End Charges The Audit Window to the bottom le
11. a great many calculations are being computed for each After Tax IRR G Click on Another to the top right then click on Renew 0 Local New to the top right then click on TT s to top left then click on Rate of Return After Tax IRR to bottom left Type in the specifications below and press the Run button Saring a 3 PlanlASe Sensitivity Analysis Stopping at 5 In Ste a 5 Ranew OW Local New TT P Rate of Return After Tax Not only are the T s changing for each of the leases but this After Tax IRR is taking into account all of the depreciation considerations all the way through to the cost recovery Fibro Rn Gos Dos TAN calculations in the After Tax Sale Proceeds Na Pe Va Et Det Abst Prereri Wake Debio To Fis Prepari Wais Aie Tne Tampa Peor hs Genai Arka onaning bo thas genia sari Tre 3 Click on Another to the top right then click on Maybe Local General to the top right then click on Renewal Probability to top left then click on Rate of Return After Tax IRR to bottom left Type in the specifications below and press the Run button lt panlASe Sentivisy Analysis Starting at 0 Maybe Local General Renewal Probability WErSUS Stopping at 100 Rate of Return After Tax In Steps of 10 ed ct Geren i pner Pea Lona He y Aerer Maybe Local Firea Are they staying or leaving This What if analysis tells us how sensitive the return is as long as the new and renew assumptions a
12. ao Fist Pear Wg Aiie Tae 5 Click the X Start Cell to the bottom right and change it so it is one less than the ee ss ee lowest IRR 17 in this case lt ManlASe Hisk Anabi Free OEE Litil Fare T a Here PRD he HOE flere Local ea Ia Hips O0pe AO pee As long as our assumptions stay within the range we set Mtn Locd Gane Reremel Pbi an and all the other factors remain constant this property should return somewhere between 18 3 and 23 8 Since Risk Analysis uses a random number generator to select the values for the assumptions we chose to vary your results mee WO l a S might be slightly different You can increase the reliability of a at TEI us bight PA the results by increasing the Number of Trials eens Graph Eck Stacked D E Coa kcen j Tiira Moncontal Fos fie fom OY yee Check bo chusrage thug Chapin X Aag Lirain planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com Page 12
13. calculation into Annual Revenue and the Market Rent on a 40 60 basis in this case Rentable SF 10000 For Months Vacant and Abatements the blended S RSF Yr 12 00 months are rounded to the nearest month Click on Edit Add To Market Page on menu bar Select Maybe Local panlASe Assemption LAS Screen tutorial retail 12 FE eye fanbase Assemption LAS Screen futoriel_retail_12 Pie Poe Anais Repot Unie hip Pie dt Anais Repot Unie Help i lbie Help Pe N Local Ger Pay Tie Annual Aver Neverces Sip Cate Heere Fee Hila i teeta Brai Local New Plevarum Gradh Method lava GG lawl wh re M spbis Local Darri al clei aiandid S Habe Local Pea Pea Loca Hes Binge Local fanal Habs Local Benes Habs Local Mesa The babal prape bo bas paad bo Ehe pelu eect clergy poaa F deveiggmment bba pej br aea boughl on he soparo dais EHAE wran ai i Fara i cr i ick an ampin Viele in change fl E Teis revei Tato eae TUT am eena s vea 9 Click on Edit Add Revenue Page on menu bar then 6 Click on Edit Add Continuation Page on menu bar then type in specifications below type in specifications below Page Title 106 Tenant F Revenue Period 1 07 Revenue Period 1 06 Click on the C button next to Annual Revenue type the Click on the C button next to Annual Revenue type the following information and click Paste to paste the following information and click Paste to paste the cal
14. culation into Annual Revenue calculation into Annual Revenue Rentable SF 10000 Rentable SF 10000 RSF Yr 13 00 RSF Yr 12 00 Click on Edit Add To Market Page on menu bar Select Maybe Local Manse Assempiion Lae Screen tuloriel_retall_ 12 lt ManlASe Assemption Lae Screen tutor retail 12 j l t Manse Assempiion LAI Screen tutoriel_retall_ 12 Pir pdt Anse Repot Lbir iisip Pir pdt Ansi Repot lbie iisip a St Pega Tiie Tis iet ae 3 i g i Denard i bee 3 i Page Tite enki are b 5 Aruah hee k x hi ew eaa ee fare 3 x a heia Renee fll Loca Hew Enua ae Benet Lace Her a a ee Benet Lace Hew i x ie Haphe Local Geral Hagerqrame Sot hate F lirano Wi kiasia Local iaraa z ipgamior kaio kiaia iLocal ibanai Vesveram ian Daie i keia hiaba Laced Mars Aevitut Feii E ae Maghe Local Berea Chey oT aarp SOE Ber Haphe Local Bsa Flisnes Fanii iiei 1 diri 0T ae Haphe Local Res Pasren Groen Method eral V roen Mats J sual i Greet Fists ria Mapia Local Mea Pasren Groah beth Arrasi i Grpedh Mats Te a Bre m i Ba Gide n precio the e utes d Aki To Mirkt P Bare a af i he pepe choy aed wel dhvadke the annual amour by Ga Paama maun Cakeeliar 106 i fret character ty corebane tht wath Deevtun Farai LL The Continuation Page will start when the page before it ends and will receive the ending Annual Revenue amount from the previous page Notice that the amp Continued title is indented in the As
15. e of the tenant leaving This is accomplished by choosing Rei 100 as the Renewal Probability The Market Rent 12 00 sf yr eimbursements Continue and TI s will grow at the Inflation Rate 3 from the beginning of the investment 1 January 2005 Annually 50 of the TT s will be deducted in the first year and the other half is depreciated over 39 years This Lease Duration is five years and will repeat until the end of the Holding Period The rent will increase during the 5 years by the Inflation Rate because Grow Rent Yes 5 Click Add Profile in the middle Name this Local Profile Renew 0 Click OK Then enter the following General New Renewal Probability 0 Market Rent 13 00 sflyr Grow Rent Yes TI s 20 00 sf Growth Method Year Commissions 6 00 of Rent Growth Rate 4 Y ear Abatements 0 Lease Duration 5 00 Years End Charges 2 00 sf Life TI s 39 00 Years Start Charges 2 00 sf Life Commissions 5 00 Years Months Vacant 3 Months Year 1 Tl s 50 Reimbursements Continue When a lease goes To Market with this profile it will NOT renew This is accomplished by choosing 0 as the Renewal Probability The new tenant s Market Rent 13 00 sf yr and TI s will grow at 4 per year from the beginning of the investment 1 January 2005 The 3 Months Vacant not only eliminates the base rent but also eliminates CAM Reimbursement for this tenant during the vacancy
16. eclick in the white 2 line help message below the Assumption Page area you will get full help about the Growth Methods available cc es TO 2 ry ve 5 Click on Edit Add Expense Page on menu bar then type in specifications below a lt Manse Assempiion La Screen Urii Pires Zii Page Title Property Taxes over default Expense title ee Annual Expense 1 1 of Property Price Expense Growth Method Choose Annual at Growth Rate from the list a Expense Growth Rate 2 2 annually This completes the Property Tax Expense Assumption Page Taxes are growing at ne eee 2 selecting Annual Growth Rate for the Expense Growth Method and Pa nee het ee entering 2 for the Expense Growth Rate will increase the expense every April by t u 2 Check the Audit Window at the bottom left of the screen to view the cash are T flows you have just entered It should look as shown here Look to the top right Assumption Page List and you will see Exp Property Taxes is now on the list ieis epim Tuto Yea T A dc quinn Until Frite Sake 6 Click on Edit Add Expense Page on menu bar then type in specifications below You fap choad ofp ied mathe te compute the eps oe eee Pxpeeic Amaun Caleeialor Page Title Security over default Expense title Expense Growth Method Choose Annual gt Inflation from the list me
17. eft then click on Rate of Return After Tax IRR to bottom left Type in the specifications below and press the Run button Starting at gn Stopping at 10 In Steps of a planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com panlASe Icm Statement BOF MUE MOT HHG H 10 ed BL AHDI Hia Year Graph Caan SO Colt liege Gaiei iah Fanta Spari Bold Safia w Daa Pee Dotad Piat Deri k scmediochenpetegenh ias Conran lt Manse became Statement BS FG HE MDE A 210 Hii a ee Year Flops View Graph coker Stacked MO A Colt ie Grids p Fi here Dita Ea ee Fanta S pai Bold lt Manse oeme Statement HS MWH OT MB 0 i Hii 2i 3J mii Year Gooch SOR DF Cols fire Gene fo Fonts Spent Bold as oe ee ee Fep ites Pig oom D Domo Soe D gaua Feet Mmea Laca He BLA 00 beats a EOX g Dae Pet Pearse eo pee oops DOD Merete Lal Feed bor mea eee in fa Pcie Pan ASe Sensitivity Analysis Renew 100 6 Local Renew Ths Wersus Rate of Return After Tax Pet Prepari ysis eiis Debi Fisi Pierani Wale becos Ta Fist Pega Wais Aie I aa Paora he Garaiak Anaka socaning bo hans geria sagir Feim kepit Tuto Yea When you press Run Sensitivity Analysis computes and you are presented with the table of after tax IRR s Since the 7 s on the Renew 100 Local Market Profile is being varied here
18. en click the grid at the top Type in the specifications below Rate of Return Before Debt herea Lowest 0 Likely 5 Highest 10 By choosing 5 in the Likely column the distribution will be a normal distribution Fiabe of Feehan Eseioee Tae IRF Piste of Pshu aes Tas BA 5 Click on Rev lpr Renew 0 Local New to the top right then click on 7TI s to top roan left click on Rate of Return After Tax IRR to bottom left Type in the specifications CE nara tot nn below lt Pan ASe Hisk Anari Lowest 5 Likely 20 Highest 25 By choosing 20 in the Likely column the Mare Lace Oona ered Pty distribution will be skewed slightly towards higher Pe TI s Fe at Fum Esis Tae DIFF Piste of Pshu Aer Tae BA Fist Peppard ysis eiras Debi Mipi Prereri Wis Define Ta Mist Piprandi Woe Aie Tae Bun Gch sn ducunpher bo skd ba fhs fount Gand Teisi kremini in Weary lt panlASe Hish Anaki 4 Click on Rev lpr Maybe Local General to the top right then click on Renewal Probability to top left click on Rate of Return After Tax IRR to bottom left Type in emee e a the specifications below and press the Run button Sai Lowest 0 Likely 40 Highest 100 By choosing 40 in the Likely column the distribution will be skewed slightly towards a a lower Renewal Probability Bane fae Ets Las EA Fist Peppard isis Leficos Debi Abst Pp nerd Wis Defies 7
19. from the method list next to Maintenance amp Repair Click the Reset Tenant Button Click Lease Audit at the bottom right to see the results Click OK to return to the Assumption Edit Screen Many leased properties such as Retail and Office investments Right now this lease involve leases with expense reimbursement provisions is the only lease Additionally Retail leases may call for Percentage Rent to be paid entered so Tenant A by one or more tenants The Reimbursements Dialog allows you to is responsible for all enter the Expense Reimbursements and or Percentage Rents the reimbursements associated with each lease you enter for the property All of the After we enter the leases in this tutorial are Net and are responsible for their pro other five leases you rata share of the expenses This is also known as Common Area will see this tenant s Maintenance or CAM Charges with retail type properties reimbursements Reimbursement Specification EE decrease Ei FlenwtNes ooOOOO sa z C The E gre mea lo arii robai about the era Each expense for each lease can be specified to reimburse a different way Press the Key to read about all the methods planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com Plat ASe Aeeueepdtion Udit Sonemen bieria reai A Farei Fabre DOG Local Gee Frei Fear DOG Local Ale Firei Mlapbe Linc Georcnal Fare Blgpbe Lista Fores Firei biggie
20. ft will show the Base Rent Abatements and the Start End Charges The 2006 number is reflective of the increased Market Rent 2 months of Abatements and 1 00 sf of Start Charges in the first month 5S Click Lease to the bottom right The Market Commissions and Market TI s are shown as part of the Lease Analysis shown before tax they are handled after tax in all the after tax analysis reports Notice that the Market Commissions and Market TI s reoccur in 2011 This is because the Renew 100 Local Market Profile has a five year lease duration and planEASe repeats Renew 100 Local leasing assumptions 1 00 sf of Start Charges and 1 00 sf of End Charges re occur as well Putting the 101 Suite Number before the name of the space Tenant A tells planEASe that it is a Suite Number Notice that it takes the 101 out of the Title in the Lease Analysis However if you switch to Summary mode the Suite Number is identified in the Suite column Note the Use Vacancy Factor check box below the Exit button in the Lease Analysis This will allow you to show the numbers with or without vacancy The Show Detail as options in the middle of the screen give you more control over how the lease numbers are shown If you don t like the term Base Rent select Print Preferences to choose your own term Your new term will print in the reports G Click Exit to the top right Click Edit Reimbursements on menu bar 5 Select Net
21. gher than the previous and following years me eo This is caused by 50 of the TI s being depreciated in the first year ems Ss Click Exit to the bottom right Click the Rev pr Renew 0 Local New in the a Assumption Page List Change the TI s from 20 sf to 10 sf Click on Basic button to oom bottom right Market Profiles can only be created and deleted in the Market Profile Dialog Box However once created the assumptions reside in the planEASe Assumption Page List and you can modify the numbers either in the Market Profile Dialog Box Edit Market Profiles or by selecting the appropriate Assumption Page in the Assumption Page List lets rpm Tuto Yea Tan The 566 221 number in the nvestment and Sale row during 2007 has decreased ah Poa es Ta a WE greatly by changing the TI s in the TI s in the Renew 0 Profile from 20 sf to 10 ea PEES re ECEN sf The 334 668 number in the Depreciation row during the same year is noticeably innse zi lower than before This is caused by 50 of the T s being depreciated in the first year Nais of Hear tore Ciebi DA Fate of Aat Bode Toe PRAAJ Hinde of Mista ie Te A Heed Pletal iaka Bobare Cibe 31 05 Hest Present Viak Bobre Tie I ot Pre Waha diii Toe Gee Heid breetimet Tuto Yes Tin 4G Click Exit to the bottom right Click the Rev lpr Renew 0 Local New in the a EF Assumption Page List Change the TI s from 10 sf to 20 sf
22. is The Loan Amount can be entered in three different ways e as a dollar amount any amount over 100 e as a percentage of the price loan to value any number between 3 and 100 as done with 75 here e as a debt coverage ratio any number less than 3 will be a DCR based on the NOI the year the loan starts Additional loans can be entered the same way when needed in an analysis Check the Audit Window at the bottom left of the screen to view the loan you have just entered It should look as shown here Of course the number of loans for a property is unlimited Check a Page to Gha the Anphora Hated brrespiment utoral Teak gt Mant ASe Assemption ft Screen Untitled Adding Expenses E l Click on Exp Expense in the Assumption Page List to the top right An Expense Assumption Page will appear to the top left 2 Type in the specifications below pressing after each completed entry CLI kor Sarita pchaechuke Page Title Maintenance amp Repair over default Expense title Expense Growth Method Choose Annual gt Inflation from the list a ever Click on the C button next to Annual Expense type the following information and ay click Paste to paste the calculation into Annual Expense Rentable SF 60000 RSF Yr 0 57 It should look as shown here Look to the top right Assumption Page List and you will see Exp Maintenance amp Repair is now on the list You may add a
23. ket Page on menu bar Select Renew 0 Local lt ManlASe Assempiion Lae Screen tulorkel_retall_ 12 ManlASe Assempiion Laie Screen tutorial retall_1 2 Pie pdi Anat Repot hiie Hep paan Pega Tie Th Tert D e everun ETT Param ott Dais i igat Flerin Pema emt Oeti 2006 Parera Groah Method eras i roen Mats Bio Mahe Renee Local Mabe Local Geena apks Local Guna Ben heei Haphe Loza Beea Mabe Local Bensa E Magbs Local Pisa Thet biie appeaii oF Fary hiiri arid i he paa diaj bot cha acts honrar thr Ah pean paye Bevtees Aeount Caleolator PARLE a The bata prape bo bas paad bo Ehe pelu eect pkarg poaa F deakgprei bba pj br maea bough on he soparo cate m ET F ma Fa Teisi keinet Futons este Tn planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com Adding Revenues Multiple Leases Notice that this lease contract ends 3 months before 4 Click on Edit Add Revenue Page on menu bar then type in the end of the year Since the Maybe Local Market specifications below Profile blends the New Tenant assumptions with the Page Title 105 Tenant E over default Revenue title Renew assumptions 3 months worth of vacancy is ime Revenue Period 10 06 the indicates until date ee oo pis 5 A E a Click on the C button next to Annual Revenue type the following End Charges Tl s Commissions Months Vacant information and click Paste to paste the
24. l with rehab projects and development projects where the expense varies with amount of occupancy When you are done the audit will still show O s because no Effective Income has been entered that comes next Ti apa en mary pt and page sy Ue a brat chiaki bi Sitesi fri valh Geen pater Pii booed Tig epn i Year figi planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com lt Manse Assempiion La Screen Untished F Adding Market Profiles Local l Click on Edit Market Profiles on menu bar Market Profiles are designed to help you with planning what will happen when a lease comes to term In this tutorial three profiles will be added to show you the capabilities of the tool You can have as many as you need for your analysis Press the Key for help with this Market Profiles Dialog that allows you to enter and maintain your Profiles a Change the name Main to Renew 100 Then enter the following General Renew Renewal Probability 100 Market Rent 12 00 S sflyr Grow Rent Yes TI s 5 00 S sf Growth Method gt Inflation Commissions 3 00 of Rent Growth Rate at the Inflation Rate balements 0 Lease Duration 5 00 Years End Charges 1 00 S sf ife Tils 39 00 Years Start Charges 1 00 sf Life Commissions 5 00 Years When a lease goes To Market with this profile it will renew with Year 1 TI s 50 no chanc
25. ntally across the top of the screen This incidentally is the definition of p arenan pail ae bah e sanan aae the Horizontal View in planEASe years run horizontally across the top of the eee projection grid As you might expect the Vertical View shows the projections with the eae years running vertically down the left side of the projection grid Now would be a good time to click on the Vertical View and compare it with the Horizontal View 2 Compare the results in the box at the bottom center of your screen with this table Hopefully your screen matches this table exactly If not you have three choices for proceeding e Start all over again not recommended TDH Fi Fa aO HSE e Review and correct your entries and then select the Basic analysis button and choose the Horizontal maik Paaris mmol osal maroj ome on view again to see if you ve corrected the problem eco EE e Choose File Open Assumptions and choose the tutorial retail with_profiles file to load the Assumptions as we have entered them recommended Ra d Runar Bakte Tan PAA Pais ci Ngba ii Tae pA Heed Fiesi V ak Bhp Cabe 0 Het Present Viak Beda T ES Het Preset ahah Slice Taw fe The 783 607 number in the nvestment and Sale row during 2007 is partly caused by the TI s in the Renew 0 Profile The 445 682 number in the Depreciation row lt ManlASe Assempiton LAS Screen iuiar retell wiih pool ies during the same year is noticeably hi
26. of he ioir pate pid cul dd otata of the sabe greater than 100 amount h baid at dolla As you make these entries they are converted to understandable English All new entries on this Assumption Page or any Assumption Page will convert to jene understandable English after you press or move to another entry by clicking 4 and As you move up and down between the entry fields note that the white amcs smaan two line help message at the bottom of the Assumption Page and above the Audit Window changes to match the particular assumption you are entering the first example of context sensitive help in planEASe The specifications you have entered were derived from your research and your client s information Your first wild guess for the value of this property is 5 000 000 You ve decided to begin the analysis with this value you will see how to adjust it later in the analysis Entering the Investor s Page l Click on Gen Investor s in Assumption Page List to top right Type in the specifications below pressing after each completed entry 1 planLASe Assemption LAS Screen Untitled General Vacancy amp Credit Loss o re Present Value Discount Rate Before Debt 10 a Present Value Discount Rate Before Tax 12 pe Pr Present Value Discount Rate After Tax nee cee A Click on the T button next to General Vacancy amp Credit Loss type the Bitoni following
27. planEASe Market Profiles Retail Tutorial Tutorial Notes This tutorial shows you how you would enter the described retail property into planEASe At the end of page 8 you will have recreated the tutorial retail with profiles sample that you can open by selecting File Open Assumptions In addition to this tutorial try the sample index on theplanEASe CD for more samples on retail including a walk through movie Page Contents Introduction Starting Point Entering General Information Entering the Investment Page Entering the Investor s Page Adding Depreciation Adding Loans Adding Expenses Adding Market Profiles Local Adding Revenues First Lease in Detail Adding Revenues Multiple Leases Adding Expense Reimbursements Checking Results Income Statements Sensitivity Analysis Risk Analysis This is one of the many reports that you will be able to view at the end of the tutorial planEASe Lease Analysis Tenant A Measure Rentable 1 496 224 149 622 863 234 86 323 Total Effective Avg Annual Effective PV 12 Annual PV 12 Report Date Suite Rentable SF Usable SF 28 Apr 04 101 10 000 2008 2009 Base Rent 120 000 0 0 0 0 0 To Market O 133 900 127 308 131 127 135 061 139 113 Market TI s 0 51 500 0 Market Commissions O 19 686 0 0 0 0 Reimb Maintenance amp Repair 5 700 5 871 6 04
28. re Bas geam es Teten correct Ne Ptr Var Tar Fist Pear siss Aiie T a Tonpa Padoa he Giek Anka secconding bo haos genie aaru Teisi keepnet u venk Tii 6 Click on Another to the top right then click on Gen Investor s to the top right then click on General Vacancy amp Credit Loss to top left then click on Rate of Return After Tax IRR to bottom left Type in the specifications below and press the Run button Starting at 0 pianlASe Sensitivity Analysis Stopping at So General Vacancy amp Credit Loss Versus In Steps of 1 l Rate of Return After Tax Taa Hais Fined Taw On top of the vacancy scheduled in the Market Profiles the General Vacancy amp Credit Loss will Prim vatn Dunare ar Aae subtract from all the Effective Income Piste of Pistum Defces Deti PHN z FE baiia Toe JFE TH Piet Prepari sini eiris Debi bet Preneni hiss Defies Te Fip Pepcid Woe Aiie Tne Padoma ths eiai Araka secconding bo these genie bor Tiga veint in f Yei 7 planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com Manse Semativiay Amalya Renew 100 6 Local Renew TT s Versus Rate of Return After Tax 12 48 6T8 Fenmew IONS Local Renew TI s Groh Eom D E eines igh Fonts ramp lode F Firas Eriw um iieis rept futons Tem fan lt Manse Senay Analysis Renew Local New TT s versus Rate of Return After Tax Renew Local New TI s cuh
29. rial are designed to maximize the learning potential What you will Learn Here How to Start a New Analysis How to input Revenues Expenses Loans Depreciation How to use and get to THE HUB screen How to Add Pages Revenue Expense Loan Depreciation How to use the Calculator How to get to any Assumption Page using the Assumption Page List How to use the Audit Window How to get planEASe to calculate your Analysis How to view your Analysis Results How to use Sensitivity Analysis How to view print Reports Typographic Conventions used in our Tutorials Labels Italics designate labels you see on the screen like Gen Investment In addition the four areas of the Assumption Edit Screen Assumption Page etc are also shown in italics Keyboard Entries Quotes designate items you should type into planEASe like 1550000 for the 1 550 000 Price of Property Keyboard Keys are shown like and Esc Actions you should take are shown in bold like this Results of your actions observations and discussions of the results of your actions are shown like this planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com Page 1 Starting Point Entering General Information gt planLASe Assempiion Lia Screen test Click on File New Assumptions on menu bar The Assumption Set Specification Dialog Box will appear You always start a NEW Property Analysis in planEASe this way You
30. s Lical Res quiche Cry bl lara CODE aad KS leet Habe fod Feet Local Here Baebes Local General Bape Lical Fontes Baebes Lical hina Thee bis appaaii in beneh arid Piek Arapu Aopo Peer Fahan pow cho cree of fhe aur ori bar pega nn Peete 5 TREE RENES ae BE me Lrevecioreerd lerer Quiking Laan Rare OON Lana i Pare ON Local P Pare ON Lana H Peme Land He Hughes Local Domna Hapis Local Benes Habs Local Msa Tm pt Tutor Year fan Adding Revenues Multiple Leases l Click on Rev amp To Market Page click on Edit Add Revenue Page on menu bar then type in specifications below Page Title 102 Tenant B over default Revenue title Here there is a 3 increase after one Revenue Period _1 07 the indicates until date year in the existing lease contract Revenue Growth Rate 3 Annual at 3 Annually before This is another lease that is sure to renew Using the same profile for both leases increases the what if capabilities later on Click on the C button next to Annual Revenue type the following information and click Paste to paste the calculation into Annual Revenue Rentable SF 10000 RSF Yr 12 00 Click on Edit Add To Market Page on menu bar Select Renew 100 Local lt ManlASe Assempiion Late Screen tuloriel_retall_ 12
31. s many expenses as needed In this tutorial only six expenses are added for brevity Mant ASe Assemption a Screen Untitled 5 Click on Edit Add Expense Page on menu bar Anew Exp Expense page will appear in the top right Assumption Page List For each additional expense that you want to enter you will need to add an Exp Expense Page hii Dope Sh of kirma Pee Trara Pages Devssiggment ipencing E Unt ea E Marhet Proti Fal m DE pray Feisl restiment futons Terk planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com lt ManlASe Assempiion LAI Screen Untitled Pie pdt anais Repot Uhlie hiep 4G Type in specifications below Page Title Utilities over default Expense title Expense Growth Method Choose Annual gt Inflation from the list Expense Growth Rate 2 2 over the inflation rate Click on the C button next to Annual Expense type the following information and click Paste to paste the calculation into Annual Expense Rentable SF 60000 RSF Yr 0 23 The Utilities Expense is projected to increase 2 faster than the inflation rate By selecting Annual gt Inflation 3 and entering 2 in the Expense Growth Rate the Utilities will grow at 5 You can find further explanations of the Growth Method possibilities in planEASe by clicking on Help Also if you click on the Growth Method and then doubl
32. sumption Page List to the top right This indicates it is part of the 106 Tenant F lease If desired by clicking the button and entering a new amount the ending Annual Revenue amount from the previous page can be replaced by 13 sf here Adding Expense Reimbursements CAM Charges l Click Edit Reimbursements on 2 Select Net from the list next to Maintenance amp Repair Click the Reset menu bar All Button Click Lease Audit at the bottom right and select another lease to see the results Click OK to return to the Assumption Edit Screen gt pan ASe Assempiion dit Screen tutorlel_retall_with_peoliies Reimbureemest Specification Reimbursement Speciticalian Each expense for each lease can be specified to reimburse a irasa cou see i different way Press the Key to read Lirik Salis ae about all the a a ee methods Tete epimer Futons emp Tn planEASe Market Profiles Retail Tutorial 800 959 3273 www planease com Page 8 Checking Results Verifying Your Entries or Click on Basic button to bottom right and wait a second When the Basic Analysis ara screen appears choose the Horizontal view at the bottom right of the screen iP oe planEASe will now calculate and display the preliminary analysis from the values you sea itor entered All the projections both before and after tax now appear with the years T running horizo
33. tall_ 12 ManlASe Assempiion Lae Screen tutorial retall_ 12 Pie dt Anat Repot Lilie Hep lt gt Psp Tite 1 Taran Iraegi i kilo Mahe Dung derud Hirira Era D lan i Ferrel Lical Fleveras Sta ate irjanak heei BaO Local fh z Hiera Fid piai ray S00 Taraa eah Hiho Bord H piren B12 DOCU each paai ae EER Beea Bii Lopa He Pea Lara Here Taaa ae Elaphe Local ommal Hebe Local Psa Hehe Local Maree Maybe Local Mew Bagh Local hpa I Taran A THT Te fi 1 4 Te bebe 102 Tenant 8 TE Teri fi F you ute beta than pte meee the pies ued d dred wal dhvedie the annual aiiu by the pear bo ee Rima Amount Caleolator EA amd new s Notice that this lease contract ends 3 months before 5 Click on Edit Add Revenue Page on menu bar then type in fae entor he year Snels onen Oi Locdl specifications below Market Profile assumes 3 months worth of vacancy Page Title 104 Tenant D over default Revenue title before the next lease begins the revenue for 2006 Revenue Period 10 06 the indicates until date should be 30 000 less than 2005 The Audit Click on the C button next to Annual Revenue type the following Window at the bottom left shows this to be true information and click Paste to paste the calculation into Annual Revenue When the new lease begins the Profile s a Rentable SF 10000 Abatements Start End Charges TI s Commissions S RSF Yr 12 00 and Market Rent rates apply Click on Edit Add To Mar
34. ww planease com Page 9 2 Click Graph to the bottom right Notice that all the leases start off the same in this tutorial Then in the following years they are affected by the dates we entered and which profile they went to market with The first two renewed Tenants C amp D were assumed to be leaving with new tenants moving in after 3 Months Vacant The last two were given a 40 chance of renewal Clicking the graph button will give you a more visual view of these leases 5 Choose Capital Spending Detail from the drop down list next to Data G Click Report to the bottom right Scroll down to Sale Value click the cell containing Sale Value Click Graph to the bottom right By choosing to have the Sale amount to be linked to NOI the Sale Value Sale Price is affected by the vacancy and abatements Manse became Statement Lett Sake Leos Et Lote Loan Apapa Sensitivity Analysis Finally you have some real results to examine Sensitivity Analysis performs powerful what if analysis with the precision of being able to vary one assumption at a time l Click on the Exit button to the bottom right You are back as always at the Assumption Edit Screen THE HUB 2 Click on Sensitivity button to bottom right You are now in Sensitivity Analysis You are going to vary assumptions that affect the NOI and see how it affects the RR After Tax 5S Click on Renew 100 Local Renew to the top right then click on TPs to top l

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