ARGUS Enterprise: How to Transition from DCF to Enterprise

With ARGUS ending support for all DCF Licenses as of June 30, 2017, many are finding themselves lost in the transition to ARGUS Enterprise. During this webinar led by Heather Boren, our resident financial and ARGUS Enterprise expert, our team will walk you through some of the newest features, insider tips, how to avoid conversion issues, and the program’s new infrastructure. We will also take a moment to discuss the future of ARGUS and where the program is going.

Don’t disrupt your workflow by re-learning this complex program. Let us help you save time by taking away the guesswork and providing you with the keys to a successful transition to ARGUS Enterprise.

As an authority on the subject, Heather’s experience will undoubtedly provide you with valuable direction and open the way for future ARGUS dialogue.

Heather not only uses ARGUS Enterprise in her day to day with our team, she currently teaches ARGUS Enterprise at two prestigious universities. When she is not underwriting multi-tenant shopping centers, Heather is lecturing at University of California, Los Angeles Extension and Pepperdine University Graziado School of Business and Management. Her boots-on-the-ground experience and unique understanding of ARGUS Enterprise and all of its nuances has become an invaluable resource to her students and our team.

In addition to the 40-minute instruction and 20-minute Q&A, we will be offering webinar participants with supplemental ARGUS Enterprise support which will include 10 DCF to Enterprise Conversion files for 30 days.

Our team aims to become an additional resource for our clients and we are dedicated to helping you gracefully navigate through this transition. Feel free to contact us with any questions you might have about the webinar or ARGUS Enterprise in general.

Please take a moment to sign up for this webinar we have structured to help you get ahead of the ARGUS Enterprise learning curve:

Tom Lagos:

Good morning, everybody. This is Tom Lagos with Shopping Center Advisors. I just want to welcome everybody from dialing in or getting us on the computer. We also have a number of people in our conference room here in downtown Los Angeles Colliers office. Our team specializes in selling shopping centers. If you guys are looking for any deals, feel free to visit our website shoppingcenteradvisers.com. That’s my quick little plug.

Anyways, I want to welcome everybody. We’ve got a very important topic as we transition from the old DCF into the new enterprise version of ARGUS. We’ve noticed this has been a big item of concern with most of our clients. We figured we’d have a webinar to introduce it, and there’s no better person to go through that than our own Heather Boren who handles all of our financial underwriting as well as transaction management.

She’s also an adjunct professor at Pepperdine in the Business and Real Estate department where she teaches financial underwriting and ARGUS Enterprise. She’s also a UCLA Extension instructor for ARGUS Enterprise. So, this is not new to her. She keeps at this as well and hopefully she will provide some valuable input for everybody. So, if you have not already done so, please help us and fill out our quick pole. That way we can gauge the amount of experience everyone listening has. Thank you. Without further ado, I want to introduce Heather Boren. She’s going to take over the program from here.

Heather:

Hey, good morning everybody. Thank you guys for joining us. I’m going to close out the pole pretty quickly here so be sure to send in your vote. But, where it stands right now, we’re pretty well divided. You’ve got 30% loyal DCF users, so I think you guys are in for a real treat. We’ve got few with ARGUS so that’s good too. So I’m going to close out the poll. There we go. Yeah, thank you very much, Tom, for the introduction.

When I first started at UCLA Extension a couple years ago, we first started with Enterprise 10.0, but now as you can see or you will see, where we’re at is 11.6. So it’s gone through many renditions and revisions the last couple of years, which is great, and we’re going to kind of look at the newest, latest, and greatest 11.6. The goal for our webinar today is to give you an introduction to ARGUS, how it looks and feels, the interface, and new and improved features that I personally like that they added that make it a little bit different from DCF. Also, some insider tips that I think are important. We’ll talk about transitioning into Enterprise from DCF and what you need to know. We will wrap up with, where the program is going and insights.

With that, when I started at UCLA, they stopped teaching DCF over the last couple of years so there was a really big push to Enterprise. I know some of you probably have gotten DCF yanked from your licenses. Really, Enterprise and ARGUS’s vision is to really have Enterprise as the new model, the new future of our way of underwriting. For those that said what is ARGUS? Basically just a program that’s used for the underwriting and financial and outputs for properties. Although, our team specializes in selling shopping centers, when I teach it, I do it across the different property types. If you guys are working on types of properties other than retail, you can hopefully be able to take some of the information away and it will translate to property types like industrial, and office, obviously retail. There will be some features that go across different types of commercial properties that you might see in your underwriting.

With that, I’ll kind of pop open here the Enterprise format. If you are able to open Enterprise, this is kind of the first thing that you will really see. It’s a brand new interface, for those that are in DCF, one of the major changes is when you’re in DCF you just click on the app, it’s like an icon on your laptop or computer and it pops open. Enterprise is really a cloud based, internet based forum so however the program is saved on your server, or how you access, you need to go into Enterprise, the system first. You can’t just double click on a property.

When you’re able to get into Enterprise, you’ll see an interface template like this one. Really as we’ll kind of go on and see, I personally like it. I know we have a lot of loyal DCF users here who are probably “no I don’t want to move over to Enterprise, it’s horrible,” but I think the way that they kind of made Enterprise look and feel, gives you that sense of Microsoft Office. You have a lot of different entries and scrolling mechanisms that give you more a feel of modern time. I think this is their attempt to really beef up the program, kind of get up to speed with modern technology and the way that we use those today and how we interface with different programs like Excel.

Without going into the nitty gritty of how you’re going to create a property or data entry, the two key takeaways that you’ll really need to know from this particular view are the create new portfolio tab or button, which is here and input portfolio or open a portfolio. When we think of portfolio, you can add multiple properties in these buttons. So think of portfolio as a mechanism where you can add multiple properties. You can create a portfolio and just have one property in it as well. It’s meant to be able to underwrite one property or you can kind of pull in a bunch of properties and analyze them as a portfolio, especially those that are doing more accurate management or for acquisitions across the board.

We’re going to go into a pre-existing property that I created for today so I’m double clicking on the one called Collier’s seminar. As you’ll see here, this is a property that assigned to this portfolio and you’ll see properties. If you had multiple properties in this portfolio, you would see a bunch of properties scrolling down here. I’m just going to click on that and again, this is a pre-entered property for us to kind of go over with you. When you’re in this screen, again this is your major interface, you’ll see here two sections that’s kind of hidden. One is up here, this is your dashboard and in the bottom here is all your different tasks for data entry and different tabs that you have available to you. Everything that you entered into DCF, you can enter into Enterprise, it’s a little bit of a different interface.

One of my favorite sections, if you will, are the little input ones right here. If you want to be able to see this entire screen or your entire report, you would just un-click that and it kind of goes away. Then every single tab that you have available to you up here, will be available for you to take a look at in its entirety. If you ever want to look back and want to re-look and re-change some of your data entry, just click on input and you’ll come back and you’ll take a look at it. Again, all these different tabs and input data will be for you as you’re creating your property and going along with your properties. It’s really nice to be able to make as many changes or do as many different types of analytics as you can think of or you did encounter if you were working in DCF. Again, the more you work on a property or you work on ARGUS, the more you’ll get familiar with it too.

New Features

What I really want to then go into, kind of some of my favorite features. So, speaking of the different tabs, I am mostly going to be on input. I have so many different reports available to me. It’s really great. If I wanted to take a look at cash flow for instance, my property report tabs, which is what I am looking at here, I can look at my cash flow and all this different cash flow is available to me.

My favorite report feature, I like these a lot especially for institutional clients, is the evaluation report tab. That’s this one right here. In this selection you have this IRR Matrix. This is kind of cool, I like this a lot as part of Enterprise. Once you input the information, once you have an actual property that’s set up and you have all the values that’s in it and want to take a look at your IRR, you can play with different values. This is a cool report that you can use. You’ll take a look at it. It’s really neat and you’ll see the different values across the properties. You’ll be able to enter different things like your purchase price, cap rate, equity cap rate, it’ll kind of spit out in a live format what your different analytics are.

Speaking of live analytics, one of the things that I really do like, I’m going to back my input, let’s say I’m going to look at my current cap rate. I want to see, okay well this is great, I want to see what my cap rate is in year one based on my analysis. What I do here under my evaluation tabs, there’s a little tab here, a sub-tab called direct capitalization. I select that, I can input a direct cap rate here and instantaneously it will show me what my value is on the property based off of year one or ending year one of my analysis. If I kind of want to play around with the property, let’s say, if I cap you know look at it as a two cap, I can just enter it there and you’ll see that my value changes.

This is a cool feature with Enterprise that I really like that does across a different report, any changes you do will be implemented property wide and you can see the different values or different analysis that you want take a look at rather than having to re-save and recreate different properties. As for loyal DCF users, a lot of times in the past if you wanted to maybe change your assumptions or change a different analytic, you would go ahead and maybe have to re-save the property. You don’t have to do that in Enterprise, you can make a change, you can save it, you can discard it. It’s a good for if you want to take a look at different things as you’re moving around with your analysis.

The other kind of favorite feature that I like is, again, for those DCF users. Remember when somebody asked you for the file, you would just export pretty much the whole file into Excel and Excel would spit out all the different reports? Well, if you can kind of get a sense, all these different tabs that are available to you and all these different sub tabs, every sub tab is a possible report. There’s so many reports that you can imagine and create out of Enterprise. There are more reports than you can even think that you may even want to create. The beauty with Enterprise is that you can actually create your own template of what reports you want and explore it.

For instance, if I went back to my properties and I’m just going into my files tab here. If I see this option, I go to my control panel. I go to my report packages. We’ll go through exactly how you create little by little, but if I want to see my report packages here, this is taking a minute to think a little bit. You can see there are all these different, sub features means a type of report that you would create. What if I only wanted to send a client, or I only wanted to send the buyer or somebody a specific report combined together, I only want it as you see here. When I sort my report it will only show these reports that I want included not necessarily the entire reporting options of ARGUS. You can certainly still do the entire report options of ARGUS, but then you can kind of customize it and customize to your client needs and what your needs are as well. That’s a little feature that I like as well.

If that all sounds great and you don’t necessarily want to do that and you just say, I just really want to export my cash flow report. I just want to export one report, all you have to do is go to that particular report. It’s probably a report in cash flow. I go into my report tab and I have this export function, if I click on it, I can export it to Excel, which would be right here or I can add it to my report packages. That’s again, a feature that I like because you can customize it based on your needs. Again, there’s so many reporting options here as well.

Insider Tips & Common Errors to Avoid

Next, I kind of wanted to go into a little bit of insider tips and common errors to avoid. Some of these errors may seem a little bit intuitive, but believe it or not actually I had some of this happen within a few days or just a couple of years, there are three different areas. First would be purchase price. If I go to my investment tab, I have an option here for purchase price. If I want to create these different valuations like IRR, or I want to create a net present value, I need to put in a purchase price. Or if I’m doing a function like property, maybe I do my taxes takes off a percentage of value of purchase price, I need to have that information there otherwise it won’t export the correct information. That would be one. Sometimes of course you don’t want to have the purchase price in there. You don’t want to maybe guide people to what you think the value is, but if you are doing a specific report, you need to input it there.

Another area is actually square footage. If I go to my property tab here, I have a building area function called square footage, I’ve seen that sometimes people have gone through the entire rent roll, they’ve gone through everything and then you don’t see any of the rent calculated correctly or the different expense reimbursements calculated correctly because they’re based off of the square footage or share, you really need a building square footage area in there for that. If you see errors like that, the one area I do look at is just the building area and make sure that’s input correctly.

Another feature that you may see too is kind of if you’re inputting it correctly or not or if you see a different number than what you were inputting necessarily, this is a template, not real tenants in my rent roll. You’ll see on the bottom of the screen here, this area, area entered as well as area we’re needing. If my area entered, which is the building square footage, I can see that matches my building area. Sometimes it may, sometimes it may not depending on what you’re entering or what your goals are. But that’s a good kind of quick little check to see that your square footages are matching and entered in correctly.

The last one I know a lot of folks use is the expense root or how to restructure recoveries. When I go to my tenant tab and I go to my recoveries structures there’s a list of these I can pull up and see a little bit more. I created here my own recovery structures. Like in deep deck you can do that, but let’s say I wanted to show what exactly is included in the recovery structure, I can see it live right  here. I can see what methods or group of expenses or things that if I didn’t see that for part of the recovery structure. That’s kind of fun and I do like that.

I like that feature when we are using especially advanced recovery structures, which is pretty common in retail properties. Maybe less common in some industrial and office depending upon what the leases are, but it’s a good way to kind of be able to create more advanced recovery structures and even inside of those recovery structures, actually being included. If there’s questions, or you’re not really sure, that’s a way you can double check.

Again, you would go to your tenant tab, recovery structures or recovery, and it’s what you want created and just as a reminder, anything that you see shaded here, these are all the hard coated templates from ARGUS, you cannot modify them, you cannot delete them, you should not use them if they don’t apply. But like DCF, you can create your own recovery structures based on what the lease is and what the tenants show.

Transitioning from DCF To Enterprise

Next, I want to go into transitioning from DCF into Enterprise and some conversion issues that we’ve seen and committed over the last couple years. First, remember it is a different system. It gives you different background information. Like any program, if you go from an old to a new program there might be some conversion issues.

There are some conversion issues in terms of calculation. Especially like cash flow. If I want it to convert an Enterprise file or a DCF file, it will create a warning window letting you know there may be some numbers that are off. That is pretty common. ARGUS is obviously aware of it. Their stance is, it’s a newer program, and it’s messy of course, not necessarily bad though. If you do need to convert a file, you can do that. You can still convert an Enterprise file into a DCF file.

The way you go about, is you go back to my portfolio with my property. I go to my portfolio here. I would go to this button, export property. I have this option, export ARGUS as a DCF file. If I want to export that as a DCF file, you can see that this window pops up obviously letting me know that it will have some functionality and modeling differences. You can also export to Enterprise. I want to send my file out to client or anybody, I want to export my files. I want to send it as Enterprise. You just select Enterprise property after file. I just save it to my desktop here. One thing that we will note, even if I save it, we have a different version of Enterprise as well. Right now we’re on 11.6. As I’ve said in the beginning, we’ve had all the way back to 10.1. We want to export as either existing version or let’s say somebody doesn’t have eleven point six right now, let’s say they have an older version. 11.5, or 11.0, I can export as an older version.

We still may see some errors, because again, we’re going to be going to an older version. My recommendation is to always get the most updated Enterprise file format. Enterprise should get that to you as part of your subscription. It really isn’t an issue trying to get it, you coordinate with them or coordinate if you have an internal IT department to do that. So I have a choice to export as different Enterprise versions.

I also have the option of importing files as well. I can import an Enterprise file. I also can import a DCF file. If somebody sends you a DCF file, I can input a property, .avux is the extension for Enterprise and .sf is the extension for DCF. So I can do that. You’ll see some of those common abilities to import and export.

Some other quick little things that I’ve noticed with the different export function, a lot of you that have worked on DCF or Enterprise, like sublines, I understand there’s sublines too. That’s kind of a nice way if I want to group some extensions or different things together. Sometimes that function doesn’t work as well as it should if you’re transitioning a file from Enterprise to DCF or you’re crossing over different versions of Enterprise. In that case, usually what I recommend or what you probably have to do is not use the subline feature. You’ll have to go in and actually just hit enter.

Now, I’m going to touch upon cash flow here in a little bit so if you do see a cash flow that’s a little bit off because of the import or export that does happen. There’s usually reasons with data entry or when your report starts or ends. That’s just kind of part of the nature of the beast, if you will.

Where is ARGUS Going?           

Then, finally, I wanted to kind of talk about a little bit of where the program is going as well as next steps if you are interested in Enterprise further. One thing that Enterprise has done in the newest version is they added this new report feature that I kind of like that I want to show you guys. Here. This feature here that you’ll see twelve, four, two, one. They didn’t have it in 11.5, this is 11.6. I can change the view of my report in monthly, annually, or quarterly views. That’s a new feature that Enterprise added in little updates like with 11.6 versus 11.5. If I want to change my view I can do that. If I wanted to see it in quarterly I just click on the number four. I can see my reports in a quarterly format rather than an annual or monthly format.

Another feature that they did change, again, that’s why I say it’s important to be up to date with the newest version they put out. Usually the updates are done because of feedback from our clients, and feedback from instructors.  Let’s say I’m going to my tenant rent roll, I can, before I had to scroll. As you can see I have so many different things. You won’t learn too much about what this all means right now, but I think it can get a little bit tedious.

Now, I can actually tab up here, the extra sub-tab there allows me to go to the section within, not the subsection I’m looking at. Which is great, it saves a lot of time you might have with scrolling. This came across because of feedback from instructors and clients that we had an amazing new feature actually from 11.5 that does not exist in the current version.

So, ARGUS is listening to your feedback and taking that feedback and seeing what we can do to the platforms as well as new features that benefit everyone. I actually had the pleasure of going to their headquarters back in June for an instructor training and seminar. They have a new headquarters and new office so they’re definitely amped up and have a technical support staff to help you guys with questions and technical questions. If you need help with just getting the program or you’re having trouble setting it up on your computer, they are making lessons available. I know everybody kind of got some feedback with the hard date with the end of June. They were pretty pressed on that, switching from DCF Enterprise, I have known so I keep certain licenses that expire, extended to take under the circumstances, but they really are, at least from my observations, pushing for Enterprise.

These are some things that they’ve kind of looked at and are updating and getting you guys ready, taking on Enterprise. There are some features that they are exploring on adding back in Enterprise as well that we may see. One feature that some DCF users may like is you can look at, let’s say you have a portfolio of properties and you want to put out reports based on common tenants within your portfolio, let’s say you have a specific restaurant or a tenant and you have a lot of them, they are working on making an feature with Enterprise that you can do that and pull a report off of specific tenants across the portfolio. I do get a sense that we’ll see some updates and changes throughout the next couple of months and years, but again they’re doing that to hopefully improve the system and it is also based on feedback that they get.

Obviously we’ve gone through a lot of high level transitions and changes and updates for those that are newer to Enterprise, or new to ARGUS entirely, may be wondering where can I go, where can get more information can I get the facts, what’s available to me? You do have several options, if you guys of course are in the Los Angeles area, you have UCLA Extension where I teach. There’s a couple other instructors as well and they have a location spot on the West of campus as well as downtown Los Angeles. Pepperdine just added they’re new master’s development program, and ARGUS is offered as part of the program. There’s also plenty of universities across the country that do offer ARGUS as a class. Usually these are classes that are in conjunction with the university timeline. They typically will last anywhere from seven to twelve weeks. My classes on average, at UCLA are about eleven to twelve weeks and Pepperdine’s are about seven weeks.

ARGUS also offers their own training. They do have seminars throughout the country. You can go to that, check it out. Usually they’re one to two day seminars. They’re like crash course courses. If you’re in one of the areas they’re having a seminar or you’re going to travel that can give you some insider additional knowledge.

Another item I actually just noticed that Enterprise and ARGUS is offering is they do have a module available online that you can purchase through ARGUS directly. It’s a package that includes a DCF to Enterprise transition and I believe includes a manual, E-learning courses as well as a thirty month academic license. They are offering that for those that don’t have the time or ability to go in person and you need kind of a refresher course you can do that and purchase that.

For those that are looking at the export and import functionality, we are offering to each participant 10 conversions. They would just be converting your DCF files to Enterprise. What that would mean is setting up your DCF files and exporting out to the latest 11.6 Enterprise file so you’re able to do that for your clients. We’re going to do about ten conversions per participant. If you do want to partake in that, we’ll be asking you that. Just let us know and we’ll be able to do that. It will be offered as soon in the next 30 days for you guys.

Q&A

Really, right now I just wanted to transition and open it to questions, a Q & A format. If you guys have the time there should be a chat box under your right side of the screen. Feel free to add your questions there as we go along. We do have some folks live as well so we’re also taking questions from them as well, that we have.

Speaker 3:

I have a question.

Heather:

We have a question from a live attendee?

Speaker 3:

So did the subline thing just get wiped out in the transition, the expense sublines. We’ll do real estate taxes and correct assessments for that point so does direct assessments, we’ll do bullet subline, if you’re doing … does it have a prop searching feature?

Heather:

Yes.

Speaker 3:

Okay.

Heather:

Yes, so in case here’s a question regarding sublines and what happens. Enterprise first does have your prop searching and subline feature. For those that are thinking more of a tax assessment basis or just want to calculate the property based on your value, you do have those options. What will happen with the conversions is you’re going backwards from what they converted Enterprise to DCF, you will lose those sublines. It will show your input, or it just won’t show up that’s what we’ve been seeing as an issue.

Speaker 3:

I mean, most of our stuff is already in DCF so as we transition to Enterprise will it pick it up or does it wipe them out?

Heather:

It should pick it up. It should pick it up. I haven’t seen too many forward conversion issues. Usually it’s the backwards that causes the most issues.

We do have a question here, Can Enterprise show in place and align in-place valuation? The best way to do that would actually to show, if you want to go to your month viewing. If you wanted to look at one of your reports, like a cash flow report, instead of looking at the whole year, you can look at the current month and analyze that, that’s the best way to view it that I have found. Look at that by month and analyze that. That would be the, and the in-place valuation, it will, but it uses the net present value. If you’re using net present value usually that function will show you what the in place value is, based off the input that you have put into your ARGUS Enterprise property. Hopefully that helps answer the question.

Can we talk about all the new input that does not exist in DCF and now exists in AE? AE seems to have more input that affects the rent role and timing. Hopefully, I think this might have timestamps a little bit earlier. Hopefully it’s an input that I presented are a little bit newer, really some of the input that I usually kind of look and suggest are on D1 the report. Those are a huge features. You can do, there’s a lot of similar inputs that kind of go off both properties platforms, but some of the expense and recovery advance groupings are kind of newer features, they use the same concept, but your methodology and abilities are a little bit newer. A lot of your inflation, your market tabs and market inflation have some more variances so deep down used to have all these different soft and hard, Enterprise doesn’t have that, but you can create your new inflation if you would like to yourself.

Another questions came in about can you asses timing issues. Yes, one of the key features with Enterprise is your amounts of timing. I’ll kind of quickly show you guys that. I went to my properties here and I have my analysis begin date. If my analysis begin date is different than my reporting export then that will affect timing as well. If you want your report to be different than your analysis, that’s kind of what I have in the background. You’ll see a lot of my reports here for September, which is different from my analysis. You’ll see some of those timing issues. My usual recommendation would be to either have the report export the timing you want to see or have your analysis start the date you want to see reports to automatically go. Reports will default to the analysis start date, you would have to go in and actually change the reporting date or date set you want.

Other timing issues could be with regards to inflation. Sometimes I see that kick in, but probably some more issue from DCF so I’m not sure if there’s any real timing issues between the two different versions, but I would just say as a general rule of thumb, just look at your start date, end date look at when inflations kick in. If you have inflations starting off a calendar or versus off of the actual where you’re starting January or you’re doing a fiscal year. I would see some things change your inflation and timing as well. Also, timing issues and changes may be start date or vacancies or your market moving. Just to kind of key in on those and onto your analysis from there. I hope that helps answer that question. We do have time for maybe a couple more questions if you have them.

Speaker 4:

When you compare, let’s say I have a DCF already that you convert from DCF to Enterprise, how do you do that? Is it like a one button click or you actually have to enter them into those deals from DCF to Enterprise?

Heather:

The question was changing DCF to Enterprise?

Speaker 5:

Correct, I have a DCF and now I want, I need the Enterprise version, how do I do that?

Heather:

It would just be a simple import your DCF property into Enterprise. You don’t have to redo the properties. If you have a DCF file and you want to input it into Enterprise and you want to open it in Enterprise all you need to do is open up your Enterprise module here and then you can create a new portfolio. Then you would input that or I would say really insert that property into that portfolio.

Speaker 5:

Where do I go, do I just go to file and import?

Heather:

Yeah. You would basically just go back to the property and portfolio here and just go to the import function here and then import a .sf file. A .sf is your DCF file.

Speaker 6:

Perfect. Thank you.

Heather:

No problem. We have time for another question, anybody have questions?

Speaker 6:

Where does ARGUS it’s saving your portfolios? It’s cloud based it doesn’t go, but I’m assuming you can designate it’s saved to a hard drive?

Heather:

Yeah. The question is what I am doing when I save the property. When I first add my property or I’m saving my property, it’s always in the Enterprise. It’s always in my program here. It’s saved there, but if you wanted to save let’s say the file itself, you’re worried about what happens if I don’t have access to my Enterprise or I’m going to different computer and working off my computer today, but I’m working off a different computer. I’ll have Enterprise tomorrow. I can just export the property, on Enterprise and I can save it anywhere on my computer or hard drive that I want to. In export, let’s say I would export this property from Enterprise. Here I can have it, this is just my laptop, a personal laptop I would just save to wherever I need to save it on my laptop.

Speaker 6:

That will save your file and then do you have to create a new portfolio if you’re on a different computer? Do you have to create a new portfolio and bring the property into it?

Heather:

Yeah.

Speaker 6:

Same thing, so you’d export the file if you want to send the file to a client and they would have to create a portfolio on their end and bring it to

Heather:

Correct.

Speaker 6:

Okay.

Speaker 3:

Do I have to be online to be able to use the ARGUS Enterprise?

Heather:

Usually you do have to be online or connected to the service. That’s more of a technical thing when you first set up Enterprise onto either your computer or desktop, where it’s being located and saved. For instance, I have mine on my desktop so it’s completely controlled by me, but let’s say you’re working in a company and they have Enterprise and they have multiple licenses, usually they will have, the IT department usually will have a program for somewhere on the server, extend to all the IP fantasy set up and then each license can connect to it remotely, but yes, usually you have to be connected to the server if you will wherever it is.

We have two more questions, one was recommendation on version control issues for running various scenarios. Not quite sure on what that means, but I’ll do my best and try it. I mean, if you’re writing different scenarios, I haven’t really seen issues with Enterprise or different kind of issues controlling the scenario itself or the run that you’re doing. You can, if that doesn’t answer the question maybe if you don’t mind typing it out a little bit and I’ll do my best to answer.

The other question is: is there a way to compare original underwriting with updated assumptions without comparing manually? You can through sensitivity analysis. You have that capability in ARGUS. ARGUS comes with bells and whistles if you’re an academic licenses versus if you’re a fully purchased license, it’ll be different, but there is an option in Enterprise that allows you to do sensitivity intervals. If I go to my files here I can go to sensitivity assumptions and that will be if I don’t want to mess with their par code and they change it to my property, I can go in here and play with it. Then I can see what that does and changes to my properties without having to really go back and re-save or redo things. You can do that. You can kind of track that a little bit and you can chose it there. Again, that feature will be available depending upon, it’s usually mostly available on most licenses that I’ve seen. Usually they’re a little bit more based on how your IT set up your system as well.

Speaker 4:

Will that feature let you try and say change insurance from 20 cents to 40 cents?

Heather:

Yes.

Speaker 4:

Really?

Heather:

You should be able to change a lot of different assumptions.

Speaker 4:

It’s not just rates. Interesting.

Heather:

Yeah. Exactly.

Speaker 4:

Market rents then as well?

Heather:

Yeah, you should be able to change market rents, market leasing assumptions, change that out as well. There is also let’s say you kind of don’t like that and you want to actually just create another property. You can duplicate a property in your portfolio. I’ve done that before and then save, basically just duplicate it and then make the changes. That way you have the original file, you still want your original file, but you want a new property with different assumptions for whatever reason. Maybe you want to see how things are going in the future and you want to make some future modeling assumptions in the future and you want to have that as a completely different property scenario. If you want to see, you can do that too. I can send that as an option as well.

Speaker 4:

[inaudible 00:47:25] related to that end zone property can be interchanged, insurance from 20 to 40 cents a foot and I like that answer, then can you save it after you’ve done that or if it was a sensitivity strictly and not saving zone?

Heather:

Usually it’s not intended for you to save like the report features, it’s not really intended to save as a complete property. Probably, recommend if you like the changes you made, I would just take that to your model. Can I show you? Sure, I can certainly show how to do that. I would go do here is I can, I’ll click on the property. I will right click, I like right clicking a lot. It’s like a little shortcut and I can duplicate a property here. I’ll click that. Wait for it to pop up in a little bit. I can copy this to a new scenario or  I can copy to the same scenario. I’m going to copy it the same scenario, I’ll copy it to the same portfolio. I’ll do that. It’s a little bit shaded on my screen, I’m going to move this around. I would just hit next, I can include different options here. Probably just change the basics, I’ll just go to next. It should copy my property output.

I can create a new property name. Right now it’s just going to say the same name number two, just by default, but I can change the name if I wanted to. I can hit finish. It should hopefully pop up, it comes up with these little windows that tell you what you’re doing in the process of going. It does take usually a couple seconds or so. This is pretty typical. Then once it does that and finishes that, the property will show up as well here as a secondary property. That would be your basics do it again. If it takes a while, usually the reasons are the server is getting feedback server thing issues. It’s connecting to the system, but it should be done in time. I’ll close it out for now, but it would show up under here. It would show up as your secondary property. There it goes. It’s now my secondary property too. I’ll close that and I’ll have access to the secondary property.

From here I can rename it, I can make any changes I want. I can rename my property here, to a different property. Maybe I want to change the property type. I can do that. Let’s say I want to make this scenario more of mixed use property. Again, doing some fun updates and changes, I can do that. I can get a mixed used option property type here. You can make that change and it will update it just fine.

We have time for one more question if we have more questions from our attendees. Don’t forget, if any of you guys have a question or interest let me know where to go from here and get some more ARGUS training and support, even you want to decide you want to enter data or information, please feel free to reach out. I can give you guys some more links and feedback to where maybe a good source would be for that. Really, your classes are really set up to go through and help you guys go into and do a lot of this data entry stuff that’s available for particular stuff that requires time and practice. For instance, when I do my seminars and my classes at the different universities, we go through all different scenarios and different property types to really get a sense of how to do the data entry.

For those that are DCF users already, you probably have some of those skills of how to do the data entry. Those that are newer to ARGUS at all and think the benefit of DCF before Enterprise, very honestly, not necessarily, I think if you have a background, maybe you already do in commercial real estate, that makes it a lot easier. I’ve had students in my classes that were both DCF to Enterprise users and people that never used ARGUS at all and those were successful. One or the other, doesn’t necessarily mean that it will help or hurt you necessarily so for those that are looking at this for the first time, don’t worry. Don’t be scared, you’ll be okay. It’ll be fine. The transition will be fine. It should be pretty good.

Again, I know there’s loyal DCF users who are still kind of looking at this and hating it and wanting to go back, but like with anything, any new program I know with time, I sound like a commercial for ARGUS Enterprise, but this is just because I had a couple years of working in it and working with these issues. I think with time, just like with anything, it will become second nature and better and helpful for you so that hopefully this was kind of insider knowledge and tips and tricks that you guys are seeing from across as you’re looking at the platform and you’re able to take a look at Enterprise as well.

Tom Lagos:

Great, with that, thank you very much, Heather. I’d like to invite everybody to follow up with that and submit additional questions if you have anything that’s still unresolved, but thank you everybody for joining us. We’d love to get some feedback on how our very first webinar relayed through to you. Thank you everybody for joining us and participating in that. Once again, thank you, Heather. We’ll see you guys for our next webinar so keep on the lookout.