Argus Tips: Best Modeling Practices

ByTodd Zeldin

Naming Conventions

User should create habits of utilizing naming conventions that sorting/filtering functionality as well as communicating contents of the applicable variable. Such conventions increasing transparency of the model and ease of use for analysis/future updates.

Examples:

  • MLA Rent Variable: $25/SF Office Rent
  • CAM Expense Group: CAM- All ex Lands/Snow
  • Tax Expense Group: RET- Parcel I Only
  • Suite Numbers: 0300 (in lieu of 300)
    • Will sort by number appropriately in the event there are 4-digit suites. Otherwise, Suite 100 and 1000 will be next to each other.
  • Vacant Suite in Rent Roll: zz-Vacant
    • Will move all vacant suites to bottom if sorted by name.

Reference Accounts

While there are many uses for reference accounts, User has to be careful as to make sure to flag these appropriately (selecting “Reference Only”) as to ensure they are not hitting as cash items. ACG recommends naming all reference accounts with a leading “#REF”, so these items can be easily identified on the Cash Flow report and updated if shown.

Inflation Rates

By default, all inflation rates are modeled at 0%. Unlike Argus DCF, Argus Enterprise does not default to the General Inflation rate in the absence of category inflation. In order to minimize the likelihood of applying a 0% inflation rate, ACG recommends manually updating all inflation categories that do not have a separate assumption to match the General Inflation rate even if User does not believe all of the options will be in use.