Grossing Up Reimbursable Expenses in ARGUS
This post and video are a follow up to a post written back in late October discussing grossing up reimbursable expenses. If you haven’t gotten to read that yet, you can do so by clicking here: https://www.adventuresincre.com/understanding-leases-office-buildings-part-2/
The purpose of this video is to help clearly explain how to do this in ARGUS and also to show how ARGUS goes about calculating the numbers that appear in the pro forma it produces. To many users, ARGUS can appear to be a bit of a black box and it is beneficial for those using the program to understand how it does its calculations.
The one major difference from ARGUS and my example in the previous blog post is that my blog post example is emulating grossing up from the end of a billing period that already took place and therefore, has actual expense numbers to use. In ARGUS, you are at the beginning of a billing cycle and projecting future expenses and returns. So, to do this in ARGUS, it requires you to project an expense cost at full occupancy and then let ARGUS know how much of that cost is fixed and variable, thus ARGUS will calculate the expense based on this information and your projected occupancy for each year. If that confuses you at all, it will hopefully all be cleared up for you in the video below.
As always, if you have any questions or comments or would like to get in touch, please feel free to contact me HERE.