It is quite evident that commercial real estate, the world’s largest asset industry, is experiencing significant changes. Commercial real estate adopted technology at the onset of the pandemic, when running a business online became imperative. Business-driven technological advancements and innovations have accelerated the millennium-old market’s progress, opening doors to new opportunities.
Nearly every industry had to switch to digital operations due to the pandemic. As a result, business deals were negotiated via telecommunications applications. Remote work, virtual property tours, customized solutions, and robust software have become more efficient assistance for streamlining operations.
Property investors, real estate consultants, and asset managers have realized the importance of PropTech in operating their businesses online. Robust applications and software have become necessary for critical operations like property valuation, financial cash flow projections, and forecasting market opportunities.
The primary cause is the vast amount of unstructured data generated each day. Moreover, asset performance monitoring is crucial for professionals and Excel-based models could be more practical due to the complexity involved. Therefore, a comprehensive solution like Argus Modeling became necessary for managing multi-tenant and commercial real estate portfolios.
In this blog, let us learn about Argus financial modeling and how it benefits commercial real estate businesses.
What is Argus Modeling?
Argus Modeling is a software application used by real estate professionals to gain complete insight and visibility into their asset performance. The software simplifies the complexity of lease management by providing a concise breakdown of commercial leases.
Argus Modeling allows one to efficiently structure commercial leases without maintaining an Excel financial model from scratch. A further benefit is that forecasting new opportunities in real estate has become more straightforward.
How does Argus Financial Modeling benefit you?
Argus financial modeling lets you automatically develop complete cash flow projection models for multiple commercial leases simultaneously. The software identifies complex variables influencing cash flow numbers and predictions, such as rent hikes, lease renewal dates, possible re-leasing scenarios, reimbursement procedures, etc.
What is Argus real estate modeling?
Argus real estate modeling provides detailed insights for industry players who buy or lease commercial or corporate properties. In addition to generating valuable data and actionable insights, the application facilitates project analysis. The Argus real estate modeling also helps realtors develop leasing strategies and predict their projects’ profitability.
Why do you need Argus Modeling services?
The benefits of having complete visibility over asset performance and access to real estate data in one dashboard are too valuable to ignore. All these features in one software require a solid framework for processing data, which Excel data entries cannot accomplish.
The conveyed advantage is why real estate investors and property managers increasingly seek Argus modeling services to access financial projections and understand their asset values and investor ROI.
Only some real estate firms still use excel-based financial models. However, many asset managers, lenders, and CRE investors find Argus modeling an efficient replacement to analyze their asset data and perform operating due diligence. By doing so, they can evaluate and underwrite commercial properties more accurately.
Benefits of Argus financial modeling
Predicting returns from leased properties becomes increasingly critical when assessing the potential of commercial real estate investment opportunities. Argus financial modeling lets you compare deals and make informed decisions quickly.
By adopting Argus modeling into your asset portfolio management, you will be able to:
- Get crucial property insights to avoid risky investments
- Be the first one to grab promising opportunities
- Obtain a financial breakdown and optimize expenditures.
- Keeping informed of property valuation techniques
- Set benchmarks for validating property assumptions
- Establish a standard real estate portfolio
Thus, Argus modeling simplifies commercial real estate players’ complexities and challenges. Now, let us examine how Argus helps overcome financial modeling difficulties.
How does Argus Modeling help overcome your financial hurdles?
Whether you are an investor, commercial real estate company, or property manager, keeping tabs on real estate transactions is imperative since it directly influences the cash flow and property investments.
Ensure highly accurate portfolios of data
To build a reliable financial model, you must pull a tremendous amount of data from multiple sources. Creating financial models requires detailed information such as rent escalations, lease renewals, asset investment plans, tenant lease agreements, and precise revenues and expenses. Including all these data in financial models increases the complexity and inevitably leads to more errors in the financial model.
Relying only on spreadsheets for modeling can result in inaccurate outputs and increase the probability of errors while building a financial model. Argus modeling can help you overcome these challenges by reducing complexities and data errors.
With higher data accuracy, it is easier to build robust and well-structured financial models and gain granular insight into cash flow and its impact on asset values.
Improve accessibility through simpler models
Creating a multidimensional financial model requires more effort and dedication. The process involves handling a tremendous amount of data, accounting details, and formulas to make it simple and easy to update. While maintaining the entire financial record in an excel sheet was feasible initially, the real challenge occurs when multiple formulas are involved.
Though Excel enables adding more tables to include more data, it doesn’t compromise the implementation of various formulas. Moreover, it is restrictive and error-prone, sometimes resulting in miscalculations or increased losses.
Argus financial modeling software simplifies, accelerates, and minimizes errors during modeling creation. In addition to providing accurate and detailed financial modeling, the software’s improved features make it easy for professionals to track and update information.
It is simple to use, and modifying models anytime is an added advantage. Additionally, multiple stakeholders can access the software anytime and explore various options to assess asset valuation quickly.
Get professional assistance with Argus Modeling
With commercial real estate lease market value increasing yearly, more real estate players are adopting to build accurate financial models to drive a successful business. Financial models need customization depending on market changes, portfolios, and commercial leases handled for meaningful insight.
Building customized financial models for large multi-tenant and commercial projects requires skill sets and professional assistance. Therefore, outsourcing to professional service providers can help you make an accurate and structured financial model with agility, speed, and accuracy.
Mobius has a trained and certified team of experts who can leverage their skill sets to unlock the true potential of maintaining structured financial and property data records using Argus modeling. Get in touch with us today, gain deeper insight into your investments, and make informed decisions without second thoughts.