Any alternatives to Argus software?

[shaxton24]

mirroring cap rates

All good points above and all interesting, especially Terrel's discussion about how oil companies behave! Thanks!

 

[shaxton24]

cap rate and yield rate

I agree to mirror the market is the appraiser's job. But its often not so simple to do.

Sometimes I have to conclude to a cap rate by backing into it via yield analysis - by first determining an acceptable irr yield rate over a 10 year cash flow.

This yield rate, and subsequently derived cap rate, is then the mirror of the market.

All good points above and all interesting, especially Terrel's discussion about how oil companies behave! Thanks!

 

[shaxton24]

Personally I think we're supposed to reflect how market participants view properties. If they use Argus as their standard lease analysis program, then it should be what we're using. If they were using Excel, then we should use Excel. If you've got a client who expects Modernvalue software, then you should use Modernvalue. It's not our place to dictate what software is used, we're just mirroring the market.

It doesn't make sense to need to mirror the exact same software the market uses - so long as the calculations work the same. Besides, nearly all who use Argus, export the cash flow into Excel and then work with it within their own in-house model. So we can't duplicate how they analyze even if we wanted to.

 

[rnschmidt]

A new web-based alternative to Argus is TurboMetrics.com.

 

[Michael S]

I see a fair number of clients requiring that the DCF be performed with Argus software and requiring a copy of the DCF model. Typically any large multi-tenant property, especially one with significant near term rollover will require DCF. Investors definitely look a DCF, at least large institutional investors. Your average person, probably not. But your average person isn't in the market for a $10 million office building.