Argus Forecasts, Manages and Analyzes CRE Assets
Argus’ cloud technology will have an impact on commercial real estate in Houston because all CRE appraisers and brokerages work with it in the local ecosystem to understand value through cash flow.
HOUSTON—Earlier this summer, Altus Group Limited launched the cloud-enabled version 12 of Argus Enterprise, the latest version of the global asset and portfolio management platform. AE 12 enables clients to model, forecast, manage, analyze and report on CRE assets, and cash flows from acquisition to disposition, while now delivering greater value through the ability to store, backup and access Argus files in one centralized cloud-based platform.
AE 12 also opens new doors to greater collaboration, streamlines workflows across teams and business functions, and unlocks existing client data to deliver a heightened level of decision making and portfolio transparency. AE 12 is a more accessible and powerful version of Argus Enterprise, with more ways for users to set up and work with teams, use existing data, and leverage new functionality and applications.
Cloud-Only Deployment and Multi-Instance Support of AE–Cloud-only deployment enables users to quickly and easily update to the latest version while delivering the benefits and flexibility of a cloud-based environment and reducing related IT infrastructure costs. Multi-instance support of AE allows customers to maintain multiple server and database instances of AE within a dedicated cloud environment providing enhanced access and visibility of AE files across entire organizations.
Benchmarking and Dashboards–Enables users to get more value out of AE data through the ability to benchmark assumptions, quickly compare multiple scenarios, view KPIs, and slice and dice portfolios to find instant insights with portfolio-level dashboards. Future functionality will enable benchmarking with third-party data and select aggregated AE peer data.
Streamlined and Simplified Workflows–AE 12 integrates with Argus Taliance and Argus Voyanta allowing the ability to aggregate all investments, structures, assets and data into a single solution reducing complexity and resulting in unified end-to-end asset and investment management. In addition, AE 12 streamlines the acquisitions process by connecting to Argus Acquire with a seamless link to AE models and enhanced role-based access.
“Argus’ cloud technology will have an impact on commercial real estate in Houston because all CRE appraisers and brokerages work with it in the local ecosystem to understand value through cash flow,” Dhinaker Dhandi, Altus’ vice president of product management tells GlobeSt.com. “There are three workflows where it is particularly useful: acquisition/disposition workflow, valuation of assets workflow, and in planning and budgeting.”
Dhandi says the CRE broker typically builds the cash flow model for the asset using Argus software and uses this information to determine purchase price and provide cash flow evaluations as part of the offering memo. It is also leveraged in the due diligence phase where third party appraisers use the software and information provided by the broker to independently verify the value of the asset.
He goes on to explain that in the asset valuation workflow, it is standard practice to do periodic checks on assets annually/quarterly via third-party engagement. Altus Group (owner of Argus Software) offers this service, acting as a “middle man” between owner and appraiser to verify the value of the asset, expenses and returns via quarterly reports with data generated by Argus.
Finally, in the planning and budgeting phase when CRE assets have to be analyzed by property managers as to how expenses and cash flow/how many tenants are anticipated, the correct business plan must be created for the asset. Argus is also used in that phase, Dhandi says.
“Class-A office, retail, multifamily and industrial, those with multiple leases, are the strongest assets for Argus,” Dhandi tells GlobeSt.com.
Investment strategies will be different for each property. When comparing assets, identify expectations, manage those expectations and then with an unbiased view, determine if the property will meet these expectations and financial goals, according to Real Wealth Network.