LEARN ARGUS^® ENTERPRISE / SAMPLE LESSON

Reconcile the breakpoint.

Trace the rent components behind a percentage-rent result.

Begin the lesson

What feeds the breakpoint?

Base rent only£100k

Base + steps + CPI£115k

£100k base£10k steps£5k CPI

BASE ONLY ÷ 5%£2.0m

ALL THREE ÷ 5%£2.3m

Same base rent. Different inputs to the breakpoint.

ARGUS Enterprise 10.1 / Valuation DCF comparison. Check the behaviour of your release.

THE IDEA TO UNDERSTAND

Same lease. Different breakpoint. Why?

You are reconciling a percentage-rent calculation between two models. Matching the headline rent has not reconciled the breakpoint.

HOW IT WORKS

Compare the rent components used in the breakpoint, not just the base rent. In the documented Enterprise 10.1 calculation, base rent, fixed steps and CPI contribute. Valuation DCF lets you select the components. The models can therefore use different rent totals even when the base rent matches.

The method you will practise

Identify the components feeding the natural breakpoint in each model.
Check whether fixed steps and CPI have been included on both sides. Align the assumptions only where the lease and your modelling approach support it.
Recalculate and reconcile the breakpoint again. This check does not establish that every other lease assumption matches.

ARGUS Enterprise 10.1 / Valuation DCF comparison. Check the behaviour of your release.

THINK IT THROUGH

Base rent is identical. Must the natural breakpoint be identical?

Choose what you expect. The feedback will help you test your starting idea.

YOUR TURN

Rent included in the comparison

Compare the cases below. Notice what changes, then read the explanation of why.

WHY THIS HAPPENS

Illustrative arithmetic: relevant rent ÷ 5%. These are invented figures, not a reproduced software report.

CHECK WHAT YOU UNDERSTAND

Your colleague wants to reduce the base rent until the two breakpoints match. What do you do first?

Change the rent until the report agrees.Compare component inclusion and the lease assumptions.Copy the whole valuation from the other model.

Give me a hint

Identify the components feeding the natural breakpoint in each model.

TAKE THE SKILL INTO YOUR WORK

Now try it in your software.

In a test model, record the rent components included in each calculation. Reconcile one lease before comparing a portfolio. Check your release: the documented Enterprise example is version 10.1.

WHAT YOU SHOULD BE ABLE TO EXPLAIN

You have a specific assumption to reconcile before changing the rent itself.

Need help with your own example?

The Companion is where you ask about the task on your screen. Include your software version, what you changed and the result you expected.

Read this module’s Companion example

This sample checks your reasoning here. It cannot inspect or certify your work in another application.