Can Tenant Improvements/Leasing Commissions be subtracted out of the Resale calculation in ARGUS Enterprise?

In ARGUS Enterprise, tenant improvements and leasing commissions can indeed be subtracted from the resale calculation. This is because these expenses are considered a part of the costs incurred to prepare a property for leasing or to attract tenants. By deducting these costs from the resale value, users can arrive at a more accurate reflection of the net proceeds from the sale.

When calculating resale value, it is essential to capture all costs associated with maintaining and securing tenancy in the property. Tenant improvements may enhance the property's value in the eyes of potential buyers, but they also represent a financial outlay that impacts overall profitability. Similarly, leasing commissions are expenses that reduce the capital available from a sale.

The nature of tenant improvements and leasing commissions as necessary but deductive costs in the resale calculation is fundamental for investors and property managers seeking to analyze potential returns on investment accurately. This understanding aids in making informed financial decisions when assessing a property’s overall investment potential in ARGUS.