What does "Sensitivity Analysis" in Argus Enterprise evaluate?

Sensitivity Analysis in Argus Enterprise evaluates how changes in input variables affect outcomes. This process involves adjusting various assumptions or inputs—such as rental rates, vacancy rates, operating expenses, or capital expenditures—and then analyzing how these adjustments impact the financial results of a real estate investment, such as net operating income (NOI) or overall property value.

By systematically varying these inputs, users can understand which variables have the most significant impact on the financial performance of a property. This is crucial for decision-making, as it highlights the risks associated with certain assumptions and allows investors and analysts to identify key drivers of value or potential weaknesses in their projections.

The other options, while related to property valuation and management, do not correctly define the essence of Sensitivity Analysis. The analysis does not focus on market conditions broadly, the aesthetics of property designs, or specific cost-reduction strategies, but rather on the direct relationship between input changes and financial outcomes.