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Volume 4, Issue 1 . February 2002

Online Resources
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blue_button.jpg (804 bytes) Free Market Data
Current Market Data for top 50 US Cities updated quarterly. Reports include complete market statistics for office, retail, industrial and apartments. This one source may be all you need ... and its 100% free. Click Here


blue_button.jpg (804 bytes)  Ellipsis®  Free Trial
Ellipsis is a new lease abstracting application that standardizes & automates the administration and mgmt of lease data. It helps lease data flow through a company without barriers.  Anyone who needs accurate lease data quickly will benefit from it. Click Here


blue_button.jpg (804 bytes)   Insiders Guide to REITs
The Language and Culture of Real Estate Investment Trusts (REITS) - This FREE 56-page ebook by IREI explains everything about the REIT industry -  from the basics to the advanced. It is a well written insiders view to the reit industry. Click here


blue_button.jpg (804 bytes)  DCF Calculator (online)
Check out the Realogic 10-Year DCF calculator. On-line with no downloads. See what the latest web technology can offer. This just might be a peek at the future of real estate financial software.
(Requires MS Explorer 4.0 or above)Click Here.   

blue_button.jpg (804 bytes)  More Resources (Click Here)

News & Features

Steve Waryas speaks at Appraisal Institute Seminar

Chicago, IL - Steve Waryas, Vice President, Realogic Analytics, Inc., was a featured presenter at a Discounted Cash Flow (DCF) Seminar, hosted by the Sacramento Sierra Chapter of the Appraisal Institute. This day long event was attended by approximately 70 real estate professionals in the appraisal, banking and investment communities.

The seminar included the following topics: basic DCF theory, components of DCF analysis, building custom DCF spreadsheets, practical applications for all asset types and case studies. In addition, the seminar included an extensive review of the functionality and benefits of Argus® and Dyna®, the most popular lease-by-lease analysis applications.

"I really enjoy presenting at this type of seminar because most users have difficulty with the same general concepts and there are a few simple work a rounds that really clarify and resolve the questions. I think the attendees left the seminar with a lot of questions answered and feeling a great deal more comfortable with DCF preparation and analysis, along with using Argus and Dyna more confidently and efficiently," said Steve Waryas.

Rentable… Useable…
What's the Difference?

By: Fraser Rowe and John Keeler

Most owners and managers of commercial properties think they know the size of the building assets under their control. But, how many are actually aware of the important changes in the determination of what is "rentable?"

BOMA International has published the "Standard Method of Measuring Floor Area in Office Buildings" since 1915, and in 1955 the document was named an American National Standard by the American National Standard Institute (ANSI). As the commercial real estate industry has evolved over the years, so too has the methodology of measuring office buildings. The latest edition of this popular measurement guideline was produced in 1996 and is commonly referred to today as ANSI/BOMA Z65.1 (1996) in many lease documents.

Why should owners and managers of office buildings have more that a passing knowledge of ANSI/BOMA Z65.1 (1996)? Because office buildings must be measured in a way that is fair and equitable to both the owner and the tenant. In recent years, modifications to the "Standard" have been developed in order to allocate "common areas" within a building. More importantly, since 1996, more space within an office building has been clearly defined as "rentable", thereby potentially increasing a property's income potential.    

- continued on page 2

Realogic Analytics, Inc. is a full service real estate consulting firm specializing in Financial Analysis, Lease Abstracting and Administration, Software & Systems Consulting, Property Management Consulting, and DCF Software Training . In addition, Realogic is the developer of Ellipsis, The Architecture Behind Lease Management.

Realogic Analytics, Inc.   1

 

 

continued from page 1

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   Realogic provides these products
   & services to clients worldwide:

q   Financial Analysis
¨Argus®, Dyna® & Pro-Ject®
   Cash Flow Modeling
¨Dyna® & Argus® Implementations
¨Custom Models & Spreadsheets
¨Cash Flow Model Audits
¨Software Conversions
   (e.g., Pro-Ject® to Argus®)
¨Sensitivity Analysis
¨Advanced Applications

q   Ellipsis® Software
¨ Complete Lease Administration
¨ Extensive Reporting Capabilities
¨ Proven technology
¨ Visit www.ellipsissoftware.com

q   Lease Abstracting
¨ Lease Abstracting & Administration
¨ Property Purchase & Sale
¨ Property Management Transitions

q  Systems Consulting
¨ Cash Flow Model Population
¨ Database Programming
¨ Importing/Exporting Links
¨ Accounting Systems Population
¨ Systems Development & Integration
¨ Custom Report Development
    from Existing Systems

q   Property Mgmt Consulting
¨  Assist during property
    acquisition and due diligence.
¨ Ownership change and/or new
    management contracts.
¨ Preparation of property for sale
    and closing.
¨ Management office operational
    audits and reviews.
¨ Short-term replacement of
    management personnel.
¨ Budget preparation & maintenance.
¨ Special projects (bid/negotiate
    service contracts).
¨ Supply "SWAT" team support.

q   Training & Seminars
¨ Dyna® software training
¨ Argus® software training
¨ Ellipsis® software training

Contact:
Realogic Analytics, Inc
300 West Washington St, Suite 1414
Chicago, IL 60606

www.realogicInc.com

Phone:   312.782.REAL (7325)
Fax:       312.782.5194

Editor: John Johanson
jjohanson@realogicinc.com

Rentable… Useable… What's the Difference?
continued from page 1

Forthright office building owners have realized the advantages of an accurate re-measurement and space calculations to ANSI/BOMA Z65.1 (1996). The benefits include:

  • Increasing net operating income (NOI) by ensuring that tenants are paying their pro-rata share of all clearly defined common areas;
  • Improving property, portfolio and shareholder value through an accurate measurement of rentable areas;
  • Increased revenue forecasting, especially important during due diligence;
  • Better marketing of buildings as tenants will be aware of their "up-front" operating cost charges.

From a manager's point of view, the benefits of having an accurate building measurement are also notable. For example, accurate measurement information is vital when negotiating building contracts for maintenance, cleaning, HVAC and capital expenditures.

The ANSI/BOMA Z65.1 (1996) Standard is a guideline that has rapidly become an "industry standard". But the document is just that- a guideline. Landlords would be wise to consult their tenants before re-measuring their space to avoid any anticipated shocks when it comes around to lease renewal time.

A thorough knowledge of ANSI/BOMA Z65.1 is of paramount importance when measuring an office building for rental purposes. With millions of dollars riding on the outcome, one must be certain that the measurements are done correctly.

Reprinted with permission by BOMA.org, the official newsmagazine of the Building Owners and Managers Association International. (www.boma.org)

People and Promotions at Realogic
The key factor to our success and growth is the experience and dedication of our team members.

Promotions

Please offer your congratulations to Mike Phelps and Shawn Carstens. Mike and Shawn have been promoted to the position of Senior Analyst. They have both excelled in their abilities to grow into new responsibilities including running on-site assignments. Realogic appreciates their hard work and dedication to client service!

New Personnel
Courtney Morgan and Carrie MacArthur have joined REALOGIC Analytics, Inc. as Staff Consultants. Their responsibilities include the continued development and maintenance of our lease administration projects and due diligence assignments.

Just prior to joining REALOGIC, Courtney held a position as researcher at Julien J. Studley, Inc. for 2 years. Courtney's other previous work experience includes an internship for Cambridge Realty Capital as a loan originator, and an internship with Mesirow Stein. Courtney graduated from UIC in May '99 with a double major in Finance and Management

Before joining Realogic, Carrie was a broker at TD Waterhouse, a discount online brokerage firm, for one year. Carrie is originally from Wisconsin and graduated from the University of Wisconsin- LaCrosse in May 2000 with a major in finance. In addition, she is currently enrolled in the part-time MBA program at DePaul.

Please join us in welcoming Courtney and Carrie to the Realogic team.
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This newsletter is prepared and distributed courtesy of Realogic Analytics, Inc.. For additional information on any topic covered or to learn more about Realogic, contact Realogic at 312.782.7325 or via email at jjohanson@realogicinc.com If you would like to be on our mailing list for this newsletter, please visit http://www.realogicinc.com/News/archive.asp .

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