Property Valuation

Introduction. This is a sample HTML page for the input and display of valuation data. The immediate goal of this presentation is to allow you to easily see what "names" have been assigned by the Data Consortium to each individual item of information that comprises a commercial property's economic valuation, including each of the items comprising the assumptions made for that valuation. Mousing over the labels or values for the fields on this form, you can easily see what is assigned to the 'dc:names' attribute associated with the HTML element (e.g., an <input>, <select>, or <span> element). The 'dc:names' attribute contains one or more Data Consortium -defined names for the value of the input field, names which are recorded in the Data Consortium Dictionary (DCD). These names are the same names used in a scriptable object model hosted by the Data Consortium Toolkit.

Objectives. This form is intended to serve several other purposes beyond being just a handy reference for Data Consortium-defined names. First, Argus, a popular property valuation system, is the basis for many of the information items below, so this set of names must be validated as adequate for supporting interfaces to that system. Second, because For-Sale Property Listings are merely owner valuations (albeit decorated with brokerage contact and other information) this set of names sets the stage for automated property searches based on value (in addition to the usual parameters of price, location, and available facilities). Third, because For-Rent Property Listings can be viewed as just a proposed lease, a valuation datastream's rent roll, which details the characteristics of leases associated with a property, plays a central role in developing their information schema. Fourth, because Investment Performance data contains a chart of accounts similar to that forecast by a property valuation, the set of names below assigned to components of Net Operating Income need to be validated against the schema(s) developed by industry organizations such as NCREIF and MISMO, to whom (or to whose stakeholders) quarterly and annual operating figures for the property are submitted.

Data Model. A Property may have one or more Valuations associated with it. Valuations are a subtype of the DCD's Topic category, so its attributes are, by convention, interpretable to be attributes that apply to the Property itself. Valuations contain one or more forecasted values and indices, forecasted ChartOfAccounts, and forecasted RentRoll. Valuations also contain a set of assumptions used to drive its calculations, including certain estimated values (e.g., discount and growth values), an estimated Chart Of Account, and an estimated RentRoll. Valuations also include specification of Management Policies that relate to lease commissions, rent escalations and abatements, and others; these management policies are then associated with specific leases within the estimated rent roll. Both policies and policy exceptions can be specified; policy exceptions are policies that reference the policy to which it is an exception. A Policy identifies business rules that govern, for instance, how rent increases are to be caculated.

Identifiers. Identifiers can be assigned to and referenced between a real property, one or more valuations, a rent roll, and multiple types of management policies. Universal Resource Identifiers (URIs) are the mechanism used for all identifiers, as these are the base mechanism for representation of Universal Resource Names (URNs). It is recommended that the URL portion of a URI use the names of topics as a prefix, e.g., http://policies.dataconsortium.org. At this handle for instance, the Data Consortium provides entry points for services connected with management policies, including reference XML elements for default/common policies. Similarly, a particular lease identified as Lease12345 would have URI http://leases.yourSite.com#Lease12345. For Data Consortium members, address http://atlas.dataconsortium.org contains identifiers and information for major urban and political locations; http://markets.dataconsortium.org provides market leasing information useful as sets of assumptions during a valuation. Membership in the Data Consortium has its advantages.

Buttons. The buttons on this HTML page serve various functions. First, "Add/New" buttons are placed so as to identify when information can be entered multiple times for a category. For example, a Lease is allowed to specify one or more spaces in a facility that are the subject of the lease; this form can therefore be used to represent a lease that simultaneously covers multiple units and storage facilities within a building. Second, some buttons initiate calculation of a valuation; until that time, the "valuation" information would presumably not be shown, showing instead just the assumptions input fields.

Relationship to XML Tags. Each part of the "name" assigned to an information item represents an XML element. Example: the name assigned to the first "Property Address" field below is "Site.Address.AddressLine.1.text". In an XML-encoded file, either <Site.Address.AddressLine.1.text value="foo"/> OR <Site.Address.AddressLine.1.text>foo</Site.Address.AddressLine.1.text> would be used to tag the text. The nested-element equivalent for this is <Site><Address><AddressLine><text>foo</text></AddressLine></Address></Site> and its encoding in DCN elements would be an <Entry xsi:type='Memo' dc:names='AddressLine.1'><text>foo</text></Entry> element within a "memos" <list> element for the Site.

Copyrights. This information is protected by a modified General Public License. For details, please visit our web site, or contact John McClure .
12/18/01 Working Draft.


Property Name
Property Identifier (uri)
Current Facilities

Property Address
Line #1: City:
Line #2: State: Zip: Market:



Valuation - 1 of 1
Valuation Name
Valuation Identifier (uri)
Type:
Author
Date
Valuation Description
Discounted Values The discounted values below are based on an Overall Capitalization Rate of 99.99%. The discounted Net Operating Income below is based on an NOI value of $999999999.99. The discounted Reversion Value below is based on a gross resale value of $99999999.99 and $99999999.99 in sale expenses, yielding a net resale value of $99999999.99
Net Operating Income
99999999.99
Effective Cash Flow
999.99 %
Reversion Value
99999999.99
per sqft
999.99
Tenant Improvements
99999999.99
Lease Commissions
99999999.99
Multi-year Forecasts The first and subsequent time periods in the forecasts below are years following 99/99/9999. Each period ends on 99/99.
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
Cash Flow Ratio 999.9% 999.9% 999.9% 999.9% 999.9%
Vacancy Rate 99.99% 99.99% 99.99% 99.99% 99.99%
Occupancy Rate 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99%
First-year Cash Flow Forecast This forecast is based on (1) a building area of 999999 sqft. (2) Net Operating Income in the base year totalling 999999999.99 and (3) a Vacancy Rate in the base year of 99.99 %.

Forecast
Forecast
Per SqFt
Percent
of EGI
Percent
of PGI
Annual
Growth Rate
Rent 9999999.99 99.99 99.99 % 999.9 %
Other Income 9999999.99 99.99 99.99 %
Effective Gross Income 9999999.99 99.99 99.99 % 999.9 %

Vacancy Loss

9999999.99

99.99

99.99 %
Potential Gross Income 9999999.99 99.99 999.9 %

Administrative
Advertising
Ground Rent
Janitorial Services
Management Fees
Professional Fees
Property Insurance
PropertyTaxes
Payroll & Benefits
Repairs
Utilities
Reserves
Other Expenses

9999999.99
9999999.99
9999999.99
9999999.99
9999999.99
9999999.99
9999999.99
9999999.99
9999999.99
9999999.99
9999999.99
9999999.99
9999999.99

99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99

99.99 %
99.99 %
99.99 %
99.99 %
99.99 %
99.99 %
99.99 %
99.99 %
99.99 %
99.99 %
99.99 %
99.99 %
99.99 %
Total Expenses 99999999.99 99.99 99.99 % 999.9 %

Net Operating Income

99999999.99

99.99

99.99 %

999.9 %
First-year Rent Roll Forecast Rent forecasts are calculated using two methods. The first set of forecasts does what. The second set of forecasts are based on assumptions related to the market in which the property is located.

Lease Name
Remaining
Months
Current
Effective Rent
Current
Base Rent
Current
Annual Change
New
Effective Rent
New
Base Rent
New
Annual Change
Expense
Recovery Percent
abcdefgh. 99 99999.99 99999.99 99.99 % 99999.99 99999.99 9.99 %
abcdefgh. 99 99999.99 99999.99 99.99 % 99999.99 99999.99 9.99 %
.

Lease Name
Average
Lease Term
Average
Effective Rent
Average
Base Rent
Average
Annual Change
Average Expense
Recovery Percent
abcdefgh.
abcdefgh.


Valuation Assumptions - 1 of 1
Property Overview This section identifies basic assumptions that are to be observed about the property's acquisition and disposal, its ownership, the facilities located on the property, and other factors relating to valuation of the property.
Property Type
Owner Type
Year Purchased:
Purchase Price: USD


Resale Type:


Date of Sale:
Cost of Sale: USD
or, Cost Percent: %


Deferred Maintenance


USD
Facility(s) on property

Total Land Area:

acres
Year Developed:
Year Renovated:
Number of Floors:
Number of Elevators:

Parking Facility Type:

Number Of Facilities:
Monthly Parking Fee: USD
Discount, Growth, and Inflation Rate Assumptions The values below are used when discounting previous and future cash flows.
Discount Rate: % Safe Rate: %
Terminal Growth Rate
in percent: %
in value:
Reinvestment Rate: % Equity Yield: %

Index - 1 of 1
Index Name
Index Identifier (uri)
Type: Calculation Method:

Description
Date Index Rate
%


Property Inventory This section identifies the buildings and other facilities on a property. Each of the floors within a building can be broken out, with spaces identifiable within building units located on the floor. Outdoor areas and individual parking spaces can also be identified; all can be marked as Rentable Units, Common Areas, or Owner-private Areas. Facilities may have management policies associated with their use; in particular rentable units have pricing policies that can initialize the pricing policies associated with a lease. Facilities have associated vacancy assumptions that are used in valuation calculations.
Facility - 1 of 1
Structural Type: Facility Location (Parent's uri):
Facility Name
Facility Identifier (uri)
Facility Status
Vacancy Frequency
Group Facility Identifier (uri)

Description
Area Name Building Area Leasable Area Date Opened Designated Use
Facility Total
Financial Management Policies
Start Date End Date Escalations Policy Abatements Policy
Base Rent Policy
Step Rent Policy
Percentage Policy
Invoicing Policy
Payment Policy
Vacancy Assumptions

Rent Roll The rent roll contains leases that may individually specify multiple tenants and multiple spaces leased. A group lease can be specified which links "sub-leases" together. A lease can specify total rent revenue from tenants for the leased area in a variety of ways: annually, monthly, or as a variable entry. Total rent revenue can be broken down into its parts: base rents, step rents, percentage rents, and rent abatements. Management policies apply to escalations and abatements of rent charges, while the lease itself is ruled by Invoicing and Payment Policies.
Lease - 1 of 1 Exclude from calculations.
Lease Name
Lease Identifier (uri)
Renewal Frequency
Lease Status
Group Lease Identifier (uri)

Description
Lease Start Lease End # Months Original Start Expiration Status Applicable Commission Policy
Leased Facilities
Facility Identifier (uri) Start Date End Date Leased Area
Related Lease Identifier (uri): Tenant Use:
Tenant Information
Tenant Name Tenant Type Start Date End Date SIC Score
Concurrent Lease Identifier (uri):
Applicable Management Policies
Start Date End Date Escalations Policy Abatements Policy
Base Rent Policy
Step Rent Policy
Percentage Policy
Invoicing Policy
Payment Policy
Base Rents
Start Date End Date Starting Amount Describe Amount Rate Type Value Type
Step Rents
Start Date End Date Starting Amount Describe Amount Rate Type Value Type
Percentage Rents
Start Date End Date Starting Amount Describe Amount Rate Type Value Type

Tenant Sales Volumes
Year: Total: Value Type:
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Base Volume: Overage: or % Breakpoint: or %
Total Rent Revenues
Year: Total Value: Value Type:
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Base Rent Revenues
Year: Total Value: Value Type:
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Step Rents Revenues
Year: Total Value: Value Type:
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Percentage Rent Revenues
Year: Total Value: Value Type:
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Rent Escalations
Year: Total Value: Value Type:
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Rent Abatements
Year: Total Value: Value Type:
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Applicable Rent Abatement Policy:
Unallocated Rents
Year: Total Value: Value Type:
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9