Lx LseMod Previous Version Enhancements

Lx LseMod V14.5

Goal Seek Free Rent

LseMod already has an extensive custom Goal Seek (i.e. in addition to the standard Excel Goal Seek); and we have added the ability to Goal Seek Free Rent. Need to change the total cost, average rent, NPV by adjusting Free Rent, you can do it ALL with the click of a button. (PMR)

Scenarios

Need to easily identify Proposal 1 vs. Proposal 2 vs. LL Counter? We have added a “scenario” field so the scenario will appear on all reports and at the top of the Management Summary comparing alternatives. (PMR)

Exchange Rate Calculations

In LseMod’s Silver Series (e.g. Tenant Rep, Industrial, Sublease, Landlord, & Buy) we have added the ability to evaluate costs in any one currency and measurement and then convert those costs to another currency and measurement, e.g. Do an analysis in Euros and sq. meters and convert and compare those costs in US Dollars and sf. Note: LseMod’s Gold Series (i.e. LseMod Pro) has always had this capability. (PMR)

Weighted Totals Calculation in the Management Summary

We have added the ability to create weighted average totals in the management summary, particularly useful when evaluating multi-property scenarios and adding the properties to get a weighted average cost/sf. Note: A difference between LseMod and some other programs is a matter of flexibility. With LseMod you can compare over 500 variables side-by-side, picking and choosing what’s important to you, and you can put them in any order you want. No matter what order you use, the Weighted Average Calculation will work! (PMR)

Expanded Property Titles in the Management Summary

Property titles can now be of any length and will include the scenario; so, you can make the description as detailed as you want. Note: Cells can be overwritten as necessary, another flexibility feature of LseMod. (PMR)

As always, there’s more, such as showing the GAAP lease term and Occupancy Term on reports, changing property names on the graphs, etc.

LseMod V14

New Formats

We tweaked the Management Summary comparing multiple properties on 1 page. Similar items are grouped and given a color heading. Check out the sample Management Summary reports for LseMod Tenant Rep or LseMod Pro. (PMR)
Industrial Metrics Like Pallet Capacity – In LseMod Industrial we added cubic capacity, calculations for cost/pallet, cost/door, and pallet capacity. (PMR)

Delete Linked Files

You can now delete linked files from LseSum so if you were comparing 4 buildings and one drops out, you can just delete the drop out building from LseSum. (PMR)

LseMod Pro Run Rate & Comparison to Currently Leased Space

We rearranged the costs in the Financial Summary Report to show costs that impact the Run Rate and One-Time/Project Costs. At the bottom of the Financial Summary report we compare Current vs. Proposed Run Rate costs and Space Leased, including a Variance and a V%. On the standard Management Summary Comparison Report we include the Comparison of Current vs. Proposed. (PMR)

Cost Allocations in LseMod Corporate

We added a report so P&L costs can be forecasted for up to 15 different Business Units/Cost Centers. The costs can be based on Head Count or Space Leased and the Costs themselves can be just the Run Rate or the total P&L Impact (Run Rate + One-Time Project Costs). (PMR)

Net or Gross Free Rent

In LseMod’s Silver programs (e.g. Tenant Rep, Industrial, Landlord, Retail) we added an option to make the free rent Net or Gross. We also have adjusted the Concessions Impact of Free Rent so it will be correct if the Free Rent is Net or Gross. (PMR)

LseMod Sublease

We added a Comparison to a Restructuring Reserve / Restructuring Budget and enhanced the Cost Recovery Analysis.

Change Colors, Point & Click

Need to change the background color or change the color of the text – it’s all point & click in LseMod! We added the ability to point & click to change colors, e.g. from blue to dark green, (either Office 2003 or Office 2007 or your own custom colors) and highlight sections, you can even change the font color. It’s all point & click! (PMR)

Calculators

We have included in all programs calculators for determining the blended rent, weighted average rent and blended space. (PMR)

Net Effective Rent

For our friends in Canada, we added the Net Effective Base Rent in addition to the Net Effective Rate, which we have had for years. Base Rent covers just the Base Rent whereas Net Effective RATE includes all costs. (PMR)

Lease Year for Data Entry

To simply entering dates for rent increases and special expenses / credits, you can now use the lease month.

Free Rent Calculator

If you need to know the amount of free rent needed to pay for the Tenant Improvement costs, or any other cost, use our Free Rent Calculator. (PMR)

Rent Summaries

We added a section in LseSum summarizing Annual Base, Net, and Gross rents (Total, Avg. per Year, Avg per Yr / rsf. (PMR)

IRR, etc.

In LseMod Buy, Condo & Purchase we replaced the ROE with the IRR and re-did the management summary based on requests and input from a CCIM instructor. (PMR)

Break Point

In LseMod Buy & Condo, we added the rent break-point and the purchase break-point to the Management Summary, e.g. given a purchase price, what does the rent need to be to make buying a better option than renting.

Email Enhancement

We simplified how to add additional files from different LseMod or LseSum reports to an email file. Additionally, we added the ability to add an Internet link (e.g. link to broker profile, link to a building’s web site) to the Table of Contents.

Lx LseMod Corporate

Made Other Rents and Other Monthly Costs variable names that flow through to the LseMod reports and also can be shown on the LseSum reports. (PMR)

Sale Leaseback, Flipping the Property

We tweaked the program to include an option to flip a property (from a tenant’s perspective), e.g. Purchase and immediately do a Sale Leaseback. (PMR)

Other Enhancements

Ease of Use features include a link to check for upgrades, and GoTo Navigation on the Additional Inputs sheet in LseMod and on the Links sheet in LseSum. In the Operating Expense section we added a line item called “Cap Controllable Expenses”.

GAAP Enhancements

We are committed to making Lx LseMod Corporate the leading lease analysis software that is U.S. GAAP and FASB compliant. In 2009 we will adjust the program as necessary when, and if, the European Union and United States adopt a universal GAAP standard. In addition to the changes listed above (e.g. calculators, changing colors, lease year for data entry, etc.), LX LseMod Corporate now includes the following:
1. Restoration/Dilapidations (FASB 143) – we included the option to show Restoration per FASB 143. Includes the calculations for Present Value of the Future Value and the Accretion Expense required. (PMR)
2. In Additional Inputs you can now add capital at any time during the term, including the ability (per GAAP) to adjust rent for this new capital if it includes Landlord inducements. (PMR)
3. For those doing International – LseSum Gold now includes ability to show costs in the Management Summary in Home Country measurement (e.g. sf) as well as Local Measurement (e.g. sm). You can already use the exchange rate for currencies. (PMR)
4. In LseMod Pro and LseSum Gold we included the option to Hide Rows permanently, e.g. permanently hide the After Tax costs. (PMR)
5. We included blank forms for a Project Write-Up and 2 more user defined reports. (PMR)
6. In LseMod Pro we added a Cash Flow Sublease Cost Recovery Analysis in addition to the GAAP Sublease Analysis that has been a part of LseMod for years. We also now explicitly show the sublease/disposition write-off per GAAP. (PMR)
7. GAAP Sublease Analysis. We added a new report, Sublease Assumptions, that has the “original lease” and the Sublease. We made the GAAP sublease calculation more encompassing. Before the calculation just had rent, opx, tenant direct opx and depreciation write-off as costs of sublessor’s space. Now the calculation includes Special Taxes, Restoration (including any restoration accruals), and other 1 time costs such as moving, refunding an Economic Development Credit, etc.. Another change was to straight-line the Subleasee’s Rent for the GAAP Sublease Calculation.
8. We added a comparison to a Restructuring Reserve in the event of a sublease using Cash Flow and/or P&L Costs and either Not Discounted or based on the NPV.
9. We have clarified the Occupancy Term vs. the GAAP lease term (required if applying GAAP accruals during construction) and adjusted the Concessions to exclude free rent required by GAAP for the construction period. (PMR)
10. We added a GAAP option to straight-line rent for Other Rents, e.g. Roof Rent. (PMR)
11. We re-did the Assumption printouts to clarify the GAAP impact.
12. We added a link to the Internet to check for the Exchange Rate. (PMR)

LseMod V13

(PMR) denotes a Product Modification Request that is the result of a customer request.

1-page Report of Financials and Assumptions – In LseMod Pro, Tenant Rep, Industrial, Landlord, Retail and Economic Development we have created a 1-page report that includes the financials and the assumptions. In v13 we give you multiple choices ( 4 ) on how to present an analysis since not all clients want or need the same analysis. Assumptions that are not used are hidden and do not show in the 1-page report. (PMR)

Compare an unlimited number of properties at any time – In v13, you can add properties to the comparison at any time, and as many as you like. In a consulting assignment, we actually linked 20 properties to evaluate multiple scenarios. In the past, LseSum, the comparison component of LseMod, let you compare up to 100 properties, but you had to specify the number in the beginning of the comparison and you could not add a new property at a later date. That has changed. Add as many properties as you like, at any time, e.g. 3 weeks later when a new property become available. (PMR)

Office 2007 Compatible – Starting with version 12.7, all LseMod programs (there are 12) are Office 2007 compatible.

Add Floor Plans to the Management Summary – Point & Click to add floor plans to the Management Summary report. Once added, click on the floor plan and drag it to see a larger view. (PMR)

Burn Down of the Security Deposit – NEW – added to LseMod Tenant Rep, Industrial, Landlord and LseMod Pro. (PMR)

Letter of Credit – NEW – added to LseMod Tenant Rep and LseMod Industrial. Calculates the cost of the LOC and includes a Burn Down provision. (PMR)

User Defined Depreciation Schedule in LseMod Buy, Condo, Purchase, Sale Leaseback – NEW – users can easily create their own depreciation schedule for the Purchase or Construction. Perfect for GO ZONE depreciation and other segmented depreciation. LseMod Pro has had this feature since v11.

Rent Schedule – In the 1-page report for LseMod Pro, Tenant Rep, Industrial, Landlord, Retail and Economic Development we have added a rent schedule showing all the changes in rent during the term. (PMR)

Weighted Average Cost/SF – In LseMod Tenant Rep, Industrial, Landlord, Retail, and Economic Development, we tweaked the calculations for Expansion/Subtraction of space. Using the Additional Inputs sheet, users can adjust the space leased by month at any time during the lease. In the past, we calculated the cost/sf for each year based on the year-end square footage. That’s changed and now it is perfect and based on the weighted-average square footage leased each year! (PMR)

User Defined Report – Some users like to have their own custom format for reports. In LseMod Pro, Purchase, and Sale Leaseback we have included a blank report has been formatted to include the year the months leased so users can create their own report using the costs calculated in LseMod. The report is printable and email-able.

NER Graph & Other New Graphs – We have added a graph comparing the NER, new formats for graphs that include a data table where appropriate, and in the LseMod Tenant Rep, Industrial, Landlord, Retail, and Economic Development, we have added graphs comparing the Annual Cost and the Cumulative Annual Cost. As with all graphs in LseMod, users can customize colors, fonts, tiles, etc. using the normal Excel commands.

Pictures & Floor Plans – In the new 1-page report in LseMod Tenant Rep, Industrial, Landlord, Retail, and Economic Development, we have added another place to put pictures and floor plans. You can still add them on the left in a special column or you can add them to the top right of the report.

Rental Rate for Purchase Price – In LseMod Buy & Condo we added a pre-programmed Goal Seek so users can click a button and automatically find what hypothetical rental rate would be the same as the NPV After Taxes for a Purchase. (PMR)

Bonus Commission and Amortize Free Rent – In LseMod Landlord and LseMod Commission (our FREE commission program) we have added a Bonus Commission, e.g. $1.50/sf, and we have included the option when calculating Commissions using a sliding scale to amortize the free rent over the term. (PMR)

Hiding NER, NPV, EBITDA, NOI – Depending on the program, we have added commands (point & click) to hide line items such as NER, NPV etc. that may not be required for a specific analysis or a particular client.

More Flexibility – We had added additional 1-time costs in the Special Expenses/Credits section so you can easily include those unique costs and credits in your analysis.

Agency Fee – We have added an Agency Fee, e.g. commission. Typical in International transactions.

Link Tenant Rep to LseMod Pro – We have added the ability to link a LseMod Tenant Rep analysis to LseMod Pro. That way, if you have done a Cash Flow analysis, but need to see it based on GAAP, you can just link the files and the link will fill-in the key assumptions in Pro.

As always, there have been more changes – We just wanted to highlight some of the changes we thought would be of most interest.

LseMod V12

Branding – Added room at the top of all reports to include “Prepared by” and enough room to include your name, the firm’s name, phone number, and other contact information. (PMR)

Net Effective Rate – Added Net Effective Rate calculations to all programs. It is the present value of the total occupancy cost (income in the case of LseMod Landlord) amortized over the term at the discount rate. This is the value used by Equity Office. Also, if you do not want to use the Net Effective Rate you can hide the calculations (default has them hidden). (PMR)

Expansion Simplified – Added calculations for an expansion so that if adding space during the term costs (e.g. rent, opx, etc.) are calculated based on the new space and a weighted average cost is calculated on a per square foot basis over the term.

Email – Upgraded the command to create an email file, prompts the user for a title, fills in “Prepared by” and even prompts the user to add logos to the title page/table of contents. In LseMod programs, added an automatic prefix so the sheet names will include the building’s name. (PMR)

Concessions Impact – Added a section that calculates the impact on rent of Free Rent (based on the NPV), the Landlord Construction Allowance, and there is space to include additional concessions. This is the amount rent increased due to concessions discounted at the Landlord’s estimated present value discount rate over the term. (PMR)

LseMod Buy & LseMod Condo – Added a preprogrammed Goal Seek so you can easily find the Sale Price required to equal the NPV of the lease cost

LseMod Buy – Added LseSum Buy so you can create Buy vs. Buy analysis, comparing up to 100 alternatives. (PMR)

Parking Calculator – Added a parking calculator so you can enter the number/1000 sf and LseMod will calculate the parking spaces and fill in the value in LseMod.

Parking in Tenant Rep & LseMod Pro – Separated Reserved and Unreserved Parking so you can have different costs, increases, and months of free parking. (PMR)

Moving – Changed the calculation so you can use a fixed cost or a fixed cost/sf. If moving to 10,000 sf or 9,500 sf the cost is probably the same, but if based on $/sf it will be different.

GAAP rent accrual – In LseMod Pro, created a 1 button command to change the timing of all costs to start with an Occupancy Date while rent accrual starts during Construction.

Capital vs. Operating Lease Test (FASB 13) – In LseMod Pro, added additional tests for Bargain and Automatic Renewal Options.

LseMod Tenant Rep – Added additional metrics for comparing Full Service lease costs, even if a lease is NNN; construction costs, including Landlord’s part, in actual dollars in addition to existing $/sf. (PMR)

LseMod Pro – Added NPV/sf before and after taxes to the management summary. (PMR)

LseMod – Added tips on how to use formulas to include costs of a $/rsf basis even if the input cell is based on actual cost, e.g. $10,000 vs. $2/rsf

Added Year Dates to LseSum Silver Series – Totals, Annual Totals, and $/sf reports now show Yr 1, Yr 2, etc. and the date, e.g. 5/2007 – 4/2008. (PMR)

LseSum Silver Series – Added Cumulative Totals to LseSum Silver Series for the Totals, Annual Totals, and $/sf reports. (PMR)

LseMod Silver Series – Added Cumulative Total to Silver Series Lease Analysis programs. (PMR)

Customizing Graphs – LseSum Tenant Rep, Landlord, and Pro/Gold Added 1 step click to show/not show Gross Rent, Rent/usf etc. on graphs.

LseMod Pro – Adjusted the Budget to reflect net of LL TI$ if choice was to use GAAP calculations for account for LL TI$

LseSum Silver Series – Added a new category in $/sf for 1-time costs eliminating the confusion between 1-time costs and annualized costs. (PMR)

Comparison Reports – We have enhanced the comparison reports to include the Net Effective Rate and we have given user’s the option to show or not show the Net Effective Rate, the NPV, and the NOI (in LseMod Landlord), all with the click of a button!