Sales prediction modeling is a tool used by real estate organization with multiple revenue producing sites whether it is direct sales, cell phone contracts, walk-in patients, investment clients, or tuition payments. In all cases a picture of “the customer” must be produced, usually based on past location results or a client defined picture of their customer. Building these prediction models is an art and requires a sophisticated statistician as well as knowledge of the industry and available data.
SLIM was the first major lease administration solution to hit the market in the late 1980’s and was managed and developed by Ken until 2003. Ken’s expertise with all of the major lease administration tools including SLIM, REM, Siteseer and RetaiLease allowed Lucernex to create the new industry standard product for Lease Administration and Contract Management.
It is a big step for many companies to implement an IWMS and to simply establish a single source of all location data. It can advance a companies effectiveness substantially with that first step of IWMS use. Once this has been done successfully though, users of IWMS systems start to come up with ideas of how the system can be used to further improve their internal processes and evaluate success. By having all the data in one place, hopefully organized by location, users can begin to apply decision tools to make better decisions.
Tenant deals are few and far between in his market. He’s finding himself reinventing his game almost daily. All part of this economy I said, I hear this happening over and over all over the place. I told him to relax it’s all very relative to each other and he’ll be fine. After all he survived the dot bomb and more in years past.
Our interpretation of GAAP sublease analysis according to FASB accounting rules is as follows:
Overview: Start by determining the net present value of all rental costs including write-offs of depreciation and subleasing costs, offset by the sublease income (the NPV write-off). The Income Statement (Profit & Loss statement) is then charged the NPV write-off and it is charged an interest expense based on a declining balance of the NPV write-off, the accretion interest expense. The declining balance is determined by taking the net monthly costs (including sublease income) and the interest expense and deducting that cost from the NPV write-off.