Real Estate Portfolio Management / Strategic Financial Analysis

Recording Data for Your Real Estate Assets

Types of assets

You record real estate assets in the following tables:

For this type of asset ...	... enter it in this table.
Land	Properties table
Building	Buildings table
Equipment whether it is inside or outside the building	Equipment table
Capital projects and routine maintenance projects	Projects table

Recording asset values

More specifically, use the method in the table below to record the asset values.

If you have ...	such as ...	record total asset value...	... divide cost of buildings and land.
Land Assets	Undeveloped land Land held in trust for future development opportunity	in the Properties Table as Market Value Note: Properties can consist of one or more parcels, with or without buildings assigned.	Typically, the value of Land is not depreciated.
Property asset with one Buildings assigned	An office building A parking garage A storage warehouse	in the Buildings Table as: Market Value: town assessed building value (used in determining annual tax amount) Book Value: building depreciated remaining value (updated annually at Fiscal Year End). Note: Enter a Property table record assigned to one Building Code.	in the Financial Analysis Parameters table as: Straight-Line Depreciation method (based on Building Purchase Price at Date of Purchase)
Property asset with multiple Buildings assigned	A university campus manages a single large property with multiple buildings for classrooms, labs, and student housing.	in the Buildings Table as: Market Value: town assessed building value (used in determining annual tax amount) Book Value: building depreciated remaining value (updated annually at Fiscal Year End Note: Enter one Property table record assigned to multiple building table records.	in the Financial Analysis Parameters table as: Straight-Line Depreciation method (based on Building Purchase Price at Date of Purchase)
Multiple Properties with one Buildings assigned	A university campus owns a single, large building for dormitory facilities which expands over multiple property addresses.	in the Buildings Table as: Market Value Book Value Note: Enter multiple Property table records assigned to one Building Code.	in the Financial Analysis Parameters table as: Straight-Line Depreciation method (based Building Purchase Price at Date of Purchase)
Structures or outside equipment that require maintenance	A cell tower A telecom and power shed for a cell tower A billboard	In the Equipment table as: Purchase Price Date In-Service Property Type	in the Financial Analysis Parameters table as: Property Type determines Depreciation method (Equipment Purchase Price and Date In-Service are also used)

Structures

The above is the recommended way of recording assets. Some sites will instead record some non-building real estate assets for example, cell towers, parking garages) as structures in the Properties table. If you do so, record these in the following way.

If the structure is alone on an owned plot of land, record the total asset value of the structure plus any land in the Book Value and Market Value fields of the Properties table.
If the structure is on a leased plot of land, record the total asset value of the structure alone in the Book Value and Market Value fields of the Properties table.
If the structure is one of many structures, equipment items, and buildings on an owned plot of land:
- record the total asset value of the structure alone in the Book Value and Market Value fields of the Properties table.
- record the total asset value of the land asset in the Properties table as described above.

Recording data for property, buildings, projects, and equipment

To run the Strategic Financial Analysis action for project and equipment, be aware of the following:

Project data: In addition to the data described in the below table, ensure that you enter and maintain the following data:
- For Forecasting Capital Costs for projects, ensure that your project is assigned to a building, as costs are tracked with buildings.
- The Aggregate Operating Expense calculations collect the actual costs from activity_log records, and sum them by Building Code and Cost Category by month
  - Capital improvement projects have action items assigned a Cost Category = ‘PROJECT – CAPITAL%
  - Expense projects have action items assigned a Cost Category = ‘PROJECT – EXPENSE%’
Equipment data. For Strategic Financial Analysis, you need to develop only capital equipment or equipment that you may want to depreciate.
- You can alternatively define a capital project that holds a group of equipment items (for example, 300 desktop computers) that you have purchased as a group, and will depreciate as a group.
- For Forecasting Capital Costs for Equipment, ensure that your equipment is associated with a building (for inside building equipment) or with a property (for outside building equipment, such as a wind mill or cogeneration plant.)

The following table describes where to record the data depending on what ARCHIBUS applications you are using:

Working with...	and you have this ARCHIBUS application ...	... develop this data
Properties
	If you do not have the ARCHIBUS Portfolio Management application	Use the Smart Client view to enter and maintain Properties records: Property Code, and Description Market Value, Tax Rate – Property, and Tax Rate - School Property Status, Property Type, Property Use, and Zoning Type Construction Type, Criticality, Comments, and Property Condition Purchase Price, Selling Price, Date Purchased, Date Sold, Date Disposed Address 1, City Code, State Code, Country Code, Region Code Site Code, Postal Code
	If you have the ARCHIBUS Portfolio Management application	Use the Add / Edit Wizard to add the building and manage it's Ownership Transaction. See Add / Edit Wizard.
Buildings
	If you do not have the Space Management application	Use Smart Client view to enter and maintain Buildings records: Building Code, Building Name Market Value, Book Value Date Built Building Status, Building Type, Building Use Construction Type, Criticality, Cost per. Area Address 1, City Code, State Code, Country Code, Region Code Site Code, Property Code, Postal Code Ext. Gross Area, Int. Gross Area, Rentable Area, Usable Area Max Bldg. Occupancy, Building Occupancy
	If you have the ARCHIBUS Space Inventory & Performance application	Develop space inventory normally. UPDATE ROOM AREAS: recalculates the building areas used for metric proration.
	If you have the ARCHIBUS Personnel Inventory & Occupancy application	Develop space inventory normally. UPDATE ROOM AREAS: recalculates the building occupancy counts used for metric proration.
	If you have the ARCHIBUS Portfolio Management application	Use the Add / Edit Wizard to add the building and building Ownership Transaction details. See Add / Edit Wizard.
Projects
Supports both capital improvement projects versus expense projects. Each project can be a mixture of capital expenditures and project expense costs.
	If you do have the ARCHIBUS Project Management application	Run the standard request and estimation process for projects. The Aggregate Operating Expenses action aggregates the Action Item costs by their Project - Cost Categories.
	If you do not have the ARCHIBUS Project Management application	Use Smart Client view to create projects, and enter in the Cost – Budgeted value for each project code. Maintain the following data: Project Code, Project Name Cost – Budgeted Date – Requested Start, Date – Requested End, Date – Completed Project Type, Project Status, Project Number, Program Name Building Code, Site Code, Project Manager Project Summary, Comments, Criticality Now run the Aggregate Operating Expenses action. The Aggregate Operating Expenses action aggregates the Action Item costs by their Project - Cost Categories.
Equipment	.
	If you do not have ARCHIBUS Asset Management	Use Smart Client view to enter and maintain Equipment records: Equipment Code Purchase Price Depreciated Value In-Service Date Property Type Equipment Standard Equipment Category Equipment Condition Classification Code Equip. Status Equipment Use Site Code, Building Code, Floor Code, Room Code Additional Comments, Criticality
	If you have ARCHIBUS Asset Management	Develop the Equipment assets as you normally do. You can use the Asset Portal, Asset Management, or Enterprise Asset Management application to develop this data.