From the Options panel you can add information for lease right-of-use options, legal time-sensitive options that you can exercise on a lease, such as the right of first refusal to buy the property or the right to rent space that becomes vacant. The information that you enter is available from the Lease Administration / Portfolio Dashboard and from the Lease Administration / Lease Portfolio Console. From the Lease Portfolio Console or the Portfolio Dashboard, you can receive alerts or email notifications when options are about to expire. Lease option data is also included on the Lease Abstract report.
You can associate a document with the option; for example, the file for the page of the lease that describes this option.
Note: Options can affect the FASB/IASB classification of a lease. If you have a license for the ARCHIBUS Extension for Lease Accounting, any time that you edit a lease option whose Option Type is CONTRACTION, EXTENSION, EARLY TERMINATION, or IMPROVEMENTS, the program automatically logs the description of the change, logs the change itself, and submits the lease for FASB re-evaluation.
You enter options using:
Note: The Options tab is not available from the Portfolio Management application's Add/Edit Wizard.
To enter option information:
The Add Option dialog appears.
Complete the following recommended fields:
Field | Description |
---|---|
Option Code | Enter a code to uniquely identify this option for a particular lease. This field, along with the Lease Code, forms the primary key of a Lease Option record. |
Description | Enter or select a short description of the lease option, such as "Expansion to fifth floor." |
Option Type |
Select a value from the drop-down list, such as N/A, CONTRACTION, EXPANSION, OPTION TO BUY, or RENEWAL. |
Date Issued | Indicates when the option was issued. |
Option Dates Match Lease? | Select Yes if the option start date is the same as the lease start date. You do not need to enter the Date Option Available and the Date Option Expires if you select Yes. |
Date Option Available Date Option Expires |
If you selected No for the Option Dates Match Lease? field, you can enter the date the option starts and expires here. |
Who Can Exercise? | Select whether the landlord, the tenant, or both can exercise the option. |
Date Exercising Applicable | Date that the option is effective. |
Date Exercised- | The date the option was exercised. |
Exercised By | The user who exercised the option. |
Date to Review |
Enter the date that the lease option should be reviewed, typically a date two to three months prior to the option date. This date is shown on the Lease Option Details pop-up window accessed from the Alerts section of the Portfolio dashboard. |
Comments | Enter longer notes or a description of the option. |
Is Reasonably Certain? | A value of Yes causes the Lease Classification Wizard to include this option in its calculation of the Ratio of Initial Liability Over Fair Market Value of the Building value. |
Date Renewal Notice Signed | The date the option was exercised. |
Cost - Estimated | Enter the estimated cost of exercising this option. You can track the actual cost with a Scheduled Cost record. |
Area Involved | Enter the area involved in the option. For example, if you have an option to take over 3000 square feet, enter 3000. |
Document | |
Comments | Enter any comments about this particular option. |
If you are working from the Add / Edit Wizard, do one of the following: after working on the Options tab:
See Also
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