1. Advanced Real Estate Forecasting Implementation Guide
  2. Calculation Method 3 for Years Vacant (Forecasted Amount for Years 7 through 10)

Calculation Method 3 for Years Vacant (Forecasted Amount for Years 7 through 10)

The system uses this setup information for this calculation:

  • Area of Unit: 10,000.

  • Term of Forecast: 48 months (4 years).

  • New Rate (from assumption detail) 3.00.

  • Term of Assumption: 4 years.

When the term of the real estate lease expires, the system uses the same formula to forecast the term of the assumption (four years): [(Area of Unit) × (New Rate)] × (Lease Term)= (Forecasted Amount)

For example:(10,000 × 3.00) × 4 = 120,000

The system updates the total forecasted amount to the first period of the first year that the assumption is effective in the F15L109 table. In this example, the system updates the total forecasted amount to period 01 of 2008.