Example Using Sales Forecasting for Noncomparable Leases

In this example, the system runs sales forecasting for building Quincy and ULI code B05 for the year 2007. This table lists the actual sales for 2007 and the seasonality values for each month:

Month	Sales for 2007	Seasonality (Percent) for 2007	Seasonality Calculation
JANUARY	30,000	8.2192	= 30,000 ÷ 36,5000
FEBRUARY	25,000	6.8493	= 25,000 ÷ 36,5000
MARCH	20,000	5.4795	= 20,000 ÷ 365,000
APRIL	28,000	7.6712	= 28,000 ÷ 365,000
MAY	30,000	8.2192	= 30,000 ÷ 365,000
JUNE	35,000	9.5890	= 35,000 ÷ 365,000
JULY	32,000	8.7671	= 32,000 ÷ 365,000
AUGUST	30,000	8.2192	= 30,000 ÷ 365,000
SEPTEMBER	27,000	7.3973	= 27,000 ÷ 365,000
OCTOBER	33,000	9.0411	= 33,000 ÷ 365,000
NOVEMBER	45,000	12.3288	= 45,000 ÷ 365,000
DECEMBER	30,000	8.2192	= 30,000 ÷ 365,000
TOTAL	365,000	100.00

To generate a monthly estimate, retrieve the previous three months of actual sales. The program requires at least one month of sales to generate the monthly estimate. If no sales exist for the previous 3-month period, the program cannot calculate a monthly estimate.

For the months following the first month for which estimates are generated, the Projected Sales Generation (R1542) program uses the estimated sales to generate subsequent estimated amounts.

The monthly estimate is calculated using this formula:

Monthly Estimate (n, ×) = ((Salesn-3, × ÷ Seasonalityn-3, ×-1+ Salesn-2, ×÷ Seasonalityn-2, ×-1+ Salesn-1, ×÷ Seasonalityn-1, ×-1) ÷ Number of months) × Seasonalityn,×-1

Where n is the current period/month and × is the current year.

In the processing options for the R1542 program, specify whether to run the program for the reporting period only or for a period of time through the end of the reporting period.