Understanding Sales Forecasting

Percentage rent, or sales overage, is a significant component of revenue for all retail real estate companies and a significant expense for retail tenants.

Use the sales forecasting tools to forecast sales amounts for future periods. You can use these estimated amounts to generate billings for the tenants, analyze historical trends, and predict future revenue and expenses.

The system provides the following programs for sales forecasting:

• Seasonality Generation (R1547)

  The R1547 program creates the values that populate the Sales Seasonality table (F1547) that are used to calculate estimates for noncomparable leases.

• Seasonality Models (P1549)

  The P1549 program displays the order in which the seasonality model for estimating sales is determined.

• Seasonality Information (P15470)

  The P15470 program is used to revise generated seasonality values.

• Projected Sales Generation (R1542)

  The R1542 program projects monthly and annual sales. You use processing options to specify whether the system projects annual sales. For noncomparable leases, sales are projected based on the seasonality values. For comparable leases, sales are projected based on comparisons with prior actual sales amounts.

• Sales History Inquiry (P1541B)

  The P1541B displays a rolling 24-month cycle for both actual and estimated sales amounts. Actual sales amounts are retrieved from the F1541B table. Estimated sales amounts are retrieved from the F1542 table.