property recovery property.pdf

8/10/2019 Property Recovery Property.pdf

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CAM Recovery inEBS Property Manager

Karen Brownfield

Atlanta OAUG

August 15, 2008


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A enda

Definition and Overview

Additional Setups for Properties and Leases

, ,

Recovery Agreement Types

Running the Process

2Copyright 2008 Solution Beacon, LLC All Rights Reserved Any other commercial product namesherein are tradmark, registered trademarks or service marks of their respective owners.


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Overview Property Manager



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Pro ert Mana er

Land whether one is the landlord or lessee Features

Property Portfolios

Lease Abstraction Payment/Billing of Rent FASB 13 Compliant

Variable Rent

Operating Expense Reconciliation



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Pro ert Mana er Licensin

through May 31, 2005 Now licensed se aratel



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Definition and Overview



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CAM Recover

expenses billed CAM (Common Area Maintenance)

Insurance

Taxes (Any other type)

Compares expenses billed in Property to GL

accoun o a s rom a sources an crea espayment term to bill/credit for the variance



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Generic CAM Calculation

What have we incurred?

Gross amount due

What is the tenants share? (%)

X

What are the constraints?

(Floors/ceilings/abatements)

Adjusted amount due

What have we billed so far this year?

Final amount to be billed/credited

pos ve, nega ve, cre



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Generic CAM Calculation

What have we incurred?Expense

Map

Gross amount due


XAreaClass


(Floors/ceilings/abatements)Recovery

Recovery

Agreement

Adjusted amount due

Agreement

Ex ense

What have we billed so far this year?


Class




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Some Definitions

Constraint defined boundar of Amount Due

Used in Recovery Agreement Minimum/Maximum Prorata Share amount

Minimum/Maximum Rate (cost per area)

Floor and Ceiling

% Over Prior Year Cap Also known as

ompoun ncrease over rs ac ua amoun Cumulative cap

To/from date for each constraint



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Some Definitions

Reduction in Amount Due usually due toextraordinary event

Per Billing Type/Purpose

Enter Calculation Method, Abatement Type, Amount,



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New Module Setups



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S stem ex-Profile O tions

=No Term created for

each recovery line

=Yes Term created forall lines for a period; all

must successfully

calculate to see results



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Looku Codes

Recover A reement Abatement T es

PN_REC_ABAT_TYPE Seeded values: Re-Location

Recovery Type PN RECOVERY TYPE_ _

Seeded values: Food Court, Freestanding, Kiosk, Major,Pad, Specialty, General

PN_RECOVERY_SPACE_STD_TYPE

Seeded values: Exterior, Interior, General

Added: Tower, Office, Factory, Roof



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Additional Setups For Properties and Leases



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Location Setu A licable Fields

Buildin / Land

Property Other required

defaulted withrequired oracce table values

UOM

Gross

Blank is OK

Status -Occupiable

CustomerAssignable



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Floor / Parcel

Occupancy Status and Customer Assignable automaticallydefault with required values



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Office / Section

Occupiable andCustomerAssi nabledefault in

Rentable, Usable,Assi nablecannot be zero

Set to amountto be used in

CAMcalculation



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Lease Setu A licable Fields

Enter Appropriate Type and Standard, Customer Name, BillTo Site



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Billin Term Setu A licable Fields

Purpose matches to Expense Type (Expense Map)

rea = , cannot use any met o requ r ng rea ass MUST specify Location

Recoverable Flag must be checked to be included Not an available field on the Term Details page



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Message appears if click Recoverable on Finalized lease

Despite this message, clicking this flag makes recoveryavailable for any period covered by the term dates



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Amount Billed to

Revenue GLAccount will be

Balance in GL

Account inExpense Map



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Ex ense MaExpense Class

Area Class



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Pur ose of Each Entit

Maps GL balances to a billing purpose, for each Property orProperty/Location

xpense ass Which tenants pay which types of expenses?

Marries the billin term with the reimbursement t e

Area Class Determines which tenants at the Property will be participating in

CAM How many entities are splitting the cost?

Prorates if tenant wasnt active during the entire CAM period



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Generic CAM CalculationWhat have we incurred?

Expense

Map

Gross amount due


XAreaClass


(Floors/ceilings/abatements)

Recovery

Recovery

Agreement

Adjusted amount due

Agreement

Ex enseWhat have we billed so far this year?


Class




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Ex ense Ma

Release 11i- may not be on menu

Function: Ex ense Accounts Ma in

Release 12 part of Setup Menu



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Ex ense Ma

Determines Actual Expenses to compare to

Mapping can be comprehensive covering all or multiple expense

classes or specific to expense class

xpense ype equa es o ng urpose Use 31-Dec-4712 to make map effective-to date forever



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Ex ense Ma

Do not have to specify both Property and Location, but

must s ecif at least one or when Po ulate Ex enseMap is run, it errors)

Specify level of detail that matches accounting

Example: If Property contains multiple locations and accountingonly applies to one, specify location also



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Ex ense Class

Level of Detail for Expense Type and Propertyand Location Code should match Ex ense Ma

Space Standard and Recovery Type determine

which Billin s included can use this whenmultiple area classes exist for a property)



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Ex ense Class

Leases and Documents | Recovery | RecoveryAgreement Landlord e up a

Expense Classes sub-tab

Enter criteria to search for existing, or click Create Class



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Ex ense Class

Enter Name and Description

Enter Property Name and Building to match Lease Terms

Right now requires Property Click Add Another Row to add Expense Class Types

-



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Ex ense Class

Enter desired Expense Types Remember Expense Type must match Billing Purpose

c e nc us ons con



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Ex ense Class

Click Add Another Row to select specific combinations

Click Display All Inclusions to select all combinations



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Ex ense Class

Clicking next toSpace Standard orRecovery Type will yield

LOV of combinations thatexist for billings thatmatch location andexpense type



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Ex ense Class

Can adjust share depending on terms of lease

Click Apply to save



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Area Class

participating in CAM Level of Detail for Pro ert and Location Code

should match Expense Map

S ace Standard and Recover T e determinewhich Tenants area and/or expenses areexcluded



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Area Class

Leases and Documents | Recovery | RecoveryAgreement Landlord

Area Classes sub-tab

Enter criteria to search for existing, or click CreateClass



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Area Class

Enter Name and Description

Enter Property Name and Building to match Lease Terms g now requ res roper y

Click Add Another Row to add Area Class Exclusions

-



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Area Class

Combinations entered here will either

Exclude the area from total area

Exclude both

Tenants thus excluded are Contributors



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Methods



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Methods Prorata Share

Total Expenses (Expense Classes) Total Area (From Location)

(Optional) Multiple %

Tenants Recoverable Area (Area Classes) (Optional) Constraints and Abatements

Occupancy % (Occupancy Dates)

((Tenants Recoverable Area * Occupancy %) / TotalArea * Total Ex enses * Multi le %



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Methods Prorata Share

Offices (only place to enter assignable) Assignable space per Office

Data Required (not already entered)

Area Classes (Optional) Constraints and Abatements

Expense Classes

ces nc u ng ass gna e space

(Optional) Multiple %



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Methods Fixed Rate

Fixed $ per area amount Tenant Recoverable Area

(Optional) Constraints and Abatements

Occupancy % (Occupancy Dates)

p ona u p e

Formula

xe a e enan s ecovera e rea ccupancy% * Multiple %



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Methods Fixed Rate

Special Requirements

Constraints and Abatements

Data Required (not already entered) Tenant Recoverable Area


p ona u p e

Agreements



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Methods Fixed Amount

Fixed Amount (Optional) Constraints and Abatements

Formula

Fixed Amount Special Requirements

None

Note: No different than entering and keepingcurrent the CAM billing terms



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Methods Fixed Amount

Agreements Fixed Amount (each agreement)




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Methods Fixed Percenta e

Expense Classes Manually entered %

Formula

Total Expense * Fixed % Restrictions

No constraints or abatements allowed



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Methods Fixed Percenta e

Agreements Expense Classes

Fixed % (each tenant on each agreement)



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Example Leases, Locations, Billings



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Sam le Leases - Lease



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Sam le Leases Location



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Sam le Leases Billin s



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Sam le Leases Billin Accountin



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S l L L


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S l L L ti


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S l L Billi


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S l L Billi A ti


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Create



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Enter A reement


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Enter A reement

Lease Name/Number required

Fills in all fields except Recovery Agreement Name


Enter A reement


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Enter A reement

Click Include All Lines to pull all lines w/ Recovery Flagchecked

Click Complete Line Details to continue

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herein are tradmark, registered trademarks or service marks of their respective owners.


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Enter A reement


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Enter A reement

Select Expense Class (by Name or Number)

Click Next



Enter A reement


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Enter A reement

Select Area Class (if type supports it) (by Name orNumber)



Area T e


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Area T e

Sums all Assignable for each location

If any space vacant, landlord absorbs cost In our Example, total area will be 800

Total Occupied

Total Assignable minus Total Vacant

All cost will be distributed if all offices occupied for,

vacancy In our Example, total area will be 600 as Office 210 (200 sq

t s unoccup e



Area T e


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Area T e

For each location occupied area is multiplied byoccuppied %

All cost will be allocated In our Example, total area used in calculation will be 549.58

100 of 100 Office 100 100 of 300 Office 110 74.79of 200 (Office 200 lease expired 30SEP))



Area T e


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Area T e

Use greater of Total Occupied or Total Assignable

It is to the Landlord's advantage to use Occupied

Must also specify 'Floor Percentage'

Since Total Assignable is usually > Total Occupied, Total

' ' ,thus reducing amount of cost landlord must absorb

In our Example, if Floor Percentage set to 90, total area in,

720)



Area T e


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Area T e

Use greater of Total Occupied or Weighted Average

It is to the Landlord's advantage to use WeightedAverage

Must also specify 'Floor Percentage'

nce o a ss gna e s usua y e g e verage, o aAssignable multiplied by this % before 'greater of' is selected,thus reducing amount of cost landlord must absorb

n our xamp e, oor ercen age se o , o a area n

calculation will be 720 (800 is larger than 549.58, 90% of 800is 720)



Enter A reement


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If want to enter constraints, click either Include AllLines or Add Another Row (and then select type)

,



Enter A reement


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Enter A reement


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If want to enter Abatements, click either Include AllLines or Add Another Row (and then select type)

,

(optional) Abatement Description


Enter A reement


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Choices from the Lookup Type


Tenants w/o A reements


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Enter Start/End Dates and other desired criteria

Tenants w/o an agreement are listed

c rea e greemen o a agreemen

Easier than starting from scratch



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Timin s and Limitations


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Assumes billings approved and exported (doesnot have to be invoiced

Creates reconciliation term

additional periodic terms

Does not roduce a reconciliation re ort

Details available via screen


Extract Ex enses from GL


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Concurrent Program

Can extract actual or

budget Po ulate Recoveries

If say No, have torun this processseparately

If say Yes, mustspecify

Location Code or

3 parametersbelow Period EndDate


Extract Ex enses from GL


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As Of Date All leases

effective that datewill be included Same as Period

Start Date leases endingbefore PeriodEnd Date areprorated

Same as PeriodEnd Date

leases ending

before PeriodEnd Date areexcluded


Extract Ex enses from GL - Lo


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Log lists total combinations and total $ for eachcombination

_ _ _


Populate Recovery


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Must SpecifyLocation or Property(or both)

As of Date used tocalculate total areafor area class

Must match date

used in ExtractExpenses From GL

Period Start Date,

Must match datesused in Extract


Populate Recovery


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Currenc Code used to match to

non-SOB

PopulateExpense / AreaClass Details Say Yes unless

wish to furtherallocate expensesbefore populatingclasses


Populate Recovery


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Use Override determines

whether overrides

removed if re-extraction or

whether overridesutilized fromrevious eriod

If no prior periods,value is ignored


Populate Recovery


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RecoverExpense Number

if System

Expense = No,mandatory, else

number enteredwhen saved


Populate Recovery


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Resultin Re ort showsextract was successful

Recovery Expense Line IDcan e use o queryresults


Populate Recovery


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Resultin Re ort showsextract was successful

Area Class ID can be usedo query resu s = reaClass Number)



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View Results - Ex enses


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Clicking link in column Recovery Expense Numbershows accounting combinations and Expense Types

Can click Update button and change any/all fields andadd additional rows


View Results - Area


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Leases and Documents | Recovery | RecoveryAgreement Landlord

Query any field, click Go


View Results - Area


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Clicking Select beside a row, then Update button (or clicking thelink under Area Class Name shows Leases and area

Note SB200 is prorated based on days after Jan 1 If As Of date had been 31-DEC-2007, this row would be missing

c ow u on o see oca on ss gnmen e a s


View Results - Area


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Exclude Area - removes Denominator Total

Exclude Prorata Share - removes Location fromNominator



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Calculate Recovery


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Calculation is date sensitive

Period can be one year or less

Area Class Date must match all three dates Enter Dates and Click Go


Calculate Recovery


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Recoverable Area is ignored except for Fixed Rate

Status indicates Expense Class matching dates was

Click Select then Calculate, or click Go


Calculate Recovery


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Open cannot find area and/or expense class details

matching dates recovery cannot be calculated

Complete all required details to do calculation arepresent

Error failure occurred during calculation


Calculate Recovery


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Initiated Concurrent Process

Confirmation shows process successful

Now states Re-Calculate and dates are fixed

To approve resulting term, click Return to Recovery



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A rove Term


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Shows calculation results

Click Show for more details, or Continue to get to


A rove Term


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Ensure Schedule Day < 29 (1-28)

Change status to Approved

Update other fields as appropriate Click Details to change accounting or other term details

c n s s ar s c e u es an ems


Schedule Added,


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Partial Year Results


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Occupancy Percentage based on Tenancy End Date

Actual Prorata Share = 46000*(200/800)*.7479


Pro ram Calculate Recover


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s/b Re-calculate Only works if

record exists inn rec calc_ _ _periods_all

Calculation

must matchPeriod End Date


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