1. Advanced Real Estate Forecasting Implementation Guide
  2. Calculation Method 3 for Years Leased (Forecasted Amount for Years 1 through 6)

Calculation Method 3 for Years Leased (Forecasted Amount for Years 1 through 6)

The system uses this setup information for this calculation:

  • Area of Unit: 10,000.

  • Term of Real Estate Lease: 72 months (6 years).

  • New Rate (from assumption detail) 3.00.

The system multiplies the area of the unit by the new rate from the detail assumption, and then multiplies that result by the number of years in the lease term. Using the setup information, the system calculates the forecasted amount for the term of the real estate lease as follows: [(Area of Unit) × (New Rate)] × (Lease Term)= (Forecasted Amount)

For example:(10,000 × 3.00) × 6 = 180,000

The system updates the total forecasted amounts for the years that the unit is leased to the first period of the first year of the real estate lease in the F15L109 table. In this example, the system updates the total forecasted amount to period 01 of 2007.