ARGUS EXAM / LATEST 2026/2027 ARGUS CERTIFICATION EXAM
ACCURATE QUESTIONS WITH WELL ELABORATED ANSWERS AND
DETAILED RATIONALES (CORRECT VERIFIED ANSWERS)
CURRENTLY UPDATED VERSION |GUARANTEED SUCCESS A+
(BRAND NEW!) |INSTANT PDF DOWNLOAD
Which ARGUS report best compares actual vs budgeted operating
performance over time?
A) Cash flow waterfall
B) Variance analysis report
C) DCF valuation summary
D) Rent roll summary
CORRECT ANSWER: B
Rationale: Variance analysis highlights differences between budgeted
and actual figures.
A tenant signs a 10-year lease with 3% annual rent escalations. In
ARGUS, this is best modeled using:
A) Step rent
B) Consumer Price Index (CPI)
C) Flat rent
D) Percentage rent
CORRECT ANSWER: B
Rationale: 3% annual escalations are modeled as a fixed CPI or
contractual step, but exam expects CPI for fixed % annual increase.
What does a negative leverage indicate in an ARGUS financing
analysis?
A) Loan-to-value is above 80%
B) Interest rate is less than cap rate
C) Interest rate exceeds property yield (cash-on-cash return)
D) Debt service coverage ratio is above 1.25x
CORRECT ANSWER: C
,Rationale: Negative leverage occurs when borrowing cost (interest rate)
exceeds the unlevered return (cap rate or yield).
In ARGUS, if free rent is granted for 6 months on a 5-year lease, where
is this input?
A) Expense stop schedule
B) Rent abatement / concession schedule
C) Capital reserve line
D) Vacancy assumption
CORRECT ANSWER: B
Rationale: Rent concessions (free rent) are entered in the abatement or
concession section.
A property has total operating expenses
of 500,000andexpenserecoveriesof500,000andexpenserecoveriesof350,0
00. What is the net operating expense after recoveries?
A) 150,000∗∗B)150,000∗∗B)150,000**
C) 500,000D)500,000D)850,000
CORRECT ANSWER: B
Rationale: Net operating expense = Total expenses – Recoveries
= 500,000–500,000–350,000 = $150,000.
Which of the following is a typical use of the "hold and sell" analysis in
ARGUS?
A) Refinancing only valuation
B) Comparing returns if held for 5 years vs sold after 10 years
C) Calculating depreciation recapture
D) Estimating construction loan draws
CORRECT ANSWER: B
Rationale: Hold and sell analysis compares investment returns under
different holding periods.
A multi-tenant industrial building has 50,000 SF. One tenant occupies
20,000 SF
at 12/SF.Anothertenantoccupies30,000SFat12/SF.Anothertenantoccupie
s30,000SFat10/SF. What is the weighted average rent?
, A) 10.80B)10.80B)11.00
**C) 10.80∗∗D)10.80∗∗D)11.20
CORRECT ANSWER: C
Rationale: (20,000 × 12=12=240,000) + (30,000 × 10=10=300,000)
= 540,000totalrent/50,000SF=540,000totalrent/50,000SF=10.80/SF.
In ARGUS, a "TI" (Tenant Improvement) allowance is typically
amortized over:
A) The building's useful life
B) The lease term
C) 39 years for commercial
D) 5 years straight line
CORRECT ANSWER: B
Rationale: TI costs are amortized over the lease term for accounting and
cash flow modeling.
16. A property's gross potential rent
is 2,000,000.Ifeconomicvacancyis10A)2,000,000.Ifeconomicvacancyis1
0A)1,760,000
B) 1,800,000∗∗C)1,800,000∗∗C)1,760,000**
D) 1,960,000 **CORRECT ANSWER: C** Rationale: Total vacancy &
bad debt = 12% → 2,000,000 × 0.88 = $1,760,000.
Which function in ARGUS allows you to model different rent growth
scenarios after a lease expires?
A) Purchase price allocation
B) Market leasing assumptions
C) Depreciation schedule
D) Debt sculpting
CORRECT ANSWER: B
Rationale: Market leasing assumptions control future rent, downtime,
concessions.
A property has NOI
of 800,000,debtserviceof800,000,debtserviceof500,000, and capital
expenditures
ACCURATE QUESTIONS WITH WELL ELABORATED ANSWERS AND
DETAILED RATIONALES (CORRECT VERIFIED ANSWERS)
CURRENTLY UPDATED VERSION |GUARANTEED SUCCESS A+
(BRAND NEW!) |INSTANT PDF DOWNLOAD
Which ARGUS report best compares actual vs budgeted operating
performance over time?
A) Cash flow waterfall
B) Variance analysis report
C) DCF valuation summary
D) Rent roll summary
CORRECT ANSWER: B
Rationale: Variance analysis highlights differences between budgeted
and actual figures.
A tenant signs a 10-year lease with 3% annual rent escalations. In
ARGUS, this is best modeled using:
A) Step rent
B) Consumer Price Index (CPI)
C) Flat rent
D) Percentage rent
CORRECT ANSWER: B
Rationale: 3% annual escalations are modeled as a fixed CPI or
contractual step, but exam expects CPI for fixed % annual increase.
What does a negative leverage indicate in an ARGUS financing
analysis?
A) Loan-to-value is above 80%
B) Interest rate is less than cap rate
C) Interest rate exceeds property yield (cash-on-cash return)
D) Debt service coverage ratio is above 1.25x
CORRECT ANSWER: C
,Rationale: Negative leverage occurs when borrowing cost (interest rate)
exceeds the unlevered return (cap rate or yield).
In ARGUS, if free rent is granted for 6 months on a 5-year lease, where
is this input?
A) Expense stop schedule
B) Rent abatement / concession schedule
C) Capital reserve line
D) Vacancy assumption
CORRECT ANSWER: B
Rationale: Rent concessions (free rent) are entered in the abatement or
concession section.
A property has total operating expenses
of 500,000andexpenserecoveriesof500,000andexpenserecoveriesof350,0
00. What is the net operating expense after recoveries?
A) 150,000∗∗B)150,000∗∗B)150,000**
C) 500,000D)500,000D)850,000
CORRECT ANSWER: B
Rationale: Net operating expense = Total expenses – Recoveries
= 500,000–500,000–350,000 = $150,000.
Which of the following is a typical use of the "hold and sell" analysis in
ARGUS?
A) Refinancing only valuation
B) Comparing returns if held for 5 years vs sold after 10 years
C) Calculating depreciation recapture
D) Estimating construction loan draws
CORRECT ANSWER: B
Rationale: Hold and sell analysis compares investment returns under
different holding periods.
A multi-tenant industrial building has 50,000 SF. One tenant occupies
20,000 SF
at 12/SF.Anothertenantoccupies30,000SFat12/SF.Anothertenantoccupie
s30,000SFat10/SF. What is the weighted average rent?
, A) 10.80B)10.80B)11.00
**C) 10.80∗∗D)10.80∗∗D)11.20
CORRECT ANSWER: C
Rationale: (20,000 × 12=12=240,000) + (30,000 × 10=10=300,000)
= 540,000totalrent/50,000SF=540,000totalrent/50,000SF=10.80/SF.
In ARGUS, a "TI" (Tenant Improvement) allowance is typically
amortized over:
A) The building's useful life
B) The lease term
C) 39 years for commercial
D) 5 years straight line
CORRECT ANSWER: B
Rationale: TI costs are amortized over the lease term for accounting and
cash flow modeling.
16. A property's gross potential rent
is 2,000,000.Ifeconomicvacancyis10A)2,000,000.Ifeconomicvacancyis1
0A)1,760,000
B) 1,800,000∗∗C)1,800,000∗∗C)1,760,000**
D) 1,960,000 **CORRECT ANSWER: C** Rationale: Total vacancy &
bad debt = 12% → 2,000,000 × 0.88 = $1,760,000.
Which function in ARGUS allows you to model different rent growth
scenarios after a lease expires?
A) Purchase price allocation
B) Market leasing assumptions
C) Depreciation schedule
D) Debt sculpting
CORRECT ANSWER: B
Rationale: Market leasing assumptions control future rent, downtime,
concessions.
A property has NOI
of 800,000,debtserviceof800,000,debtserviceof500,000, and capital
expenditures
