Business Functions Library for Excel

 Index Rent family Index rent Description: Rents that grow in line with indexation Introduction: The Index Rent family models rents that grow with indexation, for example, the Retail Price Index or Construction Index. Except for the basic IdxRentGrowR and IdxRentFcstR they still retain the ability to review to market like a normal lease, and you can turn off the indexation and model a "normal" rent just by specifying a large value for ØIdxRegularityØ, the frequency in months at which the rent changes in line with the index.All the functions can do reletting after a relet void and cater for a rent-free preriod on the relet. The functions also allow Variable Plurality for the relet variables and the indexation variables, which means that each relet can have different relet conditions, and the indexations conditions can vary too, depending on the function.The basic indexation rent functions are IdxRentGrowR and IdxRentFcstR. These grow an Initial Rent on a regular basis in line with an index. They do not have market rent reviews, except in order to reset the Initial Rent on reletting.The indexation versions of "normal" rent functions are IdxRentGrowMktR and IdxRentFcstMktR. These are the indexation equivalents of RentGrowR and RentFcstR. They calculate a rent review, but additionally grow the Initial Rent, and each reviewed rent, in line with indexation inbetween reviews.It"s important to be able to control the indexation, in particular if you have leases where indexations only applies to part of the lease. The two variables which do most to control the indexation, ØIdxRegularity_sØ and IdxBaseDate_s can accept a range as well as a single value. For the indexing regularity (IdxReg_s), if a single value is specified, that is used for all fixed rental steps (if any, defined by ReviewDates/AnnRents) and relettings. If a multiple value is input, then successive values of the range are used for each rental step (review), and then for each entire reletting. For IdxBaseDate_s, if a single value is input, then that date is used as the base date for the Initial Rent, and subsequent Initial rents on reletting, or subsequent rental steps are grown from the commencement of that rent. If a range of values is input, then successive values are extracted from the range, first for any rental steps, and then for subsequent relettings. Functions that use the forecast mechanism (eg TStepIdxRentFcstR) have a different variable BaseDateOrIdx_s, whereby you can either enter the base date as a date from indexation is referenced, or the value of the base index itself (the function will assume its a date of its in the 1910-3653 or greater than 25,000, and will tell you in Trace what it has done).How do you turn the indexation off for a particular review? You simply set a value for IdxReg_s that is very large, so no indexation could possible occur (eg 99 months). Using this technique, you can have part of the lease that runs off indexations, and part that is either fixed or uses open market reviews only. Functions in the Index Rent family (6)IdxRentGrowR Rent growing off of an Initial Rent with indexation and relettingIdxRentFcstR Rent growing off of an Initial Rent with indexation and reletting (forecast basis)IdxRentGrowMktR Rent reviewing to market with the option to grow with indexation inbetween reviews (with reletting - growth basis)IdxRentFcstMktR Rent reviewing to market with the option to grow with indexation inbetween reviews (with reletting - forecast basis)TStepIdxRentGrowR Stepped Rent growing with indexation and relettingTStepIdxRentFcstR Stepped Rent growing with indexation and reletting (forecast basis)

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