RECOVERIES

Recoveries Section & Tabs

Keyboard shortcut: Ctrl + Alt + V

The Recoveries section is where:

• Components of recovery mechanics are built out.
• Common recovery structures that are used across multiple lease and/or Market Lease records are built out.

Recoveries are the methodology by which a tenant shares the property's operating expenses with the landlord.

Note: At the bottom of this article is a downloadable quick guide that covers the fundamentals of rDCF recoveries. 

Article contents:

• Recovery Pools
• Area Measures
• Named Recoveries
• Recovery Groups
• Tenant Contributions
• Tenant Groups
• Report Tags

Related: How to setup Retail Recoveries with Major Contributions

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Recovery Pools

Ctrl + Alt displays the numeric keyboard shortcut.

The Recovery Pools tab is where reimbursable expense pools are created that may be used when building pro rata recoveries.

Within the Recovery Pool a user defines:

• The percentage of a Line Item of Type = "Expense" to be included in the pool (generally 100%)
• Whether an included Line Item is subject to:
  • a gross-up and the gross-up percentage (e.g., 95%)
  • an administrative fee and the admin fee percentage (e.g., 5%)
  • a cap
• Whether the pool should be reduced by a Tenant Contribution, if any (used for retail recoveries)

Recovery Pools are applicable in the following areas of the app:

• Rent Roll section > Rent Roll tab > Recovery column > Type = Pro Rata Recovery > Recovery Pool drop-down menu
• Rent Roll and Property Market sections > Market Lease tab > Recovery column > Type = Pro Rata Recovery > Recovery Pool drop-down menu
• Rent Roll and Recoveries sections > Named Recoveries tab > Input Type = Pro Rata Recovery > Recovery Pool drop-down menu

Info: Read about #, Code and Name throughout the Application

Recovery Pool Details

Press Enter or click on "View/Edit" in the Details column for the applicable record to activate the Recovery Pool screen.

Upon activation for initial set-up of the recovery pool, the Item column will display (i) all Line Items with a Line Item Type = "Expense" and (ii) all named items created on the Tenant Contributions tab.

• To filter the Items that are displayed in the Item column, utilize the Display, Type and/or Search fields:
  • Display (upper left corner of screen) - use the radio buttons to filter the displayed Items by:
    • All displays all Line Items of Type = "Expense" and all named items created on the Tenant Contributions tab.
    • Selected displays all Items for which the "Selected" box has been checked.
  • Type (column to the right of the "Selected" check boxes) - use the drop-down list beneath the column header to filter the displayed items by:
    • All displays all Line Items of Type = "Expense" and all named items created on the Tenant Contributions tab.
    • Expense displays all Line Items of Type = "Expense".
    • Tenant Contrib lists all named items created on the Tenant Contributions tab.
  • Search (upper right hand corner of screen) - type in a string of characters to filter the list based upon those characters.

Note: After initial set-up, upon activation of the recovery pool screen the Display will default to "Selected".

• Check the boxes in the "Selected" column to include Items in the recovery pool.
• Uncheck the boxes in the "Selected" column to exclude previously selected items from the recovery pool. 
• Select all Items by checking the box beneath the "Selected" column header.
• Deselect all Items by unchecking the box beneath the "Selected" column header.

Note: When the box for an Item is checked, the Percent will default to "100" and the Cap? & Admin? boxes will default to checked.

• If necessary, after Items have been selected, edit the "Percent", "Gross Up%", "Cap?" and "Admin?" fields.
  • Percent is the percentage of the expense and/or Tenant Contribution to be included in the pool. If the pool is to be reduced by a Tenant Contribution, the percent entered for the applicable Tenant Contribution should be entered as a positive value rather than a negative value (i.e., "100.00" rather than "-100.00").
  • Gross Up % is the percentage by which each included expense will be grossed-up. If the included expense is not subject to a gross-up, the "Gross Up %" field for that expense should be left blank (null).

Note: The gross-up will be calculated based upon the Area Measure used to create the Line Item expense when the Line Item is a variable expense based upon an occupied Area Measure.

Warning: If a Gross Up % is added for a fixed expense, a gross-up will still calculate based upon the default occupied Area Measure (*Occupied) for the building. Applying a Gross Up % to fixed expenses is not recommended, and a validation warning will appear for this input.

• • Cap? should be checked if the included expense will be subject to a cap (the actual cap amount will be entered in the Cap field for the Pro Rata recovery in which the Recovery Pool is referenced).

Note: Expense Line Items for which the "Cap?" box is checked in a Recovery Pool definition will only be applicable if the "Cap On" field, as set up in the Pro Rata recovery, is set to "Pool".

Helpful Hint: Recovery Pools that have both capped and uncapped expenses can be built within one pool rather than separate pools.

• • Admin Fee? should be checked if the included expense will be subject to the administrative fee percent as entered in the "Pool Admin Fee %" field. The checkbox for Tenant Contributions is disabled, meaning that the Admin Fee is calculated prior to any deductions for Tenant Contributions.

Helpful Hint: If the Admin Fee is calculated after deductions for Tenant Contributions, adjust the Percent field for the Tenant Contribution to account for such Admin Fee (e.g., if the Admin Fee is 15% and is calculated after the Tenant Contribution deductions, enter "115" in the Percent field for the Tenant Contribution).

• Enter a Pool Admin Fee %, if applicable. This will apply an administration fee on all included expenses for which the "Admin Fee?" box is checked.
• To sort the Recovery Pool rows by any column in ascending order, click the double arrows for the desired column (the double arrow icon will change to a single arrow pointing downward); to re-sort the list in descending order, click the single arrow pointing downward for the same column (the single arrow pointing downward icon will change to a single arrow pointing upward).

Recovery Pool (Example includes all expenses with a 95% gross-up on variable expenses and a cap on controllable expenses and no Admin Fee)

• To exit the Details recovery pool screen, click on the words "Recovery Pools" with the back arrow at the upper left hand corner of the screen:

Upon exiting the Details recovery pool screen, the number of Items included in the recovery pool will appear in parenthesis next to the "View/Edit" button in the Details column of the main Recovery Pools screen:

• To scroll between the Details for all recovery pools that have been entered, click on the double arrows to the left of the recovery pool code at the upper left hand corner of the screen:

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Area Measures

Ctrl + Alt displays the numeric keyboard shortcut.

Accessible from both the Property and Recoveries sections, the Area Measures tab is used to:

• Define system default area measures (such as *TotalArea - Total Property Area).
• Create named space measurements for (i) pro rata denominator calculations and (ii) Line Item multipliers where the line item is entered as "Amt/Area" (e.g., occupied area measures used to create variable expenses).

Read more: Area Measures in the Property section

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Named Recoveries

Ctrl + Alt displays the numeric keyboard shortcut.

Accessible from both the Rent Roll and Recoveries sections, the Named Recoveries tab is used to manage common reusable recovery mechanics for a property. There are also two system defined Named Recoveries: *Base Year and *NNN.

Named Recoveries are named items that can be used multiple times within the Rent Roll tab and/or Market Lease tab. They are beneficial if multiple tenants or market leases use the same recovery structure/definition (e.g., net leases that use the same Recovery Pool and Denominator for calculation of the pro-rata share).

Tip: If multiple Named Recoveries apply to a lease and/or Market Lease record, they can be grouped together into a Recovery Group as an expedite.

Named Recoveries may be referenced in the following areas of the application:

• Rent Roll section > Rent Roll tab > Recovery column > Type drop-down menu
• Rent Roll and Property Market sections > Market Lease tab > Recovery column > Type drop-down menu

Info: Read about #, Code and Name throughout the Application

System Named Recoveries

System Named Recoveries are system defined expedites that are non-editable. These named recoveries have (i) a darker gray background in the Code, Name and Input Type fields; (ii) a Code that is preceded by an "*", and (iii) non-editable Codes, Names and Input Types. There are two System Named Recoveries: 

*BaseYear - Base Year Recovery - Defined as a Pro Rata recovery with:

• A Recovery Pool equal to 100% of all Line Items with a Line Item Type = "Expense", with no gross-up or admin fee
• A pro-rata share calculated as tenant area divided by the building net rentable area as defined in the system Area Measure *TotalArea
• A Stop Type of "Occupancy Yr"
• No cap or Report Tag

*NNN - NNN Recovery - Defined as a Pro-rata Recovery with:

• A Recovery Pool equal to 100% of all Line Items with a Line Item Type = "Expense", with no gross-up or admin fee
• A pro-rata share calculated as tenant area divided by the building net rentable area as defined in the system Area Measure *TotalArea
• A Stop Type of "None"
• No cap or Report Tag

Named Recoveries - System

Named Recoveries Input Types

To add a Named Recovery:

1) Click the "+" button on the Tab Tools menu or use the "Ctrl Shift +" hot key combination;

2) Enter a Code and Name,

3) Press the Enter key in the "Input Type" field to activate the Named Recovery carousel,

4) Navigate to the appropriate tab for each of the three available Named Recovery input types as described below:

• Pro Rata is used when the tenant pays a pro-rata share of specified operating expenses on either a net basis or over a defined stop.
• Amt is used when the tenant pays a fixed amount that is either flat for the entire lease term or subject to annual, consistent increases (% or amount/area).
• Tenant Mgmt Fee is used when the tenant pays a % of their Rent, rent + Recoveries or All Revenues as a replacement of pro-rata share of property level management fee (typically seen in industrial buildings).

Pro Rata Named Recovery

Pro Rata is used when the tenant pays a pro-rata share of specified operating expenses on either a net basis or over a defined stop.

Recovery Pool is a drop-down menu of named items created and defined in the Recoveries section on the Recovery Pools tab. The Recovery Pool provides the definition of operating expenses subject to recovery.

Pro Rata Type defines the method by which tenant's pro-rata share will be determined. Options include:

• Natural uses the tenant's natural area, i.e., 100% of tenant Area divided by a user-defined Denominator (Area Measure). "Natural" is the default setting.
• Specified % allows the user to hard-code a percentage in the Pro Rata % field.

Pro Rata % is the hard-coded pro-rata share percentage that is only available if Pro Rata Type is set to "Specified %".

Denominator is a drop-down menu of Area Measures that is only available if Pro Rata Type is set to "Natural". Area Measures are created and defined on the Area Measure tab, accessible from both the Property and Recoveries sections.

Stop Type defines how the expense stop (i.e., the amount that must be exceeded by the Recovery Pool before the tenant pays recoveries) is entered and how the entry in the Stop field, if required, is interpreted.

• None: the expense stop is $0 and the recovery will act as "net" (no data entry required in the Stop field).
• Amt: the expense stop will equal the $ amount entered in the Stop field.
• Amt/Area: the expense stop will equal the $ amount/area entered in the Stop field. If the Pro Rata Type is set to (i) "Natural," the Amt/Area will be multiplied by the Denominator to determine the stop; (ii) "Specified %," the Amt/Area will be divided by the Pro Rata % and then multiplied by the leased area to determine the stop.
• Occupancy Yr: the expense stop will equal the calculated amount of the Recovery Pool for the later of the Analysis Begin year or the year of the lease record Begin Date (no data entry is required in the Stop field).
  • Note: If the year of the lease record Begin Date is prior to the Analysis Begin year, the stop amount will be set to the calculated amount of the Recovery Pool for the Analysis Begin year.
  • Note: The occupancy year will be determined based upon the Recovery Effective Month setting in the Property section Property Settings tab.
  • Example: Analysis Begin date is 1/1/2024, Recovery Effective Month is July and lease record Begin Date is 9/1/2024 with an Occupancy Year stop: The stop will equal the calculated amount of the Recovery Pool for the period 7/1/2024 - 6/30/2025.
  • Example: Analysis Begin date is 1/1/2024, Recovery Effective Month is July and lease record Begin date is 4/1/2023 (prior to Analysis Begin), with an Occupancy Year stop: The stop will equal the calculated amount of the Recovery Pool for the period 7/1/2024 - 6/30/2025.
• Occupancy Yr+1: same as "Occupancy Yr" except the expense stop will equal the calculated amount of the Recovery Pool for the later of the Analysis Begin year or the year of the lease record Begin Date plus 1 year (no data entry is required in the Stop field).
• Occupancy Yr-1: same as "Occupancy Yr" except the expense stop will equal the calculated amount of the Recovery Pool for the later of the Analysis Begin year or the year of the lease record Begin Date minus 1 year (no data entry is required in the Stop field).
• Specified Yr: the expense stop will equal the calculated amount of the Recovery Pool for the year entered in the Stop field.
  • Note: If the year entered in the Stop field is prior to the Analysis Begin year, the stop amount will be set to $0 and the recovery will be treated as "net."
  • Note: If the Recovery Effective Month settings on the Property Settings tab in the Property section is set to a fiscal recovery (i.e., anything other than a January Recovery Effective Month), the Specified Yr entered in the Stop field will be interpreted as the fiscal year end.
  • Example: Analysis Begin date is 1/1/2024, Recovery Effective Month is July and lease Begin Date is 7/1/2025 with a 2025 stop year: The stop will equal the calculated amount of the Recovery Pool for the period 7/1/2024 - 6/30/2025.

• Est. Base Yr: used when a lease record Begin Date is prior to the Analysis Begin Date and the recovery pool amount is unknown and needs to be estimated. The Recovery Pool amount is estimated by taking the pool amount in the first year of the analysis and deflating it back to the year of the lease record Begin Date. The percentage used to deflate the pool amount is entered in the Stop field.

Stop is the amount of the stop (if the Stop Type is set to "Amt" or "Amt/Area") the year (if the Stop Type is set to "Specified Yr") or the deflation percent (if the Stop Type is set to "Est. Base Yr", entered as a whole number [i.e., 3% is entered as "3", not ".03"]). The excess of the Recovery Pool over the Stop amount will be subject to pro rata calculations.

Report Tag (optional) is a drop-down menu of named item expedites created in the Recoveries section on the Report Tags tab. Report Tags are used for classification of the recovery for reporting purposes (recoveries with the same Report Tag can be consolidated on one line item for cash flow reporting purposes) or retail tenant contributions (recoveries with the same Report Tag for tenants belonging to the same Tenant Group can be consolidated and used as a Major Contribution reduction to Recovery Pools).

If a Report Tag has been referenced within the recovery record, the tag may be cleared by clicking on the black "X" that appears within the Report Tag field:

Cap is the maximum amount of recovery. To enter a cap, click the "Cap" button, which will open the Cap screen:

When opened, the arrow on the "Cap" button will change from facing right to facing down. To close the Cap screen, click on the downward facing arrow:

A dot appears on the button if a cap has been entered:

Note: Caps are rarely, if ever, used for Named Recoveries.

A. Cap On options include "Pool" or "Recovery", of which only one may be selected:

• Pool is used to cap the dollar amount of the Recovery Pool, i.e., a building level cap, prior to the calculation of the tenant’s share.
• Recovery is used to cap the calculated amount of the recovery paid by the tenant, i.e., a tenant level cap.

B. When the Cap On field is set to "Pool," the Cap Type, Amt, and % Increase fields are used in accordance with the following table:

Cap Type	Amt	% Increase
Percent	Enter the % by which increases in capped expenses in the calculated Recovery Pool are capped.	N/A
/Area/Yr	Enter the annual amount per area of the capped expenses in the Recovery pool. If Pro Rata Type is set to (i) Natural, the Amt will be multiplied by the Denominator to determine the cap; (ii) Specified %, the Amt will be divided by the Pro rata % and then multiplied by the leased Area to determine the cap. The Value entered is always the cap for the year commencing with the Analysis Begin date.	Enter the % by which the cap will increase on an annual basis.
/Yr	Enter the annual amount of the capped expenses in the Recovery Pool. The Amt entered is always the cap for the year commencing with the Analysis Begin date.	Enter the % by which the cap will increase on an annual basis.
Prior Yr	Enter the annual amount of the capped expenses in the Recovery Pool for the year prior to the year commencing with the Analysis Begin date (this is used primarily when source documents are provided for contractual tenants whereby the cap for the prior year has been established).	Enter the % by which the cap will increase on an annual basis.
Detailed /Yr & Detailed Area/Yr (see below)	N/A	N/A

Detailed/Yr - Used to enter the annual amount of capped expenses in the Recovery Pool when dates and/or amounts of increases in the cap are irregular. Dates may be entered as:

• Absolute - Caps will always be based off of the dates entered.
• Relative - Dates entered are always relative to the Analysis Begin date.

Detailed Area/Yr - Used to enter the annual amount per area of capped expenses in the Recovery Pool when dates and/or amounts of increases in the cap are irregular. Dates may be entered as Absolute or Relative and behave in the same manner as described above for "Detailed/Yr." Regarding the amount per area, if the Pro Rata Type is set to (i) Natural, the Amt will be multiplied by the Denominator to determine the cap; (ii) Specified %, the Amt will be divided by the Pro Rata % and then multiplied by the leased Area to determine the cap.

C. When the Cap On field is set to "Recovery," the Cap Type, Amt, and % Increase fields are used in accordance with the following table:

Cap Type	Amt	% Increase
Percent	Enter the % by which tenant's calculated recoveries for the prior year are capped.	N/A
/Area/Yr	Enter the annual amount per area by which tenant's calculated recoveries are capped. The Amt entered will be multiplied by the leased Area to determine the cap. The Amt entered is always the cap for then year commencing with the Analysis Begin date.	Enter the % by which the cap will increase on an annual basis.
/Yr	Enter the annual amount by which tenant's calculated recoveries are capped. The Amt entered is always the cap for the year commencing with the Analysis Begin date.	Enter the % by which the cap will increase on an annual basis.
Prior Yr	Enter the annual amount by which tenant's recoveries for the year prior to the year commencing with the Analysis Begin date are capped (this is used primarily when source documents are provided for contractual tenants whereby the cap on the amount paid by tenant for the prior year has been established).	Enter the % by which the cap will increase on an annual basis.
Detailed /Yr & Detailed Area/Yr (see below)	N/A	N/A

Detailed /Yr - Used to enter the annual amount by which tenant's calculated recoveries are capped when dates and/or amounts of increases in the cap are irregular. Dates may be entered as:

• Absolute - Caps will always be based off of the dates entered.
• Relative - Dates entered are always relative to the Analysis Begin date.

Detailed Area/Yr - Used to enter the annual amount per area by which tenant's calculated recoveries are capped when dates and/or amounts of increases in the cap are irregular. The Amt(s) entered will be multiplied by the leased Area to determine the cap. Dates may be entered as Absolute or Relative and behave in the same manner as described above for "Detailed /Yr."

Notes Regarding Caps with a Cap on "Recovery"

• Cap On "Recovery" with a Cap Type of "Percent" is typically not used for leases with base year expense stops. In the most extreme example, if a tenant does not pay recoveries in the first lease year due to the stop, the cap amount will always be $0 and tenant will never pay recoveries (the Percent increase is being applied to an initial recovery amount of $0). Rather, a cap on the "Pool" should always be used with a Cap Type of "Percent" for leases with base year expense stops.
• When the cap is on "Recovery" rather than "Pool," the expenses subject to cap in the Recovery Pool definition (as identified by a check in the "Cap?" check box on the Recovery Pools screen) are ignored. Rather, the cap is applied to the entire amount of tenant's calculated recovery payment.

If a cap was previously entered and needs to be removed, click the red "Clear" button in the upper right hand corner of the Cap screen:

Named Recoveries - Pro Rata

Amt Named Recovery

Amt is used when the tenant pays a fixed amount that is either flat for the entire lease term or subject to annual, consistent (% or amount/area) increases.

Note: When the Amt Input Type is used for Named Recoveries, the amount entered is as of the Analysis Begin date and all inflation will be based off of the Analysis Begin date, without re-set.

Amt is the amount of recovery as of the Analysis Begin date as set in the Property section on the Property Settings tab (this is different than entering an Amt recovery on the Rent Roll, whereby the amount of recovery is as of the later of the lease record Begin Date or the Analysis Begin date).

Amount Type interprets the Amt value. Options include:

• /Mo is the monthly Amt.
• /Yr is the annual Amt.
• /Area/Mo is the monthly Amt per area.
• /Area/Yr is the annual Amt per area.

Inflation is a drop-down menu of named items created and defined in the Property Market section on the Inflation tab. The assigned named Inflation determines how the Amt recovery will grow during the analysis term in order to set the initial recovery amount when a Rent Roll lease or Market Lease commences.

Increase is a drop-down menu of named item expedites created and defined in the Tenant Market section on the Increase tab. Upon initial entry, null is the default (no increase). If an Increase has been selected and you want to change the data entry so there is no increase, select "*None" from the drop-down menu. Select an Increase named item from the drop-down menu to determine how the recovery Amt will increase within the lease term once a Rent Roll lease or Market Lease commences.

Report Tag (optional) is a drop-down menu of named item expedites created in the Recoveries section on the Report Tags tab. Report Tags are used for classification of the recovery for reporting purposes (recoveries with the same Report Tag can be consolidated on one line item for cash flow reporting purposes) or retail tenant contributions (recoveries with the same Report Tag for tenants belonging to the same Tenant Group can be consolidated and used as a Major Contribution reduction to Recovery Pools).

If a Report Tag has been referenced within the recovery record, the tag may be cleared by clicking on the black "X" that appears within the Report Tag field:

Named Recovery - Amt

Tenant Mgmt Fee Named Recovery

Tenant Mgmt Fee is used when tenant pays a % of their Rent, Rent + Recoveries or All Revenues as a replacement of pro-rata share of property level management fee (typically seen in industrial buildings).

Percent is the percentage value that will be multiplied by the tenant's revenue as determined by the Revenue Type selection.

Revenue Type reflects the component(s) of tenant revenue used to calculate the tenant management fee. Choices are:

• Rent - Base Rent only
• Rent + Recovery - Base Rent and Expense Recoveries
• All Revenues - Base Rent, Expense Recoveries, Percentage Rent and Miscellaneous Revenue (Misc. Revenue only applies if the Named Item recovery is used on the Rent Roll rather than a Market Lease)

Report Tag (optional) is a drop-down menu of named item expedites created in the Recoveries section on the Report Tags tab. Report Tags are used for classification of the recovery for reporting purposes (recoveries with the same Report Tag can be consolidated on one line item for cash flow reporting purposes) or retail tenant contributions (recoveries with the same Report Tag for tenants belonging to the same Tenant Group can be consolidated and used as a Major Contribution reduction to Recovery Pools).

If a Report Tag has been referenced within the recovery record, the tag may be cleared by clicking on the black "X" that appears within the Report Tag field:

Named Recovery - Tenant Mgmt Fee

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Recovery Groups

Ctrl + Alt displays the numeric keyboard shortcut.

Accessible from both the Rent Roll and Recoveries sections, the Recovery Groups tab is used to manage expedites for the combination of Named Recoveries.

A Recovery Group allows for the combination of multiple Named Recoveries to expedite the expense recovery creation process. A Recovery Group can then be referenced in the Rent Roll and Property Market sections in the Market Lease tab when adding recoveries.

Example: A common example would be a Modified Gross Rental market; expenses over a base year stop where the stop is separate for Real Estate Taxes and Operating Expenses. Simply create two Named Recoveries, one for Taxes and one for Operating Expenses, each with a unique stop, which could then be combined within a Recovery Group and subsequently referenced as a single item.

Recovery Groups may be referenced in the following areas of the app:

• Rent Roll section > Rent Roll tab > Recovery column > Type drop-down menu
• Rent Roll and Property Market sections > Market Lease tab > Recovery column > Type drop-down menu

To add a Recovery Group:

1) Click the "+" button on the Tab Tools menu or use the "Ctrl Shift +" hot key combination;

2) Enter a Code and Name,

3) Press the Enter key in the "Input Type" field to define the Recovery Group. A screen showing all previously created Named Recoveries will appear.

Info: Read about #, Code and Name throughout the Application

• Check the boxes to include specific Named Recoveries in the Recovery Group.
• Uncheck the boxes to exclude specific Named Recoveries from the Recovery Group. 
• Select all Named Recoveries by checking the box to the left of the Search field.
• Deselect all Named Recoveries by unchecking the box to the left of the Search field.
• To view all Named Recoveries available for selection, uncheck the "Show Selected" box.
• To view only selected Named Recoveries, check the "Show Selected" box.
• To sort the list alphabetically in ascending order, click the double arrows (the double arrow icon will change to a single arrow pointing downward); to re-sort the list alphabetically in descending order, click the single arrow pointing downward (the single arrow pointing downward icon will change to a single arrow pointing upward).

Recovery Group

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Tenant Contributions

Ctrl + Alt displays the numeric keyboard shortcut.

The Tenant Contributions tab is used to create and define Tenant Contributions, which allow for the reduction of a Recovery Pool for recovery payments by a tenant or group of tenants.

Typically used in retail assets where a major or anchor tenant pays less than their pro rata share of certain expenses, the amount contributed by majors or anchors is then deducted from the recovery pool and passed through to other tenants over a square footage that excludes the contributors. The intent is to burden the remaining tenants with the shortfall via a reduced pool but an increased pro rata share.

A Tenant Contribution is the combination of a Tenant Group and a Report Tag. Recoveries for all tenants within the Tenant Group containing the same Report Tag will be combined together. This Tenant Contribution can then be used to reduce the Recovery Pools for Non-Anchor or Non-Major tenants.

Tenant Contribution named items may be referenced in the following areas of the application:

• Recoveries section > Recovery Pools tab > Input Type > Tenant Contribution

To add a Tenant Contribution:

1) Click the "+" button on the Tab Tools menu or use the "Ctrl Shift +" hot key combination;

2) Enter a Code and Name,

3) Press the Enter key in the "Input Type" field to define the Tenant Contribution. A screen showing Report Tags and all previously created Tenant Groups will appear.

Info: Read about #, Code and Name throughout the Application

Report Tag is a drop-down menu of named items created on the Report Tags tab, located in the Recoveries section. Select the Report Tag that will identify the type of recovery (i.e., CAM, insurance, taxes, etc.) for those tenants in the assigned Tenant Group(s) that will reduce the Recovery Pool to which the Tenant Contribution is assigned.

Note: Only one Report Tag may be selected per Tenant Contribution record.

Tenant Groups is used to select the previously created Tenant Groups that is used to identify those tenants whose recovery as defined by the Report Tag will be used to reduce the Recovery Pool to which the Tenant Contribution is assigned.

• Check the boxes to include specific Tenant Groups in the Tenant Contribution.
• Uncheck the boxes to exclude specific Tenant Groups from the Tenant Contribution. 
• Select all Tenant Groups by checking the box to the left of the Search field.
• Deselect all Tenant Groups by unchecking the box to the left of the Search field.
• To view all Tenant Groups available for selection, uncheck the "Show Selected" box.
• To view only selected Tenant Groups, check the "Show Selected" box.
• To sort the list alphabetically in ascending order, click the double arrows (the double arrow icon will change to a single arrow pointing downward); to re-sort the list alphabetically in descending order, click the single arrow pointing downward (the single arrow pointing downward icon will change to a single arrow pointing upward).

Tenant Contribution

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Tenant Groups

Ctrl + Alt displays the numeric keyboard shortcut.

Accessible from both the Rent Roll and Recoveries sections, the Tenant Groups tab is where tenants may be grouped together for the following purposes:

• Creation of Area Measures to be used (i) as the denominator in the calculation of pro-rata shares for recoveries; and (ii) in the creation of Line Items (typically for variable expenses or revenues based upon only a subset of tenants within a building).
• Identification of (i) tenants for which a different vacancy and/or credit loss assumption may apply; and (ii) anchor/major tenants whose recoveries need to be grouped together for the purpose of reducing the recovery pools of non-anchor/major tenants.

Read more: Tenant Groups in the Rent Roll section

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Report Tags

Ctrl + Alt displays the numeric keyboard shortcut.

The Report Tags tab is used to create and define tags that allow for (i) the grouping of recoveries for reporting purposes and (ii) the grouping of recoveries for major tenants that will be used to reduce Recovery Pools of non-major tenants.

Report Tags named items may be referenced in the following areas of the application:

• Rent Roll section > Rent Roll tab > Recovery column states
• Rent Roll section > Market Lease tab > Recovery column states
• Rent Roll section > Named Recoveries tab > Input Type states
• Property Market section > Market Lease tab > Recovery column states
• Recoveries section > Named Recoveries tab > Input Type states
• Recoveries section > Tenant Contributions tab > Tenant Groups w/ Report Tag column

Suggestion: Create Report Tags using a Code that depicts where and how they are used (e.g., "Exterior CAM," "Common Area Taxes," etc.).

To add a Report Tag:

1) Click the "+" button on the Tab Tools menu or use the "Ctrl Shift +" hot key combination;

2) Enter a Code and Name,

3) Use the drop-down menu to enter a Type.

Info: Read about #, Code and Name throughout the Application

Type defines where and how the Report Tag is used. "Recovery" is currently the only Type available. The tag is used in conjunction with recoveries to (i) group for reporting purposes, or (ii) for use within a Tenant Contribution to consolidate the amount to be contributed by the contributing tenants.

• To group recoveries for reporting purposes, select the appropriate Report Tag from the combo box as recovery records are being created.
• To identify the recoveries to be consolidated for contributing tenants, select the appropriate Report Tag from the combo box when creating a Tenant Contribution record.

Report Tags

If a Report Tag has been created and referenced within a recovery record, the tag may be cleared by clicking on the black "X" that appears within the Report Tag field:

Info: How to setup Retail Recoveries with Major Contributions