How Real Estate Students are Learning Industry Software in the Classroom
How Real Estate Students are Learning Industry Software in the Classroom
Susie Netusil (Finance and Real Estate ‘21) uses Argus Enterprise every day as a senior asset management analyst at Principal Real Estate. Argus Enterprise, or Argus for short, is a crucial piece of commercial real estate software that processes property data and generates valuation and cash flow forecasts to help investors make decisions. More than 3,500 companies use it, including Fortune 500 companies like Principal.
For Netusil, knowledge of Argus upon graduating was a significant advantage when joining Principal. She gained that exposure at the Wilson College of Business, thanks to an alumnus who came back to teach students the fundamentals of the program in the Real Estate Appraisal and Investment course.
Netusil’s story isn’t unique. Hundreds of UNI real estate students have had a similar experience, giving them a leg up on other graduates when searching for jobs.
“I think it was very valuable to have the experience,” said Netusil, who has come full circle and now returns to UNI twice a year to teach students about Argus. “In this industry, everyone needs to know how to use Argus. So, the more exposure students can get to it, the better. I think it helps UNI students set themselves apart when interviewing for jobs.”
Those opportunities are intentional. Argus is integrated into the Wilson College of Business real estate curriculum — the only four-year real estate program in Iowa — even more so now than when Netusil was in the program.
I think it was very valuable to have the experience. In this industry, everyone needs to know how to use Argus. So, the more exposure students can get to it, the better. I think it helps UNI students set themselves apart when interviewing for jobs.
Kirsten Juhl, associate professor of practice and practicing real estate lawyer, teaches real estate courses and makes Argus the foundation of the entire semester in the Real Estate Appraisal and Investment course. Students learn from alumni about the software, then they are expected to complete real valuations and forecasts of properties in the Cedar Valley.
In the spring 2024 semester, Juhl tasked students with valuing the First Bank building on Main Street in Cedar Falls. The class toured the building and saw some of its unique characteristics firsthand, including a vault and a drive-up window. The property had just undergone a major renovation. The parking lot is the second-largest parking area in popular downtown Cedar Falls.
All those characteristics need to be factored into the valuation and investment analysis, which is where Argus comes in. To mimic a real workplace as closely as possible, Juhl doesn’t provide much direction. Instead, she lets students enter their own data and draw their own conclusions.
“The valuation of real estate is a huge part of any real estate transaction,” Juhl said. “What really makes Argus valuable is students have to go through this process of inputting information. They have to decide what’s important based on what they’ve learned. Then, I give them feedback on how they did their valuation. It forces them to think through all these different aspects of the commercial leasing process.”
They have to come up with realistic financing scenarios and what those look like. It’s really exciting, and it’s fun to see what the students come up with. I’ve been really impressed with the ideas and options students present throughout the year.
Challenging students’ real estate knowledge
There’s nothing like learning through competition.
UNI real estate students are also exposed to Argus through the National Association for Industrial and Office Parks (NAIOP) Minnesota University Challenge. NAIOP is a commercial real estate trade organization, and the Minnesota chapter hosts schools from across the region to pitch the best deal to potential investors — one that maximizes value while achieving the highest risk-adjusted return.
That’s how Aidan Perry (Finance and Real Estate ‘19) first used and learned about Argus beyond the classroom. Also a senior asset management analyst at Principal — Netusil’s colleague — he credits that experience as fundamental to hitting the ground running after graduation.
“I felt pretty set going into my internship at Principal because of coursework at UNI and from the NAIOP experience,” said Perry, who interned at Principal while attending UNI. “There’s definitely a learning curve with the software, so those experiences really helped.”
Typically, about 10 students represent UNI in the competition, which also welcomes other schools from Minnesota, Iowa and Wisconsin. Teams have access to local experts like brokers and appraisers to gain market information. They tour the property in question and then develop an investment and redevelopment plan.
One property was in downtown Minneapolis, near U.S. Bank Stadium, home of the Minnesota Vikings football team. The UNI team thought outside the box and pitched building a parking garage to take advantage of parking scarcity in the area. They also calculated the return on building senior housing, which showed more potential than apartments or condos.
That team didn’t place, but Juhl thought the pitch was competitive and creative.
“The competition really acts as a capstone for all they’ve learned up to that point from all the real estate classes,” Juhl said. “They have to come up with realistic financing scenarios and what those look like. It’s really exciting, and it’s fun to see what the students come up with. I’ve been really impressed with the ideas and options students present throughout the year.”
I felt pretty set going into my internship at Principal because of coursework at UNI and from the NAIOP experience. There’s definitely a learning curve with the software, so those experiences really helped.
A helping hand from alumni
One unique aspect of integrating Argus into the UNI classroom is the dedication of alumni to help students learn. Two alumni return every semester to show students the software and answer questions over two or three days.
Netusil has been one of those instructors since the spring 2023 semester. The training sessions include a thorough walk-through of Argus. Students learn how to build out properties, input tenant details, manage expenses and perform valuation analysis.
“I look back at when I was at UNI — we had someone come and teach our class in a similar way, and that was beneficial as I was going out and looking for jobs,” Netusil said. “Being able to do a similar thing for students today is great. I really enjoy helping students, and from what I’ve heard, they’ve all found it very beneficial.”
Bringing back industry professionals adds a deeper dynamic to the class. Students get to hear firsthand from people using Argus on real-world industry projects. That’s particularly important because Argus isn’t intuitive to use and requires familiarity with its features.
“I think it’s fantastic because they [the alumni] have a different perspective than I do,” Juhl said. “I’m not actually using this software every day like they are. Our alumni can tell students about problems they’ve encountered. Having outside influence, especially from alumni, really adds a lot of value.”
Like any forecasting model, Argus is only as good as the data entered and the user leveraging it. Having knowledgeable graduates who understand how to input, use and interpret data from Argus benefits the industry and enhances the accuracy of real estate valuations.
“There are so many factors and unique qualities of each piece of real estate,” Juhl said. “That’s why we need these experts who have these tools at their disposal. Valuation is such a complex, varying and constantly changing factor [in real estate investment decisions].”
