CFM - Certified Facility Manager Real Estate and Property Questions and Answers

Question 1

A company is leasing a standalone building where the lease agreement stipulates that the tenant is responsible for all property taxes, building insurance, and all maintenance costs, in addition to the base rent.
What type of lease is this?

Accepted Answer

Triple Net (NNN) Lease

Answer

Gross Lease

Answer

Modified Gross Lease

Answer

Percentage Lease

Question 2

An organization owns its corporate headquarters but needs to generate immediate capital for a new business venture. The company wants to continue operating from the same location without interruption. Which real estate strategy would best achieve these objectives?

Accepted Answer

Sale-Leaseback

Answer

Subleasing

Answer

1031 Exchange

Answer

Portfolio Optimization

Question 3

A utility company requires access to run and maintain a new power line across a corner of a corporate campus. The legal instrument that grants the utility company the right to use this specific portion of the property for a defined purpose, without transferring ownership, is known as a(n):

Accepted Answer

Easement

Answer

Zoning Variance

Answer

Covenant

Answer

Eminent Domain

Question 4

A facility manager is leading the acquisition of a new manufacturing plant. Before finalizing the purchase, the team conducts a comprehensive investigation that includes physical inspections, environmental assessments, title searches, and zoning compliance reviews. This entire risk-mitigation process is best described as:

Accepted Answer

Due Diligence

Answer

Commissioning

Answer

Strategic Sourcing

Answer

Project Initiation

Question 5

To understand the proportion of non-usable common area space (like lobbies and shared corridors) included in a lease payment, a facility manager divides the total rentable area by the total usable area. What is this resulting value called?

Accepted Answer

Load Factor

Answer

Vacancy Rate

Answer

Capitalization Rate

Answer

Net Absorption

Question 6

When conducting a site selection analysis for a new data center, which of the following is the most critical non-financial factor directly related to operational continuity?

Accepted Answer

Proximity to Telecommunication Hubs and Power Grids

Answer

Local Property Tax Rates

Answer

Availability of Tax Incentives

Answer

Land Acquisition Cost

A company is leasing a standalone building where the lease agreement stipulates that the tenant is responsible for all property taxes, building insurance, and all maintenance costs, in addition to the base rent.What type of lease is this?

A company is leasing a standalone building where the lease agreement stipulates that the tenant is responsible for all property taxes, building insurance, and all maintenance costs, in addition to the base rent.
What type of lease is this?