CFM CFM - Certified Facility Manager Real Estate and Property 2

Question 1

What does net rentable area (NRA) refer to in commercial real estate?

Accepted Answer

The total floor area that can be leased to tenants, including tenant spaces and a proportionate share of common areas, measured per BOMA standards

Answer

The total floor area of the building including all common areas and mechanical spaces

Answer

Only the private office space within a tenant suite

Answer

The outdoor areas associated with the property

Question 2

What is a triple net lease (NNN) and what costs does the tenant bear?

Accepted Answer

A lease where the tenant pays base rent plus property taxes, building insurance, and maintenance costs in addition to their proportionate share of operating expenses

Answer

A lease where the landlord pays all operating costs and the tenant pays only base rent

Answer

A three-year fixed-term lease with no renewal options

Answer

A lease with three different tenants sharing a single space

Question 3

What is a sale-leaseback transaction in corporate real estate strategy?

Accepted Answer

A transaction where a company sells its owned property to an investor and simultaneously leases it back, converting real estate equity to operating capital

Answer

A tenant right to sublease space back to the original landlord

Answer

A clause allowing a landlord to repurchase a property after a lease expires

Answer

A financing arrangement where the seller takes back a mortgage from the buyer

Question 4

What does highest and best use mean in commercial real estate?

Accepted Answer

The reasonably probable use of a property that is physically possible, legally permissible, financially feasible, and maximally productive

Answer

The most expensive renovation option for an existing building

Answer

The use that results in the least environmental impact for a site

Answer

The use currently specified in the property zoning designation

Question 5

What is operating expense reconciliation in a commercial lease context?

Accepted Answer

The annual process of comparing the tenant estimated operating expense payments against actual expenses incurred, resulting in a credit or additional charge

Answer

A monthly review of the landlord maintenance invoices

Answer

The process of negotiating lease renewal terms

Answer

The end-of-lease review of tenant improvement costs

Question 6

What is an estoppel certificate and when is it typically required?

Accepted Answer

A document signed by a tenant certifying key facts about the lease such as commencement date, rent, and absence of landlord defaults, typically required when the property is being sold or refinanced

Answer

A certificate confirming a building meets fire safety code requirements

Answer

A certificate from the building department confirming zoning compliance

Answer

A document transferring the lease from one tenant to another