AG HBU Part 10. Office Property Concepts and Definitions

Question 1

Which of the following is NOT one of the key variables that are used to segment office markets?

A. building class (Trophy, Class A, Class B, Class C)
B. location (node or other geographic area)
C. market rent range
D. most likely users/tenants (general commercial, medical/dental, government, R&D, etc.)

Answer 1

C. market rent range

Course handbook guidance: Part 10, item II.B

Question 2

An office building has exterior dimensions of 100 feet by 50 feet on each of its three levels, excluding decks. The open-air decks extend out from the exterior and add 1,000 square feet. The exterior walls are 600 square feet (200 square feet per floor). The vertical penetrations (stairs, elevator shafts, and mechanical flues) total 400 square feet. The common area halls and lobby are 900 square feet. The restrooms and janitor closet are 500 square feet. What is the rentable area of
the building?

A. 12,600 square feet
B. 13,100 square feet
C. 14,000 square feet
D. 15,000 square feet

Answer 2

C. 14,000 square feet
(100 ft. × 50 ft. × 3 = 15,000 − 600 − 400 = 14,000)

Course handbook guidance: Part 10, item IV

Question 3

Place the appropriate letter next to the number:
A. LEED
B. Usable area
C. Market segmentation
D. Class C
E. Floor area
F. Gross building area
G. Efficiency ratio
H. Class A
I. Full-service rent

1. Generally the lowest-quality space in a community
   2.Grouping office space users by their characteristics and by building descriptions
2. Total floor area of a building, including below-grade space but excluding unenclosed areas, measured from the exterior of the walls
3. Occupiable area of a floor or an office space
4. The total horizontal surface of a specific floor
5. The ratio between the rentable and gross area of a building
   7.Certification relating to energy conservation and resource recycling
6. The highest-quality office space category in most markets
7. Tenant’s rent that is intended to be all inclusive of expenses associated with occupancy

Answer 3

1. D. Class C
   Generally the lowest-quality space in a community
2. C. Market segmentation
   Grouping office space users by their characteristics and by building descriptions
3. F. Gross building area
   Total floor area of a building, including below-grade space but excluding unenclosed areas, measured from the exterior of the walls
4. B. Usable area
   Occupiable area of a floor or an office space
5. E. Floor area
   The total horizontal surface of a specific floor
6. G. Efficiency ratio
   The ratio between the rentable and gross area of a building
7. A. LEED
   Certification relating to energy conservation and resource recycling
8. H. Class A
   The highest-quality office space category in most markets
9. I. Full-service rent
   Tenant’s rent that is intended to be all inclusive of expenses associated with occupancy