CH 9 - Matching Space to Project Requirements

Question 1

1. Which conditions are best for choosing construction to meet project space requirements?
   A Complex space requirement with short time frame and adequate funding
   B Simple space requirement with short time frame and restricted funding
   C Simple space requirement with long time frame and restricted funding
   D Complex space requirement with long time frame and adequate funding

Answer 1

D. Complex space requirement with long time frame and adequate funding

Question 2

2. Cindi knows that when the process of space acquisition is underway the higher the rate of change and the\_\_\_\_\_\_\_\_\_\_ time frame, the greater the chance that the accuracy of the PRP will be compromised.
A  longer the corporate review 
B  shorter the corporate review 
C  longer the implementation 
D  shorter the implementation

Answer 2

C. longer the implementation

Question 3

3. A buyer’s market, where the supply of space exceeds the demand, normally occurs when:
   A interest rates are low
   B the national economy is slow
   C there is a great deal of money in circulation
   D inflation is low

Answer 3

B the national economy is slow

Question 4

4. Thomas is examining the real estate market for his organization. He knows that the strongest forces affecting this Market are local. Examples of these forces include all of the following except the:
A  Amenities in the area 
B  money supply 
C  crime rate 
D  condition of a neighborhood

Answer 4

B money supply

Question 5

5. At times the facility manager has had to recommend the removal of weak tenants. Such times are typically characterized by all of the following except:
   A A period of general economic contraction
   B A period of tight space markets
   C Failure to pay bills on time
   D Low probability of future Financial growth

Answer 5

A A period of general economic contraction

Question 6

6. Which is true about the donut center core floor plate?
   A it is highly suitable for a tenant with a high proportion of support space
   B it is highly suitable for a small size tenant
   C it is highly suitable for a multi-tenant arrangement
   D it provides a small amount of window space and access to natural light

Answer 6

A it is highly suitable for a tenant with a high proportion of support space

Question 7

7. Which type of floor plate is best suited for a mix of large and small tenants, or for tenants needing window offices and workstations for support staff and functions?
A  Mega plate 
B  donut center core 
C  slender rectangle 
D  offset Center core

Answer 7

D offset Center core

Question 8

8 . Some measurement systems assign a core factor for each floor other measurement systems set the core Factor based on each tenant’s:
A  rent 
B  Location 
C  share of the entire building 
D  lease term length

Answer 8

C Share of the entire building

Question 9

9. Which building space factor is least likely to be of great value to a tenant wanting a high-profile image with moderate to heavy customer traffic?
A  Floor level 
B  view Factor 
C  Corner value 
D  proximity to elevators

Answer 9

C Corner value

Question 10

10. the owner of an office building wants to fully lease all of the space.  A prospective tenant wants to move in. The owner offers free rent and the obligation to pay only operational expenses during the first 6 months. This is an example of:
A  free rent concession 
B  tenant finish allowances 
C  moving allowances 
D  parking concessions

Answer 10

A free rent concession

Question 11

11. The cost of procuring new tenants has increased, and the cost of retaining tenants has:
A  greatly increased 
B  greatly decreased 
C  slightly decreased 
D  remained the same

Answer 11

D. remained the same

Question 12

12. When is the proper time for the facility manager of a large company to educate top decision-makers about the realities of the leasing market?
    A before properties have been scouted
    B after decisions have been made
    C before major decisions have been made
    D just in time for purchase

Answer 12

C. before major decisions have been made

Question 13

13. Column placement, restroom location, fire exit locations, and probability of dead-end corridors are all aspects that determine \_\_\_\_\_\_\_\_\_suitability.
A  floor plate 
B  floor plan 
C  location 
D  tenant

Answer 13

A floor plate

Question 14

14. Which of the following is not considered part of the core factor?
A  tenant’s space 
B  restrooms 
C  elevator 
D  lobby

Answer 14

A tenant’s space

Question 15

15. Which of the following describes the net effective rate?
    A the cap amount the lessor will pay for changes
    B the cap amount the tenant will pay for changes
    C the combined cost of construction and rent
    D the combined cost of appraisal and construction

Answer 15

D the combined cost of appraisal and construction

Question 16

16. If a rental market area experiences______, the potential tenant can ask for an expense cap.
    A a rapid increase in operating expenses
    B a sudden decrease in utility costs
    C a lack of incoming residents
    D an influx of bad tenants

Answer 16

A a rapid increase in operating expenses

Question 17

17. First rights of refusal are lease options that are available:
    A when there is a soft market
    B when the lessor predicts the space will be available
    C when the future tenant inquires
    D when the current tenant vacates

Answer 17

A when there is a soft market