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CFM - IFMA > Real Estate and Property Management > Flashcards

Real Estate and Property Management Flashcards

1
Q

Adjacency diagram

A

A diagram documenting critical physical proximities of organizational groups, equipment, or support functions.

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2
Q

Annuity

A

A series of cash flows that are equal and periodic.

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3
Q

Assignable area

A

The portion of a floor or building used to house personnel, furniture and equipment. This is usable area minus secondary circulation.

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4
Q

ASTM

A

Formerly known as the American Society for Testing and Materials; a globally recognized leader in the development and delivery of international voluntary consensus standards. Their standards are the tools of customer satisfaction and competiveness for organizations across a wide range of markets.

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5
Q

Blocking plan

A

Illustration of how multiple groups or departments will fit onto a given floor of a building. Also called a blocking diagram.

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6
Q

Bubble diagram

A

An adjacency diagram that illustrates primary and secondary adjacencies between major work groups or departments.

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7
Q

Building deficiency

A

Any flaw, defect or imperfection related to a building’s components or systems.

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8
Q

Business life cycle

A

fundamental marketing concept that defines specific characteristics of products and markets at various points in their evolution.

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9
Q

Cash flow

A

(1) Net cash before financing, including acquisitions. (2) The income from all sources less expenses, indicating how much cash is available at a given time.

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10
Q

Common area maintenance (CAM)

A

Describes costs for areas in a building that are not directly leased but that are a common responsibility, such as hallways, restrooms, stairways and walkways. It may also include grounds, “hardscape” (paved areas) and other site maintenance.

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11
Q

Currency fluctuations

A

Ongoing changes between the relative value of one country’s currency compared with another.

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12
Q

Decommissioning

A

Generally refers to the administrative and technical actions taken to restore the leased space to conditions specified by the landlord in the lease.

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13
Q

Demised property

A

A term used in leasing to describe the conveyance of an interest in real property to someone for a number of years.

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14
Q

Discount rate

A

The rate at which future cash flows are discounted because of the time value of money. The interest rate used to compute a present value amount.

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15
Q

Discounted cash flow (DCF)

A

This analysis adjusts cash flows over time for the time value of money.

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16
Q

Due Diligence

A

Refers to the inspection and investigation of a property and the surrounding area before an organization makes the final decision whether to commit to the site and move forward with a purchase or lease transaction.

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17
Q

Economic cycle

A

Refers to economy-wide fluctuations in production or economic activity over several months or years.

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18
Q

Facility condition assessment

A

Assessment that records a property’s condition at the present moment and forecast the long-term capital that might be expected in order to maintain the property, correct any deficiencies and keep it in compliance.

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19
Q

Floor area measurement

A

Refers to the amount of area (measured as square meters or square feet) taken up by a building or part of it.

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20
Q

Future value (FV)

A

The amount that a given amount, invested today at a given rate of return or interest rate, will be worth at some designated future time.

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21
Q

Gross area

A

The sum of the floor areas on all levels of a building that are totally enclosed within the building envelope. (Measured to the outside face of exterior walls.) Designed for a tenant’s use.

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22
Q

Highest and best use (HBU)

A

The probable and legal use for a parcel of real estate that is physically possible, appropriately supported and financially feasible and that results in the highest value.

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23
Q

Internal rate of return (IRR)

A

The return on investment a company typically realizes (or targets to realize) based on its past track record regarding asset investments. It is the interest rate at which lifetime dollar savings equal lifetime dollar costs, after the time value of money is taken into account.

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24
Q

Key stakeholder

A

Typically, business owners, board members, organizational executives, customers and regulators are key (critical) stakeholders.

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25
Q

Lease abstract

A

A summary of key information in a commercial real estate lease. It summarizes and documents commonly referenced lease information from a lease and lease modifications.

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26
Q

Lease buyout

A

An agreement where the lease of an existing tenant is given up for its remaining term. The agreement makes the existing lease null and void at the point the agreement is signed.

27
Q

Life-cycle costing

A

Process of determining (in present-value terms) all costs incident to the planning, design, construction, operation and maintenance, and disposition of a structure over time.

28
Q

Lump sum

A

A single payment of money as opposed to a series of payments made over time (such as an annuity).

29
Q

Market trend

A

The general direction in which something is developing or changing.

30
Q

Master plan

A

Documents the entire organization’s goals and the type of space required to support those goals.

31
Q

Mortgage

A

A contract by which real property is pledged as security for a loan.

32
Q

Mortgage amortization

A

The process of gradually retiring a mortgage, paying the loan on an installment basis.

33
Q

National Association of Realtors® (NAR)

A

Promulgates a Code of Ethics and Standards of Practice in the United States.

34
Q

Net present value (NPV)

A

The monetary value today that an investment project earns after yielding the desired rate of return for each period during the life of the investment.

35
Q

One-to-one assignment diagram

A

Places individual activities (or people) into individual spaces.

36
Q

Payback period

A

The length of time it will take to recoup an initial investment cost. In other words, how long it takes to earn back the funds you spent on a project.

37
Q

Policy deficiency

A

Means that there are shortcomings or inadequate systems within the building needed to support organizational standards or practices.

38
Q

Portfolio management

A

The unified management of a group of properties. Decisions are made on the basis of achieving the maximum benefit for the owner.

39
Q

Premises clause

A

Identifies the space a tenant occupies.

40
Q

Present value (PV)

A

The method is used to compare costs; all cash flows are converted to their present value or the value of past and future dollars corresponding to today’s value.

41
Q

Primary circulation

A

The portion of the building that is public corridor or lobby, or required for access by all occupants on a floor to stairs, elevators, rest rooms and/or building entrances.

42
Q

Primary stakeholder

A

Those individuals or groups who are closely linked with a particular aspect or phase of the master plan or asset life cycle.

43
Q

Programming deficiency

A

Means that the building and/or the grounds do not adequately or appropriately support the mission or needs of the occupants. They revolve around the amount of space available or how the existing space is utilized.

44
Q

Property management

A

Described as operating property primarily for business use. Typically infers the effective operation and management of owned, leased or subleased real property including land, buildings, assets, equipment and legal commitments for an owner, developer or landlord.

45
Q

Real estate

A

Property—structures and their surrounding grounds and undeveloped land—whether it is owned, co-owned, leased, subleased, or contract managed.

46
Q

Rentable area

A

The gross area minus exterior walls, major vertical penetrations and interior parking spaces. Gross area (exterior walls + major vertical penetrations + interior parking space).

47
Q

Secondary circulation

A

The portion of a building required for access to some subdivision of space (whether bounded by walls or not) that is not defined as primary circulation. i.e. corridors between workstations.

48
Q

Secondary stakeholder

A

Generally individuals and interest groups with indirect connections to the matter being addressed.

49
Q

Security deposit

A

The amount required by a landlord in advance of occupancy as security against potential damages caused by the tenant.

50
Q

Sinking fund

A

A fund set aside for periodic payments to cover the costs of future capital expenses and reduce the financing obligation to buy or expand real estate.

51
Q

Site

A

The real property and related rights, the structures and beyond. It encompasses parking lots, grounds, open nature areas and more.

52
Q

Space

A

An enclosed area. Space may be a building, a floor or any defined area in a building interior.

53
Q

Stack plan

A

A vertical section drawn through a building showing which organizational groups occupy which floors. Also called a stacking diagram.

54
Q

Stakeholder

A

Anyone who has a vested interest in the value of the master plan.

55
Q

Strategic facility plan

A

A long-term plan encompassing an entire portfolio of owned and/or leased space that sets strategic facility goals based on the organization’s strategic objectives.

56
Q

Strategic plan

A

An outline of the direction of an organization; it outlines broad, long-term, significant plans and the methods and actions by which the organization will operate.

57
Q

Sublease

A

An agreement only between the tenant and the subtenant, not between the subtenant and the landlord.

58
Q

Tactical plan

A

A detailed set of steps needed to accomplish a goal in the strategic plan.

59
Q

Term clause

A

Describes the length of the lease and specifies the starting and ending dates.

60
Q

Time value of money (TVM) principle

A

A principle which states that a dollar in hand is worth more than a dollar to be received in the future because it can either be consumed immediately or put to work to earn a return.

61
Q

Total cost of ownership (TCO)

A

A financial management strategy that accounts for the complete life-cycle costs of a product (both direct and indirect) from acquisition to disposal.

62
Q

Usable area

A

The portion of a building or floor available for occupants. In leased space, this is the area not shared with other tenants. Rentable area – Common area (building core and service area + primary circulation).

63
Q

Use and exclusion clauses

A

Define how a tenant can and cannot use the property being leased.

CFM - IFMA (11 decks)

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