BOMA BOMA Lease Administration

Question 1

Under BOMA standards, which lease type places the most financial risk on the tenant by requiring them to pay all operating expenses in addition to base rent?

Accepted Answer

Triple net (NNN) lease

Answer

Gross lease

Answer

Net-net lease

Answer

Modified gross lease

Question 2

The BOMA Standard Method for measuring office buildings is primarily used to determine which lease component?

Accepted Answer

Rentable square footage

Answer

Lease term length

Answer

Tenant improvement allowance

Answer

Security deposit amount

Question 3

What does the 'load factor' (also called the add-on factor) represent in commercial leasing?

Accepted Answer

The percentage added to usable area to arrive at rentable area

Answer

The ratio of structural load to floor area

Answer

The tenant's proportionate share of utility costs

Answer

The maximum occupancy allowed per square foot

Question 4

In a base year lease, what triggers a tenant's obligation to pay operating expense escalations?

Accepted Answer

Operating expenses exceeding the base year amount

Answer

Any increase in property value

Answer

Lease renewal after the first term

Answer

A change in building ownership

Question 5

Which clause in a commercial lease grants the tenant the right to renew their lease at a predetermined rent or at market rate?

Accepted Answer

Option to renew clause

Answer

Right of first refusal

Answer

Holdover clause

Answer

Estoppel clause

Question 6

What is a 'tenant estoppel certificate' used for in commercial real estate?

Accepted Answer

To certify the current status and terms of a lease to a third party

Answer

To prevent tenants from subletting their space

Answer

To document tenant improvement completion

Answer

To establish the tenant's credit worthiness