Mixed Deck — All BOMA Topics Flashcards

What is 'demand response' in the context of commercial building energy management?

Answer: Voluntarily reducing electricity consumption during peak grid demand periods, often in exchange for financial incentives

Demand response programs allow building operators to reduce electricity use during high-demand periods (like hot summer afternoons), helping grid stability and typically earning the building owner financial credits or reduced rates.

What is 'tenant retention rate' and why is it a key performance metric for commercial building managers?

Answer: The percentage of lease renewals compared to total leases expiring, indicating the building's ability to keep existing tenants

Tenant retention rate measures the percentage of tenants who renew their leases, which is a critical KPI because retaining tenants avoids costly vacancy, lease-up commissions, tenant improvement allowances, and revenue gaps.

What is the significance of a 'lease commencement date' versus a 'rent commencement date'?

Answer: Lease commencement starts legal obligations while rent commencement is when rent payments begin, often after a free rent period

The lease commencement date establishes when the lease term begins and legal obligations arise, while the rent commencement date is when actual rent payments start, often delayed to allow for tenant improvements.

In commercial building operations, what does 'demand response' mean?

Answer: Reducing energy use during peak grid demand periods in exchange for incentives

Demand response involves temporarily reducing energy consumption during peak utility demand periods, typically in exchange for financial incentives from utilities.

Where is a joist found?

Answer: Floor

A joist is typically found in the floor of a building. It is a horizontal structural member that provides support and stability to the floor above. Joists are commonly made of wood or steel and are spaced apart to distribute the weight of the floor and any loads placed on it. They are an essential component of the floor framing system and play a crucial role in maintaining the structural integrity of the building.

Under OSHA regulations, what is required in a commercial building's 'Hazard Communication' program?

Answer: Safety Data Sheets (SDS), labeling of hazardous chemicals, and employee training on chemical hazards

OSHA's Hazard Communication Standard (HazCom) requires maintaining Safety Data Sheets, properly labeling hazardous chemicals, and training employees who may be exposed.

What does 'energy use intensity' (EUI) measure in commercial buildings?

Answer: Annual energy consumption per square foot of floor area, expressed in kBtu/sq ft/year

EUI normalizes energy consumption by building size, allowing meaningful comparison of energy performance across buildings of different sizes by measuring kBtu (or kWh) consumed per square foot annually.

Which type of HVAC system uses chilled water distributed through pipes to cool multiple zones in a large commercial building?

Answer: Central chilled water system

Central chilled water systems use a central chiller plant to produce chilled water distributed through insulated pipes to air handling units throughout the building.

What is the 'Foreign Investment in Real Property Tax Act' (FIRPTA) requirement relevant to commercial real estate transactions?

Answer: Buyers must withhold a portion of the purchase price when buying from a foreign person or entity

FIRPTA requires buyers to withhold (currently 15%) of the amount realized on the sale when the seller is a foreign person or entity, ensuring collection of US taxes on the gain.

What does 'percentage rent' mean in a retail lease?

Answer: Additional rent paid when tenant's sales exceed a specified breakpoint

Percentage rent requires the tenant to pay additional rent equal to a percentage of their gross sales above a natural or artificial breakpoint.

What is a 'CAM reconciliation' in commercial lease administration?

Answer: Annual true-up comparing estimated CAM payments to actual expenses incurred

CAM reconciliation is an annual process where actual common area maintenance expenses are compared to the estimates paid monthly, with tenants paying or receiving credits for the difference.

What is the purpose of a 'security audit' in commercial property management?

Answer: Systematic review of all security measures, policies, and performance to identify gaps and recommend improvements

Security audits comprehensively evaluate physical security measures, policies, training, access control, technology, and procedures against best practices and the threat environment to prioritize improvements.

What does LEED stand for in the context of sustainable building certification?

Answer: Leadership in Energy and Environmental Design

LEED (Leadership in Energy and Environmental Design) is the US Green Building Council's rating system for green building design, construction, and operations.

What is 'Legionella' risk management in commercial building water systems?

Answer: Preventing and controlling growth of Legionella bacteria in water systems through a Water Management Plan

Legionella risk management involves implementing a Water Management Plan (per ASHRAE 188) to control bacterial growth in cooling towers, domestic hot water systems, and decorative fountains.

In commercial real estate, what does 'operating expense ratio' (OER) indicate?

Answer: The percentage of effective gross income consumed by operating expenses

The operating expense ratio compares total operating expenses to effective gross income, indicating how efficiently a property is being managed; lower ratios generally indicate better management efficiency.

What is 'eminent domain' in the context of commercial real estate?

Answer: The government's power to take private property for public use with just compensation

Eminent domain (also called condemnation) is the government's constitutional power to acquire private property for public use, requiring payment of fair market value compensation to the owner.

The sales comparison approach to property valuation works by:

Answer: Analyzing recent sales of comparable properties to derive market value

The sales comparison approach identifies recently sold properties with similar characteristics and adjusts their prices for differences to estimate the subject property's market value.

What does 'co-tenancy' clause protection provide to a retail tenant?

Answer: Rent reduction or termination rights if key anchor tenants leave the property

A co-tenancy clause allows a retail tenant to reduce rent or terminate their lease if specified anchor tenants or a minimum percentage of the center's tenants vacate, protecting them from reduced foot traffic.

What does 'Rentable Area' represent in BOMA measurement methodology?

Answer: The tenant's usable area plus their proportionate share of common areas

Rentable Area is the tenant's usable area plus their proportionate share of building and floor common areas, forming the basis of rent calculations.

What does 'force majeure' mean in the context of commercial leases and building operations?

Answer: An 'act of God' clause excusing performance obligations due to unforeseeable extraordinary events

Force majeure clauses excuse performance obligations (like rent payment or construction completion) when prevented by extraordinary events beyond the parties' control, such as natural disasters or government actions.