CFM - Certified Facility Manager Real Estate and Property Flashcards
6 cards from real CFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CFM - Certified Facility Manager Real Estate and Property flashcards as text
What does net rentable area (NRA) refer to in commercial real estate?
Answer: The total floor area that can be leased to tenants, including tenant spaces and a proportionate share of common areas, measured per BOMA standards
NRA is the basis for calculating rent in most commercial leases and includes a load factor for common areas.
What is a triple net lease (NNN) and what costs does the tenant bear?
Answer: A lease where the tenant pays base rent plus property taxes, building insurance, and maintenance costs in addition to their proportionate share of operating expenses
NNN leases shift most operating cost risk to the tenant, which affects facility budget planning significantly.
What is a sale-leaseback transaction in corporate real estate strategy?
Answer: A transaction where a company sells its owned property to an investor and simultaneously leases it back, converting real estate equity to operating capital
Sale-leaseback converts illiquid real estate equity into cash that can be reinvested in core business operations.
What does highest and best use mean in commercial real estate?
Answer: The reasonably probable use of a property that is physically possible, legally permissible, financially feasible, and maximally productive
Highest and best use analysis determines the use that maximizes a property value under current market conditions.
What is operating expense reconciliation in a commercial lease context?
Answer: The annual process of comparing the tenant estimated operating expense payments against actual expenses incurred, resulting in a credit or additional charge
OpEx reconciliation ensures tenants pay their actual proportionate share of operating costs, not just the estimated amounts paid during the year.
What is an estoppel certificate and when is it typically required?
Answer: A document signed by a tenant certifying key facts about the lease such as commencement date, rent, and absence of landlord defaults, typically required when the property is being sold or refinanced
Estoppel certificates protect buyers and lenders by confirming the status of leases from the tenant perspective.