CPM Leasing and Marketing 2

Question 1

What is 'lease-up' in multifamily property management?

Accepted Answer

The period of filling a newly built or recently repositioned property with tenants to reach stabilized occupancy

Answer

Lease-up refers to the marketing and leasing phase for a new or repositioned property, aimed at reaching stabilized occupancy (typically 93–95%).

Question 2

What is a 'right of first refusal' (ROFR) clause in a lease?

Accepted Answer

The tenant's right to match any offer the landlord receives before space is leased to another party

Answer

A ROFR gives a tenant the right to lease adjacent space or purchase the property by matching any third-party offer the landlord receives.

Question 3

Which metric best evaluates the effectiveness of a leasing team?

Accepted Answer

Conversion rate of prospects to signed leases

Answer

Conversion rate (leads converted to signed leases) directly measures leasing effectiveness and the quality of the leasing process.

Question 4

What does 'co-tenancy clause' mean in retail leasing?

Accepted Answer

A provision allowing a tenant to reduce rent or terminate if a key anchor tenant leaves

Answer

A co-tenancy clause protects retail tenants by allowing rent reductions or lease termination if a specified anchor tenant vacates, as this affects customer traffic.

Question 5

What is 'usable square footage' vs. 'rentable square footage' in commercial leasing?

Accepted Answer

Usable is the tenant's exclusive area; rentable adds the tenant's pro-rata share of common areas

Answer

Usable SF is the tenant's exclusive space; rentable SF adds the tenant's proportionate share of common areas like lobbies, restrooms, and corridors.

CPM - Certified Property Manager Practice Test

CPM - Certified Property Manager Practice Test

CPM Leasing and Marketing 2