CFM Study #2 – Real Estate

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CFM Study Session # 2 Real Estate

Real Estate Competency

  Manage & implement Real Estate Master Planning Process Manage Real Estate Assets

Real Estate & Facility Management

      Traditional perception of facility as office/workspace More valued today as property to be sold or traded New organizational function-managing Real Estate as an asset Requires developing new skills while utilizing old ones Need to understand Real Estate Principles & Practices Need to see inter-relationships with Facility Management

Key Concepts

   Real Estate Planning  Tools & Techniques The Real Estate Life Cycle  Key Activities   Tools FM Touch Points Adding FM value to Real Estate Function

Real Estate Planning

     Managing the Master Plan Own vs. Lease Types of leases Negotiating a lease Disposal of facilities

Influences- Internal Factors

    Corporate strategic plan  Anticipated growth  Anticipated compression Financial analysis Corporate Business Cycles Corporate image

Influences- External Factors      Financial market/macroeconomics Real Estate market conditions Environmental regulations Governmental controls Community Relations

Managing the Real Estate Master Plan    Vision  Strategic in nature  Holistic Components   Follow strategic plan format Confidential document Key Stakeholders   Internal External

Maintaining the Master Real Estate Plan      Measure Real Estate performance Measure customer usage Monitor economic changes in market Awareness of deviations from plan Information gathering for recommendations

Real Estate Lifecycle

    Acquisition Extended Operating Hours Management Disposition

Acquisition

  Due Diligence  Appraisal     Environmental Condition Assessments Operating Cost budgets/Pro Forma Sustainability Lease vs. Purchase     Time value of money Lease types Fee Simple Terms, conditions & Clauses

Lease Negotiations

     Assemble a team  FM as owner rep   Legal Broker Develop RFP Standard Levels of Service Supply/Demand of Market Landlord Incentives

Management

    Highest & Best Use Studies  Optimum use of facility Calculations   Space (SF, Gross, Rentable, Usable) Cost (opex) Portfolio Administration   Inventory ROI Performance   Analysis Reporting

Question #1

 In a multi-floor, multi-tenant office building, a private stairwell built between two floors occupied by one tenant is:     Part of the building’s common area Part of the tenant’s rentable area Part of the tenant’s usable area Part of the floor’s common area

Question #2

 Usable area equals rentable area minus which of the following (Choose 3)     Building Core Primary Circulation Secondary Circulation Service Areas

Question #3

 An attribute of a good master plan includes (choose 2)  Accurate    Permanent Detailed Within the framework of a corporate master plan

Question #4

 When calculating a floor’s rentable area, you must first subtract the area calculations for which of the following (choose 3)?

    Stairwells Restrooms Elevator shafts Mechanical chases

Question #5

 To be legally enforceable, a contract to purchase real estate must include all of the following, except:     Be in writing Include consideration Include insurance requirements Include signatures

Question # 6

 Leasing provides which of the following advantages (choose 2) ?

    Allows for minimum capital investment Allows a business to enter a market quickly Provides a hedge against inflation Conveys company pride & growth

Question # 7

 In Real Estate, curb appeal means:  Height of the curb and distance to the parking lot    Initial impression a facility makes on a visitor Layout of the landscaping & shrubbery Large natural areas preserved for environmental reasons

Question # 8

 Purchasing property provides which of the following advantages (choose 2) ?

    Ensures a business the desired location No restrictions on use Conveys financial stability Good exit strategy if company downsizes

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