K C Ch-9 Flashcards
(25 cards)
What is the role of the facilities manager in dealing with internal customers
landlord
When is it most favourable to own rather than lease
when interest rates are low and there is a substantial difference in cash flow beyond the break-even/payback point
What do a company’s profit and loss situation and its choice to allocate costs as operating or capital directly affect?
tax liability
When a corporation is acquiring new property through merger or downsizing, the facilities manager should review the impact of corporate objectives by concentrating on what?
budgetary implications of changes in the space inventory
What macroeconomic conditions should the annual strategic real estate and facilities plan consider?
prime rate, unemployment rate, and inflation rate
What is used to compare your corporate plans with each site’s ability to support those plans
an inventory review
From the perspective of a takeover company, how is owned property viewed
as an asset, since it can be sold to raise capital
What must be obtained to avoid environmental liability when buying or selling a commercial property?
environmental impact statement
land use control measures that require a developer to transfer property, donate various types of improvements to a local government, or pay fees in exchange for the privilege of developing a property
mandatory dedications
a measure imposed by local governments to insure requirements are met in area of fire, safety, sanitation, health, etc., before occupancy can occur
certificate of occupancy
Companies that must invest in expensive capital and fixed equipment, such as production line machinery, tend to prefer which method of occupancy?
owning their facility
What is a downside to building a highly specialized property?
it creates an asset that is valuable only to the corporation and may be difficult to sell
Build-to-suit, enabling a corporation to assume ownership by using a developer to hold ownership until the project is complete, is known as what?
expensing costs
a lease that vests the highest degree of responsibility for control of the property and payment of operating costs with the tenant
triple-net lease
What are some lease clauses that are advantageous to the lessor but disadvantageous to the lessee?
rate adjustments, expense pass-throughs, and expense caps
When negotiating a lease, the negotiating team should include what members
the customer’s facilities manager, a legal expert, and an outsourcing specialist
In leased space, who is the official tenant that participates legally in the lease contract?
the facilities manager
an arrangement whereby a company uses its own capital to develop a project, then sells that completed project to a developer who then executes a lease with the same company
sale-leaseback
a property’s value when the seller-tenant vacates the property
reversionary value
In leased space, who should request any building services affected by the lease contract
the facilities manager
Standard services that every commercial tenant requires are known as what
building standard services
Costs the landlord bears and then charges back to the tenants on a pro rata basis, such as extra utilities, are called what?
indirect costs
When the tenant must vacate the property before the end of the lease, who should make the initial buyout offer?
the tenant
When making the buyout offer, the initial offer made to the landlord is usually what amount?
one-half or less of the break-even number
