CFM Study Session # 2 Real Estate. Real Estate Competency Manage & implement Real Estate Master...

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