RFD 4313 Exam 1

2.1 Provide a brief history of Sustainability.

The publication of Silent Spring in 1962 started a movement of Sustainability and Environmentalism. Starting with the National Environmental Policy Act of 1969, the Clean Air Act of 1970, the formation of the Environmental Protection Agency in 1970 the Endangered Species Act of 1973, and the Clean Water Act of 1977 there are now hundreds of acts in the last 50 years designed to protect sustainability.

4.2 What economic and political events lead to the creation of the property management industry?

The stock market crash of the 1930s took vast amounts of property from the hands of individual owners and placed it in the hands of mortgage lenders thus the Property Management industry was virtually created overnight.

Bonus Question: What are the four loops of an A/C System?

1. Air 2. Chilled Water 3. Refrigerant 4. Condensed Water

3.4 Define Arbitration, Mediation and Litigations in terms of resolving Landlord-Tenant disputes.

1. Arbitration is a proceeding in which a dispute is resolved by an impartial adjudicator 2. Mediation works purely facilitative: the two disputing parties meet with a practitioner 3. Litigation is a lawsuit, which is a civil action brought in a court of law

3.3 What is the difference between "base year" and "expense stop" technique for rental adjustments?

1. Base Year: Tenant billed increases in operating expenses over a Base Year amount. 2. Expense Stop: 50,000 SF building times $8.00 PSF Expense Stop means the Landlord will only pass through expenses over $400,000

2.2 List and describe three of the six major issues driving Sustainability awareness.

1. Between 1970 and 2000, populations of marine and terrestrial specials fell 30% 2. Freshwater species declined 50% 3. Energy usage has increased 700% between 1961 and 2001 4. North Americans annually consume twice as many resources than Europeans, and 7 times that of Asians 5. Fossil fuels are being depleted 100,000 times faster than they are found 6. 22 million acres for forest were destroyed each year from 1990 to 2000

1.3 List and discuss five strategic issues facing Facility Management professionals today.

1. Facility Managers may not still be viewed as important 2. Facility Managers are often not leadership strong 3. An unrelenting cost squeeze (deferred maintenance) 4. The rising costs of construction 5. Unfunded required maintenance programs 6. The increased use of technology 7. Outsourcing 8. A struggle with using illegal labor (or subcontractors who do) 9. Retiring baby-boomers 10. Security and emergency preparedness 11. Increasing governmental regulation from all levels (OSHA, ADA, EPA) 12. ADA and building safety upgrades (fire prevention) 13. Scarcity of energy 14. Lack of skilled tradesmen

2.3 What have been some of the corporate initiatives to achieve Sustainability?

1. Kyoto Protocol 2. The US is investing $5B per years on development of technologies to support reduction in carbon output -the largest program in the world. 3. Nine northeastern US states are introducing mandatory emission control measures 4.

3.1 Compare and contrast the leasing perspectives of Landlords, Tenants and PM's.

1. Landlord's perspective: because the lease directly affect the ability of the property to generate income and it is the "engine" that drives real estate's value, Landlords push for favorable terms and higher rents. 2. Tenant's perspective: leases are a major cost of doing business; they involve amortizing leasehold improvements, force decisions about location to customers, vendors; build and create image, stability with the public. 3. PM's perspective: it becomes the operations manual and details every aspect of the PM's job description

1.4 List and define five common functions of Facility Managers.

1. Management of the Organization and its Physical Assets 2. Facility Planning and Forecasting 3. Lease Administration 4. Space Planning, Allocation 5. Architectural Engineering 6. Workplace Planning, Allocation 7. Budgeting and Accounting 8. Real Estate Acquisition and Disposition 9. Sustainability Issues (LEED, Energy Star) 10. Construction Project Management 11. Move, Add, Change Management 12. Operations, Maintenance and Repair 13. Technology Management 14. Facility Emergency Management 15. Security and Life Safety Management 16. General Administrative Services

4.3 List and describe three of the seven functions of Property Managers.

1. Marketing Property - Property Managers must make a constant effort to market the property to prospective tenants. 2. Selecting Tenants - Find tenants who match mix profile and will be able to pay rent. 3. Signing Leases - Having knowledge of signing process.

3.5 What are two (of 5) Landlord strategies to minimize the impact of "rental concessions?"

1. Render the Option null and void if the Tenant has been in Default 2. Render options non-transferable to assignees or sub-tenants 3. Clearly delineate the timing and notices for exercising the option 4. Define terms by which the option expires 5. Grant options only for the lease's primary term

4.4 What is a Property Management Plan?

A Management Plan is an analysis of the current physical, fiscal, competitive and operational conditions of the property expressed in relation to the goals of the owner.

3.2 Discuss the positive benefits to longer term leases agreement for both the Landlord and Tenant.

Benefits to Landlord - Minimal Turnover, Predictable Cash Flow, Reduced Insurance Cost because of low vacancy rate Benefits to Tenant - Stability in Community, allows tenant to negotiate lower base rate, prevents competitors from entering the market, minimize disruption in ongoing business.

4.1 What are the similarities and differences between Facility Mgt and Property Mgt?

Both deal with recurring maintenance, the day-to-day operation of the property and deliver service to occupants & vendors However PMs deal with finances & increasing NOI,

1.2 Provide a brief history of Facilities Management.

During the 1970s issues such as inflation, the oil embargo, deregulation of monopolies, a scarcity of capital and increased foreign competition helped the Facility Manager profession rise to prominence as companies looked to tighten their margins and increase profit.

1.1 What is the relationship between Facilities Management and the Built Environment?

Facility Management (FM) is a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology.

2.4 List three possible ways FM's & PM's can manage and control Sustainability.

Managing Contractors, Service Providers, Construction Projects, Major Capital Improvement Projects, Waste, Energy Consumption, Supply Chain Management, Leasing Activities and the Workplace.

1.6 Define and discuss the implications of the term "Outsourcing" as it relates to Facilities Management.

Outsourcing is the contracting out of a business function (job) previously performed in-house (employee) to an external provider (subcontractor). Its implications include quality risk, quality fade, productivity issues, staff turnover, security issues, and a negative public opinion

1.5 What are the major job differences between Facility Managers and Property Managers?

Property Managers are in charge of marketing the property,