Chapter 12 Quiz PDF
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This quiz covers the key concepts of managing retail property, such as categorizing shopping centers, tenant mix, and lease considerations. The quiz comprises a number of questions on these topics.
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Chapter 12: Managing Retail Property Chapter 12 Quiz 6KRSSLQJFHQWHUVDUHW\SLFDOO\FDWHJRUL]HGDF- 5HVHDUFKLQWRKRZDUHDFRQVXPHUVVSHQGWKHLU FRUGLQJWR PRQH\ LQ YDULRXV PHUFKDQGLVH VHFWRUV LV DQ D ...
Chapter 12: Managing Retail Property Chapter 12 Quiz 6KRSSLQJFHQWHUVDUHW\SLFDOO\FDWHJRUL]HGDF- 5HVHDUFKLQWRKRZDUHDFRQVXPHUVVSHQGWKHLU FRUGLQJWR PRQH\ LQ YDULRXV PHUFKDQGLVH VHFWRUV LV DQ D WKHDUFKLWHFWXUDOVW\OHRIWKHEXLOGLQJ LPSRUWDQWFRQVLGHUDWLRQLQGHWHUPLQLQJWKH b) the income level of the surrounding neigh- a) anchor tenant borhood E DUFKLWHFWXUDOVW\OHRIDVKRSSLQJFHQWHU c) the number of stores c) number of stores G WKHVL]HRIWKHPDUNHWDUHD d) tenant mix :KLFK W\SH RI VKRSSLQJ FHQWHU W\SLFDOO\ KDV 7. The manager of a regional shopping center is RYHUVTXDUHIHHWRIJURVVOHDVDEOHDUHD XSGDWLQJKLVPDQDJHPHQWSODQKHH[DPLQHVWKH VHUYHVDQDUHDZLWKD¿YHPLOHUDGLXVDQGLV rents, amenities, and tenant mix at the several DQFKRUHGE\DVXSHUPDUNHWRUVPDOOGHSDUWPHQW other regional shopping centers around the store? metropolitan area, rather than those at the strip D &RPPXQLW\VKRSSLQJFHQWHU PDOOWKDWLVGRZQWKHVWUHHW+HLVSHUIRUPLQJ E 5HJLRQDOVKRSSLQJFHQWHU DDQ F 6WULSPDOO D DQDO\VLVRIDOWHUQDWLYHV G 6XSHUUHJLRQDOVKRSSLQJFHQWHU E PDUNHWDQDO\VLV F QHLJKERUKRRGDQDO\VLV $QHZO\FRQVWUXFWHGVKRSSLQJFHQWHUFRQWDLQV G UHJLRQDODQDO\VLV DERXWVTXDUHIHHWRIJURVVOHDVDEOHDUHD ,W WDUJHWV D൷XHQW FXVWRPHUV ZLWK D QXPEHU $PHPEHURIDVKRSSLQJFHQWHU¶VOHDVLQJWHDP of upscale chain stores and restaurants built LV SDLG E\ FRPPLVVLRQ DQG ZRUNV IRU D UHDO DURXQGDQRXWGRRUSOD]D7KLVLVD HVWDWHEURNHUDJH¿UPUDWKHUWKDQIRUWKHEXLOG- D OLIHVW\OHVKRSSLQJFHQWHU LQJ¶VRZQHU7KLVZRXOGEHWKH b) outlet shopping center a) leasing agent c) power center b) marketing director d) regional shopping center c) maintenance supervisor d) shopping center manager $QH[DPSOHRIDQDQFKRUWHQDQWZRXOGEH a) a casual restaurant on a separate pad in a $ OHDVLQJ SDFNDJH ZRXOG LQFOXGH DOO RI WKH PDOO¶VSDUNLQJORW IROORZLQJH[FHSW b) a large department store D DPDSRIIUHHZD\DFFHVVDQGSXEOLFWUDQVLW F DQDPHEUDQGVWRUHVHOOLQJIDFWRU\VHFRQGV in the area G DVSHFLDOW\VWRUHWKDWLVWKHRQO\RQHRILWV b) demographic information about the local W\SHLQDODUJHPDOO market c) rents at competing shopping centers 8QOLNHR൶FHDQGLQGXVWULDOSURSHUWLHVDPDMRU G VDOHV¿JXUHVIRUFDWHJRULHVRIFXUUHQWWHQ- consideration in the design of a shopping center ants ZRXOGEH a) climate b) health of local industries F ORFDOEX\LQJSRZHU d) transportation networks 13 Property Management Instructor Materials :DOGHQ¶V :LGJHWV SURMHFWV PRQWKO\ VDOHV RI 13. The leased space formula for determining pass- SHUVTXDUHIRRW)DEXORXV&RQWUDSWLRQV WKURXJKFKDUJHVLQYROYHV SURMHFWVPRQWKO\VDOHVRISHUVTXDUHIRRW D GLYLGLQJWKHWHQDQW¶VJURVVOHDVHGDUHDE\ 7KHVSDFHWKH\DUHFRQVLGHULQJUHQWLQJUHQWVIRU WKHEXLOGLQJ¶VWRWDOFXUUHQWO\OHDVHG*/$ SHU VTXDUH IRRW$V IDU DV WKH EXLOGLQJ¶V E GLYLGLQJWKHWHQDQW¶VJURVVOHDVHGDUHDE\ manager is concerned, the more desirable ten- WKHEXLOGLQJ¶VWRWDOJURVVOHDVHGDUHDLQFOXG- DQWZRXOGEH ing vacancies D )DEXORXV&RQWUDSWLRQVZLWKDUHQWWRVDOHV F GLYLGLQJWKHEXLOGLQJ¶VWRWDOFXUUHQWO\OHDVHG ratio of.20 */$E\WKHWHQDQW¶VJURVVOHDVHGDUHD E )DEXORXV&RQWUDSWLRQVZLWKDUHQWWRVDOHV G GLYLGLQJ WKH EXLOGLQJ¶V WRWDO JURVV OHDVHG ratio of 5 DUHD LQFOXGLQJ YDFDQFLHV E\ WKH WHQDQW¶V F :DOGHQ¶V:LGJHWVZLWKDUHQWWRVDOHVUDWLR gross leased area of.15 G :DOGHQ¶V:LGJHWVZLWKDUHQWWRVDOHVUDWLR $XVHFODXVHSURWHFWV of 6.66 a) neighbors of a shopping center from incom- patible uses 11. A retail tenant is on a percentage lease. The E WHQDQWVIURPELJKLNHVLQ&$0FKDUJHV PLQLPXPUHQWLVSHUPRQWK7KHWHQDQW c) tenants from excess competition from other ZLOODOVRSD\RIDOOJURVVVDOHVDERYHD¿JXUH tenants RI SHU PRQWK ,Q WKLV FDVH G WKHEXLOGLQJ¶VRZQHUIURPDQXQVXVWDLQDEOH ZRXOGEHWKH tenant mix a) base point b) breakpoint 15. A clause in a shopping center lease prohibits a c) recapture point tenant from opening a branch location within d) trigger point DWHQPLOHUDGLXV7KLVLVDDQ a) estoppel clause $FPH%XJJ\:KLSVLVXQGHUDSHUFHQWDJHOHDVH E H[FOXVLYLW\FODXVH but has failed to meet its desired level of sales c) non-compete clause for a number of months in a row. Brookline d) use clause Mall exercises a clause in the lease to end the OHDVHEHIRUHWKHWHUPH[SLUHVLQRUGHUWR¿QG DPRUHSUR¿WDEOHWHQDQW7KLVFODXVHLVWKH 16. All of the following statements about leasing WRDQFKRUWHQDQWVDUHWUXHH[FHSW a) drop-dead clause E HDUO\WHUPLQDWLRQFODXVH D WKH\PD\XVHDJURXQGOHDVHDQGEXLOGWKHLU c) recapture clause own store d) release clause E WKH\ UHFHLYH ORQJHUWKDQDYHUDJH OHDVH WHUPVSHUKDSVRU\HDUV F WKH\ZLOOSD\DORZEDVHUHQWDWWKHRXWVHW but subject to percentage rent and escala- tion clauses G WKH\ZLOOW\SLFDOO\SD\DIXOOSURUDWHGVKDUH RIWKHVKRSSLQJFHQWHU¶V&$0FKDUJHV 14 Chapter 12: Managing Retail Property &RVWLQJWRQ¶V 'HSDUWPHQW 6WRUH LV DQ DQFKRU tenant at the Blue Bell Mall, but would like WR³JRGDUN´WKHUHFRQWLQXLQJWRSD\UHQWEXW not operating a store, after opening a more LPSUHVVLYH VWRUH DW WKH QHZ QHDUE\ )DVKLRQ &HQWUH 'HOX[H +RZHYHU %OXH %HOO 0DOO LV DEOHWRWHUPLQDWH&RVWLQJWRQ¶VOHDVHLIWKH\GR WKLVWKDQNVWRDDQ a) continuous operation provision E HDUO\UHOHDVHFODXVH F H[FOXVLYLW\FODXVH d) go-dark allowance 18. Janitorial maintenance is of particular concern in a shopping center that has a/an _____, as pest FRQWUROLVOLNHO\WREHDSUREOHP a) food court b) harsh winter climate c) ice rink d) parking garage $OO RI WKH WHQDQWV LQ D VKRSSLQJ FHQWHU PXVW MRLQWKHPHUFKDQWVDVVRFLDWLRQDQGSD\PRQWKO\ GXHV7KHDVVRFLDWLRQ¶VERDUGRIGLUHFWRUVKLUHV a marketing specialist, who implements a mar- keting plan for the shopping center. This model RIIXQGLQJDPDUNHWLQJSODQLV a) a marketing fund b) cooperative marketing c) merchant association funding G RZQHU¿QDQFHGIXQGLQJ 7KHVDOHVDQDO\VLVUHSRUWJLYHQE\DSURSHUW\ manager to a shopping center owner, includes DOORIWKHIROORZLQJH[FHSW a) annual breakpoint and rent percentage for each tenant b) common area maintenance charges passed through to each tenant F HDFK WHQDQW¶V FXUUHQW VDOHV SHUIRUPDQFH compared with past performance G HDFKUHWDLOHU¶VVDOHVSHUVTXDUHIRRW 15 Property Management Instructor Materials Answer Key G 7KHVL]HRIWKHPDUNHWDUHDZLOOGHWHU- 8. a) A leasing agent is an integral mem- mine whether a shopping center falls EHURIDOHDVLQJWHDPEXWPD\ZRUN into the strip, neighborhood, com- IRUDEURNHUDJH¿UPUDWKHUWKDQWKH PXQLW\UHJLRQDORUVXSHUUHJLRQDO EXLOGLQJ¶VRZQHU7KHOHDVLQJDJHQWLV categories. FRPSHQVDWHGE\FRPPLVVLRQV D $FRPPXQLW\VKRSSLQJFHQWHULV F $OHDVLQJSDFNDJHZRXOGQRWLQFOXGH W\SLFDOO\DQRSHQDLUFRPSOH[ZLWK information about competing shopping WRVTXDUHIHHWRI centers, but it would include maps, GLA, serving at least 5,000 families in demographic information, and general D¿YHPLOHUDGLXV sales numbers. D $OLIHVW\OHVKRSSLQJFHQWHULVDFRP- 10. c) The more desirable tenant would be SOH[RIVWRUHVRULHQWHGWRZDUGD൷XHQW :DOGHQ¶V:LGJHWVZKLFKSURMHFWVD consumers, that attempts to replicate KLJKHUUHQWSHUVTXDUHIRRW7KHUHQW WKHZDONDELOLW\DQGDPELHQFHRID WRVDOHVUDWLRZRXOGEHGLYLGHGE\ small downtown. RU RU 4. b) An anchor tenant occupies the largest, 11. b) A breakpoint is an amount of gross most prominent space in a shopping sales at which point percentage rent center. In a large mall, that would be a NLFNVLQ,WLVGHWHUPLQHGE\GLYLGLQJ department store. WKHEDVHUHQWE\WKHSHUFHQWDJHUDWHRI a percentage lease. D &OLPDWHLVDQLPSRUWDQWIDFWRULQVKRS- SLQJFHQWHUSODQQLQJLWD൵HFWVZKHWKHU 12. c) A recapture clause in a percentage a mall should be enclosed or open-air, lease allows a landlord to terminate DVZHOODVLWVRYHUDOODUFKLWHFWXUDOVW\OH DOHDVHHDUO\LIDWHQDQWLVQ¶WPDNLQJ and range of stores. PLQLPXPVDOHV¿JXUHV G 7HQDQWPL[VKRXOGUHÀHFWWKHGHPDQG D 7KHWHQDQW¶VJURVVOHDVDEOHDUHDGLYLG- IRUGL൵HUHQWW\SHVRIPHUFKDQGLVHLQ HGE\WKHEXLOGLQJ¶VFXUUHQWO\OHDVHG the local market. A manager of a shop- */$HTXDOVWKHWHQDQW¶VSURUDWHG ping center will need to research local share of the pass-through charges. FRQVXPHUV¶SXUFKDVLQJSDWWHUQVWR make decisions on the tenant mix. 14. c) A use clause is a lease clause that pre- vents tenants from selling particular E 0DUNHWDQDO\VLVIRUUHWDLOSURSHUWLHV LWHPVRURWKHUZLVHXVLQJWKHSURSHUW\ VKRXOGORRNDWWKHVKRSSLQJFHQWHU¶V LQDZD\WKDWFRPSHWHVZLWKRWKHUWHQ- most direct competition, even if locat- ants. HGLQDGL൵HUHQWSDUWRIDPHWURSROLWDQ area. A regional shopping center does not compete with a strip mall. 16 Chapter 12: Managing Retail Property 15. c) A non-compete clause in a shopping center lease prevents a tenant from opening up a branch store within a VSHFL¿HGGLVWDQFH7KLVSUHYHQWVWKH WHQDQWIURPGUDZLQJDZD\FXVWRPHUV from the shopping center. G $QDQFKRUWHQDQWZLOOXVXDOO\KDYHWKH FORXWWRQHJRWLDWHDZD\SDUWRUDOORI WKHLU&$0FKDUJHVDOWKRXJKLQVRPH FDVHVWKH\ZLOOSD\&$0FKDUJHVRQ parking areas. D $OHDVH¶VFRQWLQXRXVRSHUDWLRQSUR- YLVLRQPD\OLPLWDQDQFKRUWHQDQW¶V DELOLW\WR³JRGDUN´RUDOORZWKHODQG- lord to terminate the lease ahead of schedule if the tenant stops operating. D )RRGFRXUWVUHTXLUHSDUWLFXODUDWWHQWLRQ from shopping center management, as the presence of food waste can lead to pest problems. F 7KHWHQDQWVRIDVKRSSLQJFHQWHUPD\ form a merchants association that will, among duties, coordinate the market- ing of the shopping center as a whole. 7KLVZDVWKHLQGXVWU\VWDQGDUGPHWKRG IRUPDQ\\HDUVDOWKRXJKDPDUNHWLQJ IXQGFRQWUROOHGE\WKHSURSHUW\RZQHU LVPRUHFRPPRQWRGD\ E $VDOHVDQDO\VLVUHSRUWIRFXVHVRQO\RQ sales performance for each tenant in a shopping center. While management ZRXOGFHUWDLQO\NHHSWUDFNRIGDWDRQ &$0FKDUJHVLWZRXOGQRWEHSDUWRI WKHVDOHVDQDO\VLVUHSRUW 17