Chapter 12 Quiz PDF

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