CMCP QUESTIONS - SECTION 2
(INSURANCE) QUESTIONS WITH
CORRECT DETAILED ANSWERS 205.
What is a building' most valuable asset? - ANSWER- Tenants
Fair rent calculations may apply to options to do what? - ANSWER- Renew, expand, and
periodic rental increases
What will the fair market rental value generally be based on? - ANSWER- Comparable leases of
comparable space
What is comparable space? - ANSWER- The comparable space must be in a building and area
comparable to the premises. (geographically, highly prominent space, age of the building,
configuration of a center, type of tenants in the building, premium amenities)
In making rent comparisons for a ground lease, it is important to state whether the premises will
be appraised as what? - ANSWER- Vacant land or as improved and whether applicable zoning
and other private/governmental restrictions will be considered
What does CAM mean? - ANSWER- Common Area Maintenance
What is a gross lease? - ANSWER- Tenant pays only base rent and landlord pays for all OpEx.
Used in many office leases, especially older buildings
What is a modified gross lease? - ANSWER- Items spelled out that require additional payment
by Tenant. Typically utilities and real estate taxes are excluded. Used in many suburban office
leases.
