AG HBU Part 11. Level B Marketability Analysis for Office Property: Steps 1–3

Question 1

The change in demand for office space is typically tied to a change in

A. average income of office workers in the market area.
B. market area population.
C. number of office jobs.
D. profits in office-using industries.

Answer 1

C. number of office jobs.

Course handbook guidance: Part 11, item IV.B

Question 2

There are currently 5,000,000 square feet of office space in the metropolitan area, and the average vacancy rate is 10%. Employment in the same area is 100,000 jobs, of which 20% are in office-using employment classes. What is the estimated number of square feet of occupied office space per worker?

A. 45
B. 50
C. 225
D. 250

Answer 2

C. 225
(5,000,000×0.90)÷(100,000×0.20)

Course handbook guidance: IV.D.2

Question 3

Given the information in the table below, what is the increase in occupied space over five years?

A.125,000
B. 138,000
C. 139,500
D. 150,000

Answer 3

A. 125,000
(1,450,000×0.92)−(1,300,000×0.93)

Course handbook guidance: Part 11, item IV.D

Question 4

Place the appropriate letter next to the number:
A. Linkages
B. Survey of the competition
C. Industrial classification codes
D. Macro location factors
E. Node
F. Micro location factors

1. An evaluation of the subject property’s direct competition in the market area
2. The relationships between an office building’s tenants and other land uses
3. NAICS
4. Internodal linkages
5. Cluster of similar properties
6. Intranodal linkages

Answer 4

1. B. Survey of the competition
   An evaluation of the subject property’s direct competition
   in the market area
2. A. Linkages
   The relationships between an office building’s tenants and other land uses
3. C. Industrial classification codes
   NAICS
4. D. Macro location factors
   Internodal linkages
5. E. Node
   Cluster of similar properties
6. F. Micro location factors
   Intranodal linkages