AG HBU Practice Test Section 3 Flashcards
Part 7-9
Which multiunit property type achieves the highest developed density and typically contains structured parking?
A. Class A
B. Class B
C. high-rise
D. mid-rise
C. high-rise
Which form of multiunit property ownership was legalized in 1961?
A. condominium
B. cooperative
C. rental
D. timesharing
A. condominium
The gross building area for multiunit property is the
A. amount of space rented to individual tenants excluding common areas.
B. amount of space rented to individual tenants including common areas allocated on a pro rata basis.
C. total area of all floors measured from the exterior of the walls plus superstructure and substructure floor areas.
D. total floor area of a building excluding unenclosed areas measured from the exterior walls.
D. total floor area of a building excluding unenclosed areas measured from the exterior walls.
The net rentable area for multiunit property is the
A. amount of space rented to individual tenants excluding common areas.
B. amount of space rented to individual tenants including common areas allocated on a pro rata basis.
C. total area of all floors measured from the exterior of the walls plus superstructure and substructure floor areas.
D. total floor area of a building excluding unenclosed areas measured from the exterior walls.
A. amount of space rented to individual tenants excluding common areas.
Market segmentation concerns the
A. demand and supply sides, which must be segmented identically.
B. demand and supply sides with independent considerations for each.
C. demand side only.
D. supply side only.
A. demand and supply sides, which must be segmented identically.
A building’s efficiency ratio is the
A. building common area of the subject property divided by its floor rentable area.
B. building net rentable area of the subject property divided by its gross building area.
C. building rentable area of the subject property divided by the building rentable area of its direct competition.
D. gross building area of the subject property divided by the gross building area of its direct competition.
B. building net rentable area of the subject property divided by its gross building area.
Tenants who seek rental accommodations either because their lives are in transition or they cannot yet afford to purchase a house are classified as
A. tenants by choice.
B. tenants by circumstance.
C. tenants by compulsion.
D. tenants by condition.
B. tenants by circumstance.
The market area for a multiunit property usually centers on which three items?
A. a major employment node, a transportation corridor, and a desirable locational amenity
B. a major employment node, a transportation corridor, and fire and police protection
C. a major employment node, shopping, and a desirable locational amenity
D. shopping, political subdivisions, and fire and police protection
A. a major employment node, a transportation corridor, and a desirable locational amenity
Property productivity analysis is most concerned with a property’s
A. legal, financial, and economic characteristics.
B. physical, financial, and legal characteristics.
C. physical, functional, and external characteristics.
D. physical, legal, and locational characteristics
D. physical, legal, and locational characteristics
In a marketability analysis for a multiunit property, the competitive market area is important because it is
A. the area from which demographic data is extracted.
B. the area from which total demand comes.
C. the area where the direct competition is located.
D. the area where the total supply of the subject property type is located.
C. the area where the direct competition is located.
Supportable (adjusted) demand is
A. measured demand minus an allowance for normal/equilibrium vacancy.
B. measured demand plus an allowance for normal/equilibrium vacancy.
C. measured supply minus an allowance for normal/equilibrium vacancy.
D. measured supply plus an allowance for normal/equilibrium vacancy.
B. measured demand plus an allowance for normal/equilibrium vacancy.
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- The purpose of surveying the subject property’s primary competition is to
A. measure current demand for competitive properties so as to understand the context of the subject property’s performance.
B. measure the current supply of competitive properties so as to complete a property productivity analysis.
C. provide source data for quantitative analysis.
D. provide source data for supply analysis.
A. measure current demand for competitive properties so as to understand the context of the subject property’s performance.
In applying the pro rata share method in projecting the subject property’s capture, demand for the subject property is based on which relationship?
A. subject property’s occupied space compared with the total occupied space in competitive properties
B. subject property’s space compared with the total supply of competitive space
C. total citywide space compared with the market area space
D. total market demand for similar space
B. subject property’s space compared with the total supply of competitive space
In an oversupplied market, the amount of excess space available for absorption is the difference between
A. demand and demand adjusted upward for normal/equilibrium vacancy.
B. demand and existing supply.
C. demand and existing supply adjusted downward for normal/equilibrium vacancy.
D. demand and existing supply adjusted upward for normal/equilibrium vacancy.
C. demand and existing supply adjusted downward for normal/equilibrium vacancy.
Based on the mean, how many new, general rental, garden-style units would be expected over the next five years?
A. 10
B. 40
C. 50
D. 100
C. 50
20 + 15 + 25 = 60 ÷ 6 = 10 × 5 = 50
Based on regression analysis, how many new, general rental, garden-style units would be expected over the next five years (rounded)?
A. 10
B. 40
C. 50
D. 83
B. 40
How many units must be absorbed in the current market to reach normal/ equilibrium occupancy?
A. 45
B. 50
C. 55
D. 100
B. 50
A. 45 = 5% of 900
B. 50 = 1,000 × 0.95 = 950 – 900 = 50
C. 55 = 5% of 1,000
D. 100 = subtraction
If no additional units come on line, how many months will it take for the market to
achieve normal/equilibrium occupancy?
A. 12
B. 13
C. 15
D. 30
C. 15
