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Market Analysis - Highest and Best Use > All Module Quiz Questions > Flashcards

All Module Quiz Questions Flashcards

1
Q

This type of study may be characterized as “a site in search on a use”.

a) Fundamental Demand Analysis
b) Inferred demand analysis
c) Marketability study
d) Market Study

A

c) Marketability Study

Review 2.2 characterizing market analysis by depth of analysis

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2
Q

A marketability study investigates the market conditions in a specific location for _____.

a) Several properties
b) General property type
c) A specific property type
d) Any property

A

c) A specific property

Review: 2.2 Characterizing Market Analysis by Depth of Analysis

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3
Q

The two types of market analysis characterized by how demand is measured are inferred and _______.

a) Regressed
b) Directed
c) Forecasted
d) Fundamental

A

d) Fundamental

Review: 2.8 Market Actions

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4
Q

Fundamental demand analysis allows the analyst to make a(n) __________ of future market activity.

a) Guess
b) Indication
c) Prediction
d) Forecast

A

d) Forecast

Review: 2.23 Levels of Market Analysis

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5
Q

A prediction of the future based on the fundamental forces of demand.

a) Forecast
b) Demand
c) Fundamental demand analysis
d) Inferred demand analysis

A

a) Forecast

Review: 2.17 Fundamental Demand Analysis

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6
Q

Information that is gathered first-hand by the analyst for a particular assignment. Facts and information collected specifically for the purpose of the investigation at hand.

a) Historical Data
b) Primary Data
c) Secondary Data
d) Forecasted Data

A

b) Primary Data

Review: 2.6 Primary and Secondary Data

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7
Q

A change in population leads to a change in Households which leads to a change in demand for ________.

a) Office space
b) Housing units
c) Industrial space
d) Retail space

A

b) Housing units

Review: 2.20 Fundamental forces of demand continued

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8
Q

A change in Employment leads to a change in Office jobs which leads to a change in demand for _________.

a) Retail Space
b) Industrial Space
c) Office Space
d) Housing units

A

c) Office Space

Review: 2.20 Fundamental forces of demand continued

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9
Q

This is a characteristic of which marketability study: Relies primarily on macro data found in market studies.

a) None of these answers
b) Level A Marketability Study
c) Level B Marketability Study
d) Level C Marketability Study

A

b) Level A Marketability Study

Review: 2.25 Level A Marketability Study

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10
Q

This is a characteristic of which marketability study: Includes competitive ranking of the subject property and its general location.

a) None of these answers
b) Level A Marketability Study
c) Level C Marketability Study
d) Level B Marketability Study

A

c) Level C Marketability Study

Review : 2.28 Level C Marketability Study

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11
Q

Which items involves examining the demand for and supply of a property type and the geographic market area for that property type but does not focus on a specific property?

a) Market Study
b) Appraisal Process
c) Scientific Method
d) Marketability Study

A

a) Market Study

Review: 3.13 Step: Delineate the Market Area

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12
Q

Which item refers to developing an opinion of a property’s value?

a) Marketability Study
b) Market Study
c) Appraisal Theory
d) Appraisal

A

d) Appraisal

Review: 3.1 Introduction, Learning Objectives and Learning Tips

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13
Q

Which consideration is not used to determine the level of marketability study for an appraisal assignment?

a) Prevailing market conditions affecting the property
b) Complexity of the property
c) Regulatory requirements affecting the property
d) Construction costs for the property

A

Need to look up this answer**

Review: 3.27 Determining the Adequacy of Market Analysis Checklist

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14
Q

Spatial attributes include situs and ______.

a) Market standard
b) Market area
c) Linkage
d) Holes in the market

A

c) Linkage

Review: 3.9 Location or Spatial Attributes

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15
Q

A _______ is a judgement the analyst makes regarding the presence in the subject property of attributes that are typically desired in the subject property’s market area. The result is a single value the represents the subject property’s competitive position relative to accumulated information about rental rates, vacancies, parking adequacy, access onto the site, building design, accessibility to the market area, etc.

a) Legal Attributes
b) Spatial Attributes
c) Competitive differential
d) Market Standard

A

d) Market Standard

Review: 3.7 Property Productivity Analysis

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16
Q

________ uses these steps:

  1. Identify the existing situation
  2. Identify the future situation

a) Subject capture
b) Stabilized occupancy (or vacancy)
c) Supply analysis
d) Residual demand analysis

A

d) Residual demand analysis

Review: 3.17 Step 5: Calculate Residual Demand

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17
Q

________ is the geographic area adjoining a property from which a majority of demand and the majority of competition are drawn.

a) Linkage
b) Situs
c) Market area
d) Holes in the market

A

c) Market area

Review: 3.13 Step 2: Delineate the Market Area

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18
Q

Which statement best describes capture analysis?

a) Capture analysis is not concerned with the subject property’s stabilized occupancy
b) Capture analysis is concerned with the expected performance of the subject property.
c) Capture analysis does not consider the results of property productivity analysis.
d) Capture analysis is only concerned with the performance of the subject property.

A

b) Capture analysis is concerned with the expected performance of the subject property.

Review: 3.20 Subject Capture

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19
Q

_______ uses the following steps:

  1. Identify direct competition
  2. Identify significant attributes and characteristics of competing properties
  3. Segment supply characteristics to match demand characteristics.

a) Stabilized occupancy (or vacancy)
b) Residual demand analysis
c) Subject capture
d) Supply analysis

A

d) Supply analysis

Review: 3.16 Step 4: Analyze Supply - Identify, Describe, and Project/Forecast

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20
Q

An appraiser who performs a fundamental demand analysis uses ________.

a) Secondary data on absorption in the property market for the overall area.
b) Consumer attitude and preference surveys to predict future behavior.
c) Trend analysis only to predict sales and leasing activity in the city or metropolitan area.
d) Forecasts of population, income, and employment and prices and/or rents in the specific property market.

A

d) Forecasts of population, income, and employment and prices and/or rents in the specific property market.

Review: 3.15 Step 3: Analyze demand - Identify, Describe, and Project/Forecast

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21
Q

_______ is branch of statistics concerned only with characterizing, or describing a set of numbers. The measures used to characterize a set of data (e.g., average, maximum, coefficient of dispersion) or charts and tables depicting the data.

a) Descriptive statistics
b) population
c) Sample
d) Inferential statistics

A

a) Descriptive statistics

Review: 4.3 Market Analysis and Statistics

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22
Q

______ is a set of data drawn from a population – e.g., the office space that was leased in a market during a particular time period.

a) sample
b) Inferential statistics
c) population
d) Descriptive statistics

A

a) Sample

Review: 4.3 Market Analysis and Statistics

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23
Q

Inferential statistic allows the analyst to draw conclusions about a population based on a ________.

a) Sample
b) population
c) description
d) range

A

a) sample

Review: 4.3 Market Analysis and Statistics

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24
Q

___________ is the statistical measure of reliability based on how the data “lumps” in the middle of a data sample.

a) Measures of central tendency
b) Extrapolation
c) Descriptive statistics
d) Measures of dispertion

A

Need to look up this answer***

Review: 4.6 Inferences and reliability

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25
Q

_____ is the middle number in the set of numbers.

a) Standard deviation
b) Mean
c) Median
d) Mode

A

c) Median

Review: 4.9 Median

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26
Q

When the median does not equal the mean, the distribution is ______ in the direction of the mean.

a) Deteriorated
b) Distorted (non-normal)
c) Normal
d) Abstract

A

b) Distorted (non-normal)

Review: 4.15 Distorted Distribution

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27
Q

_____ is the value of the highest data point less the value of the lowest data point.

a) Mean
b) Mode
c) Median
d) Range

A

d) Range

Reivew: 4.16 Measures of dispertion

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28
Q

When the results are unreliable, the data set cannot be relied upon as a basis for projecting a trend into the future.

a) True
b) False

A

a) True

Review: 4.28 Alternate Market Analysis Tools

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29
Q

______ is a data point (an onservation) that is much larger than the others.

a) Mean
b) Moder
c) Median
d) Outlier

A

d) Outlier

Review: 4.20 Graphing basics continued

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30
Q

In a graph, the _________ is associated with the independent variable, which is typically identified as the x axis

a) Horizontal axis
b) Legend
c) Title
d) Vertical axis

A

a) Horizontal axis

Review: 4.18 Graphing Basics

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31
Q

A tract of land that has been divided into lots or blockes with streets, roadways, open areas, and other facilities appropriate to its development as residential, commercial, or industrial sites is called_______.

a) A finished lot
b) Primary competition
c) Residential situs
d) A subdivision

A

d) A subdivision

Review: 5.2 Overview : Definition

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32
Q

A market analysis for a subdivision differs from a market analysis for multi unit and office properties in the subdivision properties have a _______ (the sellout period), whereas the other two properties have indefinite lives with fluctuating occupancy.

a. Infinite life
b. Finite life
c. Half life
d. None of these answers

A

a. Infinite life

Review: 5.2 Overview: Definition

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33
Q

Residential subdivision properties are typically developed with the purpose of household shelter within an area accessible to centers of employment.

a. True
b. False

A

a. True

Review 5.8 Step 1 Analyzing Property Productivity

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34
Q

_____ are building characteristics affecting property value.

a. Special features
b. All of these answers
c. Interior features
d. Exterior features

A

b. All of these answers

Review: 5.11 Building characteristics affecting property value

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35
Q

For residential properties, all of the following linkages are typically positive except for____.

a. Proximity to medical services
b. High-traffic areas
c. Availability of public transportation
d. Good roads and access

A

b. High-traffic areas

Review: 5.15 Linkages

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36
Q

_________ can affect the size and design of homes, width of streets, the construction of sidewalks, etc.

a. Codes, covenants, and restrictions
b. Building codes
c. Local zoning ordinances
d. Neighborhood/homeowner’s associations

A

Need to look up this answer ***

Review: 5.13 Step 1.2 Analyzing Legal Characteristics

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37
Q

__________ include these characteristics that might influence the value of specific lots in a suburban residential subdivision:
• Size of lot,
• Shape, or how the home would site on the property
• Topography
• Soil quality
• Orientation and
• Stage of development

a. Property characteristics
b. Building characteristics
c. Locational characteristics
d. Legal characteristics

A

Need to look up this answer ***

Review: 5.10 Site Characteristics Affecting Property Value

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38
Q

The goals of competitive market delineation are to identify the properties that compete for purchaser demand and dollars, identify acceptable substitutes for a property and ________.

a. Identify the location in which properties compete for different purchasing dollars
b. Identify the location in which properties compete for the same utilities.
c. Identify the location in which properties compete for the different purchasers.
d. Identify the location in which properties compete for the same purchasing dollars

A

d. Identify the location in which properties compete for the same purchasing dollars.

Review: 5.22 Step 2.2 Delineating Competitive Properties

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39
Q

The time-distance relationship between a property and the most desired destinations is referred to as ____.

a. A property productivity analysis
b. Primary competition
c. Residential situs
d. Linkages

A

d. Linkages

Review: 4.14 Step 1.3 Analyzing the Locational Characteristics

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40
Q

The definition “any recognized line or barrier that delineates a perimeter of a physical area. Boundaries may coincide with changes in prevailing land use, occupant characteristics, natural boundaries, or man-made boundaries” refers to ______.

a. Competitive housing
b. Boundaries
c. Delineate
d. Residential situs

A

b. Boundaries

Review: 5.22 Step 2.2 Delineating Competitive Properties

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41
Q

If variations in historical performance appear unrelated to outside (economic) forces, a measure of central tendency may be a reliable indicator of future performance

a. True
b. False

A

a. True

Review: 6.14 Step 3.1 Conduct Trend analysis using inferred data: Step 3.1(1) continued

42
Q

Use the following data set to answer this question.
What is the median of this data set:

Time Period          New Space Leased (SF)
6 yrs ago                11,000
5 yrs ago                11,000
4 yrs ago                15,000
3 yrs ago                20,000
2 yrs ago                21,000
1 yr ago                  22,000
current year           40,000

a. 20,000
b. 11,000
c. 15,000
d. 16,750

A

a. 20,000

Review: 4.11 Problem: Calculating Mean, Median, and Mode

43
Q

________ is a type of analysis that focuses on the percentage of the total potential market a residential property or project is expected to attract.

a. Trend analysis
b. Residential capture analysis
c. Residual demand analysis
d. Subject capture

A

b. Residential capture analysis

Review: 6.25 Step 4 measure and project competitive supply: Step 4.1 Continued

44
Q

Which statement is true about the inventory of competitive supply?

a. It must come from the same competitive market area as demand and appeal to the same market segment
b. It is always derived from secondary sources
c. It covers the same general property type within the same general area
d. It covers all residential properties within the competitive market area.

A

a. It must come from the same competitive market area as demand and appeal to the same market segment.

Review: 6.2 Overview of Study steps

45
Q

Most communities contain examples of all four categories: single-unit detached, single-unit attached, mulitunit rental, and condominium.

a. True
b. False

A

a. True

Review: 6.6 Types of Housing Units

46
Q

_______ analysis is used to understand the extent and nature of the local economy and to generate data for real estate market research.

a. Macro
b. . Trend
c. Micro
d. Residual Demand

A

a. Macro

Review: 6.9 Step 3.1 Conduct Trend Analysis using inferred Data: Step 3.1(1) continued

47
Q

Macro analysis answers the question: “What local economic factors drive the local economy and market?”

a. True
b. False

A

a. True

Review: 6.9 Step 3.1 Conduct Trend Analysis using inferred Data: Step 3.1(1) continued

48
Q

Which statement is true regarding subject capture analysis in a Level B marketability study?

a. Capture analysis is only concerned with the performance of the subject property
b. Capture analysis does NOT consider the results of property productivity analysis
c. Capture analysis is NOT concerned with the performance of the subject property’s primary competition
d. Capture analysis is concerned with the expected performance of the subject property.

A

d. Capture analysis is concerned with the expected performance of the subject property.

Review: 3.20 Capture Analysis

49
Q

Which area of inquiry regarding competing properties does this following question apply to:
“What are the past sales pace including settled and under contract sales?”

a. Absorption projection
b. Absorption summary
c. Type of project
d. Identification of finished product

A

b. Absorption summary

Review: 6.20 Step 3.1 Conduct trend analysis using inferred data: Step 3.1(3) continued

50
Q

Which area of inquiry regarding competing properties does the following question apply to”
“When did the project begin marketing and how long has it been marketed?”

a. Identification of finished product
b. Total number of lots
c. Type of project
d. Age of project

A

d. Age of project

Review: 6.20 Step 3.1 Conduct trend analysis using inferred data: Step 3.1(3) continued

51
Q

______ is a multifamily property form of ownership with limited ownership interests in, or the rights of use and occupancy of, residential apartments or hotel room.

a. Cooperative
b. Condominium
c. Timesharing
d. Retirement housing

A

d. Retirement housing

7. 16 Multifamily Property Forms of Ownership: Timeshare

52
Q

_______ is a multifamily property form of ownership often used for seasonal (vacation) housing.

a. Condominium
b. Cooperative
c. Retirement housing
d. Timesharing

A

d. Timesharing

7. 16 Multifamily Property Forms of Ownership: Timeshare

53
Q

_______ is a multifamily property form of ownership when each owner possess the exclusive right to use and occupy an alloted unit plus an undivided interest in common areas.

a. Cooperative
b. Timeshare
c. Rental
d. Condominium

A

d. Condominium

7. 14 Multifamily Property Forms of Ownership: Condominium

54
Q

The four types of multifamily ownership are rental unit, condominium, cooperative, and timeshare.

a. True
b. False

A

a. True

7. 12 Multifamily Property forms of ownership

55
Q

Rental rates can be unregulated (market rate), regulated (rent control), or _____.

a. Specialized
b. Franchised
c. Substandard
d. Subsidized

A

d. Subsidized

7. 13 Multifamily Property forms of ownership: Rental Unit

56
Q

_______ is a multifamily property type with eight stories or more, depending on the area, elevator provided, usually of steel and masonry construction, achieve densities well in excess of 20 units per acre, often include above or below grade structured parking - can be related to number of bedrooms, and often include unit amenities such as balcony, washer-dryer, unique features.

a. Garden Apartment
b. Two- to four-unit building
c. High-rise apartment
d. Mid-rise apartmentd

A

c. High-rise apartment

7. 7 Multifamily Property Types: High Rise Apartments

57
Q

______ is achieved when the project is properly conceived with respect to its location and intended tenants.

a. Gross building area (GBA)
b. Optimum unit mix
c. Net rentable area (NRA)
d. Efficiency ratio

A

b. Optimum unit mix

7. 23 Property analysis: Physical Characteristics - Unit size, Design, and Utility

58
Q

_______ is the distribution of allocation of the various unit types.

a. Efficiency ratio
b. Gross building area (GBA)
c. Net rentable area (NRA)
d. Unit Mix

A

d. Unit Mix

7. 23 Property analysis: Physical Characteristics - Unit size, Design, and Utility

59
Q

Residential neighborhoods identified and compared on the basis of their appeal and characteristics are included in a _____ analysis.

a. Micro location
b. Neighborhood
c. Market Area
d. Macro location

A

Need to look up this answer

8.23 Six-Step Process: Step 1.4 and 1.4(1)

60
Q

What is: Six step process: Step 3.1(2)

a. Evaluate demand for the subject property type within the competitive market area
b. Identify the performance of the subject property’s primary competition
c. None of these answers
d. Measure and project the number of households in the market area.

A

a. Evaluate demand for the subject property type within the competitive market area
8. 41 Six-Step Process: Step 3.1(1)

61
Q

_______ refers to analysis of a property’s capacity to deliver goods and services to meet human needs.

a. Property productivity analysis
b. Neighborhood
c. Boundaries
d. Competitive market area

A

a. Property productivity analysis

8. 19 Six-Step Process: Step 1 and 1.1

62
Q

What is: Six step process: Step 3.1(1)?

a. Measure and project the number of households in the market area
b. Evaluate demand for the subject property type within the competitive market area.
c. None of these answers
d. Identify the performance of the subject property’s primary competition

A

a. Measure and project the number of households in the market area
8. 39 Six Step Process: Step 3.1(1)

63
Q

_______ are a function of many factors, including the subject property’s amenities, unit sizes, and neighborhood quality.

a. Boundaries
b. Property productivity analysis
c. Competitive market area
d. Neighborhood

A

a. Boundaries

8. 33 Six Step Process: Step 2.2

64
Q

The competitive market area excludes projects that may be geographically similar but do not compete in terms of price, quality, or product type.

a. True
b. False

A

a. True

8. 33 Six Step Process: Step 2.2

65
Q

Renter households tend to be smaller than owner households and are less likely to include children; schools are therefore often not a major factor.

a. True
b. False

A

a. True

8. 29 Six-Step Process: Step 2.1 continued

66
Q

________ is not a standard building property class.

a. C
b. A
c. B
d. D

A

d. D

8. 19 Six-Step Process: Step 1 and 1.1

67
Q

Characteristics of ______ include renter or owner occupant, user stability and age/income-restricted or general residential market.

a. Building characteristics
b. Competitive market area
c. User characteristics
d. Locational characteristics

A

c. User characteristics

8. 19 Six-Step Process: Step 1 and 1.1

68
Q

________ is a certification relating to energy conservation and resource recycling

a. LEAD
b. None of these answers
c. LEED
d. LEID

A

c. LEED

10. 16 What Office Tenants Want

69
Q

One of the ways categories of Office Market users can be identified is by the SIC system. What does SIC stand for?

a. Standard Incremental Classification system
b. None of these answers
c. Standard Industrial Classification system
d. Sanctioned Industrial Classification system

A

c. Standard Industrial Classification System

10. 12 Office Market Segmentation: User Categories

70
Q

_______ is generally the lowest quality space in a community.

a. Class B
b. Trophy class
c. Class C
d. Class A

A

c. Class C

10. 7 Class C characteristics

71
Q

________ is the highest quality office space category in most markets.

a. Trophy
b. Class B
c. Class C
d. Class A

A

d. Class A

10. 5 Class A Characteristics

72
Q

For office buildings _______ refers to the actual occupiable area of a floor or an office space.

a. Floor common area
b. Usable area
c. Building common area
d. Floor area

A

b. Usable area

10. 17 Key Office Building Terms

73
Q

__________ refers to a rental arrangement whereby the tenant’s rent is intended to be inclusive of all expenses associated with occupancy.

a. Usable area
b. Efficiency ratio
c. Rentable area
d. Full-service rent

A

d. Full-service rent

10. 17 Key Office Building Terms

74
Q

A ______ results in less rentable area (thus less income)

a. None of theses answers
b. Low efficiency ratio
c. Efficiency ratio
d. High efficiency ratio

A

b, Low efficiency ratio

10.18 Discussion: Efficiency Ratio

75
Q

______ refers to the occupiable area of a floor or an office space.

a. Floor area
b. Usable area
c. Efficiency ratio
d. Market segmentation

A

b. Usable area

10. 17 Key Office building terms

76
Q

In appraising ____ refers to the ratio between the rentable and gross area of a building.

a. Rentable area
b. Efficiency ratio
c. Usable area
d. Full-service rent

A

b. Efficiency ratio

10. 17 Key Office Building Terms

77
Q

The subject building’s location, building class, and most likely users/tenants are key variables that are usually _____ in any segmentation.

a. Considered last
b. Not considered
c. None of these answers
d. Considered first

A

d. Considered first

10. 9 Office Market Segmentation

78
Q

_______ refers to the identification of general nature of office users.

a. Key demographics
b. Linkages
c. Node
d. Tenant profile

A

d. Tenant profile

5. 15 Linkages

79
Q

______ is the process used in estimating total office demand for a specific property.

a. Frictional vacancy calculation
b. Market analysis
c. Market Study
d. segmentation

A

b. Market analysis

Step 3.1 estimating demand

80
Q

______ refers to the identification of the node as it related to location features.

a. Maxi
b. Mini
c. Macro
d. Micro

A

c. Macro

11. 7 Step 1: Analyze Property Productivity - Step 1.4(1)

81
Q

The most important factor in delineating a market area for office properties is ______________.

a. Data must be applied the same way as it is extracted
b. Identifying and studying all similar office building
c. Finding office buildings with similar rents that have sold
d. Demand and supply must be measured from the same market area

A

d. Demand and supply must be measured from the same market area

Delineating the Market Step 2.1

82
Q

_________ is a cluster of properties with the same or complementary uses; generally a nucleus of office buildings and retail stores.

a. Node
b. Linkages
c. Key Demographics
d. Tenant Profile

A

a. Node

11. 7 Step 1: Analyze Property Productivity - Step 1.4(1)

83
Q

Which of the following is the least reliable source for an estimate of employment?

a. BLS (bureau of labor statistics)
b. Local Chamber of Commerce brochure
c. Commercial vendors
d. State employment commission

A

b. Local Chamber of Commerce brochure

Step 3.1(1)(a) Demand Estimation or Projection

84
Q

________ is an office building competes primarily with other office buildings in its own node, so the subject property’s location within the node is critical to determining its competitive position.

a. Intranodal considerations
b. Survey of the competition
c. All of theses answers are specific steps in the market analysis for office demand
d. Identify the performance of the subject property’s primary competition.

A

a. Intranodal considerations

11. 12 Step 2: Delineate the Market Areas - Step 2.2

85
Q

________ is not a specific step in inferred market analysis for office demand.

a. Measure and project the number of office jobs in the market area.
b. Convert the projected market area office hobs into demand for aoffice space
c. All of these answers are specific step in the market analysis for office demand.
d. Identify the performance of the subject property’s primary competition

A

c. All of these answers are specific step in the market analysis for office demand.

Step 3.1 in the market analysis six-step process. These steps apply in both inferred and fundamental market analysis.

86
Q

If population is growing but not employment, it could indicate ____________.

a. A future increase in demand for local office space.
b. A dependence on commuters
c. No possible increase in demand for local office space
d. An immediate urgent increase in demand for local office space.

A

a. A future increase in demand for local office space.

11. 17 Step 3.1(1)

87
Q

In an intranodal analysis, an office building competes primarily with other office buildings in its own node, so the subject property’s location within the node is critical to determining its competitive position.

a. True
b. False

A

a. True

Step 2.2 Delineating the Market Area

88
Q

If the subject property’s competitive market area is expected to attract its pro rata share of future supply and demand, the __________ for the market area need not be calculated.

a. Residual demand
b. Frictional vacancy
c. Supportable demand
d. Available office space

A

a. Residual demand

12. 8 Step 5.2

89
Q

_______ refers to a comparison of supply and demand to determine the amount of oversupply or undersupply.

a. Supportable demand
b. Subject capture
c. Residual demand
d. Pro rata share method

A

c. Residual demand

12. 8 Step 5.2

90
Q

Gross building area is the ________________.

a. Gross measured area less major vertical penetrations on that same floor
b. Sum of usable areas of office areas, store areas, and common areas of a floor
c. Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area.
d. Total area of all floors of a building enclosed by the dominant portion of an exterior wall excluding all construction outside the building’s vertical line.

A

c. Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area

Module 10, Page 10.17 Key office building terms

91
Q

Usable area is the ____________

a. Gross measured area less major vertical penetrations on that same floor.
b. Actual occupiable area of a floor or an office space.
c. Total area of all floors of a building enclosed by the dominant portion of an exterior wall excluding all construction outside the building’s vertical line.
d. Total area of all floors measured from the exterior of the walls plus superstructure and substructure floor areas.

A

b. Actual occupiable area of a floor or an office on that same floor.

See Module 10, Page 10.17 Key office building terms

92
Q

Rentable area typically does NOT include __________

a. Any element that penetrates through the floor
b. Toilets, HVAC rooms, electric and telephone closets
c. Public corridors and lobbies
d. Internal hallways

A

a. Any element that penetrates through the floor

Module 10, Page 10.17 Key office building terms

93
Q

If the subject property is rated superior to its competition, it should attract demand ____________ of its proportionate share of supply.

a. Less than
b. In excess
c. The same as
d. None of these answers

A

b. In excess

12. 14 Step 6: Project subject capture - Step 6.1

94
Q

________ is nothing more than determining the residual demand for the subject property within the node.

a. Future performance
b. Subject capture
c. Supportable demand
d. Pro rata share method

A

need to look up this answer

12.13 Step 6: Project Subject Capture

95
Q

In a contemporary appraisal analysis, the appraiser should be more concerned about _______

a. Past supply
b. future demand
c. current supply
d. current demand

A

b. future demand

12. 7 Step 5.1

96
Q

Which statement is incorrect?

a. The competitive space inventoried must match the characteristics defined in Step 3, which addresses demand.
b. The first part of Step 4 involves inventorying current supply. Like demand, supply is measured first in the market area, then in the node.
c. If demand is measured for a particular type or class of office space, the inventoried competitive supply must be of the same type and class.
d. The first part of Step 4 involves inventorying current supply. Like demand, supply is measured first in the node, then in the market area.

A

d. The first part of Step 4 involves inventorying current supply. Like demand, supply is measured first in the node, then in the market area.

See Step 4, measure and project competitive supply. Step 4.1

97
Q

_________ refers to a comparison of supply and demand to determine the amount of oversupply or undersupply

a. Supportable demand
b. Subject capture
c. Residual demand
d. Pro rata share method

A

c. Residual demand

12. 8 Step 5.2

98
Q

Step 6: Project Subject Capture is a projection of the subject property’s __________.

a. Subject capture
b. Supportable demand
c. Pro rata share method
d. Future performance

A

d. Future performance.

12. 13 Step : Project Subject capture

99
Q

___________ is based on the premise that the subject property should attract demand in relation to its size.

a. Future performance
b. Subject capture
c. Pro rata share method
d. Supportable demand

A

c. Pro rata share method

12. 14 Step 6: Project subject capture - Step 6.1

100
Q

Which statement is true?

a. All of these statements are true.
b. Under-construction space is typically considered equivalent to existing space if it is competing for current office tenants.
c. Like demand, supply is measured first in the market area, then in the node.
d. Projecting competitive space requires gathering information and expert opinion about office projects currently being planned for development and analyzing the probability of these projects being developed.

A

a. All of these statements are true.

See step 4.1

Market Analysis - Highest and Best Use (1 decks)

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