fina 210 chapter 1 and 2 book flashcards
which of the following is not considered commercial real estate?
a )single-family housing
b) shopping center
Other Real Estate Industry Participants 21
c) biotech laboratory
d) office building
a) single-family housing
At which kind of retail properties can shoppers not drive up to stores?
a) power center
b) lifestyle center
c) regional mall
d) shopping center
c) regional mall
Which of the following are not considered direct interests in real estate?
I) Buying a shopping center
II) Buying a share in an office building REIT
III) Buying a 50 percent share of an office building
IV) Buying a security from a REMIC
a) I, IV
b) II, IV
c) II, III
d) they are all direct investments
b) II, IV
Jon intends to build a new convenience store on a property and operate it
until he retires in 25 years.
Each month, he will pay a fee to his landlord for
the use of the land.
At the end of the period, he will no longer own either the land or the building.
What type of interest does Jon have in the
property?
a) Fee interest
b) Easement
c) Leasehold
d) Syndication
c) Leasehold
Apex Office Building is a circa 1950 mid-rise office building in a rapidly
improving commercial corridor in Big City.
Which professional has the responsibility for developing a new competitive strategy for this property?
a) Portfolio manager
b) Asset manager
c) Property manager
d) Commercial banker
b) Asset manager
An office park property has lost occupancy because a large corporate
tenant that had space in a number of buildings has decided to relocate to
another city.
The market for other office properties in the area is good and
the property is well located and in good physical condition.
Whom at type
of expert can help the landlord?
a) Property brokerage company
b) Construction company
c) Leasing company
d) Law firm
c) Leasing company
An investor has just purchased the office building where her office is located. She is visiting her insurance broker to buy insurance for her new acquisition.
What type of insurance is she least likely to buy?
a) Property casualty
b) Personal lines
c) Liability
d) Title
a) Property casualty
Which type of equity structure offers all of its investors the most protection
against personal liability?
a) Limited partnership
b) Joint venture
c) General partnership
d) Corporation
d) Corporation
A real estate company has an opportunity to acquire a large portfolio of hotels located along the eastern seaboard.
The acquisition will require many different types of financing and sophisticated structuring advice.
Which financial institution is best suited to this task?
a) Commercial bank
b) Investment bank
c) Mortgage broker
d) None of the above
b) Investment bank
Tenants are constantly complaining that the temperature in the office
building is either too hot or too cold.
Which type of engineering firm
should the owner call in order to see if the HVAC design is correct?
a) Environmental
b) Civil
c) Mechanical
d) Biomedical
c) Mechanical
The sum of the occupancy rate and the vacancy rate for the same property
are:
a) Always 100 percent
b) Always greater than 100 percent
c) Always less than 100 percent
d) Unrelated
a) Always 100 percent
Which of the following are considered positive economic indicators for real estate?
I) GDP growth
II) Rising unemployment
III) Rising consumer confidence
IV) Declining corporate profits
a) I,II
b) II, III
c) I, III
d) I,IV
c) I, III
All of the following are indicators of a strong regional real estate market except:
a) Broad industrial base
b) Access to transportation
c) Abundant natural resources
d) High unemployment
d) High unemployment
Which of the following is false?
a) Retail property demand is increased by rising consumer confidence
b) Hotel demand is decreased by rising corporate profits
c) Office demand is increased by GDP growth
d) Multifamily demand is increased by job growth
b) Hotel demand is decreased by rising corporate profits
Which of the following is true regarding economies that are heavily dependent on a single industry?
a) Economic growth is slower than average
b) Economic growth is faster than average
c) Economic risk is higher than in diverse economies
d) Economic risk is lower than in diverse economies
c) Economic risk is higher than in diverse economies
