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PROPERTY342 > Quiz Questions > Flashcards

Quiz Questions Flashcards

1
Q

Which of the following statements would be the main reason for a surplus of new office buildings in the market?

A) Potential tenants deciding not to expand their space because of falling business confidence.

B) Speculative parties pre-leasing development space intending to on-sell before development completion.

C) Developers commencing new developments following the construction start of others.

D) Favourable conditions for building providing construction cost economies.

A

C) Developers commencing new developments following the construction start of others.

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2
Q

A ‘crash’ in the property market is characterised by:

A) Rentals falling and cap rates falling.

B) Rentals falling and cap rates rising.

C) Building occupancies increasing.

D) A shortage of available land for development.

E) An oversupply of potential tenants.

A

B) Rentals falling and cap rates rising.

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3
Q

Which statement best describes the Development Process.

A) Like a funnel where quick early decisions are made to allow progress to construction as soon as possible.

B) A progressive refinement of risk.

C) A checklist to ensure nothing is forgotten.

D) Making big decisions early leaving the detail to later.

A

B) A progressive refinement of risk.

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4
Q

Which of the following activities that describe the Stage 2 – Concept during the Development Process is NOT correct

A) Site search and assessment

B) Market needs clearly established

C) Indicative design options produced

D) Cost estimates produced

E) Financing arranged

F) Indicative feasibility produced

A

E) Financing arranged

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5
Q

Which of the following attributes to successful developers is NOT correct:

A) Are entrepreneurs

B) Control at least one of Land, capital, knowledge or Tenants

C) Have wide knowledge of markets and regulations

D) Understand the ethic that the bigger the risks the greater the profit

E) May be a large organisation or an individual

A

D) Understand the ethic that the bigger the risks the greater the profit

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6
Q

Which is the first stage in the Development Process where an Elemental Estimate can be prepared?

A

Stage 3

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7
Q

A dominant factor contributing to Property Market Cycles was described in lectures as ‘the human factor’ and referenced in industry quotes as ‘excessive behavior’. Elaborate on what this means.

A
  • Abandon caution
  • Low pre-leasing
  • Copycat/2nd wave
  • Financiers lower caution
  • Tenants pre-leasing more than they need
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8
Q

For measuring the Rentable Area (NLA) of a commercial building which of the following statements on area is NOT correct:

A) Fire egress stair areas are excluded

B) Columns within the floor space are included

C) For multi tenanted floors the lift lobby area is excluded

D) The measurement for a floor is taken 1.5m above the floor level to the inside face of the external wall

E) Toilet areas are included

F) Tea making areas are included

A

C) For multi tenanted floors the lift lobby area is excluded

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9
Q

Your development is showing the following data:

Total Project Cost $26.0m

Revenue $2.3m per annum

Capitalisation rate 6.5%

Calculate the Development Profit as a percentage. Express as a rounded number out of 100.

A

36

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10
Q

Your development is showing the following data:

Total Project Cost $7.9m

Revenue $690,000 per annum

Capitalisation rate of 7.0%.

Calculate the Return as a percentage. Express as a rounded number out of 100.

A

9

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11
Q

A commercial lease has a rent review provision at the end of every 3 years with a starting rate of $400 psm. Rental escalation is 4% pa. Calculate the new rent at the first review. Express as a rounded number to 1 decimal place without a $ sign or any commas.

A

449.9

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12
Q

TPC was $26.0m, Rev $2.3m pa and Cap Rate 6.5%.

If loan gearing of 25% was put in place at an interest rate of 5.0% calculate the developer’s profit percentage. Express as a rounded number out of 100?

A

48

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13
Q

Which of the following likely banker financing requirements for a development is NOT correct:

A) Tripartite Deed between Builder and Developer

B) Bank appointed QS and Valuer to check Developer data

C) Guarantees required: Personal, joint, company, ‘key person’.

D) Bank to expend loan funds before developer funds

E) Building contract, contractor to be approved.

A

D) Bank to expend loan funds before developer funds

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14
Q

Mezzanine financiers charge interest rates typically double that of 1st Mortgage financiers.
True or False?

A

True

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15
Q

In preparing a Summary Report for a Feasibility Exercise which of the following statements for such a report is NOT correct

A) The Executive Summary should be short and precise

B) The body of the report should include a brief outline of alternative options considered

C) Key criteria should be expressed in full detail without graphics

D) Drawings and detailed assessments should be included as Appendices

A

C) Key criteria should be expressed in full detail without graphics

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16
Q

The following development types are best assessed using an Investment Assessment. Which statement is NOT correct:

Hotels
Office Building Refurbishments
Premium Office Buildings
Shopping Centres
Industrial Buildings

A

Office Building Refurbishments and Industrial Buildings

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17
Q

The following are statements on the reasons for undertaking a Masterplan. Which statement is NOT correct?

A) Determining the areas of land that may be surplus to the development need.

B) Planning to allow ease of future construction.

C) Sizing key elements and infrastructure to accommodate future extension.

D) Identifying how a development can be extended in the future.

E) Having a central drawing referencing all available drawings for a development.

A

E) Having a central drawing referencing all available drawings for a development.

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18
Q

What are business drivers?

A

The parts or elements of a development that contribute most to revenue generation

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19
Q

Buildings need to be operationally energy efficient. Which of the following statements on why this is so is NOT correct?

A) Allows a higher rental rate

B) Makes mechanical plant servicing easier

C) Reduces Opex costs for tenants

D) Contributes to the move to reduce global carbon emissions

E) Assists sustainable development ratings

A

B) Makes mechanical plant servicing easier

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20
Q

Which style of personal communication would be best used with a creative professional:

Asserting
Attracting
Persuading
Bridging
Disengaging

A

Attracting

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21
Q

Select the attribute that is least suited for an effective written report:

Photos included
Conciseness to statements
Prepare many drafts
Use short, simple sentences
Get all the detail up front

A

Get all the detail up front

22
Q

Which of the following reports is unlikely to play a significant part in the Environmental Impact Assessment supporting a Resource Consent application for a supermarket development.

Traffic
Urban Planning
Acoustic
Emergency Evacuation
Stormwater
Goods Delivery

A

Emergency Evacuation

23
Q

Outline several key Development Concept challenges for a supermarket development being evaluated for Urban Design protocols.

A
  • positively relate to the surrounding land/community to benefit the area
  • champion walking, public transport and green space
  • urban design panels to review RC applications
  • pedestrian focus and public open space interaction
24
Q

The pathway for consent processing for a development that has demonstrated less than minor effects is called __?

A

Non notified

25
Q

Select the correct order for the issuing of approvals in the consenting processes:

A) Limited Notified Consent Processing, Environment Court, Building Consent, Compliance Schedule, Code Compliance Certificate, Warrant of Fitness.

B) Limited Notified Consent Processing, Environment Court, Building Consent, Code Compliance Certificate, Compliance Schedule, Warrant of Fitness.

C) Environment Court, Limited Notified Consent Processing, Building Consent, Compliance Schedule, Code Compliance Certificate, Warrant of Fitness.

D) Environment Court, Limited Notified Consent Processing, Building Consent, Compliance Schedule, Warrant of Fitness, Code Compliance Certificate.

E) Limited Notified Consent Processing, Environment Court, Building Consent, Compliance Schedule, Warrant of Fitness, Code Compliance Certificate.

A

B) Limited Notified Consent Processing, Environment Court, Building Consent, Code Compliance Certificate, Compliance Schedule, Warrant of Fitness.

26
Q

For a Property Development it is challenging to provided the required degree of detail for Building Consent applications because of the following: Which statement is NOT correct.

A) Details on how construction will be progressed needs the input of a contractor, who may not have been appointed.

B) The early appointment of a contractor to assist with the application may compromise the later contractor procurement process.

C) Some of the Shop Drawings prepared by sub-contractors will be needed much earlier than otherwise would be required.

D) A Code Compliance Certificate will be needed much earlier than otherwise would be produced.

E) A pre-review of the application documents is required before Council will accept the application.

A

D) A Code Compliance Certificate will be needed much earlier than otherwise would be produced.

27
Q

The following are statements on key aspects of Sustainable Development. Which one is NOT correct?

A) The global building environment uses 36% of energy

B) New Zealand is drafting a Modern Slavery Act

C) Global building environments currently contribute 37% of global carbon emissions for the manufacture and installation of building materials

D) A four star Green Building certifies best practice

E) Green Star building audits promote wellbeing including visual comfort for occupants

F) Three star is a Green Building certifying good practice

A

F) Three star is a Green Building certifying good practice

28
Q

The use of Engineered Timber structural components in a building assists reducing the quantity of embedded carbon emissions because of the following: Which statement is correct.

A) It adds to tree planting in the environment

B) It replaces products that require high use of energy to manufacture

C) It is stronger than other common structural components

D) It is much easier to transport to the construction site

A

B) It replaces products that require high use of energy to manufacture

29
Q

Which of the following RISKS would likely rank the highest for property development?

Lack of early recognition of risks
Overseas exchange rate fluctuations
Contractor insolvency
Tenant insolvency
Construction delays

A

Lack of early recognition of risks

30
Q

Common Risk Mitigation measures include the following. Which statement is NOT correct.

A) Deal with experienced contractors with proven track records

B) Seek advice from a land surveyor before purchasing a property

C) Seek advice from a valuer before purchasing a property

D) Engage designers to produce fit for purpose solutions rather than engage with user groups.

E) Consider buying cover on the futures market for exchange rate fluctuations

A

D) Engage designers to produce fit for purpose solutions rather than engage with user groups.

31
Q

A Sunset Clause is included in a sale agreement for the following reasons. Which statement is correct.

A) Allow the developer to opt out of the agreement if delayed past a set date for any reason

B) Allow a tenant to opt out of the agreement if delayed past a set date for any reason

C) Allow a tenant to opt out of the agreement if their circumstances change.

D) Extend the completion date if something occurs outside the control of the developer

E) Allows the developer to make minor changes to the development without affecting the agreement

A

A) Allow the developer to opt out of the agreement if delayed past a set date for any reason

32
Q

Consultation is the process of meeting and ___ to the viewpoint of others and making ___ endeavours to incorporate these views.

A

Listening
Reasonable

33
Q

In relation to consultation with Tangata Whenua which of the following attributes is not correct.

A) The process is highly important.

B) It has to be ongoing from development inception to opening.

C) Early well documented communications are essential.

D) There will be blessings of the land before development commencement and then on completion, usually at sunrise.

A

C) Early well documented communications are essential.

34
Q

For a development needing rock excavation, Iwi would like the rock to remain on site.
True or False?

A

True

35
Q

Which of the following statements is not correct in relation to an Iwi blessing for a development.

A) Be held for each Iwi holding Manua Whenua over the land.

B) Be held on site before the start of any construction works.

C) Be held on site at completion.

D) Be held at the end of Working Drawings when all details are known.

E) Be held at dawn.

A

D) Be held at the end of Working Drawings when all details are known.

36
Q

The focus by Iwi for a development will likely relate to each or any of the 3 following words:

A

Land
History
Environment

37
Q

Which of the following statements is correct:

A) Leading edge developments have fit outs with floor plates sized around 600 sm and occupant densities of 20 sm per person.

B) Leading edge developments have fit outs with floor plates sized around 600 sm and occupant densities of 11 sm per person.

C) Leading edge developments have fit outs with floor plates sized around 2,500 sm and occupant densities of 11 sm per person.

D) Leading edge developments have fit outs with floor plates sized around 2,500 sm and occupant densities of 16 sm per person.

E) Leading edge developments have fit outs with floor plates sized around 9,300 sm and occupant densities of 16 sm per person.

A

C) Leading edge developments have fit outs with floor plates sized around 2,500 sm and occupant densities of 11 sm per person.

38
Q

For premium commercial developments which of the following attributes for best practice building design is not correct:

Large floor plates.
Column free workplace areas.
Certified Green Building.
Located centrally for easy access by customers.
Hotel like ground entry levels.
Flexibility for services to accommodate future tenant changes.

A

Located centrally for easy access by customers.

39
Q

Single Point Delivery systems are contracted before working drawings are prepared.
True or False?

A

True

40
Q

A Public Private Partnership must have all of the following components:
A service output.
An exclusive license.
A defined duration.
A transfer of ownership at the end of the license.
True or False?

A

True

41
Q

Which following statement is NOT correct when describing a Development Control Group?

A) Made up of key individuals from throughout the development.

B) Considers reports on all aspects of the project at each meeting.

C) Acts like a board of directors meeting every 4-6 weeks.

D) Key attendees change as a development progresses so that they match current points of focus.

E) Decisions made may need separate formal instruction.

A

D) Key attendees change as a development progresses so that they match current points of focus.

42
Q

Which following statement or activity is NOT correct when establishing a construction contract price?

Letter of offer
Letter of acceptance
$ sum included
Documented building description
No listed exclusions
A draft of proposed contract conditions

A

No listed exclusions

43
Q

Which following statement on important sections of the Brief to Designers at the beginning of each Development Stage is NOT correct?

Background Introduction
The Vision
Points of Focus
Traffic Report
Programme

A

Traffic Report

44
Q

Which of the following Best Practice Leadership Attributes is NOT correct:

Clear direction and communication of vision
Respect for all as individuals and a degree of relationship
Accommodating poor performance of an individual
Leader participation by example with respect earned
Regular review on progress

A

Accommodating poor performance of an individual

45
Q

The following statements describe similarities between key activities for BOTH Hospitality (Hotel) and Hospital Developments. Which statement is NOT correct?

A) Masterplanning for future expansion is important

B) Differing commercial arrangements between operator and owner

C) User sensitive - high operating costs

D) Mock up trial rooms essential

E) User group focus for fit for purpose and highly labour efficient designs

A

B) Differing commercial arrangements between operator and owner

potential incorrect as all statements are correct

46
Q

For a Building Refurbishment CONSENT the following potential additional costs in relation to the existing building may be a requirement. Which statement is NOT correct.

Fire protection improvements
Access (Disabled use provisions) improvements.
Removal of unsafe materials.
Seismic strengthening.
Remedying of latent defects.

A

Remedying of latent defects.

47
Q

During the refurbishment of a tenanted building a Tenancy Management Plan will ideally identify three levels of tenant/user staff and how contact will be maintained to all throughout the refurbishment. Is this statement TRUE or FALSE?

A

True

48
Q

Market Research as part of the planning for a new shopping centre brings a number of benefits. Which of the following is the MOST HIGHLY VALUED outcome of these?

A) An understanding of travel routes by customers

B) User perception of the architectural style that would be best to adopt

C) The mix of gender and other attributes of the potential customers

D) The retail area and categories that the development will need

E) The best hours of trading to match customer needs

A

D) The retail area and categories that the development will need

49
Q

For the leasing of shops within a shopping centre which of the following statements is NOT correct?

A) The area of the centre is established from the demographic of the catchment

B) The tenant mix is planned to match the identified market

C) The rental rate for each tenant is determined by their proximity to high pedestrian movements

D) Tenancy Guidelines are rules included in the lease for progressing the fitout

E) Majors as tenants will pay much less rent rate

A

C) The rental rate for each tenant is determined by their proximity to high pedestrian movements

50
Q

Which statement below relating to the Tenant Co-Ordination Process for a Shopping Centre development is correct?

A) Determine the size of the tenancy.

B) Establish the tenant rental agreement.

C) Plan the locations within the development of similar tenancies.

D) Promote the tenancy fitout design.

E) Assist with the tenancy fitout construction.

A

D) Promote the tenancy fitout design.

PROPERTY342 (21 decks)

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