Ch.5 unit 12

Hotels that host conventions may be what

A popular destination resorts or may be located near the hub of a large city.

Nonresidential properties are broken down into five major subcategories:

Commercial Industrial Agricultural Recreational Institutional

Several factors affect the net operating income.

Market rent Vacancy Expenses

An office building can be what

a major multi-tenant building that you would find in the central business district of a large city. Or it can be a single tenant building, sometimes built for a specific tenant's needs, such as a medical office building near a hospital.

When the uses for one property are combined, we refer to that as what

a mixed-use development.

space that is used by universities, churches and hospitals is usually ear-marked for what

a specific function and would not be easily tailored to other uses.

Industrial and warehouse includes special-purpose buildings designed specifically for what

an industrial use that would be difficult to convert to another use. It also includes buildings that wholesale distributors use and warehouse/show room/office combinations.

A particular building's potential for generating income depends on two factors: Its ability to

attract tenants to rent space

In many cases, at any particular point in time all the space that is available in a building may not what

be leased.

Industrial and warehouse properties comprise of what

buildings used for light or heavy manufacturing, in addition to any associated warehouse space.

Motels and smaller hotels attract mainly what

business travelers and families who want to spend the night.

Since real estate has a relatively long economic life, market rents can do what

change repeatedly over the economic life of a building.

Recreational real estate includes what

country clubs, marinas, sports complexes, parks, forests and campgrounds.

the market rent on an office building will depend on several factors: How many employees are

currently employed or will be employed in the near future

the market rent on an office building will depend on several factors: How many similar firms are

doing business in the area

residential properties provide what

dwelling places for individuals or families.

The rent depends on several factors: National

economic outlook

Market rent, also known as what

economic rent

Most institutional real estate has a unique use to the persons who own and use it, such as a what

government agency, a church, a hospital or a university.

Agricultural property includes land used primarily for what

growing crops or raising livestock, such as farms, pastureland, orchards and timberland.

anyone interested in purchasing income-producing property as a real estate investment must think about what

how changes in the supply and demand for space might affect market rental rates over the economic life of the property.

Single-family homes are characterized as detached units found where

in subdivisions, neighborhoods or in cluster home developments, where the owners share outdoor and common areas.

Another category of residential housing is what

income-producing and is referred to as multifamily housing.

the market rent on an office building will depend on several factors: How much space the firm needs for

its employee to do their job

Multifamily housing is usually distinguished by what

its location, whether it's urban or suburban, and its size, whether it's a high rise, a low rise or garden apartments.

Retail properties can be what

large regional shopping centers, with millions of square feet of space. Or they can be small stores with individual tenants that you see in the downtown areas of most cities and towns

most businesses need office space to run their operations. Most often, these businesses decide to do whta

lease the space instead of owning the building.

Most tenants find leasing to be what

more cost-effective than owning.

the market rent on an office building will depend on several factors: How likely it is that

new firms will locate to the area

a commercial building can contain both what

office and retail space

Commercial real estate can be further subcategorized into what

office buildings, retail space, and hotels/motels.

The physical construction of institutional real estate could be similar to what

other properties.

All the property types we have talked about can generate income by doing what

renting their space

There are several kinds of property that exist in real estate markets, but in effect, they fall into two major classifications:

residential and nonresidential.

In other cases, commercial buildings could even have what

residential units

Hotels intended for tourists who plan on longer stays will usually have what

restaurants on site, a swimming pool and other amenities. Typically, these hotels are located near other attractions that a tourist might want to visit.

Recreational real estate properties are very specialized uses and sometimes also have what

retail space that compliments the recreational activity, for example a golf shop at the country club or a convenience store at the campground.

when a business owner requires less space than the amount of space he or she would have to purchase in order to do what

satisfy the business needs in a preferred location is a good example of why a business would rather lease than buy

The resorts themselves are away from major cities and the guests usually stay for how long

several days or even several weeks.

The facilities that these resort hotels offer can be quite deluxe and include what

several restaurants or dining rooms, swimming pools, tennis courts, golf courses, etc

The rent depends on several factors: Availability and supply of

similar competitive space

Residential properties include

single-family homes and multiple-family properties such as apartments, condominiums, and co-ops

Hotels and motels vary considerably in what

size and what facilities they have available

It can be very difficult to estimate rent because they may depend upon what

some uncertain and complex aspects of a firm's operations.

The rent depends on several factors: Demand for the type of

space the particular property provides in the local area

hotels and motels sometimes provide residences for people, they are considered to be only what

temporary, so they are not classified as residential property

These unpredictable changes in Market rents can significantly affect what

the amount of rental income a property will receive over time.

A particular building's potential for generating income depends on two factors: The expenses involved with

the building's operation

Market rents can change due to variations in what

the demand for space from potential tenants and fluctuations in the supply of space as new units are added or other units are removed from availability.

Hotels that are located at resorts provide what

the most amenities.

Net operating income or NOI is the term that describes what

the net income produced by a specific property after all expenses have been deducted from the gross receipts.

In addition to the demographic makeup of the population and the median income of families in a particular area, the market rents for retail space will depend on what

the percentage of income families in the area usually spend on the purchase of goods and services from the retail companies in their area.

What is market rent

the price that a specific type of property is likely to draw under the current market conditions

The market rent could be higher or lower than the amount of what

the property is actually renting for under its current lease.

The rent depends on several factors: Economic base of

the property's surrounding area

Most real estate agents deal more frequently with residential properties because why

they are more common.

Economic factors that affect supply and demand for hotels and motels are very different from what

those that affect properties designed to be permanent homes.

Hotels have just a few amenities and are often located where

very close to a major highway

Often older buildings that were initially designed and used as office space later become available for what

warehouse or light industrial use.