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.