Chapter 5.12 National Brokerage

Most shopping centers have what type of lease? A lease based on traffic flow with minimum rents A net 50 lease A lease based on a sales percentage with minimum rents A lease based on income minus expenses

A lease based on a sales percentage with minimum rents

Which two factors determine a building's potential for generating income? Location and style Deprecation and insurance expenses Ability to attract tenants and operating expenses Overhead and expenses

Ability to attract tenants and operating expenses

Which of these factors does not affect net operating income? Amenities Vacancies Market rent Expenses

Amenities

Commercial real estate includes all of the following except which? Hotel Condominium Gas station Parking lot

Condominium

Which factor does NOT effect Net Operating Income? Intended use Vacancy Expenses Market rent

Intended use

What is a major downside for a business to own its own building? Tax write-offs would be lost. Capital depreciation on assets is less. Maintenance and repair activities could cause the business to lose its business focus. Product liability is greater.

Maintenance and repair activities could cause the business to lose its business focus.

Which property lease usually has the shortest occupancy? Land lease Mineral rights lease Office lease Motel room

Motel room

What type of lease is most often used in industrial complexes? Net leases Gross lease Pro-forma leases Retracted leases

Net leases

What does the acronym NOI stand for Net operating insurance Net operating income Negative operating income Net open income

Net operating income

Which property lease usually lasts the longest? Home lease Apartment lease Office lease Sublease

Office lease

Which of the following strategies would require a business to outlay the most amount of capital for building space? Purchasing a building Renting a building Leasing a building Rent with option to buy

Purchasing a building

What are the two major property classifications in real estate? Opened and closed Listed and nonelected Residential and nonresidential Base and extended

Residential and nonresidential

A shopping center would be primarily categorized as what type of property? Recreational Office Investment Retail

Retail

Which of the following is a nonresidential property investment advantage? There are no cost-of-living provisions. There is little risk of any kind of rent control. Lease insurance does not cover production interruptions. Taxes are based on assessed evaluation.

There is little risk of any kind of rent control.

Which office location would most likely have a more expensive monthly lease payment? Top floor with a view Middle of the building Basement Subbasement

Top floor with a view

Which of the following is considered a variable expense Real estate taxes Utilities Advertising Insurance

Utilities

Leases for hunting rights are typically shorter than farming leases. are typically longer than farming leases. are typically shorter than motel leases. must be written for a term of no less than 12 months and 10 days.

are typically shorter than farming leases.

Market rent is also known as street value rent. economic rent. net rental rent. transferred rent.

economic rent.

Older office buildings that become obsolete are taxed at a higher rate than modern buildings. frequently become available for warehouse or light industrial use. frequently become available for retail shops. frequently become available for recreation centers.

frequently become available for warehouse or light industrial use.

Owning a building typically increases the flexibility of the business. allows better market share of the business. reduces product liability. reduces the flexibility of the business.

reduces the flexibility of the business.

Condominiums and co-ops are classified as nonresidential real estate. single use real estate. non-income generating real estate. residential real estate

residential real estate