Exam 22: Leases and Property Types

The choice of which method to use in constructing the contracted rental rate can be impacted by the term of the lease.With a shorter lease term,which of the following methods is most likely to be observed?

Given the following information,calculate the effective monthly rent payment.Lease Term: 10 years,Concession: 1 year free rent to be spread over the term of the lease,Rental Space: 5000 square feet,Rental Rate: $20 per square foot per year,Landlord's discount rate: 10%.

Given the following information,calculate the load factor for this office property.Total usable area: 20,000 sq ft,Tenant's prorated share of common area: 5,000 sq ft.

As with any valid contract,enforceable leases must meet a number of requirements.One of these requirements is for each party to provide appropriate consideration.In a lease,which of the following constitutes the landlord's consideration?

While a sublease and an assignment are two distinct choices for a tenant who wishes to transfer his rights during the term of a lease,both agreements:

Some tenants who are subject to long-term leases may desire to transfer all of their tenant rights and obligations to another party.This is commonly referred to as a(n):

The lease is a contract between a property owner and tenant that transfers exclusive use and possession of space to the tenant,but allows the owner to retake possession of the property at the expiration of the lease.Which type of interest allows the owner to retake possession at the end of a lease?

The majority of residential units in the U.S.are contained in multifamily structures,or apartment buildings that contain five or more housing units.Which of the following multifamily structures will range in height from four to nine stories and are typically found in both cities and suburbs?

When the supply of space exceeds the demand,it is common for owners to provide the tenant with a period of free or perhaps reduced rent.This is commonly referred to as a(n):

For most commercial property types,lease lengths can vary considerably.Therefore,both parties must tradeoff between the advantages and disadvantages associated with particular leasing terms.Owners may prefer longer leases for all of the following reasons EXCEPT:

A tenant who expects her business to grow may wish to have a clause included in her lease that grants her the choice to lease adjacent space as soon as it becomes available.This lease option is more commonly referred to as a:

The choice of which method to use in constructing the contracted rental rate can also be impacted by the type of property being leased.With which of the following property types would one expect to see a percentage rent method used?

A lease option is a clause that grants an option holder the right,but not the obligation,to renew the lease,cancel the agreement,relocate within a property,or even expand to adjacent space.The existence of these options in a leasing agreement:

Retail establishments are found in a variety of forms,the simplest of which is: (Hint: fast-food franchise)

The rental income generated by a lease can depend significantly on the proportion of property-level operating expenses paid by the tenant.In which of the following types of leases is the tenant responsible for all operating expenses?

Which of the following property subtypes is often considered the least vulnerable to functional obsolescence because of its relatively simple structure and long economic life?

The two most important determinants of the classification of an office property are age and obsolescence.Which of the following classes includes office buildings that are older and reasonably maintained,but are below current standards for one or more reasons?

Newer industrial parks have begun to specialize in providing space that can be configured to suit the diverse needs of various tenants.This type of industrial space is more commonly referred to as:

In an indexed lease,rents are dependent on a regularly reported index,most commonly the consumer price index (CPI).By using the CPI as an index rate,the risk of unexpected increases in general inflation is shifted to the _________,and therefore a _________ base rental rate will typically be required.

Once possession and control are conveyed in a lease agreement,the owner must provide the tenant with uninterrupted use of the property without any interference from any entity that may threaten to impose upon the tenant's leasehold interest in the property.In other words,the tenant is entitled to which of the following?