Exam 21: Enhancing Value Through Ongoing Management
Exam 1: The Nature of Real Estate and Real Estate Markets20 Questions
Exam 2: Legal Foundations to Value26 Questions
Exam 3: Conveying Real Property Interests20 Questions
Exam 4: Government Controls and Real Estate Markets27 Questions
Exam 5: Market Determinants of Value20 Questions
Exam 6: Forecasting Ownership Benefits and Value: Market Research20 Questions
Exam 7: Valuation Using the Sales Comparison and Cost Approaches23 Questions
Exam 8: Valuation Using the Income Approach22 Questions
Exam 9: Real Estate Finance: The Laws and Contracts21 Questions
Exam 10: Residential Mortgage Types and Borrower Decisions25 Questions
Exam 11: Sources of Funds for Residential Mortgages21 Questions
Exam 12: Real Estate Brokerage and Listing Contracts20 Questions
Exam 13: Contracts for Sale and Closing21 Questions
Exam 14: The Effects of Time and Risk on Value21 Questions
Exam 15: Mortgage Calculations and Decisions20 Questions
Exam 16: Commercial Mortgage Types and Decisions23 Questions
Exam 17: Sources of Commercial Debt and Equity Capital25 Questions
Exam 18: Investment Decisions: Ratios20 Questions
Exam 19: Investment Decisions: NPV and IRR20 Questions
Exam 20: Income Taxation and Value23 Questions
Exam 21: Enhancing Value Through Ongoing Management20 Questions
Exam 22: Leases and Property Types25 Questions
Exam 23: Development: The Dynamics of Creating Value20 Questions
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Given the following information,calculate the leasing agent's commission in dollar terms.Lease Term: 10 years,Monthly Rent: $5,000,Commission: 3%.
Free
(Multiple Choice)
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Correct Answer:
D
When property managers are looking to secure a mix of tenants for which "the whole is greater than the sum of its parts," or in other words a group of tenants that shares similar characteristics such that the experience of living together is mutually beneficial,they are seeking what is referred to as:
Free
(Multiple Choice)
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Correct Answer:
B
Real estate asset managers perform certain functions that would not be expected of asset managers who deal with stock and bond portfolios.Which of the following functions would you expect both asset managers in real estate as well as stocks / bonds to perform?
Free
(Multiple Choice)
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Correct Answer:
B
Despite the magnitude of their real estate holdings,many non-real estate corporations have historically expended little effort to manage these assets effectively.Recently,the development of which of the following markets has helped to quell concerns related to this issue?
(Multiple Choice)
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The lease is a contract between the owner and the tenant that transfers exclusive use and possession of the space to the tenant in return for rent or other consideration.In this arrangement,the owner is referred to as the:
(Multiple Choice)
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Maintenance and repair of a property is an ongoing process that can be divided into four principal categories.Which of the following classifications includes ordinary repairs to a building on a day-to-day basis (e.g.repairing a broken window,fixing a leaking roof)?
(Multiple Choice)
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Concerned with a potential information asymmetry problem,state legislators have been proactive in passing legislation that protects the rights and interests of tenants within which of the following property types?
(Multiple Choice)
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For residential properties,the ratio of prospective rent to gross monthly income is a valuable screening tool in judging a potential tenant's ability to fulfill rent obligations.Generally,this ratio should not exceed:
(Multiple Choice)
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When leasing nonresidential properties,owners would prefer to rent exclusively to high quality tenants.Such owners will tend to seek out companies whose general debt obligations are rated "investment grade" by one of more of the U.S.rating agencies.These potential tenants are more commonly referred to as:
(Multiple Choice)
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An owner whose property is in a strong market position,where fewer services can be offered to tenants for the same dollar of rental income and where the owner will not lose tenants if the property is undermaintained,is said to participate in a market that has a relatively:
(Multiple Choice)
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In contrast to maintenance and repair expenditures,which are operating expenses,the improvement decision generally involves a capital expenditure meant to increase the value of the structure.Which of the following classifications of improvements calls for the restoration of a property to satisfactory condition without changing the floor plan,form,or style of the structure?
(Multiple Choice)
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With a performance-based management contract,an asset manager's fees are tied directly to the rate of return earned by investors on the portfolio of managed properties relative to a benchmark.In private commercial real estate,the choice of benchmarks for performance is limited in large part to return indices provided by which of the following organizations?
(Multiple Choice)
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While some property owners choose to perform both the property and asset manager functions themselves,many commercial property owners choose to employ professional property managers instead.The property manager works under a management contract in which the manager is empowered to serve as the owner's fiduciary.This type of relationship is more commonly referred to as a(n):
(Multiple Choice)
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The management agreement provides for a management fee that is usually in the range of 3 to 6% of which of the following measures of property income?
(Multiple Choice)
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Both owners and managers must carefully designate their responsibilities in the management agreement.In a management agreement,all of the following would typically be responsibilities of the property manager EXCEPT:
(Multiple Choice)
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Suppose an owner is trying to decide whether or not to make improvements to her property.Given the following information,what would be the value added or potential loss if the improvements are undertaken? Current rent per square foot: $8.75,Anticipated rent per square foot: $14.50,Cost of improvements: $250,000,Square feet: 34,000.
(Multiple Choice)
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Leases are considered the engines that drive property values.Therefore,it should not be surprising that owners of commercial property may seek an independent leasing broker to focus on finding tenants to lease space.In exchange for their services,leasing brokers are paid a commission based on what percentage of the face amount of the lease?
(Multiple Choice)
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Unlike many publicly traded stock and bond investments,commercial real estate investments:
(Multiple Choice)
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Commercial real estate returns are determined in no small part by how well the ongoing management function is performed.Management decisions can be classified into two categories: property management and asset management.Which of the following functions would be considered a primary responsibility of an asset manager?
(Multiple Choice)
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While college-level courses are not widely available,a number of professional and trade organizations exist in the field of property management.Which of the following certifications awarded by the Institute of Real Estate Management is aimed at individuals who manage larger,residential,office,industrial,or retail properties?
(Multiple Choice)
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