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| Section | Objectives |
|---|---|
| Commercial Real Estate Transactions | - Commercial property transaction principles
|
1. What is the best indicator of a strong office market?
A) Low rental rates and many concessions
B) The number of free months given to new and renewing tenants by landlords in the office marketplace
C) The absorption rate, net absorption rate, and rising rental rates
D) When tenants have lots of options because of the amount of available space at favorable rates
2. A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?
A) If the information on the building's utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.
B) The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.
C) If the information on the subject building's utilities is available, then a potential buyer will not put a condition in the offer.
D) The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.
3. A buyer looking for an industrial property tells the salesperson that on-site trailer storage space is an important feature. What is a reason on-site trailer storage might be important for the buyer's industrial business?
A) Incoming trucks could have difficulty if there is a lack of on-site trailer storage.
B) Outgoing trucks could have difficulty if there is a lack of on-site trailer storage.
C) Some trucks may need to park on the property overnight.
D) Businesses need to transport materials to and from the site.
4. All of the following aspects of a commercial property may affect its eligibility for Leadership in Energy and Environmental Design (LEED) certification, EXCEPT:
A) Innovative elements
B) Sustainability
C) Vacancy rate
D) Energy efficiency
5. A seller client wants to know the actual size of their unit to avoid any discrepancies. How should the salesperson assist the client?
A) Use a laser measuring device to take the measurements.
B) Recommend the services of third-party professionals to measure it.
C) Tell the seller the usable size is 80 percent of the rentable size.
D) Add a disclaimer to protect the seller from any discrepancy.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: B |
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