NY “Introduction to Commercial Brokerage in New York” Questions only (no answers)
Answers will be revealed with proper subscription

1) To be able to demonstrate market skills, an agent should be able to:
a. Complete highest and best use analyses and lease analyses
b. Manage the flow of information in market transactions
c. Assess the fluctuations in market costs, vacancies, and absorption
d. Complete a comprehensive marketing program for a tenant

2) Which of the following is NOT a service that should be provided by a real estate licensee:
a. Highest and best use Analysis
b. Lease v. Own analysis
c. Development and construction consulting
d. Tax adviser

ny Introduction to Commercial Brokerage

3) A real estate agent’s opinion of value qualifies as which of the following?
a. A formal appraisal
b. An opinion on which to base a list price or an offer price
c. An official municipal assessed value
d. A value used to determine Loan to Value Ratios for a lender
4) Who can conduct an official appraisal?
a. A licensed appraiser
b. A real estate Broker
c. Any real estate licensee
d. The owner of the property
5) One of the imperatives of a skillful commercial agent is to be able to:
a. Control and manage information
b. Practice in a market for at least three years
c. Develop real estate-related objectives for client companies
d. Master office, retail, and industrial specialties
6) Generally speaking, commercial agents in large markets will opt to specialize by property type, client type, geographical area, or:
a. Creditworthiness level of the client
b. Type or size of a transaction
c. Size of the brokerage firm
d. Length of time to complete a transaction
7) A commercial agent acting as a project manager for a construction contractor would be performing within which of the following brokerage service categories?
a. Property management
b. Feasibility analysis
c. Advisory services
d. Brokerage
8) What are the general categories of commercial and investment real estate services that a real estate agent may provide to their clients?
a. Brokerage, advisory, and property management
b. Legal, taxation, and engineering
c. Mold, lead, and asbestos remediation
d. Structural engineering, environmental site assessments, and electrical
9) Which of the following should help determine if a commercial real estate agent should be a specialist or a generalist?
a. The size of the market
b. The licensees cultural heritage
c. The licensees family status
d. The current interest rates on loans
10) To have an accomplished “investment skill,” the commercial agent must be able to:
a. Utilize an information management system
b. Utilize Discounted Cash Flow and Net Present Value analysis tools
c. Develop and execute professional presentations
d. Be the local expert in market feasibility analysis
11) In a smaller commercial brokerage market, it is likely necessary for the commercial agent to:
a. Specialize by property type
b. Specialize by type of transaction
c. Commute back and forth between more than one geographical market
d. Become skilled at all forms of brokerage practice available
12) Overall, the primary task of a commercial agent is to:
a. Specialize in a particular type of commercial property
b. Convince owners and users of the benefits of the firm’s listed property
c. Maximize transaction volume for the brokerage firm
d. Match a client’s requirements to a suitable property
13) Which of the following falls within a property manager’s skill set?
a. Transaction documents
b. Market
c. Information Analysis
d. All of the answers listed
14) Which of the following would NOT be included in the repertoire of a commercial agent’s advisory services?
a. Lease restructuring
b. Highest and best use analysis
c. Tenant representation
d. Own vs. lease analysis
15) All of the following are services commonly provided by commercial real estate licensees, EXCEPT:
a. Brokerage services
b. Advisory services
c. Property management
d. Filing tax returns
16) If a real estate licensee works in a large market, they may choose to specialize their skills. Which of the following areas of commercial real estate was recommended in the chapter?
a. Type of property — office, retail, industrial, residential income, land, etc.
b. Legal aspects of different forms of ownership – severalty, joint tenancy, tenancy in common, etc.
c. Trucking and transportation
d. Mold remediation
17) In a small market, a real estate agent is likely to specialize in:
a. Mostly residential property, but some commercial transactions when the need arises
b. Manufacturing
c. Warehousing
d. Retail or Office
18) A commercial agent attempting to accommodate a tenant’s downsizing objectives would likely undertake which of the following?
a. A loan workout
b. A lease buyout
c. An agent’s opinion of value
d. A highest and best use analysis
19) To determine whether there is unmet demand for a type of retail space in a trade area:
a. Estimate the demand in dollars for the type of good and divide by the total sales in dollars for that type
b. Estimate the demand in dollars for the type of good, divide by the required sales per square foot for that type of store, and subtract occupied square feet of that type
c. Multiply the occupied square feet of the type of store by the average sales per square foot and subtract the demand in dollars for the type of good
d. Estimate demand for the type of good in dollars per square feet, estimate supply in dollars per square foot, and find the difference
20) Which of the following best describes the population and expenditure approach to defining and evaluating a retail trade area?
a. Draw the area around a site that contains enough people and per capita spending to generate required sales at the site
b. Draw the area around a site from which people can reach the site in a specified time, and check to see if it contains enough demand dollars to generate required sales at the site
c. Estimate the number of persons who pass a site, the percentage who will enter a store at the site, the percentage who will make a purchase, and the average purchase amount to determine if there is enough demand to support a store at the site
d. Estimate the number of purchases of all kinds made by people living in a municipality, the average purchase amount, and the percent spent on a type of good or service to determine if there is enough demand to support a store at the site
21) The area described as the total enclosed floor area designed for an occupant’s exclusive use is the:
a. Construction gross area
b. Gross leasable area
c. Interior gross area
d. Exterior gross area
22) All of the following are important local market trends a retail specialist should keep track of EXCEPT:
a. Housing prices
b. Building permits
c. Utility hookups
d. Voter registrations
23) The largest type of shopping center is the:
a. Super-community
b. Super-regional
c. Double-anchor
d. Theme center
24) As a retail property manager, a retail agent might be expected to:
a. Represent both landlord and tenant in lease negotiations
b. Calculate and collect percentage rents
c. Manage one or more stores for failing tenants
d. Provide accounting services for tenants
25) A factor that often explains why a particular type of retailer occupies a certain pad at a shopping center is:
a. Lack of space in the shopping center
b. Incompatibility of the type of retailer with other tenants in the center
c. Desire of certain types of user to have no close neighbors
d. Infilling to meet a specific unmet demand in the area
26) All of the following are prominent factors in a retail market EXCEPT:
a. Traffic patterns
b. Locations of competing stores
c. Disposable income
d. Employees per square foot
27) Determining how a proposed retail facility would fit in the marketplace is:
a. A task that should be carried out by an accountant, not a real estate agent
b. A job better left to a certified retail sales analyst
c. Exactly the kind of service an experienced retail agent can provide
d. A job avoided by smart retail agents because of the many legal liabilities
28) Which of the following statements about retail tenant representation is FALSE?
a. Retail tenant representatives facilitate the negotiation process.
b. It is possible for agency problems to arise in retail tenant representation.
c. Landlord-side retail agents often work with tenant representatives.
d. Retail tenant representation is uncommon.
29) A certain trade area contains 10,000 people living in 4,000 households averaging 2.5 people in each. Each household in the trade area is known to spend an average of $200 per year on books. Bookstores need average sales of $100 per square foot. What is the retail space demand this bookstore will support?
a. 8,000 square feet
b. $80,000
c. $500,000
d. Two bookstores
30) Retail space demand is measured in terms of:
a. Dollars available for a type of good or service
b. Number of households desiring to purchase a type of good or service
c. Average sales per square foot of retail space
d. Square footage needed to meet the demand for a good or service
31) Which of the following items would be considered part of the demographic pattern of a retail market area?
a. Inflation rates
b. Geographical barriers
c. Tax incentives
d. Income levels
32) Which of the following is characteristic of the specialty or theme type of shopping center?
a. Usually built around a drug store
b. No traditional anchor tenant
c. Usually has an anchor at both ends
d. Gross leasable area of 300,000 square feet
33) Macro market condition indicators relevant to the retail real estate market include all of the following EXCEPT:
a. Commodities trading volume
b. Consumer confidence indices
c. Gross domestic product
d. Consumer loan interest rates
34) Which of the following is a task that a retail agent would normally NOT perform for a client?
a. Review the sizes of existing leased spaces
b. Calculate potential rents
c. Draft leases
d. Estimate the cost of tenant improvements
35) Why do retail agents need to keep track of business cycles?
a. Cycles can suggest whether users and investors will be moving forward with real estate plans or postponing them
b. Cycles provide the retail agent’s only insight into supply and demand movement
c. It is easier to track business cycles than it is other indicators like vacancy and construction starts
d. Transaction volume is always the mirror image of the business cycle
36) The classic concept of tenant mix aims at the optimal arrangement of:
a. Anchor stores and satellite stores
b. National retailers and local retailers
c. High-end stores and off-price stores
d. Retail users and office users
37) How is gross leasable area measured in the BOMA standard?
a. The enclosed areas of all floors are measured and totaled, and void spaces are subtracted
b. All areas within the perimeter of the building and under a roof are measured and totaled
c. All enclosed areas designed for exclusive tenant use are measured and totaled, including basements and mezzanines
d. All enclosed areas and areas that have a structural floor within the building perimeter are measured and totaled
38) Expense analysis, building maintenance, and staffing are responsibilities a retail agent might have to perform when acting as a(n):
a. Transaction broker
b. Tenant representative
c. Investment advisor
d. Property manager
39) Which of the following statements about representation of retail tenants is TRUE?
a. Retail tenant representation is a common practice
b. Unlike tenant representation in other specialty areas, there are no concerns about agency relationships in retail tenant representation
c. Retail tenant representation is viable only with an independent tenant who is seeking a single site
d. Retail tenant representatives play no part in lease negotiations
40) How is a “local chain” defined as a type of retail space user?
a. An independent retailer operating just one store in a metropolitan area
b. An independent retailer operating no more than one outlet in a maximum of two states
c. A retailer operating at least three outlets in as many as three metropolitan areas in one or two states
d. A retailer operating multiple outlets in at least four metropolitan areas in at least three states
41) The upper size limit of space used by a typical full-line department store is:
a. 75,000 square feet
b. 110,000 square feet
c. 180,000 square feet
d. 250,000 square feet
42) Which of the following is one of the commonly recognized retail property configurations?
a. Bulk
b. Gross
c. String
d. Strip
43) Retail space supply is defined in terms of:
a. Square footage of occupied space by type of user in a trade area
b. Number of free-standing stores and shopping centers in a trade area
c. Square footage of vacant retail space of all types in a trade area
d. Total retail sales of a type of good or service in a trade area
44) Why is tenant mix important in a shopping center?
a. It enhances the drawing power of every store in the center
b. It eliminates the need to have an anchor tenant
c. It makes all stores in the center appear equally important in the eyes of consumers
d. It lowers the average cost of occupancy for every tenant
45) What kind of retail space is a “pad”?
a. A second-floor space in a multi-story shopping center
b. A space that the public can access only by passing through another store
c. An outparcel in the parking area of a shopping center
d. A space that is outfitted to sell housewares Which
46) Gross leasable area is:
a. The total of all enclosed floor areas of all floors of a building
b. The square footage of the typical floor plate of a building
c. The total enclosed floor area designed for an occupant’s exclusive use
d. The square footage of a tenant’s leased premises plus common areas shared by the tenant
47) The smallest type of retail user in terms of the range of space typically used is the:
a. Independent drug store
b. Theater
c. Variety store
d. Service station
48) Which of the following best describes the traffic count approach to defining a retail trade area?
a. Draw the area around a site that contains enough people and per capita spending to generate required sales at the site
b. Draw the area around a site from which people can reach the site in a specified time, and check to see if it contains enough demand dollars to generate required sales at the site
c. Estimate the number of persons who pass a site, the percentage who will enter a store at the site, the percentage who will make a purchase, and the average purchase amount to determine if there is enough demand to support a store at the site
d. Estimate the number of purchases of all kinds made by people living in a municipality, the average purchase amount, and the percent spent on a type of good or service to determine if there is enough demand to support a store at the site
49) Which of the following is characteristic of the super-regional type of shopping center?
a. Gross leaseable area of 250,000 square feet
b. Site area of 100 acres
c. Trade area defined by 15-minute drive-time
d. Usually built around a central supermarket
50) A skilled needs analysis performed by a tenant representative would primarily focus on:
a. Assessing where the tenant wants to locate
b. The optimum stacking plan
c. The tenant’s historic headcount
d. The tenant’s business goals and strategies
51) Which of the following is true concerning a mixed-use office property?
a. They are principally located in suburban centers
b. It is developed to the design specifications of the occupant
c. It houses multiple tenants
d. It includes other uses such as retail and hotel
52) In economic terms, the unit of supply in a market is defined as:
a. The area of existing space
b. The area of vacant space
c. The area of space both vacant and/or offered for lease
d. The area of space less the vacancy rate
53) Disaggregated demand analysis is defined as what?
a. Tracking office space demand by submarket or use type
b. Classifying available space by property type or geography
c. The total demand from all segments and submarkets in a geographical area
d. The vacancy rate less the rate of absorption
54) The vacancy rate of an office market can best be described as:
a. Unoccupied space in relation to total available space
b. The available space divided by the absorption rate
c. The total of available space in a market
d. The area of unoccupied and available space in relation to total space
55) Projections of an office market’s market gap can be made by evaluating:
a. The supply gap against the demand gap
b. The absorption rate against the rate of new supply added
c. Movements of new supply against office employee headcounts
d. New supply added to the market
56) Usable area measurement:
a. Indicates to a tenant how much actual space is available for use
b. Is equal to rentable area plus the load factor
c. Cannot change as a function of the tenant’s office design
d. Is used in quoting rents by the landlord
57) Aside from price, the buyer of an office property is going to primarily look for:
a. Optimal tax consequences
b. Blue-chip tenants
c. Reliable cash flow
d. Minimum load factors
58) Salient functional features most important to the office user include which of the following?
a. Optimum expense stops and caps
b. Concessions and tenant improvement allowances
c. Parking ratios and public transportation
d. Amenable floor plans and flexible designs
59) Regarding the lease term, the primary concern of the office tenant is to:
a. Obtain the lowest rent possible for whatever lease term the landlord stipulates
b. Negotiate the shortest lease term possible
c. Secure a lease term that corresponds to the tenant’s demand for the space
d. Obtain a lease term that will insulate the tenant from market rent fluctuations
60) A central concern of an office user contemplating expansion or contraction is which of the following?
a. Fairness on rent escalations and expense stops
b. Maximum tenant improvement concessions
c. Sustaining the building’s professional image
d. Minimizing business disruptions
61) The office market may be divisible into distinct regions owing to:
a. Employee drive times and proximity
b. Economic and municipal planning considerations
c. Types and intensity of retail amenities
d. Property amenities and vacancy
62) The efficiency factor of a building is derived by which of the following equations?
a. (rentable area / usable area)
b. (rentable area X load factor)
c. (usable area X load factor)
d. (usable area / rentable area)
63) The three architectural types of office property are:
a. Class A, B, and C
b. Retail, office, and industrial
c. Single-tenant, multi-tenant, and flex space
d. Garden, low/midrise, and high rise
64) By business function, one characteristic of a retail property that distinguishes it from an office or industrial property is that:
a. The retail property may not be conjoined with executive or business management functions
b. It houses point-of-sale selling functions
c. It houses both distributional and retail functions
d. It does not house administrative or warehousing functions
65) The unit of demand in an office market is which of the following?
a. The market’s employment rate
b. The total area of available space
c. Office employees in the market divided by available space
d. Employee square feet, or ESF
66) In general, the office user is most concerned about:
a. Employee productivity
b. An incompatible tenant mix
c. The office’s location
d. Proximity to transportation networks
67) Which of the following is true regarding rentable area and rentable square feet?
a. It varies in an office suite depending on the number of tenant corridors
b. Landlords use this denomination in quoting rent
c. It is the same as Gross Building Area
d. It is always a smaller number than usable area
68) In general, the definition of an office market:
a. Is driven by drive times and geographical distances
b. Is established by transportation configurations
c. Is determined by both the class and the configuration of office properties in a metropolitan area
d. Can be stated as all of the office properties within a geographical or municipal area
69) In tenant representation, who pays the broker’s commission?
a. The landlord
b. The tenant
c. The commission is paid by both principal parties
d. The tenant, if stipulated in the agreement
70) The principal objective of the office property owner or landlord is which of the following?
a. Maximum income
b. Maximum gross rentable area
c. Efficient turnover
d. Long-term tenants
71) Bay depth can be defined as:
a. The distance between the walls of a bay window
b. The distance between the exterior walls and the supporting columns
c. The distance between the opposing walls of the office suite
d. The distance between exterior window or wall and the common area corridor
72) Office properties can be classified by configuration. Which of the following is a form of configuration?
a. Single-tenant
b. Class A
c. Midrise
d. L-shaped
73) In a leasing transaction, the proposal to lease is preceded by:
a. A tenant’s RFP
b. A tenant’s letter of intent
c. The landlord’s letter of intent
d. A lease termination
74) Class A, B, and C office properties classify office space by:
a. Architectural style
b. Urban, suburban and ex-urban locations
c. Quality of construction and prestige quotient of location
d. The size of the office building
75) Principal locational factors impacting the office user’s requirements are which of the following?
a. Traffic counts
b. Support services and retail amenities
c. Visibility and signage
d. Executive accommodations and efficient space
76) The letter of intent is characterized as which of the following?
a. A drafted lease submitted to the tenant in anticipation of the tenant’s acceptance
b. A tenant’s non-binding statement of interest in leasing the property
c. A landlord’s non-binding pledge to execute a listing agreement
d. A tenant’s summary of leasing requirements submitted to elicit the landlord’s lease proposal
77) A rapidly growing company would most likely be concerned with which of the following office user needs?
a. Compatibility with adjacent tenants
b. Lease escalations
c. Lease concessions
d. Flexibility on lease renewals and options
78) The objective in tenant representation is to:
a. Fairly represent the landlord’s terms to prospective tenants
b. Locate space that meets the tenant’s needs
c. Represent all prospective tenants for a particular office property
d. Catalyze a transaction in the most efficient manner
79) A market gap is which of the following?
a. An office market segment of demand that has been largely overlooked by office developers
b. A point in the economic cycle where supply is in excess of demand
c. An imbalance between office demand and office supply
d. A geographical area or corridor where there is a conspicuous absence of supply
80) The overriding need of an office space user is which of the following?
a. Favorable lease terms
b. Utility of the premises for the intended business function
c. Minimum occupancy cost
d. Short-term, flexible lease expirations
81) To derive the load factor of an office property, one would:
a. Divide rentable area by usable area
b. Divide Gross Building Area by usable area
c. Divide the difference between rentable and usable area by rentable area
d. Divide usable area by the difference between rentable and usable area
82) In an office property, internal supports which may contain plumbing installations are referred to as:
a. Columns
b. Bays
c. False flooring
d. Floor plates
83) Absorption in an office market is best described as:
a. 100% minus the occupancy rate
b. The area of available space that becomes occupied over a time period
c. The amount of space added to a market less the amount of space removed from a market
d. How quickly a new property becomes occupied
84) An office agent’s territory can best be defined as:
a. All available space in a market
b. All available space in a defined geographical area
c. All properties in a given market area
d. All properties included in the agent’s defined area of specialization
85) Where would you find a cross dock?
a. At the top of a truck ramp
b. Across from a truck court
c. Alongside a rail spur
d. At a building’s outside corner
86) What kind of industrial operation is most likely to find a high, hangar-like metal building suitable?
a. Assembly
b. Food processing
c. One where heating and cooling aren’t important
d. One that needs cranes and hoists
87) What kind of industrial property usually consists of nothing but four walls, a roof, and a floor?
a. Light manufacturing
b. Large manufacturing
c. Multi-tenant
d. Bulk
88) What defines the width of a bay in an industrial space?
a. The height of the roof trusses
b. The percentage of office space
c. The location of columns
d. The location of truck wells
89) What is the importance of the “pipeline” in estimating industrial space supply?
a. It provides for communication between industrial users, agents, and owners concerning existing inventory
b. Space being planned or developed is in the pipeline and will add to supply
c. So-called pipeline space must be subtracted from existing supply to estimate future supply
d. The pipeline is the link between available space and the demand for space in a market area
90) Which of the following is normally NOT one of the locational factors driving an industrial user’s space needs?
a. Environmental impact
b. Visibility
c. Zoning
d. Labor supply
91) Industrial property investor and user requirements are often the same because:
a. Users depend on investors to provide operating capital
b. Investors seek to invest in properties that already have successful users in them
c. Industrial property features have the same appeal to everyone
d. Owners and users are often the same entity
92) If a worker in a manufacturing operation uses an average of 100 square feet, and the number of workers in that type of operation is projected to be 1,000 for a certain time and area, what is the estimated demand for this type of manufacturing space?
a. 1,000,000 square feet
b. 100,000 square feet
c. 10,000 square feet
d. 1,000 square feet
93) Which of the following is NOT an important industrial market trend?
a. Transaction sizes
b. Executive compensation levels
c. Lease rates
d. Major employer in-migrations
94) One essential aspect of identifying a future market gap for a type of industrial space is:
a. Interviewing industrial employees about their plans for future employment
b. Estimating the total value of all existing industrial space in the market area
c. Identifying all vacant land in the market area that has not yet been zoned for industrial use
d. Estimating absorption time for any new supply
95) What kind of industrial user is most likely to require a building with floor drains and sloping floors?
a. Warehouser
b. Food processor
c. Shipper
d. Engineering firm
96) A special feature of research and development properties is:
a. 60-foot ceilings
b. Clean rooms
c. Reinforced floors
d. Mezzanine office space
97) Which industry has the highest ratio of square feet per industrial employee?
a. Manufacturing
b. Construction
c. Communications
d. Wholesale
98) Unmet demand for a type of industrial space in a market area is:
a. A market gap presenting possible investment or development opportunities
b. A sign that the market is not attractive to developers
c. An indication that absorption of existing space will be slow
d. A sign that the industrial sector of the economy is shrinking
99) The basis for classifying industrial buildings as Type I or Class A is primarily:
a. Market desirability
b. Property value
c. Location
d. Flammability
100) The average size of “bulk” space is:
a. 2,000,000 square feet
b. 100,000 square feet
c. 50,000 square feet
d. 5,000 square feet
101) An industrial operation that is described as labor-extensive is one that:
a. Uses a low number of employees per square foot
b. Uses a high number of employees per square foot
c. Requires a low percentage of work space relative to office space
d. Requires a location close to a suitable labor pool
102) If a door is described as dock high, how high is the door bottom above the truck court outside the loading area?
a. Two feet
b. Three feet
c. Four feet
d. Five feet
103) In order to identify an industrial market gap, it is necessary to have:
a. Information about supply and demand in the same units of measurement
b. Access to the master land use plan of the controlling municipality
c. A forecast of national demand for manufactured goods
d. Expert knowledge of long range government subsidy and incentive plans
104) One of the factors that commonly defines the boundaries of industrial markets is:
a. Zoning
b. Corporate ownership of multiple sites
c. Distance from government offices
d. Standard industrial classifications
105) Important industrial market trends include all of the following EXCEPT:
a. Land values
b. Construction costs
c. Absorption rates
d. Household size
106) The typical ceiling height of flex space is:
a. Less than 18 feet
b. 30 feet
c. 50 feet
d. 60 feet
107) One of the ways government directly influences land value is by:
a. Creating usage zones and zoning ordinances
b. Regulating absorption and vacancy rates
c. Establishing limits on leasing and selling prices
d. Regulating development costs
108) More than other kinds of specialists in land brokerage, a farm-and-ranch agent needs specialized knowledge of:
a. The development process
b. Tax incentives
c. Highest and best use
d. Crop rotation
109) A land agent who wants to deal only in mineral rights or water rights will specialize in:
a. Development land brokerage
b. Subdivision brokerage
c. Limited rights brokerage
d. Lot wholesaling
110) What does a “growth vector” have to do with the value of land?
a. It reveals how much money people will have to spend on different kinds of goods or services produced at a potential site.
b. It indicates which business sectors are growing and will need land.
c. It indicates how expensive it will be to finance various kinds and stages of site development.
d. It shows where on the map land use is intensifying.
111) By degree of development, land is categorized in terms of zoning, access, utilities, and _____.
a. On-sites
b. Off-sites
c. Configuration
d. Feasibility
112) Which of the following statements about build-to-suit transactions is TRUE?
a. The user leases the land but owns the improvements.
b. The land owner owns the improvements as well as the land.
c. The land owner gets to deduct the lease payments as expenses on tax returns.
d. The user gets to deduct depreciation of the improvements on tax returns.
113) Which of the following statements best describes the concept of linkages as a determinant of land value?
a. Community characteristics as reflected in zoning determine compatible uses and users.
b. Demand for land use is linked to demographic characteristics.
c. Physical connections between the site and the surrounding area determine the type of use and most likely user.
d. Site configuration and topography are invariably linked with particular kinds of land use.
114) What does a limited rights agent specialize in?
a. Single rights or interests unbundled from the whole bundle of rights
b. Fee simple interests
c. Land in transition from one use to another
d. The assembly of multiple parcels into one bundle of rights
115) Which of the following is NOT a major cost item that affects development costs?
a. Gains tax
b. Permitting
c. Impact fees
d. Debt service
116) When talking about the degree of development of a parcel, what is meant by “off-sites”?
a. Neighborhood amenities
b. Pavement, curbs, and gutters
c. Municipal permits
d. Water, sewer, and electricity
117) What generally happens to land as the land use around it intensifies?
a. It loses its value.
b. Increasing taxes force a change of use.
c. It changes ownership.
d. It is subdivided and sold to neighboring owners.
118) In a sale/leaseback transaction:
a. A user buys land, develops it for a specific use, and leases it to another user
b. An investor buys land, sells it to a developer, who develops it for a use and leases it back to the investor, who then sells it to a user
c. A developer or investor buys land from a user, develops it for the user, and leases it back to the user
d. A user leases land from an owner/investor, develops it for a specific use, then sells the land back to the original owner while retaining ownership of the improvements
119) What category of land do ranchland, cropland, and timberland belong to?
a. Recreational
b. Agricultural and mining
c. Commercial and industrial
d. Upland
120) Which of the following legal determinants of value presents the possibility that a parcel will be taken involuntarily from its owner?
a. Ad valorem tax
b. Eminent domain
c. Environmental law
d. Special assessment
121) The physical determinants of land value include:
a. Site configuration
b. Area amenities
c. Base industries in the community
d. Population trends
122) In what kind of zoning category would you be likely to find farm and ranch land?
a. Commercial
b. Industrial
c. Agricultural
d. Planned unit development
123) How does an option contract benefit a land developer?
a. It allows the developer to begin preparing the land for development without having to buy the land first or obtain financing.
b. It reduces the upfront cost of development by spreading the land cost over a long time period.
c. It allows the option holder to immediately gain the tax advantages of land ownership.
d. It allows the option holder to control a parcel for minimum cost and risk while putting the project together.
124) A developer who needs to assemble a number of separately owned parcels into a single property is most likely to make use of:
a. Rights leases
b. Option contracts
c. Land leases
d. Sale/leasebacks
125) Which of the following types of use falls within the category of commercial and industrial land?
a. Multi-family
b. Mineral extraction
c. Ranch
d. Government use
126) Which of the following types of land is considered suitable for agricultural uses?
a. Mountainous
b. Dryland
c. Alluvial
d. Untillable
127) The physical characteristics of land include all of the following EXCEPT:
a. Drainage
b. Slope
c. Soil
d. Infrastructure
128) Which type of industrial property is often the smallest type?
a. Multi-tenant
b. Office/Warehouse
c. Large manufacturing
d. Heavy manufacturing
129) What is another term for contract for deed?
a. Seller financing
b. Purchase and sales contract
c. Agency agreement
d. Facilitator agreement
130) Which of the following is an important characteristic when selecting an Industrial Property?
a. Visibility
b. Traffic count
c. Median income
d. Docks
131) Which of the following would be a good way to track area supply for office property?
a. Knowing what employers are coming into and leaving the market
b. Knowing the overall unemployment rates for the region
c. Finding the mean family income for the region
d. Taking existing inventory footage, subtracting square footage expected to be demolished or condemned, and adding the square footage expected to come on line that is presently somewhere in the pipeline
132) When discussing land “configuration”, what aspects are important?
a. Road frontage
b. Available utilities
c. Proximity to highways
d. Affordability of builders
133) All of the following are common types of office property architectural styles EXCEPT:
a. Garden
b. Low/Mid Rise
c. High Rise
d. Continuity
134) Class C office property is defined as:
a. Rental rates are also at the top of the office rental scale.
b. Has superb locations with excellent visibility.
c. The improvements present a prestigious image for tenants.
d. May have some defects or is in an undesirable location
135) Industrial properties may sometimes be classified as:
a. Flex
b. Transitional
c. Aboriginal
d. Directional
136) What is a 1031 Exchange?
a. A method of avoiding foreclosure
b. A way to defer capital gains tax by purchasing a like kind of property soon after selling property
c. A form of currency
d. A way to finance property without documentation
137) Which office property is considered to be of the lowest quality?
a. Class A
b. Class B
c. Class C
d. Class X
138) Employment conditions, growth patterns, and infill patterns are examples of what kind of land attribute?
a. Economic determinants
b. Physical growth
c. Functional obsolescence
d. Income potential
139) What would be considered a good mix of tenants in a retail center?
a. Many stores of a single type
b. Some stores don’t belong in the center
c. Stores offer goods or services not demanded in the trade area
d. Each store complements and enhances the drawing power of the other stores
140) All of the following are useful in determining the value of an office property
a. Efficiency factor
b. Add-on factor
c. Rate per usable square foot
d. Loan to Value Ratio
141) Which type of commercial property uses the term “Anchor”?
a. Industrial
b. Office
c. Retail
d. Land
142) Which of the following is considered a macro market condition?
a. Inflation rates
b. Housing prices
c. Local employment trends
d. Vacancy and absorption rates
143) How can retail supply be calculated?
a. The total square footage of occupied retail space in the trade area by specific type of user, or, in other words, the user type’s existing competition.
b. The driving miles to the closest similar retailer
c. A sum of all similar retailers within a 50 mile radius
d. The average gross income per household in the zip code of the retailer
144) Local zoning ordinances may restrict the types of uses possible for land. What is an example of a type of zoning?
a. Commercial
b. Educational
c. Health Care
d. Transportation
145) What is an example of a land tax structure?
a. Ad Valorem
b. Income
c. Inheritance
d. Capital gains
146) When looking at columns in an industrial building, what is a key trait to note?
a. Distance between posts
b. Color of posts
c. Finish on posts
d. SHIRC or Service History Report on Columns
147) Agents who wish to specialize in selling a single right, like mineral rights or water rights would specialize in what?
a. Option agreements
b. Limited rights brokerage
c. Lot wholesaling
d. Zoning
148) What is the gross leasable area?
a. The total enclosed floor area designed for the exclusive use of an occupant, including basements, mezzanines, and upper floors
b. The total of all the enclosed floor areas of all floors, excluding voids, interstitial space (gaps), unexcavated space, and crawl space
c. The area defined as exterior gross area, plus other areas that have a structural floor or are typically enclosed but within the building perimeter
d. The floor area multiplied by the ceiling height, plus the acreage of parking spaces
149) Which office property is considered to be of the highest quality?
a. Class A
b. Class B
c. Class C
d. Class X
150) What is a percentage rent?
a. A base rent amount plus an amount based on a percentage of gross sales generated at the leased site
b. A monthly rent based on the percentage of the year the retail location is open
c. A rental amount that is a given percentage of the mean rent to value ratio for the region
d. Percentage rent refers to the percentage of occupied spaces in a retail center
151) Which of the following is considered a micro market condition?
a. Inflation rates
b. Interest Rates
c. Consumer Confidence Indices
d. Municipal tax valuations and revenues
152) Area amenities may contribute to the value of land. An example of an area amenity is:
a. Public Parking
b. Unemployment
c. Crime rates
d. Interest rates
153) Retail property is sometimes classified as:
a. A strip center
b. Flex
c. Gross
d. Biotech
154) Industrial property may be classified in a number of ways. Which of the following is a common classification?
a. Type I, Type II, Type III, etc.
b. Class Ia, Class Ib, Class 2, etc.
c. Type E, Type T, Type R, etc.
d. Code A, Code B, Code C, etc.
155) Where is a super-flat floor important?
a. Found in automated warehouses where level flooring is necessary for proper operation of warehousing machinery
b. In retail space because uneven floors have been shown to reduce sales
c. In office space because employees are often on wheeled chairs
d. In any space for sale because imperfect floors often kill deals
156) Which of the following is NOT a component of an industrial property ceiling?
a. Truss
b. Beam
c. Span
d. Drop panels
157) What is considered a core characteristic of an office property?
a. Restrooms
b. Floor ducting
c. Sprinklers
d. Floor load
158) If a buyer is looking for agricultural land, what kind of land should they AVOID?
a. Alluvial
b. Irrigated
c. Upland
d. Dryland
159) How does one calculate the load factor for office property?
a. Find the percentage of building’s rentable area not available for use; rentable minus usable divided by rentable
b. Sum of total areas of all floors, including basements and garages
c. Percentage of building’s rentable area that is available for use
160) What type of commercial real estate is concerned with bay depth?
a. Industrial
b. Office
c. Retail
d. Land
161) What is considered usable area?
a. This is another term for Rentable Area
b. Rentable area minus the load factor of corridors, utility closets, washrooms, etc.
c. Corridors, lobbies, restrooms, elevator core, stairways, and other vertical penetrations of the floor
d. A building’s total area in square feet including shafts, stairwells, other vertical penetrations, basements and garages
162) Full-line department stores generally go up to what size?
a. 180,000 square feet
b. 20,000 square feet
c. 1,000,000 square feet
d. 50,000 square feet
163) Retails are interested in the following EXCEPT:
a. Traffic count
b. Drive time
c. Income levels
d. Ultra-flat floors
164) Which of the following is an example of land feasibility and utility?
a. If it is tillable/nontillable
b. Traffic count
c. Vacancy rates
d. Options
165) Which is the correct order when describing land development from nothing to fully developed?
a. Raw, unfinished, improved, finished
b. Unfinished, raw, finished, improved
c. Raw, improved, finished, unfinished
d. Unfinished, raw, improved, finished
166) An agent who would like to be a Retail Specialist should be aware of:
a. Disposable income data
b. Traffic patterns and events which affect such patterns
c. Driving times from one point to another
d. All of the answers listed
167) Which of the following is considered an important amenity in office space?
a. Break rooms
b. Security offices
c. Food service areas
d. All of the answers listed
168) Which of the following is a key indicator to follow if an agent wishes to specialize in office properties?
a. Vacancy Rates
b. Absorption Rates
c. Employment Rates
d. All of the answers shown
169) An example of a rights lease is:
a. A lease for a studio apartment
b. A lease for retail space
c. A lease for mineral rights on land owned by another
d. A lease for office space when the property owner lives onsite
170) When talking about industrial property, what does the term “Apron” mean?
a. A reinforced paved area of the truck court for parking trucks while loading and unloading
b. A polyurethane coating sprayed on the exterior of a building to prevent truck emissions from entering the infrastructure
c. The entrance to the industrial park
d. The curtain hung in a front entrance way to keep road debris from entering the building
171) When talking about industrial property, Class A, B, C, D, and S overall refer to what characteristic?
a. Depreciation
b. Fire resistance
c. Crime rates
d. Proximity to highways
172) What are some things to consider when figuring exterior needs in industrial space?
a. Dock-High
b. Drive-In
c. Ramp
d. All of the answers listed
173) What is an option contract?
a. An agreement that gives the Optionee the right to lease or buy a property or a right within a certain period of time
b. A contract that allows a tenant the option of using a real estate agent or not
c. An agreement that allows a buyer the option of a number of properties in which they can purchase
d. A contract in which the seller has the option to choose whichever buyer offers the best terms
174) If an agent wishes to focus on light manufacturing, what kind of commercial real estate would their specialty be?
a. Office
b. Industrial
c. Land
d. Retail
175) What is a market gap?
a. The comparison of supply and demand for a type of retail space that reveals unmet demand
b. The distance from the closest parking lot to the retail establishment
c. The amount of police protection available to patrol against shoplifting
d. The number of GAP retailers within city limits
176) All of the following are considered types of industrial property EXCEPT:
a. Showroom
b. Warehouse/distribution
c. Research and development
d. Garden
177) Which of the following is NOT an important consideration when thinking about bays?
a. Bay Area
b. Bay Depth
c. Bay Width
d. Bay Watch
178) How many parking spaces are recommended for office properties?
a. One space per 200 square feet of rentable space
b. 100 spaces per rentable unit
c. Parking area should roughly equal rentable space
d. A parking space for every $10,000 of tenant’s annual revenue
179) Which of the following is a type of industrial property?
a. Regional super
b. Light manufacturing
c. Garden style
d. Strip center

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