Midterm

Question 1

Which step of the development process is the riskiest?

Answer 1

Predevelopment

Question 2

Residential Multi-Family ALWAYS has what type of rent method?

Answer 2

Full service gross

Question 3

What are the three types of rent service?

Answer 3

1. ) Full-Service Gross
2. ) Modified Gross
3. ) Triple Net

Question 4

Commercial Retail, Industrial Distribution, Industrial Manufacturing ALWAYS use this type of rent method

Answer 4

Triple Net

Question 5

Of the five property types (Residential Multi-family, Commercial Retail, Commercial Office, Industrial Distribution, Industrial Manufacturing) which one ALWAYS has an occupancy format of multi-tenant?

Answer 5

Residential-Multi-family

Question 6

Of the three property types (Residential, Commercial, Industrial) which one USUALLY has only a single tenant?

Answer 6

Industrial

Question 7

Of the five property types (Residential Multi-family, Commercial Retail, Commercial Office, Industrial Distribution, Industrial Manufacturing) which one ALWAYS has little to no pre-leasing?

Answer 7

Residential Multi-family

Question 8

Of the five property types (Residential Multi-family, Commercial Retail, Commercial Office, Industrial Distribution, Industrial Manufacturing) which one acts as the best protection against inflation with shorter lease terms?

Answer 8

Residential Multi-family

Question 9

Of the three types of rent service:
1.) Full-Service Gross
2.) Modified Gross
3.) Triple Net 
Which one acts as the best protection against rising energy costs?

Answer 9

Triple net

Question 10

Of the five property types (Residential Multi-family, Commercial Retail, Commercial Office, Industrial Distribution, Industrial Manufacturing) which one has the longest lease length?

Answer 10

Industrial Distribution (10-20 years)

Question 11

How do you calculate a cap rate?

Answer 11

NOI/Value of the property

Question 12

How can you determine the value of a property if you only have the CAP rate and the NOI?

Answer 12

NOI/CAP Rate

example: $20,000/ 0.05 = $400,000

Question 13

What are the three criteria that define a Public-Private Joint Venture?

Answer 13

1. ) It would not occur without public participation
2. ) It is a negotiated transaction, not merely a set of criteria.
3. )It involves public agency participation through and past completion.

Question 14

Redevelopment Transactions are essentially…

Answer 14

Policy-driven transactions

Question 15

What are the three negotiating types?

Answer 15

1. )
2. )
3. )