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REE 4103 final quizlet yay.
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REE 4103 final quizlet yayA _______________ would have the lowest ratio of operating expenses to gross
income incurred by the landlord - ANS-Retail and Industrial properties
A _______________ would have the lowest ratio of operating expenses to gross
income incurred by the landlord. - ANS-An absolute net leased retail store
A demonstration narrative appraisal report - ANS-may be based on hypothetical or
assumed data
A forecast using discounted cash flow analysis would include - ANS-all cash flows,
reversion, initial outlay, discount rate
A forecast using discounted cash flow analysis would include: - ANS-- Reversion at the
end of the holding period
- Income, vacancy, and operating expenses
- an economic analysis
A formal appraisal report must include the: - ANS-data of the value estimate,
identification or the property appraised and signature of the appraiser
A gross lease is one that - ANS-tenant pays rent and landlord pays expenses
A gross lease is one that: - ANS-The landlord pays for all operating expenses
A gross rent multiplier is valid when the subject and comparable properties have similar
- ANS-operating expense ratios and upside potential for appreciation or depreciation
A lease clause that limits the expenses of the landlord is termed a: - ANS-escalation
clause
A lease clause that limits the expenses of the landlord is termed a: (select all the
answers that are correct) - ANS-expense stop clause and expense cap
A lease on a 13,878 square foot industrial building, where the rent is specified as
$7,900/month, for a 9-year term with level income throughout the lease term. When the
lease was negotiated, the tenant received free rent for the first month of each year as a
concession. What is the effective rent per square foot per year? - ANS-6.26
,A lease which provides for rental changes annually tied to the consumer price index is
what kind of lease? - ANS-Index lease
A lease which requires the landlord and tenant to arbitrate the amount of the lease upon
the tenant exercising a lease extension option is what type of lease? - ANS-Revaluation
Lease
A lease with the following annual payments: Year 1: $10,000 Year 2: $12,000 Year 3:
$14,000 Year 4: $16,000; would be called what type of lease? - ANS-Step-up lease
A property forecasted to produce $27,933 of gross income, and which sells for
$454,857 is said to have sold at a GIM of? - ANS-16.28
A property has potential gross income of $108,092, effective gross income of $76,212,
and operating expenses of $44,418. What is the operating expense ratio? - ANS-0.58
A reconstructed operating statement for an owner operated property should include -
ANS-vacancy and collection loss, EGI, operating expenses, fixed expenses, variable
expenses, replacement allowance, total operating expenses, NOI, additional calculation,
expense and income ratios
A reconstructed operating statement for an owner operated property should include: -
ANS-Management charges
A reevaluation lease - ANS-provides for periodic rent adjustments based on
reevaluation of the rental rate under the prevailing market conditions.
A rent multiplier - ANS-Is the ratio of the price of an RE INV to its monthly rental income
before expenses
A rent multiplier: - ANS-Relates the income of the property to current value
A rent survey reveals that apartment buildings offering one-bedroom units have a
considerably higher occupancy factor than those with two- bedroom units. If the subject
property includes only units with two bedrooms, the appraisal should probably project: -
ANS-A higher vacancy factor than found in the one-bedroom units
A rent survey reveals that apartment buildings offering one-bedroom units have a
considerably higher occupancy factor than those with two-bedroom units. If the subject
, property includes only units with two bedrooms, the appraisal should probably project -
ANS-a higher vacancy factor than was found for 1 bedroom units
A rent survey reveals that apartment buildings offering one-bedroom units have a
considerably higher occupancy factor than those with two-bedroom units. If the subject
property includes only units with two bedrooms, the appraisal should probably project: -
ANS-A higher vacancy factor than found in the one-bedroom units
A revaluation lease - ANS-Provides for increases in the rental rates based on
revaluation of the property value or rental rate by an appraiser
A technique of income capitalization in which the analyst need not distinguish interest
rates from capital recovery rates, but is most useful for comparable income properties -
ANS-direct capitalization
A tenant who has an Exclusive Use Clause with a landlord, where the landlord later
allows a competing tenant in the same shopping center may: - ANS-exercise the clause
in a lawsuit
A tenant who has an Exclusive Use Clause with a landlord, where the landlord later
allows a competing tenant in the same shopping center may: (select all answers that
are correct) - ANS-cancel its lease, sue the landlord for damages and prevent the
landlord from renting the space to the competitor
A transmittal letter does not include - ANS-a statement of value
A value range is never - ANS-a single dollar amount
All are used in valuation of income-producing property except - ANS-income taxes
All of the following lease provisions are advantageous to the lessee except -
ANS-escalation clause
All of the following relate to the rent level or payment schedule of a lease except: -
ANS-not : flat lease
All the following are excluded from the reconstructed operating statement except: -
ANS-reserves for replacements
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