100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
REE 3043 EXAM 2 QUESTIONS WITH CERTIFIED ANSWERS $12.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. REE 3043
  4.  
  5. REE 3043

Exam (elaborations)

REE 3043 EXAM 2 QUESTIONS WITH CERTIFIED ANSWERS
 0 purchase
  • Course
  • REE 3043
  • Institution
  • REE 3043

REE 3043 EXAM 2 QUESTIONS WITH CERTIFIED ANSWERS A statement by a real estate investment trust that it invests only in apartment buildings that are larger than 50 units and less than 10 years old is an example of an investment: - Answer-D. Policy statement The rent that can be obtained when le...

[Show more]

Preview 2 out of 7  pages

Document information

  • September 5, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • REE 3043
  • REE 3043

Seller

avatar-seller
shiifridoc

Reviews received

Content preview

REE 3043 EXAM 2 QUESTIONS WITH
CERTIFIED ANSWERS
A statement by a real estate investment trust that it invests only in apartment buildings
that are larger than 50 units and less than 10 years old is an example of an investment:
- Answer-D. Policy statement

The rent that can be obtained when leasing a property in an open and competitive
market is termed: - Answer-Market Rent

Income properties are purchased by investors who desire primarily to receive: - Answer-
A. periodic income and appreciation

You are considering purchasing a retail building for $5,000,000 (50,000 square feet of
net lease area). You expect to lease in the first year for $18 per square foot per year.
Vacancy and collection losses are expected to be 9 percent of PGI and operating
expenses 45 percent of EGI. What is the estimated net operating income (NOI) for the
first year? - Answer-C. 450,450

List the two economic principles that have a significant influence on the determination of
land uses within a metropolitan area - Answer-1. Transportation costs and the desire of
firms and individuals minimize such costs.
2. The ability to substitute intensive capital improvements for land availability ( eg high-
rise construction versus suburban office parks)

, Perfectly competitive asset markets include all of the following characteristics, except: -
Answer-D. highly regulated

A market in which investors do not use information about previous transactions and
other publicly available information is termed a : - Answer-A. Inefficient market

Early economists argued that good access creates value because it results in: -
Answer-B. Lower transportation costs

In determining where to locate, a firm considers the ability of the firm to substitute
building improvements for: - Answer-D. Land

In an urban area, the most desired locations are occupied by: - Answer-A. the most
productive use.

Transportation costs , and the price of land with as the distance to an
economic activity center of a city increases: - Answer-B. Increases, decreases

What type of rent is generally recognized as the best measure of the true cost of
occupied space? - Answer-C. effective. rent

As discussed in the text, the Q statistic is defined as: - Answer-D. property's market
value divided by its replacement cost.

T/F During the past decade in the United States and in many other developed nations,
the real estate asset market evolved into two markets: the traditional property market
and the securitized market. - Answer-True

T/F Deviations in transaction prices from the estimated market values supported by
market fundamentals are often referred to as 'noise'. - Answer-True

T/F A Q ratio greater than one indicates that the price of existing properties appear
cheap relative to their replacement cost. - Answer-False

T/F Expectations of variability are embedded in the discount rate, which in turn affect
asset prices. - Answer-True

T/F A speculative bubble exists when developers purchase large tracts of land
surrounding an area in anticipation that growth will occur in that area. - Answer-False

T/F One explanation for the existence of boom-and-bust periods (cycles) in real estate
is that investors need substantial periods of time to accumulate and then to invest
funds. - Answer-False

T/F Rents reflect the price of space and sale prices reflect the value of assets and the
right to collect rents. - Answer-True

T/F Three key trends identified in the text that will affect commercial real estate markets
are population growth, technology trends, and the changes anticipated in the ethnic
composition of the population. - Answer-True

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller shiifridoc. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$12.99
  • (0)
Add to cart
Added