REAL 4000 UGA Dietz Exam 1 Study Review;
Questions & Answers 100% Solved
Five Main Product-Types or "Food Groups" and Others of CRE... (Corporate Real Estate)
Correct answer-Industrial (e.g. offices, warehouses, garages, and distribution centers)
Multi-family (e.g. duplex, which has two dwellings within a single building, to homes or small
apartments buildings with up to four units)
Office
Retail
Other (e.g. storage units, churches, stadium, hospitals, student housing)
Hotel/ Resorts
How much is this property worth at a 6.8% capitalization rate? Correct answer-net
operating income / capitalization rate = $1,948,.8% = $28,656,000
"NOI" Net Operating Income Correct answer-is one of the Golden numbers, represents
how well the machine works
tangible property Correct answer-Physical asset that can be owned
Can be real or personal property
EX: Real property, (land and other assets that are permanently attached to the land) buildings,
canals, crops, fences, land, landscaping, machinery, minerals, ponds, roads.
EX: Personal property, (property that is moveable) vehicles, furniture, boats, and collectibles.
, REAL 4000 UGA Dietz Exam 1 Study Review;
Questions & Answers 100% Solved
intangible property Correct answer-Non-physical assets such as stocks, bonds,
mortgages, leases
real estate as a tangible asset Correct answer-"Raw" Land
Improvements to the land
Excavation and fill
Sewers and other utilities
Roads and driveways
Structures (improvements on the land)
real estate as a bundle of rights Correct answer-Exclusive possession of the real property
(no trespassing)
Use or enjoyment
Ex., can use as rental property to generate cash flow
Disposition (sale)
Can be unbundled in many ways
Ex., owner leases property to renter
term real estate used in 3 ways Correct answer-1. Real Estate as a tangible asset
2. Real Estate as a bundle of rights
3. Real estate as an industry or profession
, REAL 4000 UGA Dietz Exam 1 Study Review;
Questions & Answers 100% Solved
Real Estate makes up ___________ of the world's wealth Correct answer-50%
real estate generates what percent of US GDP Correct answer-25%
real estate generates what percent of local govt revenue Correct answer-70%
real estate creates how many jobs for americans Correct answer-9 million
developed land represents what percent of land in the US Correct answer-6%
three markets in real estate Correct answer-Local User Markets
Property Markets
Capital Markets
important distinction of property market Correct answer-The property market is a
function of the Space (User) Market and the Capital Market
It is helpful to think of the Property Market as a result, NOT as a
Third market equal to the other two; though in reality they are all
Three independent concepts and can influence one another via
Their relationship.
, REAL 4000 UGA Dietz Exam 1 Study Review;
Questions & Answers 100% Solved
user market (space market) Correct answer-Market for the physical real estate
"Buyers" receive right to use space
Called the "space" market or "rental market"
Where rental rates are determined
These markets are very "local" and usually highly competitive
Separate localmarkets for various property types: retail, office, industrial, etc.
demand side of user market Correct answer-Individuals, households, & firms who require
space either for consumption or production purposes
supply side of user market Correct answer-Real estate owners/ operators who rent space
to tenants
Segmentation of User (Space) Markets Correct answer-Both demand and supply side of
user markets are very specific to location & building type
User (space) markets are highly segmented!
(is the process of dividing a broad consumer or business market, normally consisting of existing
and potential customers, into sub-groups of consumers (known as segments) based on some
type of shared characteristic, e.g., geographic, demographic, psychographic, and behavioral.)
Compare to nationally integrated markets (gasoline, steel, financial capital; i.e., homogeneous
commodities that can be moved from place to place)
