USP Exam Shenkman questions well answered
passed
1. What is Absorption The amount of space of units occupied within a market over a
given time.
2. Gross Absorption: New Leases. What you brought in.
3. Gross Absorption Exam- -Example: You leased out two new spaces, one for 250 sft,
and another
ple: for 200. This makes your gross absorption 450 sft.
- 250 + 200 = 450
4. Net Absorption: The change in leased space in a specified commercial market or
locality,
between the current time period and the last specified period. Can
be negative. TLDR: What you lost in leases compared to what
you gained.
Analyzed over 3-5 Years.
5. Net Absorption - Example: You lose 250 sft, but gain 450 sft, making your net
exam- ple: absorption 200 sft.
- 450 - 250 = 200
6. Positive Absorption: More space was leased than what was vacant. Rents Increase.
7. Negative Absorption: More commercial space was vacated/supplied in a market than
what was
leased. Rents decrease.
8. Concentric Zone
Theo- ry:
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22
,USP Exam Shenkman questions well answered
passed
9. Heterogeneous vs. Rings that branch out of the urban center which indicate zones.
Ho- mogeneous
The outer ring is the commuter zone, the second ring is the
Residential zone, the third is the working-class zone, the fourth
is the zone of transition, and the fifth is the factory zone.
Heterogeneous: Each property has unique features, whether it is its
age, the building design of its structures,or its location.
2/
22
, USP Exam Shenkman questions well answered
passed
Homogeneous: Similar or the same.
10. What loss is created Deadweight loss is created by rent control by discouraging
by Rent Control? production and decreasing the supply of goods, services, or
housing below what consumers truly demand.
11. Deadweight Loss: Cost to Society created by a market ineflciency. Occurs when
supply and
demand are out of equilibrium.
12. What causes
equilibri- um?
13. Sellers Market High absorption. Has to be over 20%. Property is likely to sell
quickly.
14. Buyers Market: Low absorption. Has to be under 15%. Properties are selling
slowly.
15. Tenant Market: Low absorption of leases. Rent is low to fill up space.
16. Landlord Market: High absorption of leases. Rent is higher due to high demand.
17. P.E.S.T.E.L. Political, Economic, Social, Technological, Environmental, Legal.
18. Political: Government, trade and tax policies, general political issues,
changes in leadership, regulation, and political trends.
19. Economic: External factors that influence the economy's performance, which
in turn
can attect businesses, industries and individuals.
20. Social: External factors attecting businesses and organizations
3/
22
passed
1. What is Absorption The amount of space of units occupied within a market over a
given time.
2. Gross Absorption: New Leases. What you brought in.
3. Gross Absorption Exam- -Example: You leased out two new spaces, one for 250 sft,
and another
ple: for 200. This makes your gross absorption 450 sft.
- 250 + 200 = 450
4. Net Absorption: The change in leased space in a specified commercial market or
locality,
between the current time period and the last specified period. Can
be negative. TLDR: What you lost in leases compared to what
you gained.
Analyzed over 3-5 Years.
5. Net Absorption - Example: You lose 250 sft, but gain 450 sft, making your net
exam- ple: absorption 200 sft.
- 450 - 250 = 200
6. Positive Absorption: More space was leased than what was vacant. Rents Increase.
7. Negative Absorption: More commercial space was vacated/supplied in a market than
what was
leased. Rents decrease.
8. Concentric Zone
Theo- ry:
1/
22
,USP Exam Shenkman questions well answered
passed
9. Heterogeneous vs. Rings that branch out of the urban center which indicate zones.
Ho- mogeneous
The outer ring is the commuter zone, the second ring is the
Residential zone, the third is the working-class zone, the fourth
is the zone of transition, and the fifth is the factory zone.
Heterogeneous: Each property has unique features, whether it is its
age, the building design of its structures,or its location.
2/
22
, USP Exam Shenkman questions well answered
passed
Homogeneous: Similar or the same.
10. What loss is created Deadweight loss is created by rent control by discouraging
by Rent Control? production and decreasing the supply of goods, services, or
housing below what consumers truly demand.
11. Deadweight Loss: Cost to Society created by a market ineflciency. Occurs when
supply and
demand are out of equilibrium.
12. What causes
equilibri- um?
13. Sellers Market High absorption. Has to be over 20%. Property is likely to sell
quickly.
14. Buyers Market: Low absorption. Has to be under 15%. Properties are selling
slowly.
15. Tenant Market: Low absorption of leases. Rent is low to fill up space.
16. Landlord Market: High absorption of leases. Rent is higher due to high demand.
17. P.E.S.T.E.L. Political, Economic, Social, Technological, Environmental, Legal.
18. Political: Government, trade and tax policies, general political issues,
changes in leadership, regulation, and political trends.
19. Economic: External factors that influence the economy's performance, which
in turn
can attect businesses, industries and individuals.
20. Social: External factors attecting businesses and organizations
3/
22
