Commercial Real Estate Exam
Questions With All Correct Detailed
Answers A+ Pass
Some agents prefer - Answers -✔✔ working with commercial clients because they are
focused on the numbers, which takes emotion out of the equation.
Challenge #4: Finding out who actually owns commercial properties. - Answers -✔✔ It
takes commercial agents longer to do the research to find out who to actually contact
about a property. Many commercial properties are not owned by individuals, but instead
by Limited Liability Companies (LLCs), adding layers of complexity in finding out who
the designated contact person for a particular property would be.
Find a mentor - Answers -✔✔ One of the most important things that an individual
starting out in real estate can do is to join a company with a strong training and support
system. Because transitioning into commercial real estate is a big step, mentorship is
invaluable. Mentoring is about one person helping another to achieve something.
Build a comprehensive database - Answers -✔✔ This will be one of the greatest assets
of your business. Pick a geographical region to farm, and assemble a database of
properties and property owners.
Learn how to budget. - Answers -✔✔ Before truly getting started in commercial real
estate, you must sit down and determine a monthly budget for yourself. Start by
calculating your monthly expenditures.
Commercial brokerage firms look for basic types of individuals that they feel will help
increase their business: - Answers -✔✔ • Experienced residential agents who have
already built their own businesses
• Individuals who are newly licensed and show a predilection toward an aspect of
commercial real estate, like retail leasing, or who have specialized knowledge about a
certain niche market for example, industrial or manufacturing
Commercial has - Answers -✔✔ No TREC-promulgated forms
Low-rise - Answers -✔✔ Low-rise buildings usually consist of 1 to 3 stories and are
often located in residential areas as opposed to busy urban settings.
Garden-style complexes in urban areas are - Answers -✔✔ typically older builds that
are popular with renters because the grounds are easily accessible for pets and children
, and often include the most basic amenities such as pools, small workout facilities, and
sidewalks.
Shadow Anchors - Answers -✔✔ Shadow anchors are also quite common. Shadow
anchors are usually well-known stores owned by the retailer, not the shopping center
owner, but are present in or near the center, and bring in foot traffic.
Double Dumbbell - Answers -✔✔ As regional malls grew in size, the simplistic dumbbell
design morphed into a double dumbbell. Many mallrats (adolescents who grew up
spending time in shopping malls) of the 1980s and 90s are all too familiar with the
double-dumbbell designed shopping mall. The double dumbbell shape forms a cross,
like two dumbbells placed on top of each other, crosswise. This cross allows for four
anchor tenants at the north, south, east, and west wings of the center. Retail shops face
each other along the arms of the cross, sharing common walkways. Double dumbbells
also often extended upward, adding a second or even third story of shopping and
dining. Parking surrounds the center on all sides, and in some cases, garages were
constructed to accommodate tenant and consumer parking.
Long-term leases with high yields attract - Answers -✔✔ investors to industrial
properties, though there are many risks to consider including, cost, obsolescence, and
vacancy (particularly for special-purpose and single-purpose properties).
Resident manager - Answers -✔✔ Residential property managers often live on the
property that they manage and may be employed by an individual owner or by a
property management firm
Americans with Disabilities Act - Answers -✔✔ expansive law that affects almost all
public accommodations, including retail stores, real estate offices, concert venues,
government buildings, professional offices, restaurants, bars and hotels, just to name a
few. Both a tenant in a commercial space and the landlord are potentially liable for
violations of the ADA. The ADA prohibits discrimination against those with disabilities by
denying them the full and equal enjoyment of goods, facilities, accommodations,
services and privileges.
Texas is - Answers -✔✔ one of the easiest states in which to evict a tenant.
IREM - Answers -✔✔ The Institute of Real Estate Management (IREM) offers programs
for individuals and companies to become credentialed in the management profession.
Acceptance of Trust Money - Answers -✔✔ (1) Any trust money accepted by a broker is
held in a fiduciary capacity and must be maintained in a designated trust account
maintained by the broker or delivered to an escrow agent authorized in Texas in
accordance with the agreement of the principals of the transaction.
Questions With All Correct Detailed
Answers A+ Pass
Some agents prefer - Answers -✔✔ working with commercial clients because they are
focused on the numbers, which takes emotion out of the equation.
Challenge #4: Finding out who actually owns commercial properties. - Answers -✔✔ It
takes commercial agents longer to do the research to find out who to actually contact
about a property. Many commercial properties are not owned by individuals, but instead
by Limited Liability Companies (LLCs), adding layers of complexity in finding out who
the designated contact person for a particular property would be.
Find a mentor - Answers -✔✔ One of the most important things that an individual
starting out in real estate can do is to join a company with a strong training and support
system. Because transitioning into commercial real estate is a big step, mentorship is
invaluable. Mentoring is about one person helping another to achieve something.
Build a comprehensive database - Answers -✔✔ This will be one of the greatest assets
of your business. Pick a geographical region to farm, and assemble a database of
properties and property owners.
Learn how to budget. - Answers -✔✔ Before truly getting started in commercial real
estate, you must sit down and determine a monthly budget for yourself. Start by
calculating your monthly expenditures.
Commercial brokerage firms look for basic types of individuals that they feel will help
increase their business: - Answers -✔✔ • Experienced residential agents who have
already built their own businesses
• Individuals who are newly licensed and show a predilection toward an aspect of
commercial real estate, like retail leasing, or who have specialized knowledge about a
certain niche market for example, industrial or manufacturing
Commercial has - Answers -✔✔ No TREC-promulgated forms
Low-rise - Answers -✔✔ Low-rise buildings usually consist of 1 to 3 stories and are
often located in residential areas as opposed to busy urban settings.
Garden-style complexes in urban areas are - Answers -✔✔ typically older builds that
are popular with renters because the grounds are easily accessible for pets and children
, and often include the most basic amenities such as pools, small workout facilities, and
sidewalks.
Shadow Anchors - Answers -✔✔ Shadow anchors are also quite common. Shadow
anchors are usually well-known stores owned by the retailer, not the shopping center
owner, but are present in or near the center, and bring in foot traffic.
Double Dumbbell - Answers -✔✔ As regional malls grew in size, the simplistic dumbbell
design morphed into a double dumbbell. Many mallrats (adolescents who grew up
spending time in shopping malls) of the 1980s and 90s are all too familiar with the
double-dumbbell designed shopping mall. The double dumbbell shape forms a cross,
like two dumbbells placed on top of each other, crosswise. This cross allows for four
anchor tenants at the north, south, east, and west wings of the center. Retail shops face
each other along the arms of the cross, sharing common walkways. Double dumbbells
also often extended upward, adding a second or even third story of shopping and
dining. Parking surrounds the center on all sides, and in some cases, garages were
constructed to accommodate tenant and consumer parking.
Long-term leases with high yields attract - Answers -✔✔ investors to industrial
properties, though there are many risks to consider including, cost, obsolescence, and
vacancy (particularly for special-purpose and single-purpose properties).
Resident manager - Answers -✔✔ Residential property managers often live on the
property that they manage and may be employed by an individual owner or by a
property management firm
Americans with Disabilities Act - Answers -✔✔ expansive law that affects almost all
public accommodations, including retail stores, real estate offices, concert venues,
government buildings, professional offices, restaurants, bars and hotels, just to name a
few. Both a tenant in a commercial space and the landlord are potentially liable for
violations of the ADA. The ADA prohibits discrimination against those with disabilities by
denying them the full and equal enjoyment of goods, facilities, accommodations,
services and privileges.
Texas is - Answers -✔✔ one of the easiest states in which to evict a tenant.
IREM - Answers -✔✔ The Institute of Real Estate Management (IREM) offers programs
for individuals and companies to become credentialed in the management profession.
Acceptance of Trust Money - Answers -✔✔ (1) Any trust money accepted by a broker is
held in a fiduciary capacity and must be maintained in a designated trust account
maintained by the broker or delivered to an escrow agent authorized in Texas in
accordance with the agreement of the principals of the transaction.
