Commercial Real Estate Exam Review
Questions and Answers A+ Pass
Which is MOST LIKELY to be an example of atypical Class A tenant?
A. check processing operation
B. distribution center
C. law firm
D. software call center - Answers -✔✔ C
Tenants interested in Class C office space are typically
A. high profile
B. image conscious
C. price driven
D. risk takers - Answers -✔✔ c
An advantage of having an anchor tenant is that it
A. may attract customers to smaller stores
B. may force smaller stores out of business
C. may provide common area maintenance for other tenants
D. will usually stand on its own - Answers -✔✔ A
Which would be a consideration for prospective owners of industrial properties as
opposed to retail or residential investment properties.
A. comparable sales
B. means of distribution
C. nearby competition
D. vacancy rates - Answers -✔✔ B
Mr. McNally has a parcel of land that is 300 feet x 120 feet and where the floor are ratio
required for the site is 20%. What is the maximum building size permitted on this site?
A. 1800 sq feet
B. 6000 sq feet
C. 7200 sq feet
D. 9000 sq feet - Answers -✔✔ C. to calculate the maximum size of building for the site,
you take the total square footage of the parcel, which is 36,000 (300 x 120 = 36,000)
and multiply it by the 20% floor area ratio (36,000 x 0.20 = 7,200)
an amenity purchaser is interested in a property's investment return as well as its ability
to fulfill a specific business need.
true or false - Answers -✔✔ true.
some investors may prefer a single family residential investment property because of
A. fewer available comparable properties
B. larger return on investment for the owner
,C. less risk of vacancy/loss
D. smaller management requirements - Answers -✔✔ D
A property that houses a research and development facility is typically categorized as
A. industrial property
B. mixed use property
C. office property
D. retail property - Answers -✔✔ A
Which statement is FALSE regarding how commercial real estate listings differ from
residential listings?
A. commercial forms must clearly indicate the type of property and type of transfer of
interest to be marketed, whether for sale or lease.
B. commercial listings are usually for a longer period of time
C. commercial listing forms are often custom documents
D. commercial listings typically sell more quickly than residential listings - Answers -✔✔
D
Maxine owns a duplex home near a college campus. The house has four bedrooms,
which she rents out to college students. This is an example of
A. business complex
B. mixed use property
C. multi family residential property
D. single family residential property - Answers -✔✔ C
an investor concerned with the topography of a location is most likely considering an
investment in
A. industrial property
B. office property
C. retail property
D. undeveloped land - Answers -✔✔ D
In a sale and leaseback arrangement the
A. buyer gets possession of the property
B. buyer receives equitable title only
C. seller retains possession of the property
D. seller retains title to the property - Answers -✔✔ C
Which statement about commercial real estate is TRUE?
A. commercial and residential real estate share the same basic provision for the
contract and property law.
B. commercial transactions are usually less complicated than residential transactions
C. in most states, a special license is required to sell commercial real estate
D. single family residential properties are never considered commercial property -
Answers -✔✔ A
, The type of property that would have the greatest risk of being 100% vacant is
A. mixed use property
B. multi family residential property
C. office property
D. single family residential property - Answers -✔✔ D
Margaret rents an apartment from Marty. Margaret pays rent and some of her utilities.
Marty pays insurance on the building property, taxes, and maintenance. What kind of
lease is this?
A. gross lease
B. index lease
C. net lease
D. percentage lease - Answers -✔✔ A
Frank rents warehouse space. In addition to the rent he pays the landlord. Frank pays
the property taxes and insurance. He is also responsible for maintenance of the
building. What type of lease does Frank have?
A. graduated lease
B. gross lease
C. ground lease
D. net lease - Answers -✔✔ D
Leonard just signed a double net lease with landlord Jenny for a small, free standing
office. He said he's paying for insurance coverage on the building as well as all interior
and exterior maintenance. What is Jenny paying for?
A. landscaping
B. property tax
C. utilities
D. waste removal - Answers -✔✔ B
What would help ensure that two tenants in the same strip mall aren't competing against
each other with the same merchandise?
A. attornment clause
B. escalation clause
C. estoppel certificate
D. use clause - Answers -✔✔ D
What is a novation?
A. an amendment to a contract
B. an assignment of a contract
C. an assumption of a contract
D. a new contract - Answers -✔✔ D
assignment is
A. a method of disposing of leased space
Questions and Answers A+ Pass
Which is MOST LIKELY to be an example of atypical Class A tenant?
A. check processing operation
B. distribution center
C. law firm
D. software call center - Answers -✔✔ C
Tenants interested in Class C office space are typically
A. high profile
B. image conscious
C. price driven
D. risk takers - Answers -✔✔ c
An advantage of having an anchor tenant is that it
A. may attract customers to smaller stores
B. may force smaller stores out of business
C. may provide common area maintenance for other tenants
D. will usually stand on its own - Answers -✔✔ A
Which would be a consideration for prospective owners of industrial properties as
opposed to retail or residential investment properties.
A. comparable sales
B. means of distribution
C. nearby competition
D. vacancy rates - Answers -✔✔ B
Mr. McNally has a parcel of land that is 300 feet x 120 feet and where the floor are ratio
required for the site is 20%. What is the maximum building size permitted on this site?
A. 1800 sq feet
B. 6000 sq feet
C. 7200 sq feet
D. 9000 sq feet - Answers -✔✔ C. to calculate the maximum size of building for the site,
you take the total square footage of the parcel, which is 36,000 (300 x 120 = 36,000)
and multiply it by the 20% floor area ratio (36,000 x 0.20 = 7,200)
an amenity purchaser is interested in a property's investment return as well as its ability
to fulfill a specific business need.
true or false - Answers -✔✔ true.
some investors may prefer a single family residential investment property because of
A. fewer available comparable properties
B. larger return on investment for the owner
,C. less risk of vacancy/loss
D. smaller management requirements - Answers -✔✔ D
A property that houses a research and development facility is typically categorized as
A. industrial property
B. mixed use property
C. office property
D. retail property - Answers -✔✔ A
Which statement is FALSE regarding how commercial real estate listings differ from
residential listings?
A. commercial forms must clearly indicate the type of property and type of transfer of
interest to be marketed, whether for sale or lease.
B. commercial listings are usually for a longer period of time
C. commercial listing forms are often custom documents
D. commercial listings typically sell more quickly than residential listings - Answers -✔✔
D
Maxine owns a duplex home near a college campus. The house has four bedrooms,
which she rents out to college students. This is an example of
A. business complex
B. mixed use property
C. multi family residential property
D. single family residential property - Answers -✔✔ C
an investor concerned with the topography of a location is most likely considering an
investment in
A. industrial property
B. office property
C. retail property
D. undeveloped land - Answers -✔✔ D
In a sale and leaseback arrangement the
A. buyer gets possession of the property
B. buyer receives equitable title only
C. seller retains possession of the property
D. seller retains title to the property - Answers -✔✔ C
Which statement about commercial real estate is TRUE?
A. commercial and residential real estate share the same basic provision for the
contract and property law.
B. commercial transactions are usually less complicated than residential transactions
C. in most states, a special license is required to sell commercial real estate
D. single family residential properties are never considered commercial property -
Answers -✔✔ A
, The type of property that would have the greatest risk of being 100% vacant is
A. mixed use property
B. multi family residential property
C. office property
D. single family residential property - Answers -✔✔ D
Margaret rents an apartment from Marty. Margaret pays rent and some of her utilities.
Marty pays insurance on the building property, taxes, and maintenance. What kind of
lease is this?
A. gross lease
B. index lease
C. net lease
D. percentage lease - Answers -✔✔ A
Frank rents warehouse space. In addition to the rent he pays the landlord. Frank pays
the property taxes and insurance. He is also responsible for maintenance of the
building. What type of lease does Frank have?
A. graduated lease
B. gross lease
C. ground lease
D. net lease - Answers -✔✔ D
Leonard just signed a double net lease with landlord Jenny for a small, free standing
office. He said he's paying for insurance coverage on the building as well as all interior
and exterior maintenance. What is Jenny paying for?
A. landscaping
B. property tax
C. utilities
D. waste removal - Answers -✔✔ B
What would help ensure that two tenants in the same strip mall aren't competing against
each other with the same merchandise?
A. attornment clause
B. escalation clause
C. estoppel certificate
D. use clause - Answers -✔✔ D
What is a novation?
A. an amendment to a contract
B. an assignment of a contract
C. an assumption of a contract
D. a new contract - Answers -✔✔ D
assignment is
A. a method of disposing of leased space
