Real Estate Marketing Commercial Real Estate (SAE) CHAMPIONS |129 questions and answers.

Diplomacy the ability to handle clients and situations in a sensitive and effective way - is critical in commercial real estate, and a lack of it can expose you immediately as a beginner. Deceptive Trade Practices Act (DTPA) Texas law that was passed in 1973. It allows an aggrieved consumer to sue a seller of goods for damages. The act by the seller of the goods has to be deceptive or unfair for the consumer to successfully sue for monetary damages. CCIM (Certified Commercial Investment Member) established in 1954 to give commercial real estate practitioners an opportunity to further their business practices through education and networking opportunities. The institute administers the Certified Commercial Investment Member designation. "Gold Standard" ICSC (International Council of Shopping Centers) The purpose is to advance the shopping center industry and to promote its role in the commercial distribution of consumer goods and services. Comprehensive database 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. Canons of Professional Ethics and Conduct Fidelity, Integrity, Competency, Consumer Information, Discriminatory Practices caveat emptor are two Latin words that most people have heard at some point - "let the buyer beware." All real estate transactions in Texas are done "as is." IREM (Institute of Real Estate Management) an international community of real estate managers dedicated to ethical business practices, maximizing the value of investment real estate, and promoting superior management through education and information sharing. membership includes more than 18,000 individuals and 550 corporate members. BOMA (Building Owners and Managers Association) building owners, managers, developers, leasing professionals, corporate facility managers, asset managers, and the providers of the products and services needed to operate commercial properties. Intermediary Brokerage All commercial brokers practice intermediary because it is in their best interests to do so. As the intermediary, the broker can sell one of his own listings to a buyer. This is the reason that many properties are never listed on the market as "for sale." It is more beneficial to keep the commission in-house, so others are not vying for a part of the commission. fair housing laws exist at the federal, state and local levels to ensure that all citizens have unobstructed access to housing. Residential agents must always adhere to these laws and cannot discriminate or refuse to sell or rent property based upon a buyer's race, color, national origin, religion, sex, familial status or handicap. SIOR (Society of Industrial and office realtors) a professional organization begun in 1939, with over 3,000 members worldwide that offers a Designation, a symbol of knowledge, production, and ethics in the real estate industry. NARPM (national association of residential property managers) Most single-family homes used as rentals are managed by the owner/ landlord. However, a growing portfolio of homes, homes scattered over a large area, and other factors may make professional management desirable. An organization of managers of single-family and small multifamily properties. Not residential in nature Commercial real estate is often defined as any real estate that is _____________. Good mentorship program A good reason for joining a big-name international commercial real estate firm Pocket listings are rare and can be viewed as unethical Which statement regarding commercial real estate is FALSE? Supply and Demand are perhaps the primary determinants of real estate values. Campus-style are so named due to their resemblance to university campuses. They are usually quite large, spread over several acres of land, allow for ample parking, and do not rely on foot traffic from the proximity to other retail businesses. Oil and energy companies, and healthcare providers, like dentists and general practitioners often lease space in this style. low-rise (less than 7 stories) usually consist of 1 to 3 stories and are often located in residential areas as opposed to busy urban settings. There are fewer units available for residents, and amenities are scarce. typically rent for less per month than those in mid and high-rise properties. skyscraper as anything above 40 floors. garden-style apartments buildings are typically low-rise (1 to 3 floors) clusters of buildings spanning a large piece of property with access to the landscaped outdoor areas surrounding the structure. Often built around a courtyard, many of the ground-floor units feature patios, while units on the higher floors have access to private balconies. limited-purpose center airport retail centers ROI (Return on Investment) is the primary factor motivating people to buy commercial real estate. Especially Real Estate Investment Trusts (REITs). The one reason that investors give money to REITs is to make money. Investors are trusting that REITs will make a return on their money. Properties are purchased and held in anticipation of income, appreciation, or both. Cap rate a percentage found by dividing the property's net operating income (NOI) by its value or price. It allows investors to assess whether a property is a good investment or not. general-purpose center Though they are most often used for storage purposes. They are flexible spaces that can be adapted and configured for a variety of uses. Ideal for distribution centers, these buildings are comprised of large, open floor plans with flat, durable concrete floors and high ceilings, allowing for different configurations of high shelving racks for storage and picking. Power centers or category killers Are very large in size, the average being over 400,000 ., and can easily be found over 1,000,000 . These centers are built for big box stores speculative land Banks are often hesitant to finance land deals. If development of raw land is not planned within 12 to 24 months of financing, it is considered ___________ which means a higher-risk for the lender, making it an undesirable deal. Why is this? The primary source of repayment in commercial real estate is the cash flow of the property. Office Park or Business park They range in size from low-rise (1 to 2 stories) to mid-rises, rarely over four or five stories; in the suburban market, mid-rises average around five stories. CBD (central business district) of a city is located within its heart, home to banking, finance, and mega insurance companies, among other industries. Land is at a premium, parking is scarce and expensive, and rents are high. However, location is key, and most are located close to public transportation and cultural hot spots like museums and concert and sporting venues. High-rise More than 25 stories; usually with 9 or more floors 2 consisting of multiple dwelling units; sometimes referred to as multi dwelling units (MDUs). Must be equipped with at least one working elevator due to their height; residents should not be expected to climb 12 stories to access their units. Walk-ups consist of a building, usually four to six-stories, without an elevator. Residents must walk up the stairs to access their apartments. often older buildings