MODULE 1: CCIM 101 (2025) ACTUAL EXAM TEST | COMPLETE
QUESTIONS WITH VERIFIED ANSWERS WITH RATIONALES (100%
ACCURATE SOLUTIONS)
Question 1
In the world of commercial real estate, analysis and decisions are driven by two primary types of decision-
makers. Who are these two key players?
A) The broker and the lender
B) The user and the investor
C) The developer and the property manager
D) The appraiser and the attorney
E) The tenant and the landlord
Correct Answer: B) The user and the investor
Rationale: The fundamental decisions in commercial real estate revolve around either utilizing the space
for a business's operational needs (the user's objective) or investing in the property for a financial
return (the investor's objective). All decisions can be categorized under one of these two perspectives.
Question 2
What is the primary objective of a "user" decision-maker in commercial real estate?
A) To maximize the property's Net Operating Income (NOI).
B) To achieve the highest possible return on investment.
C) To make a decision regarding the space needed for their business operations.
D) To purchase properties at a high cap rate to ensure a good deal.
E) To minimize all property operating expenses.
Correct Answer: C) To make a decision regarding the space needed for their business operations.
Rationale: The user's focus is operational, not purely financial. Their goal is to find and secure space that
effectively meets the specific needs of their business in terms of location, size, layout, quality, and
proximity to suppliers or customers.
Question 3
What is the primary objective of an "investor" decision-maker in commercial real estate?
A) To find a space with the perfect layout and amenities for their company's culture.
B) To make a decision regarding investment in properties that are or could be leased to users.
C) To secure a long-term, below-market lease for their own operational needs.
D) To occupy the property themselves to avoid paying rent.
E) To manage the day-to-day operations of the tenants.
,Correct Answer: B) To make a decision regarding investment in properties that are or could be leased to
users.
Rationale: The investor's objective is strictly financial. They view the property as an investment vehicle
that generates a return on their capital, primarily through rental income from users (tenants) and
potential appreciation in value.
Question 4
A commercial real estate professional can either be a user, an investor, or both simultaneously.
A) True
B) False
Correct Answer: A) True
Rationale: Yes, a user can also be an investor. A common example is a company that chooses to purchase
the building it operates from (an owner-user). In this case, the company is making both a user decision
(the space meets its operational needs) and an investor decision (owning the property is a sound
financial investment).
Question 5
Both user and investor decision-makers face a series of major decisions throughout their involvement with a
property. What are these three major decision categories?
A) Financing, Marketing, and Leasing Decisions
B) Bidding, Closing, and Refinancing Decisions
C) Acquisition, Holding Period, and Disposition Decisions
D) Development, Management, and Reporting Decisions
E) Analysis, Negotiation, and Execution Decisions
Correct Answer: C) Acquisition, Holding Period, and Disposition Decisions
Rationale: The lifecycle of a real estate decision involves three key phases: deciding whether and how to
acquire a property (Acquisition), making decisions during the period of ownership or lease (Holding
Period), and deciding when and how to sell or exit the property (Disposition).
Question 6
Which of the following questions is an example of an Acquisition Decision for a user or investor?
A) Should any existing lease options be exercised?
B) What should the disposition price be?
C) Should the space be leased or purchased?
, D) Should the property be sold or exchanged?
E) Should discretionary capital expenditures be made?
Correct Answer: C) Should the space be leased or purchased?
Rationale: The decision to lease versus purchase is a fundamental choice made at the beginning of the
process when acquiring control of a property. The other options are decisions made during the holding
period or at disposition.
Question 7
A company is currently leasing an office space and their business is growing. Which of the following would be
considered a Holding Period Decision for this user?
A) Where should our new corporate headquarters be located?
B) Should any lease options, such as an option to expand, be exercised?
C) What should the disposition method be for our old furniture?
D) Should we acquire a new building?
E) What should the purchase price be?
Correct Answer: B) Should any lease options, such as an option to expand, be exercised?
Rationale: Exercising a lease option (e.g., an option to renew or expand) is a decision made during the
time the user occupies the space, which falls under the category of a holding period decision.
Question 8
An investor owns an office building. Which of the following is an example of a Holding Period Decision for
this owner?
A) Which property should be acquired next?
B) Should the property be sold or refinanced?
C) What should the acquisition process be?
D) What should the disposition method be?
E) What entity should be used to purchase the property?
Correct Answer: B) Should the property be sold or refinanced?
Rationale: Deciding whether to continue holding an asset, sell it, or change its capital structure
(refinance) are key decisions made during the period of ownership. These fall under the holding period
decision category.
Question 9
An investor has decided to sell a commercial property. Which of the following is a key Disposition Decision
QUESTIONS WITH VERIFIED ANSWERS WITH RATIONALES (100%
ACCURATE SOLUTIONS)
Question 1
In the world of commercial real estate, analysis and decisions are driven by two primary types of decision-
makers. Who are these two key players?
A) The broker and the lender
B) The user and the investor
C) The developer and the property manager
D) The appraiser and the attorney
E) The tenant and the landlord
Correct Answer: B) The user and the investor
Rationale: The fundamental decisions in commercial real estate revolve around either utilizing the space
for a business's operational needs (the user's objective) or investing in the property for a financial
return (the investor's objective). All decisions can be categorized under one of these two perspectives.
Question 2
What is the primary objective of a "user" decision-maker in commercial real estate?
A) To maximize the property's Net Operating Income (NOI).
B) To achieve the highest possible return on investment.
C) To make a decision regarding the space needed for their business operations.
D) To purchase properties at a high cap rate to ensure a good deal.
E) To minimize all property operating expenses.
Correct Answer: C) To make a decision regarding the space needed for their business operations.
Rationale: The user's focus is operational, not purely financial. Their goal is to find and secure space that
effectively meets the specific needs of their business in terms of location, size, layout, quality, and
proximity to suppliers or customers.
Question 3
What is the primary objective of an "investor" decision-maker in commercial real estate?
A) To find a space with the perfect layout and amenities for their company's culture.
B) To make a decision regarding investment in properties that are or could be leased to users.
C) To secure a long-term, below-market lease for their own operational needs.
D) To occupy the property themselves to avoid paying rent.
E) To manage the day-to-day operations of the tenants.
,Correct Answer: B) To make a decision regarding investment in properties that are or could be leased to
users.
Rationale: The investor's objective is strictly financial. They view the property as an investment vehicle
that generates a return on their capital, primarily through rental income from users (tenants) and
potential appreciation in value.
Question 4
A commercial real estate professional can either be a user, an investor, or both simultaneously.
A) True
B) False
Correct Answer: A) True
Rationale: Yes, a user can also be an investor. A common example is a company that chooses to purchase
the building it operates from (an owner-user). In this case, the company is making both a user decision
(the space meets its operational needs) and an investor decision (owning the property is a sound
financial investment).
Question 5
Both user and investor decision-makers face a series of major decisions throughout their involvement with a
property. What are these three major decision categories?
A) Financing, Marketing, and Leasing Decisions
B) Bidding, Closing, and Refinancing Decisions
C) Acquisition, Holding Period, and Disposition Decisions
D) Development, Management, and Reporting Decisions
E) Analysis, Negotiation, and Execution Decisions
Correct Answer: C) Acquisition, Holding Period, and Disposition Decisions
Rationale: The lifecycle of a real estate decision involves three key phases: deciding whether and how to
acquire a property (Acquisition), making decisions during the period of ownership or lease (Holding
Period), and deciding when and how to sell or exit the property (Disposition).
Question 6
Which of the following questions is an example of an Acquisition Decision for a user or investor?
A) Should any existing lease options be exercised?
B) What should the disposition price be?
C) Should the space be leased or purchased?
, D) Should the property be sold or exchanged?
E) Should discretionary capital expenditures be made?
Correct Answer: C) Should the space be leased or purchased?
Rationale: The decision to lease versus purchase is a fundamental choice made at the beginning of the
process when acquiring control of a property. The other options are decisions made during the holding
period or at disposition.
Question 7
A company is currently leasing an office space and their business is growing. Which of the following would be
considered a Holding Period Decision for this user?
A) Where should our new corporate headquarters be located?
B) Should any lease options, such as an option to expand, be exercised?
C) What should the disposition method be for our old furniture?
D) Should we acquire a new building?
E) What should the purchase price be?
Correct Answer: B) Should any lease options, such as an option to expand, be exercised?
Rationale: Exercising a lease option (e.g., an option to renew or expand) is a decision made during the
time the user occupies the space, which falls under the category of a holding period decision.
Question 8
An investor owns an office building. Which of the following is an example of a Holding Period Decision for
this owner?
A) Which property should be acquired next?
B) Should the property be sold or refinanced?
C) What should the acquisition process be?
D) What should the disposition method be?
E) What entity should be used to purchase the property?
Correct Answer: B) Should the property be sold or refinanced?
Rationale: Deciding whether to continue holding an asset, sell it, or change its capital structure
(refinance) are key decisions made during the period of ownership. These fall under the holding period
decision category.
Question 9
An investor has decided to sell a commercial property. Which of the following is a key Disposition Decision
