RE 165 Real Estate Economics Due 5/10/2012

Quiz for Chapter 10: Commercial and Industrial Markets 1. Which of the following is least important for a business A. the shift from emphasis on the production of goods to property investor? the providing of services A. rent level B. increased use of the automobile B. noneconomic amenity C. changes in consumer tastes C. credit rating of the tenant D. all of the above D. terms of the lease 8. Which of the following is a current trend in the industrial 2. Nearness to other compatible businesses is called: real estate market? A. accessibility A. large multiple-story buildings B. location B. downtown locations C. linkage C. industrial parks D. trading area D. locating near upscale housing developments

3. Which of the following regarding the commercial real 9. A market-oriented industry tends to seek a location near estate market is generally false? its: A. Demand is tied to swings in the business cycle. A. raw materials B. Income tax law changes can influence the rate of B. customers construction. C. lenders C. Lenders can have veto power over projects. D. employees D. Buyers and sellers are unsophisticated. 10. Which of the following is considered a store selling 4. Once the building of a commercial or industrial project ‘‘convenience’’ goods? begins, it is difficult to stop even if it becomes apparent A. minimarket that the demand for the project has declined. This is B. jewelry store known as the: C. gun store A. gravity effect D. high-fashion retail outlet B. pipeline effect C. financial effect 11. The ability of business to pay rent is influenced by D. continuous effect economic conditions, leading to changes in property net income and value. 5. A thin line of commercial development along a city A. true street is a: B. false A. strip development B. power-point cluster 12. Development of business property tends to: C. neighborhood center A. lead changes in demand D. community center B. result when rents are dropping C. lag changes in demand 6. Small local clusters of trendy retail stores are called: D. not involve market changes A. power-point clusters B. regional centers 13. Project design, layout, types of tenants, and the like are C. megacenters often influenced by the lender. D. super regional centers A. true B. false

14. Government income tax changes have tended to stimulate or suppress the rate of business real estate 7. Changes that have influenced the location of commercial development. properties include: A. true RE 165 Real Estate Economics Due 5/10/2012

Quiz for Chapter 10: Commercial and Industrial Markets B. false D. usually dominated by national or regional chain tenants

15. Good leases add important value to business property. 22. Outlet malls and warehouse clubs are new examples of Regarding a net lease, a potential investor is least changes in commercial real estate arising from: concerned with the: A. new zoning categories A. length of the lease B. changes in building design B. risk of default by the tenant C. changes in consumer taste C. protection in the lease against inflation D. changes in climate D. age of the building 23. A very low turnover rate over a long period of time in a 16. Which type of shopping center tends to cater only to commercial neighborhood is: people within a single city? A. a good sign A. neighborhood B. irrelevant B. community C. a bad sign C. regional D. a bad sign if store sales volumes are increasing D. super regional 24. Which of the following is a trend in retail sales? 17. Changes in consumer tastes and lifestyles will not A. increase in T.V. home shopping networks change commercial real estate patterns. B. decrease in catalog sales A. true C. decrease in credit card purchases B. false D. increase in downtown department stores

18. Which of the following is an example of a market- 25. Footloose industries tend to locate: oriented commercial use? A. to be close to their customers A. gravel pit B. to be close to their workers B. lumber mill C. because of personal noneconomic reasons C. garment district D. to be close to raw materials D. clothing mill

19. The telecommunication explosion has altered the need for some businesses to seek a location near their customers. A. true B. false

20. The number of large department stores in the downtown area of most major cities in the United States is at an all-time high. A. true B. false

21. Linear commercial strips are: A. favored by city planners B. often of marginal economic quality C. usually weakest at major crossroads and strongest in midblock