pg. 1 FINC 371 Exam Prep Latest 2024 -2025 Complete 330 Actual Exam Questions with Correct Detailed Answers (Verified Answers) Graded A+
What are the steps in conducting a market analysis (I think for a residential area)? - Correct Answer - 1.) Delineation of Market Area 2.) Analysis of Recent Economic Trends in Local Market Area 3.) Determination of changes in Demand Factors 4.) Analysis of Potential Supply
What step in conducting a market analysis is determined by employment opportunities and commuting ranges (commuter city? large city?); must describe housing sub-market in which it will compete? - Correct Answer - 1.) Delineation of Market Area
What step in conducting a market analysis deals with past and current trends in areas such as vacancy rates, absorption rates, and rental vs.owner-occupied? - Correct Answer - 2.) Analysis of Recent Economic Trends in the Local market area
What step in conducting a market analysis evaluates changes in economic base (local / regional / national conditions); evaluates the pipeline of new development and legislation changes; deals with areas such as employment, disposable income, population, household characteristics, absorption rate, etc.? - Correct Answer - 3.) Determination of Changes in Demand Factors
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pg. 2 What step in conducting a market analysis evaluates potential demand and what lies beyond recent trends; long gestation period; examine developments in the pipeline? - Correct Answer - 4.) Analysis of Potential Supply
What are the 3 steps in financial feasibility analysis? - Correct Answer - 1.) Analyze Profitability 2.) Analyze Sources of Capital 3.) Analyze Timing of Cash Flows
What step of financial feasibility analysis considers unleveraged IRR / NPV and leveraged IRR / NPV? - Correct Answer - Analyze Profitability
What step of financial feasibility analysis looks into equity vs. debt (senior debt, junior debt, mezzanine financing, and equity investors); capital stacking? - Correct Answer - Analyze Sources of Capital
What type of shopping center is a very large discount store (60K - 200K sf); i.e. Target or Walmart? - Correct Answer - Super-store
What type of shopping center is a large strip type center that has multiple "big box" stores; i.e. category killers, warehouse clubs, discount stores (Walmart, Target, Lowe's, Home Depot, Sam's, Costco)? - Correct Answer - Power Center
What type of shopping center focuses on unusual market segments (i.e.high quality and high-priced goods in boutique-type stores)? - Correct Answer - Specialty Shopping Center
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pg. 3 What type of shopping center is a manufacturer's retail outlet facility? - Correct Answer - Factory Outlet Center
What are the steps of the market & feasibility analysis for the shopping center development process? - Correct Answer - - Defining Trade Area (primary & secondary)
- Determining the size of the market
- Analyzing competition (SWOT analysis)
- Site Location
What is a key element in the shopping center development process? - Correct Answer - Tenant Selection What type of market is where transactions of new and existing dwelling units to new owners occur? - Correct Answer - Owner Occupied Residential
What is the quantity of the good or service that will be offered at various prices? - Correct Answer - Supply
What is the quantity of the good or service that will be desired at various prices? - Correct Answer - Demand
What is the price / quantity combination at which quantity demanded equals quantity supplied? - Correct Answer - Equilibrium
What type of CRE market involves transactions for the rights to use land and buildings? - Correct Answer - Space markets (Rental Markets)
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pg. 4 Who are the people, firms, and other entities willing to pay to use space for consumption or production purposes in the space markets? - Correct Answer - Demand ("Users")
What are some key features of the shopping center development proces? - Correct Answer - - Visibility
- Signage
- Accessibility (i.e. AM / PM side of road)
What is the location of office activity centered around? - Correct Answer - - CBDs
- Office Parks
- Proximity to hospitals, universities, shopping centers, and government
installations
What are the types of office products? - Correct Answer - - Small, multi- tenant buildings
- Large skyscraper
What are typically located close to transportation facilities, water, power, and other infrastructure? - Correct Answer - Industrial Parks
What are the element of industrial site analysis? - Correct Answer - - Determine amount of existing or potential supply
- Forecast demand for additional developed building space
- Estimate absorption rate
- Compare competitive environment
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