CRECI Asset and Property Management 2

Question 1

Which metric best measures a commercial property's operating efficiency by comparing operating expenses to gross income?

Accepted Answer

Operating Expense Ratio (OER)

Answer

Cap Rate

Answer

Debt Service Coverage Ratio

Answer

Gross Rent Multiplier

Question 2

A property manager discovers that a long-term commercial tenant is consistently paying rent 10 days late. What is the most appropriate first step?

Accepted Answer

Issue a formal notice and review the lease cure period provisions

Answer

File for eviction immediately

Answer

Waive the late fees to maintain goodwill

Answer

Renegotiate the lease terms immediately

Question 3

In commercial real estate asset management, what does 'disposition strategy' refer to?

Accepted Answer

A plan for selling or exiting an asset at the optimal time

Answer

A plan to renovate and lease vacant space

Answer

A tenant retention program

Answer

A capital reserve schedule

Question 4

Which lease structure requires the tenant to pay base rent plus all operating expenses, including taxes, insurance, and maintenance?

Accepted Answer

Triple net (NNN) lease

Answer

Gross lease

Answer

Modified gross lease

Answer

Percentage lease

Question 5

A commercial property's NOI is $500,000 and the market cap rate is 6.25%. What is the estimated property value?

Accepted Answer

$8,000,000

Answer

$3,125,000

Answer

$6,250,000

Answer

$31,250,000

Question 6

What is the primary purpose of a property management agreement in commercial real estate?

Accepted Answer

To define the scope of authority, duties, and compensation between owner and manager

Answer

To set tenant rental rates

Answer

To establish zoning compliance

Answer

To outline the tenant improvement allowance

Question 7

Which type of commercial lease requires the tenant to pay a base rent plus a percentage of their gross sales above a breakpoint?

Accepted Answer

Percentage lease

Answer

Net lease

Answer

Gross lease

Answer

Step-up lease