CHP 52 - Retail Brokerage

Question 1

Retail properties are classified by __ & ____

Answer 1

Physical properties and user type

Question 2

3 Physical properties of retail

Answer 2

1. Shopping Centers
2. Free standing
3. Commercial strip centers

Question 3

Shopping Center characteristics

Answer 3

1. Super-Regional
2. Regional
3. Super communitiy
4. COmmunity
5. NEighborhood
6. Strip
7. Specialty/Theme Ctr

Question 4

Regional

Answer 4

30 -50 acres

1-2 anchor dept stores

Question 5

Super Regional

Answer 5

3+ major dept stores

Site area of 100 acres

Question 6

Super Community

Answer 6

No full dept store anchor, several strong specialty store anchors instead

Question 7

Community

Answer 7

Near supermarket, jr dept store or discount store

convenience, personal services and goods

Question 8

Neighborhood

Answer 8

Usually aroudn supermarket or drug store

Question 9

National chains

Answer 9

Outlets in 4+ metro areas in 3+ states

Question 10

Local CHains

Answer 10

3+ outlets in 1-3 metro areas in less than 3 states

Question 11

Independent Retailers

Answer 11

Single metro area, no more than 2 outlets

Question 12

Adjusted Basis

Answer 12

Cost of a property + capital imprvements - cost deducations and partial sales during holding period

Question 13

Base (lease)

Answer 13

A face dollar amount representing rent in dollars per sq ft per yr

Question 14

Breakpoint

Answer 14

Sales threshold over which percentage rent is due

annual base rent / percentage applied to gross sales

Question 15

Capital Expenditures

Answer 15

Property improvements that cannot be expensed as current operating expenses

Question 16

Cash on Cash rate

Answer 16

= cash flow before taxes / initial equit inestment

Question 17

Debt Coverage Ratio (DCR)

Answer 17

net operating income / annual debt service

Question 18

Economic obsolence

Answer 18

Reduction in prop value due to external circumstances

Question 19

Gross leasable area

Answer 19

area designed for tenant occupancy and exclusive use

Question 20

Imperfect Market

Answer 20

product diffrenciation

Question 21

Net lease

Answer 21

tenant pays all operating expenses (tax insurance, maintenance)

Question 22

Percentage lease

Answer 22

rent based on % of gross sales made by tenant

Question 23

Real estate investment trust REIT

Answer 23

investors purchase certificates of ownership in trust which invests money in real property…then distributes profits to the investors

Not subject to income tax

shareholders report on personal returns

Question 24

Securitization

Answer 24

investing in real estate markets in ways that minimiz risks

Question 25

Taxable income

Answer 25

Adj gross - personal deductions and exemptions

Question 26

USeable Area

Answer 26

Rentable area less common areas

Question 27

Guidelines for drawing retail trade areas

Answer 27

1. population adn expenditure approach 2. Drive time approach 3. Traffic count approach

Question 28

Balance of Trade Figures

Answer 28

Affect value of domestic goods

Question 29

Consumer ocnfidence indices

Answer 29

Reflect purchasing volume

Question 30

Unemployment rates

Answer 30

Influence types of good purchased

Question 31

Periodic gross domestic product figures

Answer 31

Reflect overall economic performance of the economy

Question 32

Advisory services a retail specialist can offer:

Answer 32

1. market and location analysis 2. Advising on optimal tenant mix 3. Advising on store size

Question 33

Population and expenditure approach

Answer 33

draw the area around a site that contains enough people and per capita spending to generate required sales

Question 34

Pad

Answer 34

outparcel in the parking area of a shopping center

Question 35

Drive time approach

Answer 35

Draw the area around a site from which it can be reached in a specific time and then check to see if it contrains enough demand dollars to generate sales

Question 36

Retail tenant representation is....

Answer 36

Common

Question 37

Concept of tenant mix aims to optimal arrangement of ______-

Answer 37

Anchor and satellite stores