FINC 371 CORE MAIN EXAMINATION
QUESTIONS AND ANSWERS SURE A+
✔✔Financial Feasibility - ✔✔Determines the probable success of the proposed project.
✔✔Key Takeaway - ✔✔The primary factors in real estate development are market
conditions.
✔✔Security Deposits - ✔✔Funds held by a landlord to cover potential damages or
unpaid rent.
✔✔Utilities Disconnection - ✔✔The act of cutting off services to encourage rent
payment, which is often illegal.
✔✔Discrimination in Housing - ✔✔Refusal to accept tenants based on gender, race, or
religion is illegal under fair housing laws.
✔✔Documentation of Property Condition - ✔✔Careful recording of a property's state at
lease commencement to avoid disputes.
✔✔Amenities - ✔✔Primary factors leading to the purchase of a second home.
✔✔Steps in analyzing the market for a residential project - ✔✔1. Delineation of the
market area 2. Analysis of recent trends in the local market area 3. Determination of
,possible changes in the demand factor of the project 4. Analysis of the potential supply,
including other possible competing projects.
✔✔Market area - ✔✔Determined largely by employment opportunities within the
relevant commuting range.
✔✔Market analyst - ✔✔Determines what market conditions have been in the recent
past and which factors that would affect the market for the project are likely to change in
the near future.
✔✔Financial feasibility analysis - ✔✔Projects the probable cash flow and profit or loss
of a proposed project.
✔✔Central Business Districts (CBDs) - ✔✔The main commercial and business area of a
city, often located in the downtown area.
✔✔Commercial Hotels - ✔✔Hotels located in business districts or near commercial
hubs, primarily catering to business travelers.
✔✔Discount Shopping Center - ✔✔A retail complex with a concentration of discount
stores and budget-friendly shops.
✔✔Factory Outlet Center - ✔✔A shopping center that features manufacturer-owned
stores selling discounted products directly to consumers.
✔✔Gross Leasable Area (GLA) - ✔✔The total floor area designed for tenant occupancy
and exclusive use, including basements, mezzanines, and upper floors.
✔✔Highway Hotel - ✔✔A hotel located near major highways, catering primarily to
travelers and truckers.
✔✔Industrial Parks - ✔✔Large areas zoned and planned for industrial development,
usually on the outskirts of cities.
✔✔Office Park - ✔✔A development of office buildings in a suburban or semi-rural
setting.
✔✔Power Center - ✔✔A large retail center featuring a mix of big-box stores like
electronics, home improvement, and discount retailers.
✔✔Primary Trade Area - ✔✔The geographic area where a business or shopping center
draws the majority of its customers.
, ✔✔Resort Hotels - ✔✔Hotels located in vacation destinations or recreational areas,
designed for leisure travelers.
✔✔Secondary Trade Area - ✔✔The geographic area outside the primary trade area that
provides additional, albeit less frequent, customers to a business.
✔✔Specialty Shopping Center - ✔✔A retail center focused on a specific category of
goods or theme.
✔✔Superstore - ✔✔A large retail store offering a vast array of products, often including
groceries, electronics, apparel, and household items.
✔✔Trade Area - ✔✔The geographic region from which a retail or commercial business
draws its customers.
✔✔Neighborhood Shopping Center - ✔✔Serves a local area (1.5-mile radius, 2,500-
40,000 people) and is typically anchored by a supermarket.
✔✔Community Shopping Center - ✔✔Serves a broader area (3-5 miles radius) and is
typically anchored by a junior department store.
✔✔Regional Shopping Center - ✔✔Offers a full range of goods and services, designed
for a large trade area.
✔✔Super-Regional Shopping Center - ✔✔The largest type, with over 750,000 sq. ft. of
GLA, often exceeding 100 acres.
✔✔GLA - ✔✔Gross Leasable Area: 60,000 - 200,000 sq. ft., typically under one roof.
✔✔Country Club Plaza - ✔✔One of the first suburban shopping centers, located in
Kansas City.
✔✔Northgate Shopping Center - ✔✔The first suburban shopping center to feature a
major department store as an anchor tenant.
✔✔Southdale Center - ✔✔The first enclosed and multilevel mall, opened in 1956.
✔✔Megamalls - ✔✔Large, multi-level malls like the Mall of America, which opened in
1992.
✔✔Mall of America - ✔✔Spans 4.8 million sq. ft. and includes over 525 specialty stores,
restaurants, and attractions.
QUESTIONS AND ANSWERS SURE A+
✔✔Financial Feasibility - ✔✔Determines the probable success of the proposed project.
✔✔Key Takeaway - ✔✔The primary factors in real estate development are market
conditions.
✔✔Security Deposits - ✔✔Funds held by a landlord to cover potential damages or
unpaid rent.
✔✔Utilities Disconnection - ✔✔The act of cutting off services to encourage rent
payment, which is often illegal.
✔✔Discrimination in Housing - ✔✔Refusal to accept tenants based on gender, race, or
religion is illegal under fair housing laws.
✔✔Documentation of Property Condition - ✔✔Careful recording of a property's state at
lease commencement to avoid disputes.
✔✔Amenities - ✔✔Primary factors leading to the purchase of a second home.
✔✔Steps in analyzing the market for a residential project - ✔✔1. Delineation of the
market area 2. Analysis of recent trends in the local market area 3. Determination of
,possible changes in the demand factor of the project 4. Analysis of the potential supply,
including other possible competing projects.
✔✔Market area - ✔✔Determined largely by employment opportunities within the
relevant commuting range.
✔✔Market analyst - ✔✔Determines what market conditions have been in the recent
past and which factors that would affect the market for the project are likely to change in
the near future.
✔✔Financial feasibility analysis - ✔✔Projects the probable cash flow and profit or loss
of a proposed project.
✔✔Central Business Districts (CBDs) - ✔✔The main commercial and business area of a
city, often located in the downtown area.
✔✔Commercial Hotels - ✔✔Hotels located in business districts or near commercial
hubs, primarily catering to business travelers.
✔✔Discount Shopping Center - ✔✔A retail complex with a concentration of discount
stores and budget-friendly shops.
✔✔Factory Outlet Center - ✔✔A shopping center that features manufacturer-owned
stores selling discounted products directly to consumers.
✔✔Gross Leasable Area (GLA) - ✔✔The total floor area designed for tenant occupancy
and exclusive use, including basements, mezzanines, and upper floors.
✔✔Highway Hotel - ✔✔A hotel located near major highways, catering primarily to
travelers and truckers.
✔✔Industrial Parks - ✔✔Large areas zoned and planned for industrial development,
usually on the outskirts of cities.
✔✔Office Park - ✔✔A development of office buildings in a suburban or semi-rural
setting.
✔✔Power Center - ✔✔A large retail center featuring a mix of big-box stores like
electronics, home improvement, and discount retailers.
✔✔Primary Trade Area - ✔✔The geographic area where a business or shopping center
draws the majority of its customers.
, ✔✔Resort Hotels - ✔✔Hotels located in vacation destinations or recreational areas,
designed for leisure travelers.
✔✔Secondary Trade Area - ✔✔The geographic area outside the primary trade area that
provides additional, albeit less frequent, customers to a business.
✔✔Specialty Shopping Center - ✔✔A retail center focused on a specific category of
goods or theme.
✔✔Superstore - ✔✔A large retail store offering a vast array of products, often including
groceries, electronics, apparel, and household items.
✔✔Trade Area - ✔✔The geographic region from which a retail or commercial business
draws its customers.
✔✔Neighborhood Shopping Center - ✔✔Serves a local area (1.5-mile radius, 2,500-
40,000 people) and is typically anchored by a supermarket.
✔✔Community Shopping Center - ✔✔Serves a broader area (3-5 miles radius) and is
typically anchored by a junior department store.
✔✔Regional Shopping Center - ✔✔Offers a full range of goods and services, designed
for a large trade area.
✔✔Super-Regional Shopping Center - ✔✔The largest type, with over 750,000 sq. ft. of
GLA, often exceeding 100 acres.
✔✔GLA - ✔✔Gross Leasable Area: 60,000 - 200,000 sq. ft., typically under one roof.
✔✔Country Club Plaza - ✔✔One of the first suburban shopping centers, located in
Kansas City.
✔✔Northgate Shopping Center - ✔✔The first suburban shopping center to feature a
major department store as an anchor tenant.
✔✔Southdale Center - ✔✔The first enclosed and multilevel mall, opened in 1956.
✔✔Megamalls - ✔✔Large, multi-level malls like the Mall of America, which opened in
1992.
✔✔Mall of America - ✔✔Spans 4.8 million sq. ft. and includes over 525 specialty stores,
restaurants, and attractions.
