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CCIM (Certified Commercial Investment Member) Exam
QUESTIONS AND VERIFIED ANSWERS LATEST UPDATE
THIS YEAR
CCIM (Certified Commercial Investment Member) Exam – Coverage Summary & Exam-Relevant
Questions
Based on the CCIM Institute’s core curriculum (CI 101 through CI 104), the Comprehensive Exam
validates mastery of financial analysis, market valuation, user decision models, and risk quantification.
The exam is open-book but taken in person at a testing center, requiring a 70% to pass.
Exam Coverage Summary
The CCIM curriculum is organized into four core courses, all tested on the Comprehensive Exam:
Course Key Topics
CI 101: Financial Discounted Cash Flow (DCF), Net Operating Income (NOI) components, capitalization rates, yiel
Analysis IRR, NPV, cash-on-cash return, DSCR, leverage, time value of money, sensitivity analysis
CI 102: Market Supply/demand dynamics, market feasibility, competitive positioning, rental rate analysis,
Analysis absorption, marketability studies
CI 103: User Lease vs. buy decisions for owner-occupants, space needs vs. investment analysis, cost-benefit
Decision Analysis occupancy
CI 104: Investment Risk quantification (sensitivity, scenario, Monte Carlo), capital improvements, refinancing decis
Analysis disposition analysis, tax implications, partnership structures
Exam Facts:
• Exam Format: Multiple choice, scenario-based application questions
• Passing Score: 70%
• Open Book: Yes (candidates may bring reference materials)
• Testing Location: In-person at CCIM-approved testing centers
CI 101: Financial Analysis – Core Concepts (Questions 1-60)
Question 1: A corporate executive must decide whether to buy a warehouse for distribution or continue
leasing. Which decision-making framework applies?
A) Only investor metrics like IRR
B) Only user metrics like location efficiency
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C) A separation of the decision to use the space from the decision to invest in it
D) A combined analysis where use-case always overrides financials
Answer: C
Even if a user also invests, the decision to use (space needs) should be separated from the decision to
invest (return on capital) to avoid conflating operational needs with investment risk. This is the User
Decision Analysis framework (CI 103).
Question 2: An investor buys a property for $1,000,000 and pays $15,000 in legal fees and transfer
taxes. What is the "Original Basis" for tax purposes?
A) $985,000
B) $1,000,000
C) $1,015,000
D) $1,000,000 minus depreciation
Answer: C
The original (acquisition) basis equals the purchase price plus capitalized acquisition costs (such as legal
fees and transfer taxes), though financing costs are treated separately.
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Question 3: An investor calculates that the market Cap Rate is 7% and the annual Growth rate is 2%.
According to financial models, what is the estimated Yield?
A) 5%
B) 9%
C) 14%
D) 3.5%
Answer: B
Yield is derived from the cap rate plus the growth rate (Cap rate + Growth = Yield), representing the total
return including income and appreciation.
Question 4: A property has a single tenant with a long-term absolute NNN lease and no other income.
What is the relationship between Potential Rental Income (PRI) and Net Operating Income (NOI)?
A) PRI is irrelevant if expenses are high
B) PRI equals NOI
C) PRI is always double the NOI
D) PRI is lower than NOI due to vacancies
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Answer: B
In a perfect scenario with an absolute NNN lease, the tenant covers all operating expenses, so the
Potential Rental Income flows directly to the bottom line as NOI with no deductions.
Question 5: What are the four basic components of Net Operating Income (NOI)?
A) Potential Rental Income (PRI), Vacancy and Credit Losses, Other Income, Operating Expenses
B) Gross Rental Income, Property Taxes, Insurance, Utilities
C) Net Rental Income, Capital Expenditures, Depreciation, Financing Costs
D) Effective Rental Income, Reserves for Replacement, Tenant Improvements, Lease Commissions
Answer: A
The four components of NOI are: 1) Potential Rental Income (PRI), 2) Vacancy and Credit Losses, 3) Other
Income, and 4) Operating Expenses. NOI measures income before debt service and taxes.
Question 6: Which tool is used to determine a property's Potential Rental Income (PRI)?
A) Direct Capitalization
B) Discounted Cash Flow Analysis
CCIM (Certified Commercial Investment Member) Exam
QUESTIONS AND VERIFIED ANSWERS LATEST UPDATE
THIS YEAR
CCIM (Certified Commercial Investment Member) Exam – Coverage Summary & Exam-Relevant
Questions
Based on the CCIM Institute’s core curriculum (CI 101 through CI 104), the Comprehensive Exam
validates mastery of financial analysis, market valuation, user decision models, and risk quantification.
The exam is open-book but taken in person at a testing center, requiring a 70% to pass.
Exam Coverage Summary
The CCIM curriculum is organized into four core courses, all tested on the Comprehensive Exam:
Course Key Topics
CI 101: Financial Discounted Cash Flow (DCF), Net Operating Income (NOI) components, capitalization rates, yiel
Analysis IRR, NPV, cash-on-cash return, DSCR, leverage, time value of money, sensitivity analysis
CI 102: Market Supply/demand dynamics, market feasibility, competitive positioning, rental rate analysis,
Analysis absorption, marketability studies
CI 103: User Lease vs. buy decisions for owner-occupants, space needs vs. investment analysis, cost-benefit
Decision Analysis occupancy
CI 104: Investment Risk quantification (sensitivity, scenario, Monte Carlo), capital improvements, refinancing decis
Analysis disposition analysis, tax implications, partnership structures
Exam Facts:
• Exam Format: Multiple choice, scenario-based application questions
• Passing Score: 70%
• Open Book: Yes (candidates may bring reference materials)
• Testing Location: In-person at CCIM-approved testing centers
CI 101: Financial Analysis – Core Concepts (Questions 1-60)
Question 1: A corporate executive must decide whether to buy a warehouse for distribution or continue
leasing. Which decision-making framework applies?
A) Only investor metrics like IRR
B) Only user metrics like location efficiency
, Page 2 of 213
C) A separation of the decision to use the space from the decision to invest in it
D) A combined analysis where use-case always overrides financials
Answer: C
Even if a user also invests, the decision to use (space needs) should be separated from the decision to
invest (return on capital) to avoid conflating operational needs with investment risk. This is the User
Decision Analysis framework (CI 103).
Question 2: An investor buys a property for $1,000,000 and pays $15,000 in legal fees and transfer
taxes. What is the "Original Basis" for tax purposes?
A) $985,000
B) $1,000,000
C) $1,015,000
D) $1,000,000 minus depreciation
Answer: C
The original (acquisition) basis equals the purchase price plus capitalized acquisition costs (such as legal
fees and transfer taxes), though financing costs are treated separately.
, Page 3 of 213
Question 3: An investor calculates that the market Cap Rate is 7% and the annual Growth rate is 2%.
According to financial models, what is the estimated Yield?
A) 5%
B) 9%
C) 14%
D) 3.5%
Answer: B
Yield is derived from the cap rate plus the growth rate (Cap rate + Growth = Yield), representing the total
return including income and appreciation.
Question 4: A property has a single tenant with a long-term absolute NNN lease and no other income.
What is the relationship between Potential Rental Income (PRI) and Net Operating Income (NOI)?
A) PRI is irrelevant if expenses are high
B) PRI equals NOI
C) PRI is always double the NOI
D) PRI is lower than NOI due to vacancies
, Page 4 of 213
Answer: B
In a perfect scenario with an absolute NNN lease, the tenant covers all operating expenses, so the
Potential Rental Income flows directly to the bottom line as NOI with no deductions.
Question 5: What are the four basic components of Net Operating Income (NOI)?
A) Potential Rental Income (PRI), Vacancy and Credit Losses, Other Income, Operating Expenses
B) Gross Rental Income, Property Taxes, Insurance, Utilities
C) Net Rental Income, Capital Expenditures, Depreciation, Financing Costs
D) Effective Rental Income, Reserves for Replacement, Tenant Improvements, Lease Commissions
Answer: A
The four components of NOI are: 1) Potential Rental Income (PRI), 2) Vacancy and Credit Losses, 3) Other
Income, and 4) Operating Expenses. NOI measures income before debt service and taxes.
Question 6: Which tool is used to determine a property's Potential Rental Income (PRI)?
A) Direct Capitalization
B) Discounted Cash Flow Analysis
