End of Chapter 23 Questions and Answers

End of Chapter 23 Questions and Answers - End of Chapter 23...

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End of Chapter 23 Questions and Answers 1. What types of skills are required for a commercial broker or leasing agent? Answer: Good analytical, communication, presentation, and negotiation skills. They need to understand the business of their clients and investors. 2. What is a CCIM? Look up the CCIM designation on the web and describe the requirements for certification. Answer: Certified Commercial Investment Member. CCIMs must take and pass 4 courses as well as a comprehensive exam. 3. What are the perspectives of a tenant or landlord with respect to effective rent? Why might the opportunity cost of money be different for the tenant and the landlord? Answer: The tenant wants to minimize effective rent while a landlord wants to maximize effective rent. The tenant will typically have a higher discount rate on their capital as the risk is greater but they generally are willing to take on more risk and invest in their own business. This makes the opportunity cost higher for the tenant than the landlord who could invest in other similar properties. Real estate is generally less risk than operating a
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This note was uploaded on 02/07/2012 for the course FIN 4380 taught by Professor Staff during the Spring '08 term at Texas State.

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End of Chapter 23 Questions and Answers - End of Chapter 23...

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