Question

1.One means of raising equity financing for shopping center development is to sell parcels to anchor tenants or outparcels, or “pad sites” to fast-food restaurants, banks, and similar businesses after the center plan has taken shape.

TRUE OR FALSE?

2.Office developments are categorized by class, building type, use and ownership, and location.

TRUE OR FALSE?

3.Transferable development rights (TDRs) allow for the sale of development rights on a property from one owner to another.

TRUE OR FALSE?

4.Small developers are likely to disappear. Large developers do not typically care about the deal size, and will therefore get involved in small niche markets, making it impossible for small firms to thrive.

TRUE OR FALSE?

5.In the case of specialty (retail) centers, evidence suggests that technology has had little effect on consumer preferences in where to spend discretionary time and income. Shopping venues that provide an attractive experience will continue to thrive because they provide an attractive, safe, well-maintained place to share a communal experience.

TRUE OR FALSE

6.“Smart Growth” refers to the promotion of unplanned economic and community development in the form urban sprawl, and the relaxing of environmental regulations.

TRUE OR FALSE

7.One of the capital costs unique to developing shopping centers is the tenant buildout or tenant improvement allowance.

TRUE OR FALSE

8.The investor who puts up the equity typically requires a preferred return. The preferred return is most often cumulative, which is to say that if funds are not sufficient to pay the preferred return, the deferred return is added to the equity balance and accrues interest.

TRUE OR FALSE

Answer 1

1. True.

Because this is the way to mitigate risk, and to raise finance for the projects of shopping centre development.

2. True.

As it is office development, it must be distinguished and classified between building type, use, location etc. ie. commercial building rather than residential, commercial area rather than residential and so on.

3. True.

Transferable development rights is the technique where owner of land/ building transfer the right to another for properties development.

4. False.

Because large developers do mostly care about the deal size, and will therefore not try to get involved in small niche market. Basically they large developers deals in huge projects, their equipment cost and other relevant service is much expensive, which could be covered in small niche markets.