Preview Questions Real Estate Consultant | Role Specific Skill

Question 1: In a commercial real estate portfolio, what is the impact of tenant turnover on long-term portfolio value and how should it be managed?

Which action should you take?

Choose only one option

Tenant turnover can increase vacancy risk, thus reducing long-term property income and portfolio value

Tenant turnover is only relevant for residential portfolios

Tenant turnover increases rental rates and enhances portfolio value

Tenant turnover has minimal impact on portfolio value if the market is strong

Question 2: In the context of leasing negotiations, which performance-based clause can encourage the tenant's long-term success in a property?

Which action should you take?

Choose only one option

Fixed rent increase clauses

Sales performance or turnover-based rent clauses

Insurance clauses linked to tenant's business operations

Gross-up clauses

Question 3: What is the most effective strategy for managing liquidity risk in a real estate portfolio with a high proportion of illiquid assets?

Which action should you take?

Choose only one option

Increase the proportion of liquid assets and short-term holdings to balance the portfolio

Hold illiquid assets until market conditions improve

Ignore liquidity concerns, focusing on long-term growth potential

Sell off all illiquid assets to reduce portfolio risk

Question 4: How does proximity to public infrastructure impact property market values?

Which action should you take?

Choose only one option

Increases demand and value

Stabilizes rental yields

Reduces transaction costs

Decreases property taxes

Question 5: What does a negative cash flow in a real estate property investment typically indicate?

Which action should you take?

Choose only one option

High market demand

Inadequate rental income to cover expenses

Low tenant turnover

Strong property appreciation

Question 6: What is the most effective approach to managing high-demand clients?

Which action should you take?

Choose only one option

Offering generic solutions

Focusing only on high-value transactions

Providing proactive and tailored communication

Avoid overpromising