$1.$ The existing stock of space cannot be adjusted in the short run, but can be increased or decreased in the long run. $2.$ The term $$percentage rent$$ refers to rent paid as a percent of space leased. $3.$ A gross lease is where tenants pay all expenses. $4.$ The rationale for using the cost approach in an appraisal is that any informed buyer would not pay more for property that what it would cost to buy the land and build the structure. $5.$ The development of the sales comparison approach in an appraisal is preferred because it is the only objective appraisal approach. $6.$ A gross income multiplier can be calculated by dividing the gross income by the sales price. $7.$ An overall capitalization rate can be calculated by dividing the net operating income by the comparable property sales price. $8.$ Appraisers use bracketing in order to estimate the upper and lower range of value. $9.$ The overall capitalization rate $($Ro$)$ of newly constructed apartment building will be more than that of relatively old apartment building, which is comparable in all other aspects. $10.$ Debt coverage ratio measures the degree to which the NOI from the property is expected to exceed the mortgage payment. $11.$ CPI adjustments $($rent escalator in a multi$-$year lease$)$ shift the risk of unexpected inflation to the lessor. $12.$ Expense stops shift the risk of increases in expenses to the lessee while allowing the lessor to retain the benefit of any decrease in expenses.