11) A 1031 Exchange allows for: ? 12) You are reviewing lease details for comparable evidence to help you to establish a market rent on a triple net, single tenant retail property where the current tenant is asking to renew a lease which will expire in 3m ths time. There are three properties of similar quality (building and tenant credit) within the general area that you think might be comparable. Property A is 0.2mls away and has been recently leased but has less favorable access and parking compared to the property you are valuing. Property B has also been recently leased and is located 6mls away in an adjoining town. Property C is also located nearby 0.1m/s away and is subject to a lease that was signed 3yrs ago with 2% pa escalators. Which of these properties would you consider a 'good' comparable, if any, and how would you adjust the rental data if you think any of the properties was comparable? 13) A development can be built for $4m (hard \& soft costs) and the land will cost $1m. The projected stabilized NOI is $500k and the market cap rate for this quality of property in this location is 7.0%. Does it make sense to proceed with this project and what will be the implied cap rate on costs? 14) What are the two biggest sources of risk to future returns to CRE in the medium-longer term from the present, aside from a serious recession? 15) Consideration of land values in a vibrant Central Business District are not likely to play an important role in the eventual redevelopment of property built on the land. True or False? 16) Rank from lowest to highest the riskiest developments - Speculative, Build-to-Suit, Pre-lease 17) For public REITs which of the following would represent a positive characteristic: i) Stock liquidity/Daily Pricing ii) Specialized Management iii) Regular Cash Dividends iv) All of the above 18) What is the annual Cash Flow from a property generating $65 of NOI, where Depreciation is $15, Capex is $5, Mortgage costs are $25 (comprising $5 Amortisation and $20 Interest) and Taxes are $10. 19) List two of the benefits of generating Capital Gains versus Income from a tax perspective and how might a property owner target capital gains rather than income through the choice of the capital structure? 20) The US may be heading into a recession in 2023. Assume the recession causes unemployment to rise, of the following property types which two would you consider most defensive/should outperform and which two would be most vulnerable to being negatively impacted by an economic downturn? Malls, Supermarket anchored Shopping Centers, Offices, Lodging, Distribution Warehouses, Cell Towers/Datacenters, Apartments