QUESTION 6

Hotels have the shortest leases of all of the major real estate product types and can be as short as one day long. Office leases, by contrast, are longer term and it is not uncommon to find office leases with 10-year terms. The financial markets like the predictability of cash flows associated with long term leases. As a result, cap rates for office buildings should be lower than cap rates for hotels? True False

QUESTION 7

The development cycle for industrial is the shortest of all of the major real estate product types and can take 9 to 12 months. The development cycle for office can be 3 years or more. As a result, the balance of supply and demand for office space is harder to regulate. True False

QUESTION 8

The office market is ever evolving and owners of office buildings have to stay on top of current trends to satisfy customer's needs. Which of these is not a current trend in the office market?

		Prop-tech (use of information technology to enhance operations and customer experience)
		Co-working (like We Work, Knotel, Industrious)
		Amenitization (yoga rooms, bicycle storage, common work areas)
		Fulfillment and distribution of e-commerce orders