The development cycle for industrial real estate is the shortest of all major product types and can take 9 to 12 months. The development cycle for office is riskier because it can take three years or longer to develop an office building. The economy is cyclical and a big risk associated with speculative office development is delivering completed product into the down phase of the economic cycle. True False QUESTION 4 C corporations like Apple, Starbucks, and Coca Cola, pay taxes at the corporate level. Because dividends issued by C corps are taxed at the personal level, an investor in a C corporation is hit with double taxation. Assuming a REIT complies with the regulatory requirements, REITs are treated as pass-through entities. This means that an investor in a REIT avoids double taxation? True False QUESTION 5 When a REIT stock is trading for less than its liquidation value, the stock is said to be trading at a discount to Net Asset Value? True False