Mukesh Valabhji - Commercial Real Estate Investment Quiz --- Test your basic knowledge of commercial real estate investing. You can learn more about the current commercial property investment market at http://www.mukeshvalabhji.co.uk/commercial-leases-booming-industry/.

1. Commercial Real Estate Investing
Test your knowledge!

2. The answers can be found on the last page.
1. Commercial properties may refer to:
A. retail buildings
B. office buildings
C. apartment buildings
D. all of the above
2. What is a “mixed use” building?
3. The best reason to invest in commercial rental
property rather than residential is the ______________.
4. The Net Operating Income (NOI) of a commercial
property is calculated by valuating the property's gross
operating income and subtracting the ______________.
5. Commercial properties generally have an annual
return off the purchase price between:
A. 1% and 6%
B. 6% and 12%
C. 12% and 18%
D. 18% and 26%

3. 6. To become a savvy real estate investor you must learn
how to:
A. understand market conditions
B. assess how much time and money is needed for
rehabs
C. deal with tenants and building maintenance
D. all of the above
7. Income on commercial real estate is directly related to
its usable___________________.
8. Commercial property leases are generally __________
than residential leases.
A. longer
B. shorter
9. A good way to evaluate a commercial property is to:
A. study the neighborhood
B. look for vacancies in the area
C. talk to other neighborhood owners
D. all of the above

4. 10. Commercial property lenders like to see at least
_________ down before they'll approve a loan.
A. 10%
B. 15%
C. 30%
D. 45%
Answers:
1. D
2. a property that has a mix, such as retail, office and apartments.
3. earning potential
4. operating expenses
5. B
6. D
7. square footage
8. A
9. D
10. C
Learn more about the current commercial property investment market here.