CLP Market Analysis & Valuation 3

Question 1

Which data source provides the most reliable information for completing a market rent survey?

Accepted Answer

On-site visits and direct verification with competing properties

Answer

On-site visits allow direct confirmation of actual asking rents, concessions, amenities, and unit conditions that online sources may not accurately reflect.

Question 2

A competing property offers one month free on a 12-month lease at $1,300/month face rent. What is the concession-adjusted effective monthly rent?

Accepted Answer

$1,191.67

Answer

$1,300 × 11 paid months ÷ 12 total months = $1,191.67 effective monthly rent.

Question 3

How does 'economic vacancy' differ from 'physical vacancy'?

Accepted Answer

Economic vacancy also includes concession periods and non-revenue units like models

Answer

Economic vacancy captures all income loss including free-rent concessions, model units, and employee units, not just physically empty units.

Question 4

Which market condition would most strongly support increasing asking rents?

Accepted Answer

Absorption rates consistently exceeding new unit deliveries

Answer

When absorption exceeds new supply, occupancy rises and landlords gain pricing power to increase rents.

Question 5

In market analysis, 'lease-up velocity' refers to:

Accepted Answer

The rate at which vacant units are leased, used to forecast stabilization timelines

Answer

Lease-up velocity measures how quickly a property fills its vacant units, which determines when a property reaches stabilized occupancy.

(CLP) Certified Leasing Professional Practice Test

(CLP) Certified Leasing Professional Practice Test

CLP Market Analysis & Valuation 3