CPM Leasing and Marketing 1

Question 1

What is the primary goal of a property's marketing plan?

Accepted Answer

To attract qualified prospects and minimize vacancy

Answer

A marketing plan identifies target audiences, outlines strategies to attract qualified tenants, and aims to minimize costly vacancy periods.

Question 2

What does 'absorption rate' measure in commercial real estate leasing?

Accepted Answer

The pace at which available space in a market is leased over a given period

Answer

Absorption rate measures how quickly available square footage in a given market is leased, indicating supply and demand dynamics.

Question 3

Which tenant screening criterion is permissible under Fair Housing law?

Accepted Answer

Using consistent, objective criteria such as minimum income and credit score thresholds

Answer

Consistent, objective criteria applied equally to all applicants—income ratios, credit scores, rental history—are permissible and reduce Fair Housing risk.

Question 4

What is a 'lease renewal option'?

Accepted Answer

A provision giving the tenant the right to extend the lease at specified terms

Answer

A renewal option gives the tenant the contractual right to extend the lease for an additional term, usually at a predetermined rent or formula.

Question 5

What is 'effective rent' in commercial leasing?

Accepted Answer

The average net rent over the lease term after accounting for all concessions

Answer

Effective rent averages the total net rent received over the entire lease term, factoring in free rent periods, tenant improvement allowances, and other concessions.

CPM - Certified Property Manager Practice Test

CPM - Certified Property Manager Practice Test

CPM Leasing and Marketing 1