Leases Are Considered the Engines That Drive Property Values

question 17

Multiple Choice

Leases are considered the engines that drive property values. Therefore, it should not be surprising that owners of commercial property may seek an independent leasing broker to focus on finding tenants to lease space. In exchange for their services, leasing brokers are paid a commission based on what percentage of the face amount of the lease?

• A) 0.5 to 1.5%
• B) 3 to 5%
• C) 7 to 10%
• D) 15 to 20%

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Definitions:

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period.

Initial Price

The original cost or price of a good or service when it is first offered for sale, often used as a baseline for pricing strategies.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, used to cover fixed costs and contribute to profit.

Machine Hour

A unit of measure representing the operation of a machine for one hour, often used in cost accounting.