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Basic Question 2 of 4
A commercial property's value is determined by key factors such as ______.
II. its location
III. its interior decorations
IV. the state of the underlying economy
I. its tenants
II. its location
III. its interior decorations
IV. the state of the underlying economy
User Contributed Comments 3
| User | Comment |
|---|---|
| thebkr777 | Can anyone explain? |
| JTuranyi | thebkr777, for II. notes say that location is the single most important determinant of property value, while for IV. reading mentions that real estate market tends to be cyclical --> underlying economy in recession means falling prices and vice versa |
| davidt87 | I. tenants can be kicked out (eventually) - so not a KEY factor III. interior decorations can relatively cheaply be changed - again not a KEY facto |
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Learning Outcome Statements
describe the economic factors affecting investment in commercial real estate.
CFA® 2025 Level II Curriculum, Volume 6, Module 37.