CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Which of the following types of real estate is most likely subject to obsolescence?

A. Apartments.
B. Warehouses.
C. Shopping centers.
Correct Answer: B

Warehouses may become obsolete if they are not designed to accommodate changes in material handling equipment and technology.

User Contributed Comments 4

User Comment
touchou there is obslescence risk for shopping center too!!!
REITboy ...and apartments!

Older designs, particularly in garden apartments, command significantly lower rents than newer designs, ceteris paribus.
tushi123 warehouses have the highest risk of obsolescence though.
Bamwanga excellent well simplified notes
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