The natural vacancy rate in a property sector

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Reference no: EM131068805

1. The natural vacancy rate in a property sector (check all that apply):

A. Is influenced by the length of lease contracts

B. Is influenced by the barriers to information collection regarding market rents

C. Is influenced by the time-to-build considerations

D. Is constant across geographic regions of the country (a "no arbitrage" condition)

E. None of the above

2. True or False: Property markets return to equilibrium at the same speed regardless of a positive or negative economic shock.

A. True

B. False

3. True or False: In markets with more cap rate volatility, construction occurs less frequently and with more delays.

A. True

B. False

4. True or False: Modeling investment as dynamic decisions can lead to over-building of real estate, despite all participants acting in their rational self-interest.

A. True

B. False

Reference no: EM131068805

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