Question #11
Reading: Reading 33 Real Estate Investments
PDF File: Reading 33 Real Estate Investments.pdf
Page: 7
Status: Unattempted
Correct Answer: B
Question
Which of the following most accurately identifies non-core real estate property types?
Answer Choices:
A. Office and industrial
B. Hotel and hospitality
C. Retail and multi-family residential
Explanation
Hospitality properties such as hotels represent relatively risky investments because these
properties do not use long-term leases and their performance may be highly correlated
with the business cycle. The core commercial income-producing real estate property types
are retail, multi-family, office, industrial and warehouse. These "core" property types are
the main properties used to create a low-risk real estate portfolio.