In the Zone: Turning Residential Space into Commercial Office Space
1. Read carefully the overview and the witnesses of this case.
2. Answer all questions in the session of HANDLING THE CASE and provide
comments.
3. Select one role out of four witnesses and make a concluding remark from the CASE CONCLUSION session.
4. Make the length of the paper at least 1,200 words or minimum four pages with APA/MLA format.
1. What is the main reason that Mr. Brown is looking to change the home into a commercial building?
A. The rules of supply and demand have left him with few alternatives for office space, and he is forced to look at options other than standard office space.
B. His previous office, which he was losing due to no fault of his own, was insufficient for his needs.
C. His client base had moved to a more relaxed, casual form of business, and he needed to become less formal in order to remain competitive.
D. He would be able to reap financial benefits by becoming a property owner, benefits which would include free rent for him.
2. What is likely to be the building's best attribute if Mr. Brown is allowed to change the building into commercial space?
A. The availability of the extra space within the building in terms of the basement and garage
B. The proximity to the lake
C. The location on the highway and its nearness to two metro areas
D. The uniqueness and the small size
3. What makes real estate different from all other commodities (things that you can buy)?
A. Its price. Taken individually, the cost of real estate is higher than any other
commodity in the marketplace.
B. It cannot move.
C. It serves two purposes. It is both ground, which allows space for movement, and can include a building, like a house, with its inherent advantages.
D. It can change uses, as in this case, from a residence to a commercial building.
4. What is the term that is used nationally to describe the placement of a property at its most advantageous use in its market?
A. Price and distance usage
B. Interim to permanent usage
C. Highest and best usage
D. Supply and demand usage
5. The supply of real estate improvements is characterized by several factors. Which of the following is not one of those factors?
A. The supply is fixed in the short run.
B. The additions to supply in any one year usually are a relatively small proportion of the total inventory.
C. Additions to the supply are based largely on anticipation of future demand.
D. Supply must constantly exceed demand so that the available space makes for a broader market to pick from for the potential tenant.
6. Which of the following growth factors may have contributed the most to the demand for office space in this building in this suburb?
A. The availability of natural resources
B. The regular climate
C. The ready availability of a good labor force here as opposed to in the metro areas
D. The relative ease of transportation
7. There are four life cycles used when describing the nature of a property. Which of the stages would you say that this property is in, considering its current residential status?
A. Gestation, youth, and maturity
B. Incipient decline
C. Clear decline
D. Accelerating decline and abandonment
8. From the facts of this matter, what do you see as the biggest challenge to Mr. Brown's chances of ending up with an office building on the lake?
A. The neighbor's opposition
B. Obtaining a building permit
C. Borrowing sufficient funds for the project
D. Finding tenants