Question: Office building development entails considerable risks. One of the most common ways to reduce the risk level, encouraged by lenders, is to: Ch16 a. Have

Office building development entails considerable risks. One of the most common ways to reduce the risk level, encouraged by lenders, is to: Ch16

a.

Have the bank hire and manage the contractor
b.

Obtain "pre-leasing" commitments from tenants before building
c.

Use more "leverage" so the borrower's money is not at risk in the deal
d.

Put funds in off-shore accounts
e.

Use the cheapest possible building materials

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