American Institute of Certified Planners (AICP) Practice Exam

A multi-tenant building that provides below-market rents and support services is called?

1. A small business consortium

2. An economic development project

3. An incubator facility

4. A shared workspace

The correct answer is: An incubator facility

An incubator facility is designed to support the growth and development of startups and small businesses by providing them with below-market rents and necessary support services, such as mentorship, networking opportunities, and access to resources. This arrangement fosters innovation and entrepreneurship by reducing the financial burdens that new companies typically face, allowing them to focus on developing their products or services. In contrast, a small business consortium refers to a group of businesses that collaborate for mutual benefit, rather than a specific physical space that offers support services. An economic development project generally involves broader initiatives aimed at improving the economic well-being of a community, which can include a range of activities and does not specifically denote a building focused on small business support. A shared workspace, while also providing a physical space for collaboration, does not typically emphasize below-market rents or comprehensive support services tailored for the specific needs of startups.