intro to property and management Flashcards
what happens to the stability of an investment as you go higher up the luxury property market
the investment is less stable as the demand is influenced more by economic fluctuations and trends (affordable housing is always a safe investment option as there will always be a demand
why is investing in care homes a safe option right now
the proportion of elderly people above the age of 85 will double in the next 25 years
what is a smart city
an urban area that uses different types of electronic internet of things (IoT) sensors to collect data and then uses insights gained from that data to manage assets, resources and services efficiently e.g. monitor crime, waste management, water supply
what is the most popular property developer
private enterprise (above local authorities and housing associations)
what is Brownfield land
land that has previously been built on
what is grey belt development
development over the ugly areas of the green belt
how many homes does the current labour government promise to build over the next parliament
1.3 million
what is the current labour government’s policy on affordable housing
they promise that 50% of development on the green belt land must be affordable housing
how much does the real estate sector contribute to the UK’s GDP annually
£1.7 billion
what is the return of the UK property market
7.1% per annum (IPF) with a 5-year average property investment forecast
which areas doe the UK act as a leading force in
green building design
green construction
green asset use
repurposing of existing assets
green finance
by 2025 what percent of the UK population is predicted to be over 25
20%
what is BREEAM
the UK’s Building Research Establishment (BRE) created BREEAM (Building Research Establishment Environmental Assessment Methodology) as a way to rate a buildings sustainability
define leasehold and key characteristics
Form of property ownership that gives a person (the leaseholder) the right to occupy land or property for a fixed period, known as the “term.”
Fixed term
obligations to the freeholder
when term expires, ownership renews to the freeholder unless renewal
define freehold and key characteristics
The most complete form of land ownership in the UK. You own the building and the land it is situated on.
no restrictions on duration
perpetual ownership - can be passed down to heirs and sold or transferred as see fit
define heterogeneity
the quality or state of being diverse in character or content
what is ITZA
In Terms of Zone A
a way of valuing retial property.
The Basic principle that the part of the shop seen by passers by (ZONE A nearest to the window) is typically worth more than the inside of the building.
1. Split the shop into zones
2. Take the measurements of zone A
3. Zone B is worth half of zone A
4. Zone C is worth a quarter of zone A
5. Zone D (remainder) is worth 1/8th of zone A
what is an exit strategy
A plan for how an investor intends to sell or dispose of the property in the future.
what is the current average commercial lease length in the UK
Commercial property leases in the UK typically range between 5 and 15 years in length, with the market average currently being around seven years, compared with 23 years in 1990.
what is debt financing
Debt financing is a way for a business to raise money by borrowing funds and agreeing to repay them with interest over time. It’s a common way for businesses to fund growth and cover costs.
example - gearing
what is corperate real estate
Corporate real estate is a resource that a business uses to help it to function as a business and to achieve its business objectives
what is property management
Control, manage, protect and care for a real estate asset(s) and where possible enhance income
more day to day stuff
what is property asset management
Enhance asset value, drive performance and returns, improve net operating income and increase capital values
looks at the property in a portfolio
what does CBD stand for
Central Business District
commercial and business centre of a city
In larger cities there can be more than one CBD. e.g. City of London and Canary Wharf
what is a buisness park
ABusiness ParkorOffice Parkis a designated area of land in which manyoffice buildings are grouped together.
often on the outskirts of a city when land is cheaper and by main roads for easy access
how is office space catagorised
Grade A, Grade B and Grade C
what is the BCO
British Council for Offices
when do the UK governement plan to reach net zero
2050
what are the 5 BREEAM ratings
Outstanding, Excellent, Very Good, Good and Pass.
what are the 4 WELL ratings
Platinum, Gold, Silver and Bronze
what are the four levels of completetion for offices
Cat A
Shell & Core
Shell & Floor
Fully fitted out - i.e. Cat B
when was the financial crisis
2008
what does PBSA stand for
Purpose-Built Student Accommodation
what use class does retail fall under
Use Class Order - E
what is covenant strength
a measure of a tenant’s ability to fulfill the obligations outlined in their lease agreement
why is retail struggling
ECommerce Competition
Inflation
Cost of Living Crisis
Shoplifting
High Rents
Rising Operating Costs
Labour Shortages / Staff Retention
what percentage does industrial hold in the share of the commercial market in capital value
roughly 31%
what percentage does office hold in the share of the commercial market in capital value
roughly 29%
what percentage does retail hold in the share of the commercial market in capital value
roughly 29%
What is the value of UK commercial property?
£918 billion as of 2021
What is the value of the UK residential property?
£9.2 trillion as of 2021
what is quantitative data
numerical and countable
what is qualitative data
descriptive and linguistic
what are some noteable estates/developments owned by the crown estate
Windsor Estate: Includes Windsor Great Park and Ascot Racecourse
St James’s and Regent Street: An estate in central London that includes a square mile of architecture, shops, restaurants, galleries, and auction houses
Rushden Lakes: Located in Northamptonshire
Princesshay: Located in Exeter
Westgate: Located in Oxford
Crown Point: Located in Leeds
