Q&A SoE Flashcards
What is CBRE’s Code of Business Conduct?
Ethics, rules of conduct and professionalism
The RISE values.
* Respect
* Integrity
* Service
* Excellence
What are the five rules of conduct for the RICS?
Ethics, rules of conduct and professionalism
Honesty and Integrity;
Competence and Competent staff;
Quality Work;
Respect, Inclusion and diversity;
Responsibility, Public Interest.
What is CBRE’s complaints handling procedire (CHP)?
Client Care
5 Days to acknolwdge the complaint
20 days to respond to complaint
If unsatified, property redress will be used as third party
Client Care
Who is your complaint officer?
Client Care
Nigel Anderson
How do you agree fee shares?
Client Care
We have internal fee share standards within CBRE. We aim to stay at 30% for all projects.
Could you please explain what a marketing report may include?
Communication and Negotiation
It would include the property being marketed.
Rental/Sale Cost.
Location
Amenities
Contact Details
What would be included in a valuation report?
Communication and Negotiation
As per Red Book Guidance, this would include the property being valued, the method of valuation, the purpose of valuation, valuation date, whether it is red book or not, statutory information (EPC, planning, flood risk), the valuation, recommendations.
Are you aware of any legislation relating to H&S?
Health and Safety
Yes, the Health and Safety Act (1974).
Can you please explain your understanding of CBRE’s lone working policy?
Communication and Negotiation
I am required to carry out a risk assessment prior to my lone work. Inform my line manager of location and time of work, and how I can be reached.
Can you please explain the difference between a balance sheet, income statement and cash flow statement?
Accounting principles and procedures
Balance Sheet:
a financial statement that summarises a company’s financial position at a specific point in time, showing its assets, liabilities, and equity.
Income Statement:
a financial report that summarises a company’s revenue, expenses, and net profit or loss over a specific period.
Cash Flow Statement:
a financial statement that summarizes the movement of cash (and cash equivalents) into and out of a business or project over a specific period.
What is the difference between a Statutory and Management Account?
Accounting principles and procedures
Statutory account are required to be submitted for audit by UK law.
Management account is for internal purposes and cannot be used in an official capacity. It helps guide internal decision making.
How would you evaluate a client’s covenant strength?
Accounting principles and procedures
I would use my company’s subscription to Dun and Bradstreet to verify their entity and credit history.
It also provides a D&B Viability Rating.
What is the difference between a strategic and operational business plan?
Business planning
Strategic:
Overarching strategy for the future of a project/company
Operational:
Focus on the daily/weekly requirements to achieve the strategic business plan.
What RICS document are you aware of?
Conflict Avoidance, management and dispute resolution procedures
RICS Conflicts of Interest 1st edn 2017.
What are the different methods of ADR (Alternative Dispute Resolution)?
Conflict Avoidance, management and dispute resolution procedures
adjudication
mediation
arbitration and
expert determination.
What is the main UK Legislation?
Data Management
The Data Protection Act 2018 (Includes the UK GDPR).
Secondary legislation includes the EU GDPR and the Freedom of Informaion Act 2000.
What is the maximum penalty under the Act?
Data Management
Maximum of £17.5 million, or 4% of company global annual turnover.
What was the Frankfurt market like?
Data Management
Limited development in pipeline, healthy stock of Grade A. Medium levels of vancany.
For India, what other options could you have advised?
I could have advised that the client acquire severa smaller/satellite offices. This was not done as the cient wanted to open a new regional/statement office in a larger city.
What are you are your company’s values?
Diversity, inclusion and teamworking
RISE
Can you give an example of a situation where you have promoted these values?
Diversity, inclusion and teamworking
Working within a diverse team of individuals, I have learnt the benefits of collaboration and inclusion on a global scale.
Could you please state the main legislation relating to inclusion?
Inclusive environments
The UK Equality Act 2010.
What is CBRE’s ESG target?
Sustainability
To become Net Zero by 2040.
What is the UK legislation for ESG?
Sustainability
Climate Change Act of 2008. Objective of becoming net zero carbon by 2050.
What is MEES?
Sustainability
The minimum energy efficency standars outline the requirements set on commercial properties above 50 sqm in the UK. EPC E rating currently. EPC B rating by 2030.
What is the guidance for Valuation published by the RICS?
Valuation
RICS Valuation - Global Standards (Red Book) 2025.
The latest version incorporates the International Valuation Standards (IVS).
What is the structure of the Red Book?
Valuation
Part 1: Introduction
Part 2: Glossary
Part 3: Professional Standards
Part 4: Valuation technical and performance standards
Part 5: Valuation practice guidance applications
Part 6: International Valuation Standards
What is CBRE’s PII?
Valuation
This is confidential.
What is the hierarchy of evidence?
Valuation
As described in Comparable evidence in Real Estate Valuation 2019.
Three groups:
Category A – direct comparables
Category B – general market data
Category C – other sources
For the Chelsea Pub Valuation, what method did you use, and how did you carry it out?
Valuation
I used the investment method to determine Fair Value.
The steps I took were:
* Carry out ToE
* Complete due diligence (EPC, Flood Risk, Planing).
* Collated comparable evidence using the hierarchy of evidence.
* Determined that the property was being let at Market rent.
* Established a ARY using CBRE internal data, comparables and inspection notes of 5.75%.
For the Clapham Pub Valuation, what method did you use, and how did you carry it out?
Valuation
I used the profit method to determine Market Value.
The steps I took were:
* Carry out ToE and conflict of interest check.
* Used 3 years of trading and future forecasts provided by client to establish a resonably efficient operator (REO).
* Determined FMT Fair Maintanable Trade using CBRE’s benchmarking data alongside my knowledge of the sector.
* I adopted a gross profit margin of 60% in line with comparables.
* I then determined an FMOP Fair Maintainable Operating Profit.
* I used the building value and profits to determine a multiplier of 9.75. (Value of the building determined by looking at comparables divided by the net profit).
* I multiply the FMOP by the multiplier to obtain the market value.
What is fair value versus market value?
Valuation
Market Value:
‘the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’
(Current price at time of valuation)
Fair Value:
‘The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.’
(Assessment of value an asset could sell for)
What is a yield?
Valuation
the annual return on an investment, expressed as a percentage of the property’s capital value
How did you measure Whitechapel/Marylebone?
Measurement
On a NIA Basis.
What is the RICS documentation for Measurement?
Measurement
RICS Code of Measurement Practice 2015.
RICS Property Measurement 2018.
What is IPMS?
Measurement
International Property Measurement Standards.
What is ITZA?
Measurement
In The Zone of A
Why did you make a 10% positive adjustment?
Measurement
Due to glazed return frontage, with the retail unit being on a corner.
What are the ITZA Zones?
Measurement
20 feet or 6.1 metres
What is the RICS documentation for Inspection?
Inspection
RICS Surveying Safely Standard 2018
What is a typical spec for grade A office space?
Inspection
2.6 to 2.8 metre floor to ceiling height
fully fitted
LED lighting
Double Glasing
Raised Floor and/or suspended ceiling
HVAC/AC
