strategic RE consultancy Levels 2-3 Flashcards
EMEA Portfolio - Mark to Market
Level 2
What was the advice you gave and why?
what advice?
* presented sites which should be looked into further for cost saving oppourtunites.
* and looked into sites which benifited from regearing the lease?
Why?
* to enable my client to make informed real estate descions in line with their organisations wider strategy.
EMEA portfolio - Mark to Market
Level 2
Can you tell me about a site you looked into further for cost saving oppourtunites and sites which would benifit from regearing the lease?
site - Canary Wharf, upcoming break option
Analysing the Mark to Market
* showed a high vacany rate
* higher passing rent than the market rent
* upcoming lease expiry
* showed T favoured market
advise - lease regaering
* I was also aware that my client had invested Capex into the site and therefore was eager to remain in the property.
* I advised that due to the tenant favoured market, negotiating a longer lease for a reduced rent would be benificial.
* I advised on increasing the lease term by 24 months with a tenant only break option - and the agree a rent slightly below market rent.
Level 2 - Pitch preperation
What was the advice did you give and why?
what advice?
* advised on levereging the workspaces as a strategic tool
* advised on occupying space which support digital collaberation with teams
why?
* to optimise productivity and align with their wider strategy of an activity oriented office concept and phased in desk sharing.
Annual portfolio review of global law firm
Level 3
what is the advice you gave and why?
what advice?
* advise on cost saving oppourtunities for underutilised sites and highlighted sites which would benifit from regearing.
Why?
* to provide a comprehensive portfolio anaylisis report to aid the direction of their real estate strategy
* Identify oppourtunities and liabilities within their potfolio.
Cost saving of relocating to services offices
Level 3
what was the advice you gave and why?
what advice?
* adviced on which offices should move to serviced offices and which should remain in current locations.
Why?
* to align with cost saving objectives and align with wider organsisational strategies
Level 3 - serviced office
What was the finanical analysis you undertook and what did it show?
- Cashflow: current lease: created a CF for a 36 month period for each shortlisted property. inputting: rent, service charge, additonal charges (eg parking licenses)
- cashflow: serviced office: created a CF for 36 month period for the cost of service charge and made assumptions for additonal costs.
This showed that serviced offices can be cost-effective in the short term, however they can become less economical over an extended period.
As monthly rental fees for serviced offices are typically higher than conventional leases due to the encaspulated services and facilities. As a result, businesses that have stable long-term growth plans might find that transitioning to a traditional office space could be more financially advantageous in the long run.
Serviced offices
Level 3
What are the drawbacks and benefits of serviced offices?
Drawbacks
* reduced privacy
* lack of branding
Benefits
* flexibility
* scaleability
* networking
* encapsulating costs (+ for budegting)
Level 3 Portfolio cost saving analysis law firm
did your advice differ from region to region?
What were the market trends driving this?
Give an example of how it differed?
advice region to region?
* yes depending on whether the market was T or LL favoured played a big part in this.
* For example, office in dubai was a LL favoured market with low vacancy rates and therefore negotiation power was weaker in comparison to Budapest, where the market had high vacancy rates and the passing rent was higher than the market rent and the site was being underutilised.
market trends
* LL / T favoured market
* market rent
* aviliability
* take up
* vacancy
