Strategic Real Estate Consultancy Flashcards
What is a strategic real estate consultancy?
The alignment of a company’s business objectives and its real estate holdings.
Tell me about the role of real estate in business performance.
Location: visibility to potential customers, accessibility to suppliers and partners, and proximity to relevant infrastructure. A well-chosen location can drive foot traffic and improve brand awareness.
Cost of real estate: rent or mortgage payments impacts the cash flow of the business
Physical characteristics: layout, space = efficiency, productivity
Sustainability: owning a property can provide stability and security and build equity over time
What key issues affect strategic real estate consultancy?
- economic and market conditions
- changes in regulatory and legal requirements
- technology and innovation
- sustainability and environmental matters
How do current market conditions affect SREC?
Higher inflation = higher interest rates, limited supply = increased demand
What are some of the long-term strategies for a real estate portfolio?
Value investing, growth investing, momentum investing, value add
What form might the strategic advice take?
Tell me about different styles of consultancy intervention.
Portfolio reviews
Revised executive or management policies or procedures
Cost reduction or resources utilisation
Sustainability iniatives
Legislation or RICS Regulation/Publication compliance
Measurement/Inspection techniques for consistent application/purposes
Phased estate disposals
How do you measure property performance?
Cost per sq. ft
Cost per sq. ft per employee
Total space held
Percentage of space occupied
Income generated per sq. ft
Occupier satisfaction
How can you maximise income and capital growth potential?
Effective property management and facilitates management
Taking advantage of market conditions
Refurbish
Develop
Get ahead of trends e.g. sustainability
Portfolio engineering - options for strategy
Purchase, sale, let, refurbish, redevelop, change of use, change lease structures, demolish, build, surrender lease, change layout, reorganise service charge, repair, redecorate, sustainability, extend, refit, sub-let
Tell me about the strategic uses of real estate.
Capital growth
Income growth
Diversity risk
Business operations
What is a RAG analysis?
RAG analysis, also known as RAG rating, is a simple visual tool used to assess and communicate the status of a project or task. The acronym RAG stands for Red, Amber, and Green, which are the colors used to indicate the status of the project or task being analyzed.
Explain the role of Strategic real estate consultancy in site-specific relocation and rationalization planning.
Site selection: SRECs can assist organizations in identifying potential relocation sites that meet their specific requirements, taking into account factors such as location, accessibility, zoning regulations, and cost.
Due diligence: SRECs can conduct due diligence on potential sites to ensure that they meet the organization’s needs and are free from any legal or environmental issues.
Financial analysis: SRECs can perform financial analysis to help organizations determine the costs and benefits of relocating to a new site. This can include analyzing lease or purchase agreements, assessing tax implications, and forecasting cash flow.
Risk management: SRECs can help organizations identify and manage risks associated with site-specific relocation and rationalization planning. This includes assessing potential risks, developing risk management plans, and implementing risk mitigation strategies.
What is inflation, GDP, population growth, employment rates?
Inflation is a general increase in the prices of goods and services over a period of time, which leads to a decrease in the purchasing power of money.
Gross Domestic Product (GDP) is the total value of all goods and services produced within a country’s borders in a given period, usually a year. GDP is an important measure of a country’s economic performance and is often used to compare the economic growth of different countries. (private consumption + gross private investment + government investment + government spending + exports - imports)
