Strategic Real Estate Consultancy Flashcards
Strategic Level 1 Commentary
Gained experience with providing strategic advice on portfolios for a diverse range of clients, all with different strategic aims and objectives.
I recognise the importance of understanding and delivering a tailored approach to each client and how effective strategies can be utilised to align a portfolio and individual properties to the client’s requirements.
To achieve this, I have attended board meetings to further my understanding of my client’s corporate objectives and strategies.
I have used methods and techniques such as SWOT, PESTLE and RAG analysis to analyse portfolios and properties to provide strategic advice to clients.
The role of real estate in business performance.
Businesses use real estate for varying purposes; what are these?
The purpose is dependent on the company; many businesses use real estate for occupational purposes, however many that Tandem manage are structured around using real estate for financial or investment purposes.
In particular in my work, for a client who looked to use real estate i.e. BONHILL to align with their sustainability objective by making a building BREEAM Excellent, Fitwel 2 Star, EPC A/B.
Another example –> Rugby charity to fund bursaries. Money generated from the rent (resid & commercial), all FRI so no SC
Tell me about when you have researched an organisation’s background.
Example - BRL
BRL is in partnership with L&Q Housing association and The Major of London –> aim to transform area of Barking Riverside into new community/neighbourhood
Building over 10,000 new homes. Enhance connectivity e.g. Uber clipper, new Barking Riverside overground.
Place making scheme = enhance their objectives was community collaborate, engagement and belonging AND THEY WANTED to give an opportunity to a member of the local community in the form of a local, good service.
STRATEGIC GOAL - place making, community collaboration, neighbourhood
What are some examples of company’s objectives? How does this affect the advice you give?
To implement cost savings and efficiencies - EPC energy efficiency - keep up with legislation
BRL - Community Engagement
Frogmore –>ESG e.g. Fixed wire score
Malta House –> EPC
Bonhill - Retain tenants by increase engagement to prevent the exercising of break clauses and increase lease renewals - implement
Bonhill –> Sus e.g. Fitwel & BREEAM = credential lead approach to demonstrate to stakeholders/shareholder their commitment e.g. Greenwall with rainwater harvesting
Bonhill - Using sus material e.g reception desk made from Yogurt pots and reception Mat from old fishing nets = I would research the material and provide commentary in the fortnightly newsletters
BREEAM - I assisted in terms of providing on time and accurate meter readings
Bonhill and inclusivity –> DDA lift, DDA WC, ramp, UNISEX WCs
–> Tenant retention Smart Spaces for Bonhill. Creating a smart, sus building - portfolio
–> RO - Unit View - Customer satisfaction
How does your role provide strategic real estate consultancy?
Strategic advice that I have provided in my role has largely been regarding the the new EPC legislation changes
–> i.e. Residential EPC to get the Wigmore flats complaint and ready/prepared for future regualtions (EPC C new lettings by 2025). Current flat was D rating.
–> Work, quotes, communication - However scrapped owing to regulation changes by the prime minister (Rishi). Election dependent.
–> Rugby Lambs Cond Street - Client wants to engagement the community My role provide strategic real estate consultancy through Social Cohesion and tenant led events
How have you prepared and analysed relevant data for a SREC instruction?
Market research - benefits of LED lighting vs florescent
Legislation/CPD - i.e. EPC legislation changes
Comparable evidence for Barking - analysed evidence in the market and made an judgement/assessment of value
EPC audit for client
H&S audit across portfolios
What is a RAG analysis?
RAG is an acronym for Red, Amber, Green (colours of traffic light) and is a form of report where measurable information is classified by colour.
Presents a simple three stage representation of project = should be objective
RAG BASED ON BUDGET OF THE PROPERTY THRU MANAGEMENT OF THE SERVICE CHARGE
- Green - go, on budget i.e. plenty of service charge, fully let building, No break/experies coming up
- Amber - caution, somewhat over budget, boundaries of amber must be established e.g. ,
- Red - property is under funded, not fully let, Break/lease expires coming up
What will be monitored?
What action should be taken in each case?
What are the thresholds for green, amber and red
What is SWOT analysis
Identify its internal strengths and weaknesses, opportunities and threats.
Example: Barking Retail Unit - I did a SWOT to understand how the tenant fitted with my client’s strategic objectives for the unit which aligned with their corporate objectives i.e. commuity collaboration, engagement
What key issues affect strategic real estate consultancy?
Post Covid and changes to working envi and practices i.e. working from home, rise in flexible working, hot desking, less demand for office space meaning risks for landlord
- this could impact advise relating to office strategy and landlords may need to change strategy to suit the new way of working and market. - Encourage tenants back to the office
Interest rates impact the demand and price for real estate—lower rates attract more buyers with lower mortgage rates but also expand demand which can drive up prices.
What is Strategic RE Consultancy
Where you aligning portfolio with business needs - Strategic real estate consultancy helps an organisation’s portfolio aligns with its business needs, both current and future.
Failing to do this will result in its assets are likely to be underperforming and underused, with a financial and operational cost. This creates risk and uncertainty. FOR EXAMPLE BONHILL Tenants could exercise their break clause and not renew upon expiry.
Strategic real estate consultancy aims to realign an organisation’s portfolio to match its overall business strategy and objectives.
Level 2
Level 2
Level 2 Commentary - Demographic analysis – Care home
Demographic analysis – Care home
Being aware of the current ageing population and increased demand for care homes in the UK, my client wanted to acquire another care home to add to their existing portfolio in the East of England.
I established that their strategic objective was to prioritise researching areas which had a high elderly population and would benefit from more care homes.
I was tasked with completing demographic analytical research to strategically advise on optimal locations for care homes. I identified the East Anglia region, specifically Norfolk and Suffolk, as a growth area with a high proportion of elderly residents.
I completed a SWOT analysis, weighing up the strengths and weakness of certain areas and where a care home would be best located. I presented my data and strategic advice to my client for consideration.
What actually happened
While on secondment, my client was looking to acquire another care home to add to their existing portfolio. As part of their strategy/brief they were looking to target areas which high numbers of elderly popular, looking at areas in East of England.
I was tasked in researching suitable areas - I looked at areas which had identified a higher elderly population. Following evidence/data driven research, I identified Norfolk and Suffolk as suitable areas of where to locate a possible care home.
What is a demographic analysis?L
Demographic analysis is the process of collecting and studying information about the general traits of a group of people. It is the study of a group based on their age, race, and gender.
Demographic analysis is important because it shows what a population is like and how it might change in the future.
Demographic analysis is the study of a population-based on factors such as age, race, and sex.
Care home - what other demographics apart from number of elderly should you have considered?
I could have considered gender and race. For example research indicates that women tend to live longer than men, however gender was not consider
Areas chosen to analyse
Weighed up 3 areas in the East of England. Looked at data published by county councils. Identified 3 places in Norfolk/Suffolk region where higher numbers of elderly were reported following evidence/data from the councils and 2021 census. Desktop analysis.
- Great Yarmouth - seaside town - Norfolk
- Bury St Edmunds - Suffolk
- North Walsham - Norfolk
- Norwich- Norfolk
North Walsham was chosen as a good location
Norfolk has the 15th most elderly population in England and according to the BBC in 2022, North Norfolk has most over 65s in England and Wales
One third of the population of North Norfolk is aged 65 and over, the highest proportion in England and Wales, according to new census data.
North Walsham was chosen because has good local amenities such as leisure centre, good transport links to main cities in Norfolk, such as Norwich.
Norwich was considered - good amenities, transport, city, parking
Why my client wanted to consider acquiring another care homes
Increased elderly population according to the 2021 census in comparison to 2011 census
It is estimated that by 2050, around one in four people will be aged 65 and over.
Demand for social care services has already risen over the last 5 years, and is forecast to continue to rise
Care home - talk me through your SWOT analysis
I weighed up the Strengths, Weaknesses, Opportunities and threats of the below .
Considered areas such as location, amenities such as shop/leisure/green spaces, transport links e.g. train stations/bus routes/parking facilities,
- Great Yarmouth - seaside town - Norfolk
- Bury St Edmunds - Suffolk
- North Walsham - Norfolk
- Norwich - Norfolk
Level 2 example - Unit View Platform – Office, Clarendon Road, Watford
(also had a retail unit which i let out)
Unit View Platform – Office, Clarendon Road, Watford
I manage 10 regional assets for my client. Following an occupier wide survey across the portfolio, the results indicated that only 18% of occupiers were aware there was a tenant handbook and only 8% had read it.
As such I agreed a strategic objective with my client to enhance occupier engagement across the portfolio and to create a more informative channel of communication for occupiers.
I advised the client against using the more traditional approach of a tenant handbook and instead to adopt the Unit View platform. This digital platform would allow occupiers to be better connected with the property, local area and management team. My advice strategically aligned with my client’s corporate objective of a tenant-centric approach, while also improving management efficiency.
Ahead of rolling out the Unit View platform, I advised trialling it at an office in Watford. I worked closely with the Unit View designer and advised them on the tenants, local amenities, management services and building facilities.
I presented the platform to my client and advised that this would increase tenant engagement, enhance occupier communication and would differentiate the office in the market, making it more attractive to prospective occupiers. After its installation, I circulated a second occupier survey which reported that 74% of occupiers now have used the platform.
