Strategic Real Estate Consultancy - Summary Of Experience Flashcards
Explain to the panel what were some of your client’s objectives and portfolio strategies?
Cash Flow Maximisation
Fully let properties
Income for family members
Income for future generations (Common theme for our clients)
(Think Pyramid) - FM, PM, Design - Asset management - Portfolio management - Business Strategy,
What are various types of Business Rates relief?
Charity occupation
3 months relief if vacant
If the property is undergoing works.
Digital marketing technology (Tracks missing peoples phones)
What is the definition of ‘Strategic’?
“Relating to the way in which an organisation, country etc decides what it wants to achieve and plans actions and use of resources over time to do this.”
- Cambridge Dictionary
What form might the strategic advice take?
- Portfolio reviews
- Sustainability initiatives
- Cost reduction
- Revised management procedures
What are the options for strategy outcomes?
Think Asset Management tool box:
- Purchase
- Sale
- Let
- Refurbish
- Redevelop
- Change of use
- Change lease structure
- Demolish
- Build
What is a typical property lifecycle?
Buy - Develop - Manage - Sell
“When managing a property, I am always thinking and preparing the property for a potential sale.”
What are some of the hot topics you should think about in relation to Strategic Real Estate Consultancy?
- ESG
- Governance
- Cladding
- Retail evolution
- Home working
- Co living
- Business continuity
Who is your client?
I represent a number of private individuals and private limited companies mostly family trusts.
What impact does ESG have on SREC?
ESG has a huge impact especially environmental and the guidance being issued for commercial property, ESG is most firms, landlords and business’s number one priority.
In my practice, it is how we can manage the properties more sustainably, what impact is this going to have not only on this generation but future generations that may or will be inheriting the property. How can our actions today, assist those for the future.
What are the 5 pillars of International Operation Standard RICS Framework?
- Compliance
- Functional
- Economic
- Sustainable
- Performing
What analysis techniques do you utilise?
I utilise the SWOT analysis, looking at the strengths, weaknesses, opportunities and threats to my clients portfolio. I find this very effective when running through with my client during quarterly meetings.
What are some of the quantitative factors that can affect decision making?
- Targets
- Costs
- Income
- Capital growth
- Returns
- Risk
Are you familiar with the PESTLE analysis ?
I have not used PESTLE analysis in practice but I am aware it is similar to SWOT analysis but provides more detail such as:
Political
Economic
Statutory
Technological
Legal
Environmental
How are you achieving cash flowing maximisation and ensuring the properties remain fully occupied across the portfolio?
As managing agent, I am trying to create a good rep-or with my tenants, ensuring that they are wanting to come to work each day and they are in an environment that is safe and enjoyable for them to come, I think this is incredibly important since the pandemic.
Offering incentives when negotiating lease renewals I find to be important in keeping tenants in the space.
How are you getting on with achieving the EPC requirements across your client’s portfolios and why by 2027?
I am engaging specialists to consult us on behalf of my clients on how to ensure these requirements are met, looking at how the spaces can be more energy efficient, a lot of office units have LED lighting present.
2027 is the UK government guidance, however, it seems to be changing at the moment, the latest information remains unchanged and new tenancies will need an EPC rating of a C or above by 2027.
What is the Guidance note on Sustainability and ESG in commercial property valuation?
Came into effect on 31 January 2022.
It covers the definitions of ESG and sustainability and the role of the valuer.
It also looks at the process end to end and the role of sustainability.
States that the valuer should demonstrate how they have considered sustainability and ESG in their approach, calculations and commentary.
Was reissued in May 2023 as a professional standard.
What are some of the measures of performance to consider in retail?
Turnover per sq.m
- Profit per sq.m
- Turnover per department
- Turnover per store
- Market share within shopping centre
- Ratio of occupancy costs to sales
- Market value of the property
What are some of the measures of performance to consider in offices?
- Cost per sq.m
- Cost per sq.m per employee
- Total space held
- Percentage of space occupied.
- Income generated per sq.m
- Occupier satisfaction
Tell me about when you have researched an organisations background?
I have researched prospective tenants backgrounds by doing in depth searches of senior management, what the company is about and what their focus / mission is.
I have also looked into a companies financial accounts to assess covenant strength.
How have you prepared and analysed relevant data for a SREC instruction?
I have prepared and analysed detailed tenancy schedules focusing on clients portfolio maximisation. Looking at rent reviews for the entire portfolio alongside market evidence by means of comparable evidence to ensure that we are maximising passing rent for the client.
How have you used different consultancy interventions for different client’s needs?
Most Clients have differing needs. I have sat down with different clients to really understand their aims and objectives that they want to get out of the portfolio.
I have used property management interventions to ensure arrears have been collected, maintenance and repairs have been overseen and completed to a high standard.
I have used investment planning strategies to assess whether clients want to look to add or dispose of assets into their portfolios. Understanding what the client is looking for allows me to focus on maximising returns and minimising risk.
How have you used your knowledge of real estate to find strategic solutions to meet client’s requirements?
I have used my knowledge in tracking trends in the real estate market to formalise a strategy for clients requirements. One way I did this, was by tracking the trends of the serviced office market in Central Birmingham. After undertaking my research, I advised my client that they should consider the demand for serviced offices and potentially look to fully fit out 2/3 office suites in order to boost interest in the building.
Client Portfolio Strategy - How did you establish clients objectives?
At the beginning of each new client instruction, I alongside my director sat down with the client (s) to discuss their objectives for the portfolios. Understanding and establishing clients objectives is fundamental in order for me to achieve objectives.
What type of properties were your clients interested in acquiring ?
Secondary Properties with strong tenant covenants in high street locations with a residential development potential.
How did you ensure any properties identified for acquiring met their requirements?
Would ensure a comparison of properties was done for potential property v current properties in the portfolio. Looking at construction, layout, tenant strength, WAULTs. If a match or similar to current properties, would send further details to the client.
How did you present your findings to your client?
PDF reports & excel spreadsheets with commentary.
Client Portfolio Strategy - Vacant Units - how did you identify income opportunities?
With vacant units, I spoke at length with my client to see whether we could boost appeal and income for prospective office tenants. Items included upgrading lighting to LED and purpose built meeting rooms.
Tell me about the rates mitigation schemes?
We work closely with Accruates who are a subsidiary company of Colliers. Accruates place telecommunication boxes into vacant units that are used to track missing peoples IP address on their phones. We oversee the process and ensure a list of savings per calendar month are sent to us to ensure I can update the client on their monthly saving.
How did you ensure the properties were being marketed by appropriate letting agents?
In some cases, my clients would instruct me to approach a certain agent.
When I have been tasked to instruct an agent, I would look at the specific market that they operate in and analyse their success rates, I would ensure I heavily review their websites to see what properties they are listing and I may even to a dummy call to see how professional they are.
