100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

Real Estate Investment

Real Estate Investment
Taking the definition of Market Rent in the Red Book (RICS 2014), discuss the
challenges that face the valuer in arriving at a rent of a commercial property, including
physical, economic and practical factors.
(50% of marks)

It is suggested you consult more than one text book

You may start to consult Journal articles and i-surv

Please use Harvard references- and I do expect to see some references in
your texts.
(750 words)
A retail property currently is currently on the market as an investment in a good
position near a major rail terminus (No 7 Station Road). It is in an area of shops let
to mainly local retailers and some national chains. It is currently vacant but is to let
on an unrestricted A1 use on a 10 year FRI lease. The area of the shop is frontage 8
metres and depth 18 metres. There is no return frontage.
You have a client who is interested in purchasing the freehold as an investment.
Prepare a report to your client covering the following:

Your analysis of the comparable evidence in Table A (overleaf) attached to
provide your estimate of Market Rent.

Your capital valuation of the property in the light of market evidence on yields
on similar transactions supplied overleaf.

You should show full workings of both analysis and valuation.
(50% of marks)
(max 1000 words excluding appendices)
FR2106: coursework brief November 2014 Page 2
Rental Evidence
Property Comparable R1 Comparable R2 Comparable R3
3 Station Road 10 Back Road 1 The Parade
50 metres away;
closer to station
150 metres away;
less prominent
100 metres away
better footfall
frontage 12
metres; depth 20
frontage 7 metres;
depth 16 metres
frontage 5
metres; depth 8
Rent passing
£ 29,000 pa £17,500 pa £10,500 pa
Lease basis
FRI; only use as a
ladies dress shop.
10 year term
granted 6 years
ago. National
FRI; any A class use
Lease renewal. New
term 15 years; 5 year
Local Retailer
FRI A1 user only
National retailer
Date Agreed
12 months ago 3 months ago 18 months ago
Rent review New letting Lease renewal
Yield evidence:
Comparables R2 and R3 have both sold in the last year. R3 was sold 6 months ago
at a yield of 5.5% based on the rent passing. R2 was sold 18 months ago when the
rent was historic at £14,000 and it was known that the tenant might be wishing to
leave. It achieved a yield of 5.2%

Start by analyzing the comparables supplied – remember what we
discussed in class about the ‘hierarchy of evidence

When you have assessed the rental evidence, consider the yield

Bear in mind the property is empty
and it may take some time to let.
Consider whether you will
the income (we will cover this in class) or
adjust the yield to reflect the risk.

You can use Excel or simple calculations to show your valuation – the
choice is yours.

What is important is that you think about why the evidence may show
slightly conflicting things!

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Total Cost: NaN

Get 10% Off on your 1st order!