Notesale: Turn your study into money

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Greenfield/estate
management

Demolition and
remediation

Occupation and
use

Planning &
procurement

New construction

External influences on the property lifecycle

Sustainability: not just about global warming
...

What tools are you aware of that government uses to encourage a sustainable
approach to buildings, both in terms of new development and refurbishment
...
Financial institution
short-term finance to cover:
 the costs of purchase of land and construction of buildings
 professional fees
 marketing costs
 Insurance companies and pension funds traditionally supply long term finance :
 completion and sale of a development to the occupier or to a financial institution
...

2
...
Land requirements
 'Buy land, they're not making it anymore
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 Government policies eg: greenbelt/ use of brownfield land for development
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 Developers creating parcels of land
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 V complex and can impinge on opportunity and feasibility, also, to some extent design
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• Current Regulatory Regime effective June 2007
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• Guidance published on www
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org/regulation incl:
- Rules for Members and Firms
- 5 key Ethical Standards
- Case Studies
- Guidance Downloads
- Walkthrough Test
The Rules of Conduct
Two books: Rules of conduct for members and rules of conduct for firms
► Principles based since 2007, setting out:
► Expectations of RICS members
► Expectations of firms
► Conduct of business
► Firm administration
Rules – RICS Members & Firms
Key Areas:
Professional/Ethical Behaviour
Competence
Standards of Service
Training & Continuing Professional Development
Complaints Handling
Clients’ Money
Professional Indemnity Insurance
Solvency
Help Sheets
Guidance on different aspects of the Rules and related areas
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org/ethics
► Case studies
► The standards with guidance
► Free online ethics module
What is PROFESSIONAL
1
...
Abides by ethical rules and professional standards
3
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Embraces external scrutiny
5
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Applying Skills
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Business/Practice
3
...
Ethics/Standards
5
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or
> request, agree to receive or accept a bribe
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An intention to bribe or be bribed is also an offence
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Penalties of up to 10 years imprisonment and/or unlimited fine
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Lecture 4: Site visit Jill
At JLL we use our global experience and in depth knowledge of local markets to provide accurate,
reliable and impartial property valuations
...
We provide market valuations for:
➢ Financial statements, balance sheet and performance measurement
➢ Portfolio
➢ Loan security
➢ Due diligence for sales and acquisitions
The timeline of a valuation instruction
Here is a typical step process:
➢ Receive instructions from the client
➢ Check competence
➢ Check independence so that there are no conflicts of interest or personal interests
➢ Issue terms of engagement to the client
➢ Receive terms of engagement signed by the client
➢ Gather information – leases / lease package, title documents, planning information, OS plans
etc
...

➢ Market Challenge – what if there is lack of evidence?
➢ Market Challenge – Fee compression
Challenges of being a Surveyor
➢ Job Challenge – Managing client expectations
➢ Job Challenge – Staying on top of your workload
➢ Job Challenge – learning to work with new teams and meet their demands
➢ Job Challenge – The APC
➢ Market Challenge – Changing face of property and asset class denominations
➢ Market Challenge – The impact of Brexit and future uncertainty
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Essential component of business
2
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Outstanding year for offices
2
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9m sq ft take-up
3
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Speculative development – 19% increase on 2014
5
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Investment volume – highest since 2007
For 2016
1
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Market Report
3
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Permitted Development Right – no planning consent required for certain conversions
of offices to residential space
5
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6-2
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5m x 1
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g
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4m sq ft total (19
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100% recycle from landfill
2
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2,360 tones of waste was processed last year
4
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we operate a sorting table system to process all general waste
6
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we have 5 bin room in operation these are used restaurant

Property life cycle material
The property life cycle will have started years before with the initial idea for the project before:
seeking the necessary permissions
finalizing designs, and arranging finance
Impact of recessions on the property life cycle
The UK experienced one of the deepest recessions of any major economy in 2008
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0% in real terms between Q1 2008 and Q2 2009'

Assessing the need for development
The identification of need/demand is critical in the process
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As the economy
comes out of the recession, increased confidence will stimulate demand:
1
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2
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3
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If demand is high, then
this will reflect in rising values and increased rents
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Uwe process model
Opportunity – entrepreneurial vision, money and planning potential
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Design – function, performance, form, structure and fabric
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Occupation – maintenance, repair, refurbishment and conversion
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When replacing a fire damaged office facility,
time may be of the essence
*Cost, most clients will have some upper cost limit in mind but 'they get what they pay for'
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*Quality, may be observed either in the quality of the design, or in the final materials and
components used
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are not (normally) factory assembled
3
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require substantial financing
5
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enjoy a relatively long life although they require periodic maintenance and repair or renewal to
stave off premature
opportunities
*a bank or financier provides cash to a developer then developer pays the cash when project is
completed and sold along with a share of the profits
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Impacts:
1
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Banks had over lent and could not recover
their money
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Developers need loans to develop, but no loans
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Confidence in property is weak
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Money is not flowing properly into the development industry and so
markets are only just beginning to recover, thanks in part to government schemes such as
'Help to Buy' which, in 2013, offered help to first time buyers purchasing new properties
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Several tasks must be undertaken:
1
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large development may need the purchase of several adjoining sites or
developing in partnership with adjacent owners
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A design brief to set main criteria against which the development project can be evaluated in
terms of time, cost, quality and performance
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Production of sketch schemes and outline costing to set a 'cost limit'
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Public permissions outline planning permission and adherence to the building regulations to be
applied for later
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Preliminary site investigations to determine suitability of the sub-soil for foundations, possible
contaminants, boundary and access issues, legal covenants and easements
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6
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The assessment describes the
nature of such effects on the environment and proposes mitigation measures to reduce the impact
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Other specialist
consultants will become involved in the design of elements, such as:
1
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the electrical and mechanical services, including:
3
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air conditioning
5
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lift installations
7
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e
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Occupation:
The longest period in the process now begins
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During this period, essential maintenance, repairs and replacements will be necessary
to avoid premature failure or obsolescence
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Less durable
materials are often specified to reduce the initial (capital) costs of the scheme
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