Real Estate management
This assignment is worth 100% of the module mark. It has been designed to enable you to demonstrate competence and understanding with respect to current issues within Real Estate Management as efficiently as possible. Your work will be assessed in accordance with the standard SHU assessment criteria for level 7 having regards to the learning outcomes for this module as specified within the module descriptor. This is available on Blackboard.
The expected word count is 3000 words, but I would encourage you to submit your assignment as an equivalence in the form of table(s).
The word count relates to your reasoned advice; not any template identifying the chosen ‘Heads of Terms’: this element can be excluded/ discounted.
Your task is to produce a ‘Heads of Terms’ for a new lease as described below for each of your two chosen scenario based upon the Code for Leasing Business Premises. You should, for each scenario, make explicit reference to professional body guidance and recommendations, whilst placing these within a market context and expressly stating the limitations associated with current and recommended/ best practice.
For each scenario you are required to:
(i) Identify, explain and evaluate the main objectives of both a hypothetical landlord and tenant
(ii) Acting in the capacity of a quasi-independent expert, provide a hypothetical ‘identity of views’ recommendation with respect to an appropriate ‘compromise’ (if appropriate) in terms of resolving the competing objectives of the parties involved. This should facilitate the successful granting of a new lease having regards to current market conditions.
Please ensure that you have regard to the 2007 Model Heads of Terms taken from the ‘Code for Leasing Business Premises’ to inform the contents of your assignment. You must have regards to current market conditions, evidence and professional guidance when undertaking this assignment. Module Assessment Criteria is available via the module descriptor.
You should reference all resources both directly used or consulted.
Choose TWO differing scenarios and agree these with your tutor. Typical examples are shown below, (but you should agree your own scenarios with your tutor):
1 A secondary 2000m2 1970’s-built portal framed industrial unit situated within an industrial estate on the periphery of a northern ex-industrial town, e.g. Wigan/ Blackburn/Rotherham or Barnsley.
2 A prime 1500m2 ‘grade A’ office floor plate situated in the prime business district of a major UK city, e.g. London, Manchester, Bristol, Cardiff.
3 A mid-sized retail unit contained within the heart of a tourist-focused English city, e.g. York, Chester, Bath.
There must be clear differentiation in terms of market conditions and property types between your two selected scenarios.
Example of format & Content: Name – e.g. Spinningfields, Manchester
Head of Term Landlord Tenant Recommendation (60%)
Rent £X/m2 including brief evidence to support plus details of any incentives that a landlord would be open to having regards to their aims and objectives £x/m2 including brief evidence to support plus details of the considerable incentives that the tenant would be negotiating for Your recommendation to reconcile the competing aims of the two parties including reference to market evidence if appropriate and professional guidance
Term lease length required by a landlord having regards to market conditions with evidence to support if available lease length required by a tenant having regards to market conditions with evidence to support if available Your recommendation to reconcile the competing objectives with market-based reasoning
…this table will continue to cover all the model heads of terms – FRI v IR, alienation clause, ’54 Act protection, basis of rent review, break clauses etc….
I would recommend that you format this in ‘Landscape’, rather than ‘Portrait’, and that you consider the use of A3 paper if your tables become too congested.
If you have any questions or concerns regarding the requirements for this assignment, please speak to your tutor at the earliest opportunity.
In the event of failing to obtain 40% at the first attempt, you will be required to choose two new scenarios in agreement with your tutor and replicate this exercise for your new choices.