Task:
A German Fund plans to purchase an office building in London as an investment. You are
instructed to advise the fund and estimate the yield of the property. The information of the office
subject building can be found below.
You are expected to undertake research about the London office market and analyse the factors
affecting property yield before you suggest the yield of the subject property to your client. The
analysis should be at the market level and at the subject property level and presented in the format
of the report.
To estimate the yield of the subject property, you should compare the characteristics of this
property to similar properties sold recently and make a necessary adjustment based on your own
research, analysis, and forecast of the London office market.
The potential impact of Covid-19 on the future central London office marked should be discussed
a bit.
Information of the subject property
Property address: 8 Lloyds Avenue, EC3N 3EL, London
Gross size: 20,234 sqft.
Type: Multi let 4 stars’ office building
8 Lloyds Avenue is a Grade II listed building situated in the heart of the City of London, in a
prominent position close to Liverpool Street and Fenchurch Street mainline and Bank
Underground station. There is 24-hour access to this building, a fully staffed reception for tenant
visitors and a lift with access to all floors.
2
Assessment criteria:
Demonstrate a sufficient understanding of the commercial property market (office market
in this case) and how economic fundamentals affect the commercial property market.
Critically discuss the factors affecting the property yield.
Use the (time series) economics and market data to support your discussion/analysis.
Comparison of the similar properties sold lately and analysis of the subject property is
essential for the yield estimation.
Demonstrate independent research and analysis with the support of market data. You
should include a reference list with a minimum of THREE separate and appropriate
sources that you have written about and cited within your work.
Well and logic presentation and succinct language.
Note:
1. You are expected to apply the knowledge you have learnt in this module, but don’t copy
the teaching material or/and graphs directly from the lecture notes in your coursework.
2. Since this is a report, academic papers may not be necessarily quoted and referenced. If
your sources of data and market information are from market reports published by real
estate consultancy firms such as JLL, CBRE, etc. You need to include them in your
reference.
3. Remember, a maximum of 1000 words includes the main body of the report, but not the
reference.
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