If you have any questions about this assessment, please contact your Module Team using the Assignment forum in the relevant ‘Assessment preparation’ week on the VLE.
Scenario
You are a trainee surveyor working for a local surveying practice and your supervisor at work has asked you to prepare a briefing note on some current instructions and issues, to help develop your knowledge and professional practice skills. The briefing note is to have three sections.
Task 1
You firm is employed by a private property company, who have a small diverse property portfolio, to give advice on their portfolio of properties. They are considering selling some of their office holdings and acquiring more distribution warehousing / logistics properties and would like some advice on the two sectors.
In the briefing note, outline how these two sectors (office and distribution warehousing / logistics) have performed over the last decade, at a UK level, and the key risks and outlook for investment in these sectors.
Task 2
(approximately 1,000 words)
You have been working on valuations of two properties, Property A and Property B.
Set out in the briefing note the valuation calculations along with your assumptions to support the valuations for each property, and your critical evaluation of the traditional ‘dual rate with tax’ method of investment valuation for leasehold properties.
(approximately 1,000 words)
Property A
A city centre retail unit of 800 square feet (74.32 square metres) in terms of Zone A was let six years ago on a 15-year Full Repairing and Insuring lease with 5-yearly upward only rent reviews. The initial rent was £170,000 per annum and this was not increased at the rent review last year. The market has now improved slightly, and rents are increasing.
A neighbouring unit of 850 square feet (78.97 square metres) in terms of Zone A has just been let at
£191,000 per annum and sold onto an investor for £3,050,000.
Provide a capital valuation of the freehold interest in the property by one conventional freehold valuation approach (term and reversion or hardcore/layer method) and by a ‘rental growth’ explicit discounted cash flow valuation on the basis that the equated yield for this type of property investment is 8.5% and that the holding period is until the end of the lease.
Property B
A warehouse of 15,000 square feet (1,393.55 square metres) was let two years ago by Prime Properties, the outright owner of the property, to Bargain Products for 10 years at £136,500 per annum on Full Repairing and Insuring (FRI) terms with five-yearly rent reviews.
A very similar warehouse of 15,500 square feet (1,440 square metres) was recently let at rent equating to £10.25 per square foot (£110.33 per square metre) per annum. After being let, the freehold interest of this warehouse was sold for £2,250,000.
Using the above information, value Bargain Products interest as Tenant using the Dual Rate Years Purchase (YP) adjusted for tax method for leasehold valuations.
Alongside the valuation for Property B, you should review the recent literature available and outline the key criticisms of the dual rate YP adjusted for tax method of valuations for leaseholds.
Task 3
In the briefing note, outline your understanding of the method chosen and the key criticisms of that method of valuation with reference to EITHER:
- the profits method
OR
- the cost-based methods of valuation
OR
- the residual method of valuation.
This should include, but not be limited to:
- a very brief outline of the chosen valuation approach and the circumstances when you would use this method of valuation;
- a review of the academic resources available to highlight the key limitations and criticisms of the method of valuation;
- any professional or regulatory issues you have identified about accepting an instruction that will require you to use this valuation approach.
(approximately 1,000 words)
You should include a reference list with a minimum of 10 separate relevant and appropriate sources that you have written about and cited within your work.
A bibliography of uncited sources is not required.
Additional information
Further information to support you with this assignment is available within the study materials for this module on the UCEM VLE.
It is recommended that you engage with the Assignment briefing webinar and Assignment forum, as the module team may signpost relevant learning activities and also answer any questions you may have.
Marking guidance for this activity
This guidance is designed to help you to do as well as possible in your assessment by explaining how the person marking your work will be judging it.
Your work will be assessed in relation to the requirements set out in the assessment criteria marking guide at the end of this document and the grading guidance section below.
It is recommended that you read both of these sections before starting your assessment to learn what will help you to achieve the highest marks. Before submitting your assessment you should review it to check you have produced what is required to achieve the highest marks.
When you receive your feedback from your tutor you should be able to see where you gained marks and, where relevant, recommendations about how to improve your performance going forward.
Grading guidance
This grading guidance section explains in more detail what a submission for this assessment
should include in order to achieve a mark at the threshold, good and excellent standards.
Threshold
You will have covered each of the points outlined in each task in a satisfactory format and communicated sufficiently to your director. You will have demonstrated knowledge relating how the office and distribution warehousing / logistics sectors have performed (using data, charts and graphs to demonstrate rents, rental growth, yields, returns [income, capital and total]), outlined the keys risks for each sector and the outlook (expected future performance, based on the reports from the main real estate consultancies).
You will have analysed the rental and yield evidence and prepared two freehold investment valuations (one traditional and one rental growth explicit discounted cash flow) for Property A plus one dual rate with tax leasehold valuation for the tenant’s interest in Property B and demonstrated your knowledge about the key criticisms of the dual rate YP (Years Purchase) adjusted for tax method of leasehold valuations. All valuations should have an explanation of any assumptions made, set out before the valuation, with the sources cited for these assumptions.
You will select one of either the profits method or the costs-based methods of valuation or the residual method of valuation and briefly outlined the approach, when it is used and set out the key limitations of the approach along with your advice as to any issues that have valuer might have accepting such an instruction (if any).
You will have covered each of the points outlined in each task in a satisfactory format and communicated sufficiently to your director.
Good
You will have met the criteria for Threshold and provided a more detailed analysis and commentary on the performance of the sectors, the risks, and the outlook, and each will synthesise material from a wide range of sources.
For the valuations, you will set out more detailed assumptions with a justification (cited) of the assumptions. The limitations of the methods (leasehold dual rate, profits or costs based or residual) will reflect reading from academic sources beyond the core module material.
Excellent
You will have met the criteria for Good and you will have presented your briefing note in a sophisticated way using accurate graphs and images to show the performance of over the last decade and will comment upon the trends and volatility of each and provide recommendations. Excellent answers will review the outlook on each sector from a wide range of reports of the main commercial real estate (CRE) consultancies and the main investors, synthesise the material and identify the risks, and which sector is expected to perform best.
The limitations of the methods (leasehold dual rate, profits or costs based or residual) will reflect the synthesis of information from a wide range of source material beyond the module material.
Word count and overwriting
Exceeding 10% of the stated word count may limit the marks allocated for communication (see assessment criteria marking guide below).
The following table outlines the inclusions and exclusions in the word count of the most common features of assessed pieces of work. Not all these features may be relevant to your assignment; please refer to the assignment task for confirmation of which features are required.
| Included in wordcount | Excluded from wordcount |
| Introduction | Executive summary/abstract |
| Main body | Title page/front cover |
| Footnotes/endnotes | Contents List |
| In text citations | Calculations |
| Words in tables | Drawings/Images |
| Conclusion | List of references |
| Recommendations | Bibliography |
| Headings and titles, except for those explicitly excluded | Appendices |
The total number of words used must be stated on the first page of your assessment.
Avoiding academic misconduct (Academic integrity)
Academic misconduct is a serious offence. Types of misconduct include, but are not limited to: plagiarism, self-plagiarism, collusion, or contracting a third party to write your assessment. It is important that your assessment shows academic integrity. You must ensure that you reference sources you have used and check the originality of your work before submission. Please see the ‘Assessment preparation’ week for more information on academic misconduct, including guidance on how to avoid academic misconduct, how to check your work, and how UCEM checks all submitted assessment for academic misconduct.
ASSESSMENT CRITERIA MARKING GUIDE
| LEVEL 7 | Weight- ing % | |||||||
| 1. COMMUNICATION | 15 | 0–2 Inadequate | 3–5 Limited | 6–7 Below threshold | 8 Threshold | 9–10 Good | 11 Excellent | 12–15 Outstanding |
| Relevance to task The relevance of the information provided to the context of the taskThe way the needs of the intended audience have been addressed. | Irrelevant and addresses neither the task nor the needs of the intended audience. | Largely irrelevant and does not effectively address the task or the needs of the intended audience. | Partially relevant and attempts to address the task and the needs of the intended audience with significant irrelevance or omissions. | Sufficiently relevant to the task and the needs of the intended audience to meet the learning outcomes. | Consistently relevant to the task and focussed on the requirements of the intended audience. | Highly relevant to the task and precisely focussed on the requirements of the intended audience. | Completely relevant to the task and fully focussed on the requirements of the intended audience. | |
| Structure and presentation Organisation and presentation of ideas | A lack of structure beyond a loosely connected list of points. | Largely unstructured and does not have a clear logical flow. | Inconsistent structure and logical flow. | Adequate Structure and logical flow. | Capable structure and logical flow. | Advanced structure and logical flow. | Proficient structure and logical flow. | |
| Format appropriate to the intended audience and/or industry protocolsHow structure and presentation enable communication. | Presentation format is inappropriate. Communication is obstructed. | Presentation format is ineffective. Communication is hindered. | Presentation format is confused. Communication is only partially effective. | Presentation format is satisfactory. Communication is sufficient to meet the learning outcomes. | Presentation format is effective. Communication is sound. | Presentation format is sophisticated. Communication is articulate. | Presentation format is innovative. Communication is insightful. | |
| Grammar Selection of words, sentence construction, spelling and punctuation. | Use of grammar is deficient and meaning is obstructed. | Significant grammatical errors and meaning lacks clarity. | Several grammatical errors and meaning conveyed insufficiently clearly. | Notwithstanding some minor errors and oversights, grammar and clarity of meaning are sufficient to meet the learning outcomes. | Grammar usage is capable and conveys meaning effectively. | Grammar usage is advanced and conveys meaning precisely. | Grammar usage is exceptional and conveys meaning eloquently. | |
| 2. KNOWLEDGE AND UNDERSTANDING | 20 | 0–3 Inadequate | 4–7 Limited | 8–9 Below threshold | 10–11 Threshold | 12–13 Good | 14–15 Excellent | 16–20 Outstanding |
| Systematic knowledge and understanding of the key aspects of the field of study | Inadequate systematic knowledge and understanding of the field of study. | Limited systematic knowledge and understanding of the field of study. | Insufficient systematic knowledge and understanding of the field of study. | Sufficient systematic knowledge and understanding of the field of study to meet the learning outcomes. | Good systematic knowledge and understanding of the field of study to meet the learning outcomes. | Excellent systematic knowledge and understanding of the field of study to meet the learning outcomes. | Outstanding systematic knowledge and understanding of the field of study to meet the learning outcomes. | |
| Critical awareness of current problems and/or new insights at or informed by the forefront of the academic discipline | Inadequate level of critical awareness of current problems and/or new insights, very little, if any, of which has been informed by the forefront of the academic discipline. | Unsatisfactory level of critical awareness of current problems and/or new insights, little of which has been informed by the forefront of the academic discipline. | Basic level of critical awareness of current problems and/or new insights, some of which has been informed by the forefront of the academic discipline. | Adequate level of critical awareness of current problems and/or new insights, much of which has been informed by the forefront of the academic discipline. | Sound level of critical awareness of current problems and/or new insights, most of which has been informed by the forefront of the academic discipline. | Comprehensive level of critical awareness of current problems and/or new insights, nearly all of which has been informed by the forefront of the academic discipline. | Exceptional level of critical awareness of current problems and/or new insights, all of which has been informed by the forefront of the academic discipline. |
| 3. USE AND APPLICATION OF SOURCE MATERIAL | 20 | 0–3 Inadequate | 4–7 Limited | 8–9 Below threshold | 10–11 Threshold | 12–13 Good | 14–15 Excellent | 16–20 Outstanding |
| Application of UCEM Harvard referencing style | A minimal number of sources have been referenced. The referencing system is applied incoherently. | Referencing is unsatisfactory due to significant omissions, inaccuracies or inconsistencies in the application of the referencing system. | Referencing is insufficient due to several omissions, inaccuracies or inconsistencies in the application of the referencing system. | Referencing is sufficiently complete, accurate and consistent in the application of the referencing system to meet the learning outcomes. | Referencing is competent with mostly complete, accurate and consistent application of the referencing system. | Referencing is comprehensive with complete, accurate and consistent application of the referencing system with minimal errors. | Referencing is comprehensive and applied faultlessly. | |
| Source Materials | ||||||||
| Selection of course materials | Minimal and incoherent selection of course materials. | Ineffective selection of course materials with significant omissions. | Inconsistent and inaccurate selection of course materials. | Adequate selection of course materials. | Competent selection of course materials. | Sophisticated selection of course materials. | Innovative selection of course materials. | |
| Independent research | Independent research is minimal and has not been informed by scholarship at the forefront of the academic discipline. | Independent research is incomplete and unsatisfactory. It has not been informed by any notable scholarship at the forefront of the academic discipline. | Independent research is basic and has partially been informed by appropriate scholarship at the forefront of the academic discipline. | Independent research is sufficient and has been at least partially informed by appropriate scholarship at the forefront of the academic discipline, sufficient to meet the learning outcomes. | Independent research is competent and has been informed by a reasonable amount of appropriate scholarship at the forefront of the academic discipline. | Independent research is advanced and has been informed by a comprehensive range of authoritative scholarship at the forefront of the academic discipline. | Independent research is proficient and has been informed by the full range of authoritative scholarship at the forefront of the academic discipline. | |
| Use of industry practice and personal experience. | Industry practice and personal experience omitted or irrelevant. | Limited and incomplete reference to industry practice and personal experience. | Simple reference to industry practice and personal experience. | Satisfactory reference to industry practice and personal experience. | Clear reference to industry practice and personal experience. | Perceptive reference to industry practice and personal experience. | Insightful reference to industry practice and personal experience. | |
| Originality in the application of knowledge | Originality in the application of knowledge is inadequate and incoherent. The assessed work is not informed or improved by the source materials. | Originality in the application of knowledge is ineffective and unsatisfactory. The assessed work is informed and improved in a limited manner by the source materials. | Originality in the application of knowledge is inconsistent and partial. The assessed work is informed and improved in a basic manner by the source materials. | Originality in the application of knowledge satisfactory and adequate. The assessed work is informed and improved in an adequate manner by the source materials, sufficient to meet the learning outcomes. | Originality in the application of knowledge is competent and clear. The assessed work is informed and improved in a reasonable manner by the source materials. | Originality in the application of knowledge is perceptive and accurate. The assessed work is informed and improved in a comprehensive manner by the source materials. | Originality in the application of knowledge is innovative and insightful. The assessed work is informed and improved in an exceptional manner by the source materials. |
| 4. EVIDENCE BASED CRITICAL ANALYSIS | 20 | 0–3 Inadequate | 4–7 Limited | 8–9 Below threshold | 10–11 Threshold | 12–13 Good | 14–15 Excellent | 16–20 Outstanding |
| Practical understanding of how established techniques of research and enquiry are used to create and interpret knowledge | Minimal understanding of how established techniques of research and enquiry are used to create and interpret knowledge. | Unsatisfactory understanding of how established techniques of research and enquiry are used to create and interpret knowledge. | Insufficient understanding of how established techniques of research and enquiry are used to create and interpret knowledge. | Sufficient understanding of how established techniques of research and enquiry are used to create and interpret knowledge. | Effective understanding of how established techniques of research and enquiry are used to create and interpret knowledge. | Sophisticated understanding of how established techniques of research and enquiry are used to create and interpret knowledge. | Insightful understanding of how established techniques of research and enquiry are used to create and interpret knowledge. | |
| Critical analysis Analysis of source materials | Analysis of the source materials is superficial, deficient or minimal | Analysis of the source materials is shallow ineffective or incomplete. | Analysis of the source materials is insubstantial, inaccurate or inconsistent. | Analysis of the source materials is adequate and of sufficient depth to meet the learning outcomes. | Analysis of the source materials is substantial clear and competent. | Analysis of the source materials is rigorous, accurate and comprehensive. | Analysis of the source materials is profound, proficient and very advanced. | |
| Application of analysis to the demands of the task | Analysis is not applied to the demands of the task. | Analysis is applied unsatisfactorily to the demands of the task. | Analysis is partially applied to the demands of the task. | Analysis is satisfactorily applied to the demands of the task. | Analysis is reasonably applied to the demands of the task. | Analysis is perceptively applied to the demands of the task. | Analysis is innovatively applied to the demands of the task. | |
| Development of arguments Use of analysis to develop and sustain arguments and justifications. | Arguments and justifications are incoherent and deficient. There is minimal evidence of an attempt to develop or sustain an argument. | Arguments and justifications are unsatisfactory and ineffective. The development of arguments is incomplete and not sustained. | Arguments and justifications are confused and inaccurate. The development of arguments is inconsistent and partially sustained with significant omissions. | Arguments and justifications are satisfactory and sufficient to meet the learning outcomes. The development of arguments is basic and sustained adequately. | Arguments and justifications are clear and reasonable. The development of arguments is fair and sustained competently. | Arguments and justifications are advanced and sophisticated. The development of arguments is sophisticated and sustained comprehensively. | Arguments and justifications are ambitious and exceptional. The development of arguments is insightful and fully sustained. | |
| Technical ability (where appropriate) Quality of drawings | Drawings are incorrect or omitted | Drawings are incomplete or with significant omissions | Drawings are inaccurate and only partially completed | Drawings are completed at a basic level sufficient to meet the learning outcomes. | Drawings are completed at a competent level | Drawings are completed accurately | Drawings are completed to an exceptionally high standard | |
| Accuracy of calculations | Calculations are incorrect or omitted | Calculations are incomplete with significant omissions | Calculations are inaccurate and only partially completed | Calculations are completed at a basic level sufficient to meet the learning outcomes. | Calculations are completed at a competent level | Calculations are completed accurately | Calculations are completed to an exceptionally high standard | |
| Appropriate selection and application of information. | Selection of information is incorrect or minimal. Information is applied inadequately or incoherently to the task. | Selection of information is incomplete with significant omissions. Information is applied ineffectively or unsatisfactorily to the task. | Selection of information is inconsistent and partial. Information is applied inaccurately to the task. | Selection of information is satisfactory and sufficient to meet the learning outcomes. Information is applied adequately to the task. | Selection of information is clear and reasonable. Information is applied competently to the task. | Selection of information is accurate and comprehensive Information is applied perceptively to the task. | Selection of information is proficient and insightful Information is applied innovatively to the task. |
| 5. INSIGHT, INTERPRETATION AND EVALUATION | 25 | 0–4 Inadequate | 5–9 Limited | 10–12 Below threshold | 13–14 Threshold | 15–17 Good | 18–19 Excellent | 20–25 Outstanding |
| Systematic and creative approaches to complex issues | Inadequate self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. | Ineffective self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. | Insufficient self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. | Sufficient self-direction and originality in tackling and solving problems and in implementing tasks at a professional level to meet the learning outcomes. | Competent self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. | Successful self- direction and originality in tackling and solving problems and in implementing tasks at a professional level. | Exceptional self-direction and originality in tackling and solving problems and in implementing tasks at a professional level. | |
| Critical evaluation of current research and advanced scholarship in the discipline | Any evaluation of current research and advanced scholarship in the discipline is unsubstantiated and unstructured. | Evaluation of current research and advanced scholarship in the discipline is unsatisfactory in its reasoning. | Evaluation of current research and advanced scholarship in the discipline is simple in its reasoning. | Evaluation of current research and advanced scholarship in the discipline is adequate in its reasoning. | Evaluation of current research and advanced scholarship in the discipline is competent in its reasoning. | Evaluation of current research and advanced scholarship in the discipline is sophisticated in its reasoning. | Evaluation of current research and advanced scholarship in the discipline is ambitious and convincing in its reasoning. | |
| Judgements in the absence of incomplete data | Judgments in the absence of incomplete data and/or conclusions are deficient. | Judgments in the absence of incomplete data and/or conclusions are inaccurate. | Judgments in the absence of incomplete data and/or conclusions are confused. | Judgments in the absence of incomplete data and/or conclusions are satisfactory and sufficient to meet the learning outcomes. | Judgments in the absence of incomplete data and/or conclusions are clear and appropriate. | Judgments in the absence of incomplete data and/or conclusions are perceptive. | Judgments in the absence of incomplete data and/or conclusions are insightful. |
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