ALL THE QUESTION AND ANSWERS WILL BE IN REAL ESTATE IN WESTERN AUSTRALIA

Institution: West Coast Property Training western Australia

Commercial Cluster

CPPREP4201 Appraise commercial property

CPPREP4203 Complete commercial property sale

CPPREP4204 Establish commercial property lease

Scenario You are working at Glenvista Realty in the commercial division. The agency sells a number of commercial properties in the Glenvista central business district together with the Glenvista industrial park. They also manage the Glenvista Mews, the city's premier shopping and entertainment precinct together with several other commercial tenancies.

Note: As you progress through these activities you can focus on the area in which you work (or plan to work) assuming it is Glenvista. Remember that Glenvista is a fictitious suburb created for learning purposes

Activity 1: Prospecting

1. Draft a prospecting plan to promote Glenvista Realty's commercial division within Glenvista. You must include a variety of prospecting methods in your plan together with timeframes and the actions required to successfully implement the plan.

Prospecting Plan

Prospecting method	Target group	Activities to implement method	Timeframes
1.
2.
3.
4.

2. Outline how you will establish solid relationships with potential commercial clients. How would you initially build rapport, plan for future contact and promote yours and the agency's services?

Scenario Your networking has been successful. Successful contact has been made with an investor, Sam Simkins, who has a diverse property portfolio. He is considering shifting some of his business to Glenvista Realty. You have secured a time to meet with Sam to discuss this opportunity

Activity 2: New clients

1. List ten questions you could ask Sam at this time to establish his needs and wants.

2. What information should you share with Sam during this meeting to promote both Glenvista Realty and yourself as an experienced and successful rep?

3. Sam asks "Can you provide some insight into current market conditions?" Detail pertinent information about the commercial market in Glenvista which you could discuss with Sam during this meeting.

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4. List the follow up tasks you will take after this meeting.

Scenario Sam Simkins is looking to refine his portfolio. He is considering selling 71 Industrial Parkway, a property in a light commercial/ industrial development which is currently being managed by Radical Realty. It consists of light industrial and warehousing facilities. Sam's property is a warehouse with a reception/display area at the front and some additional office space upstairs. Sam has just bought a new property, 17 Parkwood Place, from a developer which consists of office space and shop fronts. There is a variety of different business' operating from there at the moment. He may want Glenvista Realty to manage the leasing of the premises. Initially he would like you to provide an opinion of market price for both 71 Industrial Parkway and 17 Parkwood Place.

Activity 3: The appraisal

1. Which appraisal methods would be most suited in this instance? Provide the pros and cons of at least two methods of appraisal when looking to establish a market prices (sale or lease) of commercial properties.

2. Explain to Sam how these factors will impact on your appraisal:

a Current legislation

b. Research

c. Property usage and land use controls

d Financial records

e Lease arrangements

3. List the actions required to appraise both properties.

4. List the steps required to creat a Signature CMA Report using RP Data Professional for 71 Industrial Parkway.

Scenario

Sam has decided to list both properties with Glenvista Realty 71 Industrial Parkway for sale 17 Parkwood Place for lease

Activity 4: The Listing process

5. What steps will you take once both listing agreements have been fully completed and signed by all parties to the contract?

Scenario Your colleagues in the commercial leasing team will handle the management of Parkwood Place. You have the responsibility for selling 71 Industrial Parkway. After a successful marketing campaign, you secure a potential buyer, Marissa Walters.

Activity 5: Communicating with client

1. Outline how you will maintain contact with Sam now that you have both listing agreements as you progress ahead in marketing and selling 71 Industrial Parkway together with the leasing process for Parkwood Place.

2. Outline how you will maintain contact with Marissa during all phases of the sales process.

3. What would you need to discuss with Marissa regarding the current lease agreement in place at 71 Industrial Parkway?

4. Outline the legislation applicable when appraising, listing, and selling commercial properties.

Scenario Marissa makes an offer to purchase 71 Industrial Parkway.

Activity 6: A buyer and an offer

2. Sam decides to counter-offer on the 26th March 2020 to $735,000. Update the O&A accordingly.

3. List the actions required if there was a current lease at 71 Industrial Parkway.

4. What issues relating to the sale of commercial property could you choose to obtain legal advice on?

Activity 7: The settlement process

1. What issues could delay the settlement of a commercial property?

2. How does the settlement process for a commercial sale differ from the settlement of a residential sale? List both the similarities and differences.

3. List the actions you would take to assess both Sam and Marissa's satisfaction with your agency together with how you will continue to nurture both relationships.