Client report / case study
Scenario/Case study
You are an industrial agency surveyor employed at ‘Palmer Real Estate’; a Reading based real
estate advisory firm. Your day-to-day responsibilities include the sales, lettings and acquisitions of
logistics and distribution warehouses for international private investors.
Your client ‘Junction Eleven Developments’ is currently developing ‘Green Valley Park’ on the
outskirts of Reading, UK. This is a logistics park situated next to Junction 11 on the M4 motorway.
The development comprises of four industrial / logistics units ranging in size of between 60,000 and
150,000 sq ft.
You have just received the following offers for Unit 2 at ‘Green Valley Park’:
Offer 1 – Marks & Spencer (M&S) have offered to take a 10-year Internal Repairing and Insuring
(IRI) lease subject to a five-yearly upward only rent review with no break clause at an annual rent of
£850,000 per annum. They would like a one year rent free period to give them the opportunity to fit
out the unit with high quality shelving.
Offer 2 – Waitrose (part of the John Lewis Partnership) have offered to take a 20-year full repairing
and insuring lease, subject to five yearly upward and downward rent reviews, with a tenant’s only
break clause at year five at an annual rent of £830,000. They do not require a rent-free period.
The 2021 consolidated accounts for both M&S and Waitrose are available via the following links:
• M&S Annual Report 2021
• John Lewis Partnership Plc Annual Report and Accounts 2021
[both websites accessed 13 January 2022]
Please see Appendix 1 for summary details for ‘Green Valley Park’.
Please see Appendix 2 for comparable evidence from two nearby logistic parks.
(Note that this is a fictitious scenario, created to test your ability to interpret a potential real-life
situation.)
