Real Estate Analysis Coursework Question - PLEASE HELP

[Alex Miller]

Hey guys, I am taking a Real Estate Investment course at my university, and I need some hints and tips to get a certain question I'm really struggling with. 

Of course there is some information missing and that's the point. I have to make some assumptions to evaluate following properties to answer that question. 

Thats the question:

You are asked to advice a potential investment purchaser on a reasonable price to offer for the Cedar House, an office building. The freehold interest for sale. The property comprises a 2 storey office building constructed in 2004 on Ground and First floor. It was constructed to a ‘reasonable’ specification but is in need of some refurbishment which is best undertaken when at the property (or part of it) is vacant . The Ground floor is let as indicated below. The first floor is currently vacant as the last tenant left two months ago but no works of refurbishment have yet been undertaken. The lease of the ground floor is on internal repairing and insuring terms. The landlord is responsible for the common parts and external and structural repairs but there is a service charge to cover all outgoings. Rent reviews are upwards only.

	Area	Tenant	date let	Term	Rent Reviews	Rent passing
Ground	200 sq metres	Global services, a well established consultancy	April 2014	15 years	April 2019 and April 2024 to full market rent	£400 per square metre
First	300 square metres	Vacant				last rent passing was £350 per square metre

You are aware of the following information:

• Laurel Court: A freehold brand new office building close by has recently let at a rent of £500 per square metre but with a one year rent free period. The term was 5 years and the building is much bigger as it is 1,000 square metres. Following the letting it sold off an intial yield of £5.2%
• Oak House: Another office, again freehold, this time with a floor area of that is also close by was also let recently, this time for a 5 year term. It is older and in need of some modernisation. It achieved a rent of £450 per square metre but with a one year rent free period.
• Sycamore Court: Is similar to Cedar House in specification and size but is let on an historic rent of £350 per square metre. The lease is due to expire in 3 years.The freehold has just sold off a yield off an initial yield of 4.6%.

Your Task

• a)Analyse the 3 pieces of comparable evidence given to provide a reasoned estimate of the current estimate market rental value for Cedar House and an estimate of the appropriate all risks yield.
• b)Use this information to provide a valuation of Cedar House.
• c)Write a brief report to your client advising as to a proposed purchase offer price, with an explanation as to how you have arrived at your figure and calculate the initial and reversionary yields they would achieve if they purchased at that figure.
• d)In your view, given what you know about the London office market, is this likely to be a sound investment? Give reasons for your answer . to do this you are advised to read some of the reports of the major consultancies regarding the prospects for the London office market.

Maybe there's someone here who's super smart and knows how to approach that question. 
Thank you guys so much in advance!

Alex