Market uncertainty as Brexit approaches, the impact of Land Registry cost-cutting and the threat of cybercrime are the three biggest industry challenges for the rest of 2018, according to the Commercial Real Estate Legal Association (CRELA).
Meanwhile, key commercial property trends identified by CRELA’s members include more click-and-collect retail outlets, office layouts being adapted for agile working with better connectivity, and a rise in the use of e-signatures for document completion.
CRELA – which represents the views of non-contentious commercial real estate lawyers – surveyed its members, and found that other areas of concern included dealing with increasingly time-consuming requirements of anti-money laundering regulations and a downward pressure on legal fees.
Announcing the results, CRELA chairmanRobert Highmore said: “Key takeaways are that Brexit is ever present in influencing our industry and there remains a gap between legal reform and action. It’s also clear that to ensure our industry remains competitive and relevant, we must better protect against fraud and cybercrime and make real efforts to enhance working efficiencies, too.”
When asked what single thing the industry could do better, those surveyed most favour a more collaborative approach between landlord and tenant when dealing with transactions.
The most desired industry change, cited by the majority of respondents, is the creation of a centralised mechanism for the completion of “know your customer” (KYC) checks that can address the money laundering issue.
The majority of respondents also favoured a more realistic approach to legal fees – especially with the increased complexity and volume of documentation.
Other changes favoured by CRELA members include:
■ Authorised guarantee agreement (AGA) reform
■ An update in the law of covenants/easements
■ A better commonhold model, beginning with a simpler system to cater for wholly residential schemes
■ Reform of the Landlord and Tenant Act 1954, including simplification of the contracting out process
■ Making squatting in commercial premises a criminal offence
