Virtual Conference – Current Property Issues Spring 2024

A practical review of recent commercial property and landlord and tenant cases, which will include:

• 1954 Act
  • Opposing renewal: the Court of Appeal in Gill v Lees News
  • New lease terms, landlord’s break, rent and rent-free periods: B&M Retail v HSBC; Sterling v Dunelm
• 1987 Act: getting the notices right: FSV v SGL; S Franses v Block 6
• Adverse possession - changes in ownership & ‘reasonable belief’: Rowlands v Bishop; Waters v Stott
• Modifying restrictive covenants to allow business use: Kay v Cunningham; Muskwe v Cochrane; Quantum v Bell
• Next steps and impact on commercial property: Levelling-Up Act 2023; Leasehold & Freehold Reform Bill; 1954 Act consultation?

Sarah Thompson-Copsey, Non-Practising Solicitor, Legal Lecturer and Trainer

In 2023, the recommendations of the “RICS Independent Review of Real Estate Investment Valuations” were implemented with changes to the RICS Red Book (UK Supplement). One of the principal changes was to encourage valuers to use explicit Discounted Cash Flow models more readily where appropriate. This talk will allay any fears of prescription and discuss the circumstances where explicit DCF should be applied and the inputs and variables to consider when applying the valuation model to determine Market Value.

• Determining the appropriateness of the explicit DCF model
• The importance of “marking to market” – Market Value
• The importance of determining the inputs for an explicit valuation model
• The DCF discount rate, growth and exit yield
• The relationship between the capitalisation rate and the DCF discount rate

 Nick French, Real Estate Valuation Theurgy, Property Education

Since its launch as a Professional Statement in 2018 The Service Charge Code has become the key term of reference for conducting service charges in commercial properties. Like all good service charges even the Service Charge Code needs to be reviewed and kept relevant. The Code is currently undergoing a review, refresh for launch in mid-2024. This talk will cover :

• Bringing the Code up to date - why now - the process - key themes
• A summary of the changes being introduced in 2024
  • What’s new and why
• Review of the “new” Code requirements  and putting it into practice
  • Mandatory requirements
  • Best practice principles

* The format hopes to fit in with the release of the consultation of a revised Service Charge Code – if this is delayed the format will alter slightly but will still cover the key Service Charge Code topics for practitioners Jonathan Lovejoy, Head of Commercial Surveying, British Land PLC

The persistence of a “subdued trend” for commercial real estate and the continued “extremely challenging” trading conditions for many retail and hospitality tenants, mean many landlords are faced with a real dilemma when faced with tenant default. This practical session will look at the various options open to a landlord, concentrating on what makes most sense in the current market.

• Self-help remedies v court remedies: making the choice
• Forfeiture – sometimes the only sensible option: avoiding the pitfalls, recovering costs and handling new lettings and applications for relief from forfeiture: Hush Brasseries; Kaushal v O’Connor; Khan v Tower Hamlets LBC; Cumbria Zoo; Chug v Dhaliwal
• Guarantors: a checklist for certainty
• Closed retail premises: an unresolvable problem?
• Why ensuring lease compliance can be essential for landlords: lessons from T&M Property Management

Sarah Thompson-Copsey, Non-Practising Solicitor, Legal Lecturer and Trainer

Dr Walter Boettcher, Head of Research & Economics will offer remarks about the UK economy, the trajectory of interest rates and a forecast of when the UK commercial property transactional gridlock will end, and recovery begin.

• Outlook on inflation, interest rates and economic performance and their impact on commercial property performance
• Latest metrics for UK commercial occupier and investment markets including notes on the impact of hybrid working, AI, ESG and other structural changes
• Comments on the March UK Budget, regional property development, ‘levelling up’ and the potential impact of the UK general election on commercial property.

Walter Boettcher, Head of Research & Economics, Colliers

Most industries acknowledge that those who pay for a service should be recognised as customers and treated well. The property industry has been slow to appreciate this, although the situation is improving, and more commercial landlords are embracing customer-focused property management. Such an approach self-evidently has benefits for tenants, increasing their satisfaction, but landlords also benefit through increased lease renewal rates and an improvement in their reputation, resulting in fewer void periods without compromising rents. This session will look at:

• The return on investment in customer service in the commercial property industry
• What matters most to tenants in office, retail and industrial property?
• How have things changed since the pandemic?
• Best Practices in Customer-Focused Property Management
• Tools and techniques for improving landlord/tenant relations

Dr Danielle Sanderson, Associate Professor of Real Estate, UCL

5.00pm CLOSE OF PROCEEDINGS