David Sinn is a partner at HSF and head of the firm's real estate sector group, Australia and Asia. His expertise spans both the Australian and Asian real estate markets, where he has adeptly guided clients through various deals in these dynamic markets.

With 25 years of experience in real estate law, Sinn has explored the significant emerging trends he predicates real estate lawyers will need to navigate.

He also outlined strategies to overcome the challenges they may encounter and how best to seize opportunities presented by this ever-changing market.

Trends in store for commercial real estate for 2024

When asked by Lawyers Weekly about the emerging trends in commercial real estate, Sinn highlighted the continued growth and expansion of the living sector.

“The living sector, which includes affordable and social housing, student accommodation, land lease communities, co-living and senior living, will continue to expand and grow.

“This is off the back of strong demand for residential products and services and changing attitudes to home ownership, increased life expectancy, and continued strong population growth, particularly when it comes to overseas students and available rentals,” Sinn stated.

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Additionally, Sinn highlighted the rising demand and population of sustainability and environmentally friendly practices in real estate, stating that “both commercial and residential properties are likely to see increased demand for energy-efficient features, green building certifications, and sustainable construction materials”.

“However, the big question will be whether the cost of these initiatives can be sustained where there are housing affordability issues,” Sinn commented.

Sinn provided insights into the office market’s trajectory for the year.

“There continues to be a level of uncertainty around the office market in 2024, and with the continued rise of remote work and flexible work arrangements, there is likely to continue to be a softening in property valuations in the office sector during the first half of this year.

“Hopefully, there will be stabilisation of the property valuations in the second half of the year as there is greater certainty around interest rates and the position of the global economy,” Sinn said.

He also provided an insight into the built-to-rent market, stating that within the year, he predicts the market will improve “as federal and state governments” are starting to “recognise that built-to-rent can offer greater flexibility and choice for renters seeking long-term security for tenure”.

Challenges for real estate lawyers

As the real estate market can be “highly volatile”, Sinn emphasised the importance for lawyers to be aware of any challenges in the market by staying “informed, adaptable and proactive” to ensure “they can provide the best advice for their clients”.

Sinn provided insights into the significant challenges professionals face due to the intricacies of legislation and documentation in real estate law.

However, he offered advice on how to navigate these challenges.

“Real estate transactions often involve intricate legal agreements, documentation, and regulatory requirements. Managing the complexity of these transactions requires careful attention to detail and specialised expertise in real estate law.

“Real estate is subject to a wide range of laws and regulations at the local, state, and federal levels. Legal professionals must stay updated on changes in zoning laws, land use regulations, environmental regulations, and other legal requirements to mitigate risks for the client and ensure they remain compliant,” Sinn commented.

Additionally, Sinn outlined that legal professionals often face challenges when dealing with clients as they place “high expectations for legal services, including prompt communication, through analysis, and effective problem solving”.

To address these challenges, Sinn emphasised that “legal professionals should manage client expectations effectively and provide clear and timely communication to maintain client satisfaction”.

Given the intense competition within the current real estate legal landscape, Sinn emphasised the necessity for legal professionals to “differentiate themselves”.

He provided examples of “offering specialised expertise, providing exceptional client service, and building strong relationships with clients and referral networks”.

Opportunities in the market

Rather than perceiving these challenges as setbacks, Sinn encouraged professionals to see them as opportunities.

For instance, Sinn commented that “real estate transactions often involve complex legal agreements and documentation”.

“Legal professionals can offer services such as drafting and reviewing contracts, conducting due diligence, and facilitating property transfers, leases, or sales agreements,” he said.

Additionally, he stated: “With growing concerns about environmental sustainability, legal professionals can specialise in advising clients on environmental regulations, conducting environmental due diligence assessments, and implementing sustainable practices in real estate development projects.”

Sinn has underscored the opportunities in the real estate law industry by “staying informed about industry trends, expanding expertise in specialised areas, and providing outstanding client service is key to success in this field”.

For instance, with technology shifting the real estate industry, he emphasised, legal professionals can utilise this by providing advice to clients in regard to “issues related to data privacy, cyber security, smart contracts, and blockchain technology”.

He also emphasised that “with growing concerns about environmental sustainability, legal professionals can specialise in advising clients on environmental regulations, conducting environmental due diligence assessments, and implementing sustainable practices in real estate development projects.”

Advice for real estate legal professionals

Sinn shared valuable advice and guidance with real estate lawyers, gleaned from his 25 years of experience in the industry.

He emphasised the importance of “continuously educating yourself about industry trends, market dynamics, and regulatory changes to make informed decisions”.

Sinn also highlighted the significance of building relationships and networking with other legal professionals, including “real estate agents, lenders and contractors, to leverage expertise and resources for mutual benefit”.

In addition, he underscored the importance of nurturing relationships and connections with clients as it enables lawyers to “prioritise their needs” effectively and make them feel supported and valued.

Recognising the impact technology is having on legal practice, Sinn emphasised the need for real estate legal professionals to embrace technology.

This includes utilising “digital tools for marketing, client communication, and property management to improve efficiency and stay competitive”.