1. What are some of the major factors that influence the treatment of stock options and restricted RSUs in an M&A deal?
2. Which consumer lending platform has partnered with PayU to offer a cardless EMI payment option to consumers?
3. What is the fair value of a futures contract with a storage cost of 2%, an interest rate of 4% and a spot price of $800 over a 1-year period?

…These are but a few of the questions that will never be asked in the commercial awareness stage of your interview.

If, like me, on first encountering the phrase ‘commercial awareness’, you imagined that your interview might require you to opine on the matters in the ‘Companies’ and ‘Markets’ pages of the Financial Times, or to have absorbed the discussions in BBC Business and The Economist; you’ll be relieved to find that this is not what your assessors are interested in. For the purposes of your assessment day or interview, being commercially aware means appreciating that the firm to which you are applying is a business operating across multiple industries, competing in the market of legal services.

A typical question that invites you to acknowledge this might refer to a firm’s strategy for growth, its position in the market, or the economic pressures or disruptive forces with which it must contend. When meeting a question like this, it is helpful to remember that demonstrating commercial awareness is one part what you know, and two parts how you think.

What you know

It is undoubtedly true that having a firm understanding of a broad range of commercial topics (business media, corporate finance, political/current affairs) and keeping up with headline legal developments will put you in good stead to field many ‘commercial-awareness-type’ questions – and you should certainly aim to achieve this. But on assessment days, as in practice, commercial questions are personal, not general. They require, above all, that you know the firm and its clients.

– The Firm

To take an example from the list above, a question on a firm’s strategy for growth cannot be answered without specific knowledge about, for example, the firm’s core practice (is it national or international?), its client-base (mostly private or corporate?), its history and ambitions (has it expanded organically, or does it favour acquisitions?). Much of this information will be available in websites like Chambers Student and Lex100, but your first port of call is the firm’s own site and publications.

If the question relates to external factors—economic challenges, disruptive technologies, legislative intervention—the same principle applies. Are recent changes to legal aid relevant to the firm in question? How has the firm responded to advances in legal technology? How would further liberalisation of legal services impact this firm at this time, and why?

– The Clients

More important than the ability to list the recent deals or key clients of a firm, is proving that you understand the sectors within which they operate. As I write this, I am approaching the end of my final day in my first seat – Construction and Engineering. I have found that while my legal studies prepared me for the nuts and bolts of my role as a trainee, getting to grips with the industry as whole—learning its vocabulary, recognising the main players, discovering trade publications and media—was essential to forming an appreciation of our clients’ goals and circumstances. This too is commercial awareness.

Whether or not you’ve decided precisely what sort of practice area you would like to specialise in, it is worthwhile dedicating some time before your assessment day to thinking about your interests generally. Technology, property, energy, education… Whatever you’re curious about, investigate the industry as a whole, and consider how it intersects with legal services, and especially with the work of the firm.

How you think

With the best of intentions and many hours of preparation behind you, you might still be asked about a topic that is outside your comfort zone. This is no disadvantage if you approach the question with a few core principles and assumptions in mind. If you don’t have the facts and figures at hand, remind yourself that your interviewer or assessor is looking not only for future trainees, but future partners – business leaders who consider the implications of various commercial pressures for their firms, and who recognise the strategic benefits of maintaining strong professional relationships with clients.

You may not know much about artificial intelligence, for example, but you can consider the competitive implications if some law firms can adapt to or develop new technologies, and others can’t. Maybe you didn’t read about a ground-breaking new precedent referred to by your interviewer, but you can acknowledge that it provides an opportunity to reconnect with those clients for whom it may be relevant. Commercial awareness encompasses considerations like these, that draw connections between the commercial issues of the day and the services that we can provide.

Key takeaways

• Being ‘commercially aware’ does not require that you learn the ins-and-outs of every item in the business pages of your go-to news source.
• Commercial awareness means appreciating that a law firm is a business operating across multiple industries, competing in the market of legal services.
• Demonstrating commercial awareness means drawing connections between the issues of the day and the services that we provide.
• Approaching commercial awareness questions is not only about what you know; it is equally important to think like a business leader.
• When confronting an unfamiliar topic, consider how it relates to the bottom line, and the challenges or opportunities it presents to client relationships.

Preparing for an interview can be both exciting and overwhelming. As it can be difficult to reach the assessment centre stage, getting this far shows you should be confident in your abilities.

Now that the interview you have been waiting for has arrived, do not fear and see the helpful tips below to find the best way to prepare for your assessment day at Michelmores.

Research

It is imperative to thoroughly carry out your research prior to attending the Michelmores assessment day. You should consider the areas of law that Michelmores specialise and ensure you are in a position to discuss any recent deals/cases/articles that have intrigued you.

By researching trainee experiences and the firm’s expertise and knowledge, you can make a note of why Michelmores’ training contract is attractive to you. Think about why you possess the requisite skills to make a great trainee solicitor. You may find that the friendly culture at Michelmores appeals to you, or that the diversity and inclusion initiatives resonate with your own values. These things will evidence why you believe the Firm is the right fit for you – always remember to avoid generic answers. As always, commercial awareness is key – please see our previous blog here by fellow trainee Luke for further on that topic.

Think about where certain departments sit in terms of their expertise and knowledge in the legal sector. Michelmores’ website, the Legal 500, and Chambers Guides may be a helpful introduction to guide to you.

Develop and reflect from previous feedback

Reflect on any feedback you have received from previous assessment centres or other roles at work or at university. For example, if you have been told you speak too quickly when you are nervous, practise slowing down and highlighting your points clearly.

Practise

Think about what questions might come up. Try to incorporate the following:

1. give thoughtful examples of how your skills meet the expectations of a trainee at Michelmores;
2. avoid reciting rehearsed scripts to avoid seeming unnatural and ensure to address the question you have been asked; and
3. prepare some questions to ask the interviewer. You will be told who is interviewing you in advance, so you can try to make your questions applicable to the person interviewing you.

Be confident

You have made it through to the assessment day, this is very impressive in itself! Be confident in your ability to answer any questions. If you have not heard the question, ask the interviewer if they can repeat the question. Feel free to take a pause if you need a moment to fully understand the question before answering.

By trying to connect with the interviewer, you can show a more personal side. While you need to be professional, you should try to relax and show what makes you a unique candidate. Michelmores is interested in people as well as lawyers, so interviewers appreciate hearing about any hobbies/skills you may have. A key skill as a lawyer is to be able to work well with clients and colleagues alike, so don’t be afraid to show your personality!

Practical tips

Setting up for the virtual assessment day will make you feel more relaxed and give you less things to worry about during the interview process. Here are some practical tips to consider:

1. test your equipment before the assessment day;
2. make sure your laptop and phone are charged or plugged in. IT issues can happen to anyone but as long as you have tried to mitigate any risk of this happening it will be understood if your Wi-Fi disconnects, or you have a power cut;
3. set up your laptop to use a blurred and clear background with minimal distractions;
4. read the material you have been given by Michelmores beforehand. You may be asked to prepare for scenario-based questions rather than competency-based questions; and
5. dress appropriately.

Good luck with your interview at the assessment day. If you have any questions, please feel free to contact me at Lucy.Atkinson@michelmores.com.

As in-person networking sees a return this spring, many of us will seek to reconnect with organisations we knew before, or look for new way to generate new work, and improve their existing work.

For those of you not familiar, CESW is the single organisation charged with driving the change agenda in construction within the south west region, and it forms part of the Constructing Excellence Regional Partnership. In their own words: “We exist to improve industry performance in order to produce a better built environment.  We are a cross-sector, cross-supply chain, member-led organisation operating for the good of industry and its stakeholders.”

I took over from Alan Tate when he stepped down from the role of CESW Company Secretary in 2021, and I know that Michelmores are delighted to have that role back within the firm. Michelmores Construction Team has also recently welcomed solicitor Katie Pickering, who, in addition to her legal work, is Club Secretary to Constructing Excellence Gloucestershire Club (CEGlos).

CESW and CEGlos are busy over the coming months with their usual mixture of networking events, site visits and learning opportunities. The weekly free LeadersMeets webinars continue to be a popular source of knowledge. For the organisation’s members, the Theme Groups have been re-launched for 2022 including new groups to focus on the Climate Crisis and Building Safety.  These groups present a vital opportunity for businesses at any point in the supply chain to engage with each other to ensure cost-effective best practice on every project.

One of CESW’s key priorities is addressing the industry’s labour shortage crisis, with particular focus on a drive to recruiting the school leavers and graduates of Generation Z (born between 1997 and 2012). The organisation has recently published their Constructing the Future document. More than a report, it sets out a clear plan on improving young peoples’ perception of the construction sector with the aim of encouraging them to consider a career in construction.

Central to this campaign is Generation 4 Change, another of Constructing Excellence’s initiatives that aims to give a voice to young people within the sector and empower then to be a positive influence on UK construction. Katie Pickering sits on the CESW G4C committee and works with other young professionals across the sector in the south west.  CESW members are encouraged to send new-to-industry colleagues to G4C events (virtual and physical) as a great way of supporting them, ultimately improving your own retention rates.

Finally, a note on in person networking events and site visits: making a very welcome return in 2022. The Michelmores Construction Team will be attending events run by CESW, CEGlos and the newly formed CE Devon Club, and in due course we look forward to working with the CE Bristol Club Chair to support events in the city too. These events offer something for everyone: if you plan to attend do let us know so we can make sure we find you in the crowd to say hello in person.

COP26 has sparked huge debate across the world on how we treat our planet and how we can better use the resources that we have. The construction industry is coming under increasing pressure to innovate and to reduce its carbon footprint – having been found by one United Nations report to contribute up to 36% of final energy use and 39% of energy and process-related CO2 emissions in 2018.

It is notable that sustainable construction in the private sector is becoming increasingly common and the government last month announced some £440 million of funding for construction projects to kick start the net-zero carbon emission strategy, focussing largely on the production of cleaner energy. So as a funder, developer or contractor, how do you ensure that your project doesn’t harm the planet without costing you the earth? Here are a few ways that we have helped our clients to ‘build green better’.

One way to enhance the green credentials of a project is to start at the beginning – with the procurement process and contract strategy. Whilst the traditional preferred funding mode of single point, design and build remains popular, developers and their funders are increasingly looking at more efficient procurement methods – including the use of off-site and modular construction to reduce material wastage and to reduce over-specification and transportation impacts. That has lead to a revival in more diverse construction procurement methods such as construction management which allows for greater diversity in the sub-contract chain. Tender enquiries can also be used to flush out, at an early stage, how well contractors and their supply chain would fit within a project where a key criteria is to enhance sustainability and reduce environmental adverse impact.

A further way to promote sustainability and environmental considerations in a construction project is in the materials that are specified for use and used within it. It is no longer unusual to come across provisions in a design appointment or construction contract which require the appointee to specify and use sustainably sourced timber, to permit the use of recycled materials where appropriate and to encourage parties wherever possible to source build materials locally to prevent significant transportation.

Finally, and perhaps most obviously, setting out contractual requirements for the performance of the completed works is a great way of ensuring that a project meets its conceptual environmental goals. We have seen examples where, for example the achievement of a certain BREEAM rating is either a condition precedent to practical completion being awarded, or failure to so achieve that or a particular EPC rating is subject to a liquidated damages regime. Parties are increasingly looking also at using key performance indicator regimes to attach to sustainability and waste targets to attach real weight to the importance of these factors to both developers and end users.

At present the standard forms of construction contract contain little more than a ‘nod’ in the direction of environmentally friendly contractual provisions. The JCT, for example as an option in its supplemental provisions allows the parties to encourage the Contractor to “suggest economically viable amendments to the Works, which if instructed as a Variation, may result in an improvement in environmental performance in the carrying out of the Works or of the completed Works”. This is a box often ticked, but then often forgotten – but the idea of producing standard clauses in relation to climate change has been picked up by a group of lawyers called The Chancery Lane Project – who have now produced a set of innovative provisions which can be used by any parties to a construction contract. These clauses include provisions regarding sustainable on-site working practices, a climate duty of care, the reinvention of a waste management plan, energy efficiency requirements, emissions management and material procurement, to name a few.

These are testing times for the construction industry as it adapts both to the policy changes and societal expectations placed on it in respect of environmental responsibility and we expect these issues to only grow in importance as we move towards net-zero CO2.

Levelling Up the United Kingdom, a White Paper, was presented to Parliament on 2 February 2022. Its mission is to rebalance the UK economy and redress regional inequalities – i.e. to provide a more even distribution of wealth and opportunity across the UK. ‘Levelling Up’ is a multi-layered concept which focusses on spreading opportunities and improving public services where they are most needed, boosting productivity, pay, jobs and living standards through the expansion of the private sector and restoring communities, local pride and belonging and empowering local communities.

It should be noted that the White Paper is policy-driven and so the finer detail is to come but it does include some key themes which will be of interest to those in the housebuilding sector:-

Brownfield Regeneration

The Government will promote the regeneration of brownfield sites across 20 towns and cities. This is to be backed by a £1.5bn ‘Levelling Up Home Building Fund’ targeted towards SMEs, the creation of an ‘Office for Place’ (to pioneer design and ensure that brownfield developments enhance existing settlements) and the bolstering of CPO powers. The overall target is for the delivery of 160,000 homes on brownfield sites, primarily within the proximity of existing transport infrastructure which is often seen as an advantage vs. greenfield schemes where the delivery new roads and facilities are required to unlock development potential.

£11.5bn Affordable Homes Programme

Will deliver 180,000 affordable homes (75% of which will be outside of London) funded by an additional £38bn in public and private investment. There is also a greater role for Homes England to use its ‘resources, experience and buying power’ to help local leaders to fulfil greater affordable housing quotas.

Focus on First-Time Buyers

In addition to the re-vamped Help to Buy Scheme launched in 2021 more focus will be placed on lenders to maximise the availability of low deposit mortgages. First-time buyers will also be assisted by a ‘First Homes’ scheme which provides a discount of up to 30% for younger buyers and key workers. Further, the Government also vows to unlock the barriers to entry for those looking to get on the property ladder and the problems of locals being priced out of their local markets. Finally greater transparency at the outset of the purchasing process is advocated – which will involve availability of key digital information (including tenure type, lease length and service charges) to help avoid housing transactions from falling through (currently around 1/3 do).

Reform of the Planning System

Proposed reforms include greater CPO powers to aid site assembly for brownfield schemes. There is also an emphasis on streamlining the Local Plan process with improved data resources (the White Paper flagged the fact that only 39% of all Local Authorities have adopted a Local Plan within the last 5 years). The Government also claims to be ‘developing models for a new infrastructure levy’ and there is mention of providing support for the transition to Net-Zero.

Decent Homes Standard

Is to be introduced for the private rented sector as part of a wider review. Also proposed is a ‘National Landlord Register’ and the possible end of section 21 ‘no-fault evictions’.

Scrapping of 80/20 Funding Rule

Which provided that 80% of Government funding for housing delivery was directed towards ‘lowest affordability areas’. This model had become somewhat obscured by focussing purely on affordability rather than availability. The result was that certain parts of the country (most noticeably the midlands and north of England) were at a comparative disadvantage, notwithstanding that their ‘house price to earnings ratio’ was lower, due to the fact that the low levels of housing supply available to them were not taken into consideration.

Michelmores has advised on an innovative partnership between Environment Bank Ltd and specialist alternative asset manager Gresham House to introduce a first-to-market compliance solution driving biodiversity net gain (BNG).

Through establishing a nationwide network of habitat banks, Environment Bank’s BNG Credits offer developers a simple and risk mitigated way to implement biodiversity net gain in line with the Environment Act 2021, while also generating income for landowners.

Michelmores advised on the partnership arrangement between Environment Bank and Gresham House, structuring the suite of legal documents required to support the business model in line with the requirements of the Environment Act 2021.

Partners Alexandra Watson (corporate) and Ben Sharples (agriculture) led the team, drawing upon expertise from across the firm’s corporate, commercial, agriculture, real estate, tax and regulatory teams.

Partner Ian Holyoak and Senior Associate Chloe Vernon-Shore advised on the commercial agreements; Partner Stephen Newson and Senior Associate Crispin Carpenter advised on property arrangements; and corporate Associate Adam Quint supported with the partnership arrangements.

James Cross, CEO of Environment Bank, says:

“We’re working closely with landowners to offer a solution that will help deliver sustainable development through the creation of woodland, meadow and wetland habitats. Our unique habitat banks provide a long-term opportunity for landowners to diversify their income, a biodiverse haven for plants and animals, and a simple, risk-free way for developers to meet changing regulations.

“Thanks to Michelmores expert advice and the support of Gresham House, we are able to offer an end-to-end solution for developers that are required to implement biodiversity net gain when it’s not viable to deliver on site.”

Alexandra Watson, Partner in the Corporate team at Michelmores LLP says:

“The new biodiversity net gain requirements introduced by the Environment Act 2021 are a game changer for any development after the transition period – this will heavily impact on developers and local authorities. In response, Environment Bank will be offering an end-to-end commercial solution through its partnership with landowners.

“It has been a pleasure to work with my colleagues at Michelmores, the leading teams at Environment Bank and Gresham House in tracking this ground-breaking legislation through Parliament and supporting them with the ongoing roll out of their business model as the secondary legislation comes through.”

Ben Sharples, Partner in the Agricultural team at Michelmores LLP, says:

“Natural habitats are key to locking up carbon, so the agricultural sector is in a unique position to help tackle climate change and dwindling biodiversity. This is why I’m delighted we’ve supported Environment Bank and Gresham House in this venture which is at the forefront of the biggest upheaval in land management since the Second World War. The depth of our agricultural knowledge, combined with the breadth of expertise across the firm, enabled us to create the documents which will deliver a solution that will benefit landowners, developers, local authorities and the environment.

“A new asset class has emerged with land providing vital environmental benefits. The race to net zero and the legal requirement for biodiversity net gain will mean that such benefits quickly acquire a substantial and quantifiable value. The next task is to assist a number of clients in providing a response to DEFRA’s consultation on the vital secondary legislation required in this area. Historically, farmers and landowners have shown their ability to adapt and by continuing to do so will no doubt unlock the full potential of this new opportunity.”

Like many trainees (although by no means a pre-requisite), I gained experience working as a Paralegal prior to starting my training contract.

This has numerous advantages such as giving you an understanding of the day-to-day work of a law firm, building your legal and commercial knowledge and honing the competencies that are useful in any workplace such as communication and organisation. In addition, it has provided some initial exposure to different areas of law so I have been able to get a flavour of what I may like to do in practice.

This is ideal at Michelmores, as the firm lets me shape my training contract around my interest in contentious work.

My first seat has been in the Commercial and Regulatory Disputes team. This has been thoroughly enjoyable as I have never worked in a purely contentious area of law before. Moreover, the matters have been really varied; ranging from IP infringement claims, to insurance disputes, to pursuing settlements in jurisdictions around the world.

My work on these matters has included document review, drafting correspondence, undertaking legal research and attending virtual hearings, among other tasks. I have been pulled in many different directions in this seat which has been invaluable and something I have really enjoyed. What is additionally encouraging is that there are further opportunities for contentious seats at Michelmores to provide me with more “pure” litigation experience such as Contentious Probate, Agriculture, Family and Property Litigation.

Balance

Whilst I know I have an interest in contentious work, I am keen to get a breadth of experience during my training contract and experience seats that undertake non-contentious work. To make an informed choice, it is definitely worth experiencing both sides of the coin.

As a full-service law firm, Michelmores is well set up to offer me this. We have a wide range of purely transactional seats within the Corporate and Transactional Real Estate teams as well as purely advisory seats such as the Tax, Trusts and Succession team. With an interest in litigation, I am particularly drawn to the variety of “split” seats available that can provide me with both contentious and non-contentious work. These include:

• Employment;
• Projects; and
• Banking, Restructuring and Insolvency.

I remain open minded about the different areas of law available to experience during my training contract. My training contract has also taught me that it’s ok not to be purely contentious or non-contentious, and it’s also fine to start off thinking that you might be best suited to one area and end up changing your mind (that’s the importance of the seat rotation process) – Michelmores allow me to shape my training contract around what interests me (even if that changes over time).

This approach is the best way to enable me to find the work I enjoy the most and will continue to enjoy upon qualification.

What is natural capital?

Natural capital can be defined as the world’s stocks of natural assets such as land, forests, fisheries, minerals, biodiversity and all living things. This natural capital that humans derive underpins our economy and society, and thus make human life possible. The phrase natural capital describes the outputs of land which deliver environmental benefits, alongside, or perhaps instead of, conventional benefits.

Natural capital is now an area that attracts government attention, in light of recent environmental and political challenges facing the UK. As the UK navigates these challenges, we guide our clients through complexity and risk, working with landowners, farmers and developers looking to achieve their sustainability ambitions incorporating carbon net zero, biodiversity, nutrient neutrality, rewilding, and more.

For video microsite with larger videos, click here.

Navigating the natural capital legal landscape

Our Natural Capital team is at the forefront of advising clients and professionals on all elements of natural capital.

We are lucky enough to have an exceptionally strong natural capital team, led by one of the first lawyers to engage with emergent policy on natural capital, Ben Sharples. Ben has already completed numerous deals in this space and has been the architect in several novel and groundbreaking natural capital-related schemes that have since become embedded as the norm.

Our multidisciplinary team come from backgrounds that include expertise in environmental, commercial, corporate, real estate, and planning law. Each of them boasts a wealth of experience in natural capital, ensuring that we’re always ahead of the game in evolving environmental regulations and market dynamics, ensuring your investments remain future-proofed.

Insurance Policyholder Coverage Disputes

Our Commercial & Regulatory disputes team are well versed in advising and representing policyholders in relation to insurance coverage on a standalone basis or within the context of an existing commercial dispute or regulatory investigation.

Our experience extends to claims on D&O, professional indemnity, public liability, business interruption (including infectious disease and prevention of access clauses) and other specialist policies on either a claims made or occurring basis.

Recent illustrative examples of our work include advising on: PI coverage relating to FCA investigation and past business review by a financial planning firm; D&O coverage relating to alleged breaches of director duty in insolvency and unfair prejudice claims; business interruption coverage relating to the cancellation or postponement of international sporting and hospitality events; public liability arising from a high profile disaster; specialist coverage relating to the interruption of large scale multi-use property development sites or employee / contractor fatalities arising from health and safety failures; and pursuing negligence claims against brokers.

We are able to advise on your policy’s key terms relating to notification, excess, aggregation, limits of indemnity, extensions of cover, conduct of claims, subrogation, proof of loss submissions and dispute resolution including via arbitration. The strength and depth of our litigation offering also means that we can provide strategic advice where the resolution of your insurance claim dovetails with the conduct of any ancillary commercial or corporate dispute and regulatory investigation as well as reputation management or disciplinary action.

We pride ourselves on being approachable and focused on the most pragmatic way to mitigate your business or financial risks and losses during a time of crisis.

We are recognised and ranked in Legal 500 and Chambers & Partners for the specialist work that we do in this field.

The Electronic Communications Code (“Code”) which came into force on 28 December 2017 has been the subject of extensive criticism from landowners and operators alike and has resulted in numerous disputes, which have passed through the courts. So, following consultation in early 2021, a series of amendments had been proposed, which will be implemented by Part II of the Product Security and Telecommunications Infrastructure Bill, introduced to Parliament on 24 November 2021.

Obviously, there is plenty of opportunity for amendments to the Bill as it passes through the Houses of Parliament. However, the current draft provides a good indication of the direction of travel. We consider the key points of note for landowners and highlight actions they may wish to take.

Existing operator occupiers

Operators who are already in occupation of land, but are unable to require a new code agreement, will be permitted to acquire a new agreement.

There is some concern that on the current drafting an operator will be able to request a new code agreement, even if it is still within the term of an existing code agreement, or if no code agreement ever existed. However, this would directly contradict the Government’s stated intention that operators should not be able to modify ongoing code agreements, so it remains to be seen how this will be affected.

Alternative dispute resolution

Operators will be under a duty to consider using Alternative Dispute Resolution (ADR) before making an application to the court to settle any disputes and will have an obligation to make landowners aware that ADR is available as an option. However, there is no requirement on the parties to use ADR and whilst the courts can consider a refusal to engage in ADR on the question of costs, there is a real risk that operators will use the possibility of ADR to cause delays, rather than facilitate agreement.

Upgrading and sharing apparatus

There will be an automatic right for the operator to upgrade its apparatus and share with other providers, so long as it will have no adverse impact/no more than a minimal adverse impact on the appearance of the apparatus and will impose no additional burden on the landowner.

Code rights where a landowner does not respond to an operator

Under a new process, operators will be able to obtain Code rights for a maximum period of 6 years, where they can demonstrate that they have made reasonable efforts to agree on Code rights but have received no response from the landowner. The process can be halted by a landowner engaging with the operator before an order is made, and a landowner will be able to apply for compensation at a later date if any loss or damage is caused by the operator exercising their rights.

Conclusion

Following the consultation, landowners would not have been expecting any major shift in their favour, but will nevertheless be disappointed, that the Government did not revisit the current valuation framework under the Code, which has resulted in significantly lower rents. Indeed, the Government has stated it has no intention of doing so.

Given the amendments will assist existing operator occupiers, particularly those in occupation under an expired agreement with no right to renew, landowners who wish to seek possession of a site would be well advised to take action before this Bill becomes law and the operators are given enhanced rights. It would also be prudent for landowners in negotiations with Telecoms providers now to review whether they want to push matters forward more quickly so that any agreement is concluded before the new provisions take effect.

“Quite literally it is the last-chance saloon. We must now translate fine words into still finer actions.” These were the words spoken by Prince Charles, the Duke of Wales, in his speech to G20 leaders at COP26 in Glasgow in November 2021. The message is loud and clear – now is the time for proper and meaningful action if the UK is to meet its ambitious target of achieving net zero carbon emissions by 2050. Crucial to that goal is the commercial property sector (and use and development of general real estate), as the World Green Building Council estimates that the built environment contributes almost 40% of greenhouse gas emissions globally. The sector as a whole must take urgent steps to decarbonise and to reduce its harmful environmental impact.

So, how might it do this? Here is a summary of the main ways in which this goal could be achieved using the four “D”s – direction, devotion, delivery and demand. We also consider what this might mean for commercial property investors and owners:

Direction from government

First, it is imperative that the government (at a national, regional and local level) takes the lead in providing direction for the real estate sector by implementing a regulatory framework which prioritises the decarbonisation of the built environment and publishing detailed and fresh guidance on how that can be achieved in practical terms. For example, this may include local planning authorities considering the imposition of green/sustainable planning conditions and a focus on setting targeted sustainability standards (such as EPCs and BREEAM).

This will require working collaboratively with bodies and organisations at all levels of the supply chain, from investors to architects and engineers, and also producers of the raw materials used in the physical building and construction process.

Without direction from the government, the pace of change is likely to be slow and the path to becoming a “greener” sector will become more challenging with the passage of time.

Devotion from investors

Second, if the government can provide adequate direction required to achieve the goal of decarbonising the built environment, then investors in commercial real estate will need to devote their time and financial resources to the practical means of doing so – essentially funding a green industrial revolution.

First and foremost, this includes investing in a wide range of renewable energy sources, such as solar panels, wind turbines, air source heat pumps and hydroelectric systems, which can be used to heat and provide power to all types of buildings.

However, it also involves investing in other green technologies and infrastructure, such as electric vehicles which will eventually replace petrol and diesel powered vehicles as the primary means of transportation on our roads (including the transportation of building materials). Also coming into focus is LED lighting as a more efficient and cost-effective way of providing artificial light to our built environment, and the introduction of a common charging port for electronic devices which aims to put an end to e-waste and consumer inconvenience across the EU.

Delivery from property professionals

Once the regulatory framework and financial investment is in place, it is essential that property professionals (including agents, surveyors, lawyers, architects, engineers, and builders) are able to discuss, design and deliver the physical elements of a “greener”, more environmentally friendly built environment.

This requires all parties to be aware of the various changes which need to be made in order to decarbonise our existing real estate (including during refurbishment works) and to build new properties in a way which is sustainable and in keeping with the framework for change provided by the government and local planning authorities. For example, agents and surveyors can play a key role by recommending sustainable provisions to their clients for use in Heads of Terms, and lawyers can consider using “greener” leases and construction contracts which serve to implement these sustainable provisions.

Clearly, without the property professionals striving to achieve the goal set before them by government and local planning authority’s framework and initiatives, it will be a struggle to make a real difference to the way in which properties are built in the future and the construction methods/materials that are used.

Demand from businesses, government and communities

Finally, none of the above would be achievable or worthwhile without significant demand for radically different, “greener” real estate from businesses, government and communities – the owners, occupiers and investors of these buildings. Increased demand will inevitably drive up the need for change and these sorts of buildings will gradually replace our existing infrastructure.

We need businesses, government and communities to be forward-thinking and innovative as they sharpen their focus on how to become more sustainable. Such ways of thinking must include a practical and achievable strategy for reducing their carbon footprint – with “greener” real estate (e.g. offices, depots, warehouses, shops etc) being a major priority when it comes to making meaningful changes.

As modern-day consumers, it is incumbent on all of us (the owners, occupiers and investors of real estate) to re-evaluate our ways of living and working, and to start demanding that things are done differently – both in the domestic and commercial spheres. Ultimately, we need leaders in all walks of life to take a stand and forge a new path ahead to drastically change the shape of our built environment for the better.

If you require any legal advice on commercial property issues, please visit our website and contact any member of our Real Estate team who would be happy to assist you with any enquiries.

As a trainee at Michelmores, we attend training sessions with a distinct focus on relationship building and developing the skills needed to:

1. work effectively in teams;
2. network; and
3. interact with clients.

For some, the idea of relationship building comes naturally. Networking can however be practiced and honed like any of the other skills you will develop during your training contract with Michelmores.

Networking

Networking provides the foundation for developing new relationships and connections. It is essential to developing both your business connections and your own personal brand ready for when you qualify.

Within the Firm there are many networking events to join such as the Cycling Network, Michelmores Book Club and the running club. In my current seat in the Projects team, there is ample opportunity for client contact and I have also been fortunate enough to attend a site visit. This was a refreshing opportunity to interact with clients in real life.

We also have external opportunities to network such as the Property Awards, Property Developers Club and various training events. The underlying point is that taking the leap to attend any networking event (in-person or virtual) will enable you to meet new people who may become useful career contacts in the future.

Communicating

A key method for working in a team is understanding how to communicate effectively with others. As a trainee it is important to:

1.  acknowledge different working styles;
2. consider the best way to communicate with your supervisor, whether that be ad-hoc calls and emails or regular, diarised catch ups;
3. inform colleagues when you have capacity to take on additional work; and
4. notify the relevant person of the likely timescale to complete a task.

The above actions also enable your team members to plan their workload accordingly. Effective communication will strengthen your relationships as you will be seen as a reliable member of the team.

By coming across as enthusiastic and willing to take on additional tasks it is likely you will become involved with an array of interesting work within your team.

Being authentic

Ultimately, to cultivate relationships with others you have to be yourself. You may find that by joining one of the networking events you have a genuine interest in, such as the running club, you are more likely to find someone who shares similar interests to you.

This can help you to build relationships with both colleagues, existing clients, and potentially even future clients.

It is widely acknowledged that with the rise of technology and the automation of legal tasks, solicitors who can build relationships rather than solely provide legal advice are favoured in the market.  Not only will relationship building help you professionally, it will also make your day more enjoyable as you build rapport and enjoy interesting conversations with others.