Real estate · Industry brief

Buren's article from Mondaq analyzes top legal due diligence findings in Dutch M&A transactions, focusing on real estate red flags that frequently emerge during deal investigations. The analysis identifies three critical real estate issues: absence of written lease documentation (common in family businesses and long-standing arrangements where parties operated on mutual trust), which creates evidentiary uncertainty around lease terms and enforceability post-closing; unauthorised subleases entered without landlord consent, which expose companies to termination risk while remaining binding between tenant and subtenant, with implications for deal valuation if subleases represent material income; and change of control provisions in lease agreements that may require landlord notification or consent, potentially constituting breach if not properly addressed before transaction closing. The article emphasizes that purchasers typically require certainty of enforceable premises rights post-closing, necessitating early landlord engagement to formalize arrangements, verification of main leases when subleases exist, and translation of identified risks into specific contractual protections rather than generic warranties.

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The global office real estate market is projected to grow from USD 1.72 trillion in 2025 to USD 2.76 trillion by 2035 at a 4.8% CAGR, driven by recovery in corporate office leasing, demand for premium Grade A space, expansion of flexible and co-working formats, and investment in green and smart building infrastructure. The market is experiencing a structural shift toward "flight to quality" where tenants consolidate into higher-grade, amenity-rich buildings, while institutional investors and REITs reposition portfolios through renovation and adaptive reuse. Key trends include rising adoption of PropTech and smart building solutions for space optimization, growing demand for LEED and BREEAM-certified sustainable buildings, and adaptive reuse conversions of older office stock into residential and mixed-use developments. North America leads in market revenue due to established central business districts and strong institutional investment, while Asia-Pacific is growing fastest driven by urbanization and expansion of technology and financial services sectors across China, India, and Singapore.