The drastic change in the real estate market also affects real estate lawyers. The ‘rainmakers’ are sitting with their arms folded due to a lack of deals.
Real estate lawyers and garbage collectors have in common that they are always needed, crisis or not. When the market is ‘hot’, they structure deal after deal until the late evening, but as long as the interest rate rise is not curbed, investors cannot make good prices and the lawyers are sitting on their hands. There is other work to be done: from endless lawsuits and variations on the Didam judgment to the increasingly erratic rental decisions of subdistrict judges (Bouwinvest case). Always in the background is the specter that the Dutch legal order is showing cracks. In the short term, this creates extra work for lawyers to litigate all ambiguities, but in the longer term fewer deals because real estate investors move to more stable jurisdictions.
Growth and shrinkage
These gloomy images are not yet reflected in PropertyNL’s annual survey, in which a record number of 62 offices participated this year. This includes two major growers: TeekensKarstens and Loyens & Loeff, together accounting for a growth of 67 real estate lawyers. In contrast, three offices are shrinking: Greenberg Traurig, Kennedy Van der Laan and Freshfields. However, this represents a modest reduction in the total number of 13 real estate lawyers. Herman Lohman from Houthoff explains the growth of his office by hiring people counter-cyclically. In quieter times, lawyers can be prepared for the real work. David van Dijk of Greenberg Traurig explains the shrinkage (after strong growth) of his office with a conscious choice for more experienced people and fewer starters. ‘This ultimately means that you can do more and higher-quality work with fewer people. That is the American model of Greenberg Traurig. No pyramid model, but low leverage and many experienced people.’
State attorney
National lawyer Pels Rijcken once again plays an important role at the top of real estate advice. This office came into the spotlight negatively due to long-term fraud by chairman Frank Oranje. The 2021 case still dominates many drinks, not least because of a three-part TV documentary this summer about the still unsolved fraud. In February, chairman Sandra van Heukelom and head of real estate Aemile van Rappard provided an overview in PropertyNL of the measures Pels has taken to settle the fraud and prevent it in the future.
However, we are still waiting for the House of Representatives to discuss the so-called Silvis report, which will discuss whether and how Pels Rijcken can remain State Attorney. This debate was scheduled for the second quarter, but was postponed due to the fall of the cabinet.
Former minister Grapperhaus (himself from top real estate agency Allen & Overy) explained at the time how important continuity in real estate advice is for the government, not to mention the fact that most other top offices are not interested in this work with hourly rates below the ‘Zuidas level’. ‘. It is therefore unthinkable for real estate lawyers from other firms that Van Rappard would have to close his department. But who would have thought before 2021 that notary René Spit van Pels, a regular participant in the round table discussions with real estate lawyers from PropertyNL, would end his practice disillusioned and that Pels would quit the notarial profession completely in 2022?
Stable image
The image of offices that are responsible for the largest and complex real estate transactions, financing and developments is stable.
As in previous years, the top positions in transactions are held by Loyens & Loeff and Houthoff, including runner-ups in recent years such as CMS, Greenberg Traurig and Lexence. They took the place of NautaDutilh and DLA Piper, who are no longer in this top, after real estate lawyers switched to Greenberg Traurig and Lexence.
In real estate financing there is a more fragmented playing field, with more but always the same parties. Loyens & Loeff tops the list, followed by NautaDutilh, Allen & Overy, Clifford Chance and Houthoff, parties that at most rose or fell one place.
In real estate development, the same places on the podium: Houthoff, Loyens & Loeff and CMS, but also two runner-ups: Six Advocaten and Stijl Advocaten.
Leading lawyers
The research into the lawyers themselves provides the most discussion material. In terms of transactions, David van Dijk (GT) came into the top 3, together with Jan Cees Kuiken of Houthoff and Lonne Rooseboom of Loyens & Loeff. A spot in the top 3 became available because Hein van der Meer from CMS hung up his toga and left for developer Van Wanrooij.
In the field of financing, the playing field has been expanded with newcomers such as Jan-Joost van Rijsbergen (Bond) and Jeroen Vossenberg (Houthoff).
Jurriaan van der Stok van Loyens takes the honors, just like last year, when it comes to advising on developments. Jan Cees Kuiken of Houthoff comes in second place, which was awarded to Hein van der Meer last year. New arrivals in this ranking are Le van der Marel of DLA Piper in third place and then Bas Beenen of Osborne Clarke, Ingmar de Groot of Stibbe and back on our honors lists: Wilfried Koster of Straatman Koster.
Accountability
PropertyNL conducts annual research into real estate lawyers by means of a survey that is sent to the offices known to us. This was answered this year by more than 60 offices. If any parties are missing, you can report them to limmen@propertynl.com.
The research into real estate lawyers aims to provide insight into the specific qualities of offices and not just the quantity of transactions in which they are involved. That is why an alphabetical arrangement was chosen.
In this umbrella article we do place a ranking with numbers of real estate lawyers. Whether a lawyer is referred to as a ‘real estate lawyer’ is determined by the head of the real estate practice surveyed.
The respondents also express their views on what they consider to be the leading firms and lawyers in the fields of transactions, financing and development.
An annual top of 12 offices is compiled from all the data. They participate in a round table discussion, during which they highlight legal trends in real estate.