C
hristina Iacoucci, BGO's Head of Canada and BPM Hot List 2024 winner, believes the Canadian commercial real estate market is poised for a resurgence due to central banks' interest rate policy pivot. Historically, declining interest rates signal an improving outlook for commercial real estate return performance.

    Property fundamentals remain solid, with many sectors at or below long-term average vacancy levels. Valuations are likely near bottom for this cycle, and investor sentiment is improving. Iacoucci expects transaction activity to rise as risk appetite grows, presenting opportunities for investors to acquire assets across the risk spectrum at attractive prices.

    BGO combines global perspectives with local expertise and on-the-ground execution capability, complemented by in-house data science capabilities with AI-driven tools. This allows them to identify sectors and markets where negative sentiment may be overstated or impacted by broad generalizations, presenting opportunities for compelling deals rooted in strong fundamentals.

    At this point in the cycle, there are opportunities to acquire assets at pricing well below levels of a few years ago. Investment managers can position their investors for strong returns by sourcing acquisition opportunities with inherent upside and executing value-add strategies.

    High-quality, stabilized properties in sectors with strong fundamentals are available at below replacement cost and attractive going-in yields. BGO thoughtfully deploys capital to increase income yield, strengthen tenant credit, and increase asset value through robust data analytics and real-time market intelligence.

    As geopolitical risks rise, global investors are looking to Canada for its stability. Canadian investors should consider their own backyard due to historical superior risk-adjusted returns, corrected asset prices offering a compelling entry point, and healthy property fundamentals buoyed by strong population growth.