In the article "Hot Lister Shares Top Three Considerations for Capitalizing on Commercial Real Estate Opportunities," Christina Iacoucci, Head of Canada at BGO and a 2024 BPM Hot List honoree, discusses the favorable outlook for Canada's commercial real estate market. She notes that with central banks shifting towards interest rate reductions, the sector is poised for improved returns. Iacoucci emphasizes that property fundamentals remain robust, with many sectors experiencing vacancy rates at or below long-term averages, suggesting that valuations are at or near their cyclical lows. This environment is expected to boost transaction activity as investor risk appetite increases, presenting opportunities to acquire assets across various risk profiles at attractive prices.
Iacoucci outlines three key strategies for investors: leveraging global perspectives combined with local expertise and advanced data analytics to uncover undervalued opportunities; targeting assets available below replacement cost with potential for income growth through value-add strategies; and reconsidering domestic investments, as Canada's stable geopolitical climate and superior risk-adjusted returns make it an appealing alternative to international markets. She highlights that BGO's integration of AI-driven tools enhances their ability to deploy capital effectively, enabling investors to capitalize on market misconceptions and secure compelling deals rooted in strong fundamentals.