Michael Tsourounis, managing partner and chief investment officer at Hazelview Investments, remains positive about Canadian real estate, citing “favourable foundational fundamentals.” However, he acknowledged that higher short-term interest rates had weighed on property values.
Tsourounis said the rate cut will continue to support an improving investment landscape in Canadian commercial real estate.
“Lower borrowing costs will improve liquidity, and we anticipate increased transaction activity, especially in sectors like multi-family,” he stated, adding that it could also help improve conditions for adding much-needed housing supply.
Meyler noted that current market conditions present acquisition opportunities for well-capitalized firms. “There are a number of properties that are coming up for sale…because the still higher than normal interest rates might not make it economic for a weaker balance sheet company,” he said.
However, he added that companies with significant capital and patience could find acquisition opportunities.