- What A softer market in Vancouver is a good time to lay foundations for future deals, say younger brokers
- Why Vancouver’s commercial real estate market has been slow over the last year
- What next Brokers interviewed by Green Street News say they hope to capitalize on the skills they’ve had to learn during a slower period
As Vancouver’s commercial real estate market continues through a slow period that many expect will not end for at least a year, some newer brokers are learning from their first downturn.
For those with more experience, a soft market could be less of a concern. But greener pros may not be able to take the disruption with as much ease, as their personal finances are stretched and they see deals fail to close more frequently.
With decades behind him, Tony Quattrin, vice chair of capital markets for CBRE Canada, said it’s important for newer brokers to remain patient and accept that a lot of work they do may go unrewarded in a softer market.
“For young people who haven’t been through it before, it’s a lot harder to accept those circumstances,” he said. “First of all, they might not have a lot of a nest egg to go through, and they’ve got expenses.”
Staying positive is one of the most important things to remember and to use the time wisely, Quattrin said, calling it a real opportunity to learn.
Focus on the fundamentals
Karly MacRae, who works in industrial sales and leasing at Cushman & Wakefield, came into the industry during the pandemic when things were much busier. MacRae said business is slower now, but it hasn’t been as bad as some say.
“We’re lucky in Vancouver because the market here is still relatively strong,” she said. “There’s still things happening.”
She has shifted her focus back to the basics of providing the best service she can to clients.
Leaning into the resources afforded to her by working for a large brokerage and drawing on lessons from more experienced brokers has helped, she said, noting that turning the situation into a learning experience is important.
MacRae said deals can fall apart more easily right now, making things stressful as they approach closure.
“Every deal takes a lot longer, is a lot more delicate than in a really strong market,” she said. “You just have to be on it, and you have to work really hard at doing the best you can to keep it all together.”
Finding the diamond in the rough
Sam Taktsang, who focuses on development land and investment properties at Goodman Commercial, joined the sales side of the business from the development side. Fresh into the business and looking forward to the new challenge, his timing wasn’t the best.
“Once I joined, the market tanked,” Taktsang said with a chuckle, adding he was glad to be on a successful team with experienced colleagues rather than on his own when the slower market arrived.
When the market was hot, he said, acquisition teams were competing for listings. Now, it takes much more leg work to secure a deal.
The experience has made him more adept at looking at what developers want and finding it for them, he said.
Being creative and pushing on deals more has also been a focus for him. Trying to lay foundations for when the market rebounds is also top of mind.
“Now you get really good at just calling people, talking to people, setting up those connections,” he said. “That’s sort of what you have to do right now.”
Patience is key
Ryan Lucas, a land acquisitions and investment broker at Axis Real Estate Solutions, said he reminds himself that it’s important to remain patient.
Lucas started in the industry around the time the pandemic hit, in what he calls one of the “weirdest times” to enter the profession.
“I was in a bit of a learning curve through all of that and dealing with things being shut down and things going crazy because the interest rates were lowered so aggressively,” Lucas said. “Things were moving so fast.”
But now, he said, landowners aren’t budging much on their prices and developers aren’t willing to shell out the cash to meet those demands. Expectations need to shift, he added.
Lucas said that despite the impasse between landowners and buyers, there are opportunities.
“There’s deals happening right now, but you’ve got to go for them, and you have to search for them and they’re not happening as easily,” he said.
As a former professional football player, Lucas said he knows staying positive and being persistent will pay off. So, for now, he’s using the slower period to lay the foundation for more deals down the road.
“If I build now, then when things are easier, they’re going to start rolling a lot more,” he said.
CBRE’s Quattrin said that along with being patient and committed, maintaining perspective is crucial during trying times.
“Whenever you’re going through something, it feels worse than it probably is,” he said. “It’s a journey, and eventually we’ll get there. The hard work you do today will pay off down the road.”
If newer brokers stay the course, they’ll be set up for success when markets become more liquid, he said. In the meantime, brokers can learn more in a slow market than in a booming one.
