Managing risk

Developing a risk mitigation strategy to navigate real estate’s changing landscape

Financial market volatility can impede Canadian real estate segments that want to realize investment opportunities. For instance, a bank may tighten lending standards which limits access to needed capital, or tenants may experience financial difficulty and are not able to fulfill their lease commitments or may not renew their lease terms. Real estate companies must adapt by improving the performance of their operations and asset value while reducing costs.

While any real estate investment involves a degree of risk, organizations can prepare for new and evolving uncertainties by developing risk mitigation strategies. Successfully mitigating risk can help deal with challenges such as:

• Meeting regulatory and legal requirements
• Obtaining financing for development, redevelopment, maintenance and acquisitions targets
• Recovering from unforeseen disruptions that impact business continuity
• Attracting and retaining tenants with good credit position
• Foreign exchange market fluctuations and economic conditions
• Accommodating lease spacing and disruptions
• Retaining and training talents to meet the organizational human capital needs
• Escalating operating costs
• Fulfilling project development milestones and budgets

How PricewaterhouseCoopers can help

PricewaterhouseCoopers’ Real Estate practice has critical industry experience to help companies make timely decisions and stay aware of upcoming trends within Canada’s changing business landscape. To help you manage risks within your real estate organization, our team will conduct a risk assessment and operational review and benchmarking your results against leading industry practices.

We help real estate segments reduce their capital risk and improve their return on investment with a full suite of market research, site selection and financial feasibility services including:

• Asset liability management
• Operation reviews and benchmarking
• Credit risk management
• Systems and operations analysis
• Business continuity and disaster recovery planning

Contact a professional in your area to discuss how we can help you build value.