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"These tenants are typically in the technology and life-science sectors, and they appreciate Mount Pleasant's posi on outside of the downtown but close to ameni es and desired residen al areas," Messina says. To capitalize on current real estate opportuni es, consider covered land plays—acquiring income-producing proper es that are in the path of progress and that will have a higher and be er use in the future. Investors can maximize their success in real estate by avoiding common mismoves that can have important impacts on their ac vi es. For example, Messina warns against trea ng real estate as anything less than an ac ve business. "It's not as simple as clicking a bu on to buy a property and le ng a property manager take it from there," he says. "There is a lot of work that goes into underwri ng good investment opportuni es, comple ng due diligence and closing. And from there, the real work begins where you need to understand mortgage financing, asset management, and leasing to maximize value. We have a team with specialists in all of these disciplines." Avoid pu ng all of your real estate "eggs in one basket", op ng instead for diversity by asset class and geography, and watching for fund opportuni es that are open-ended, which means they have liquidity. Preparing for changes in the market means responsible underwri ng—don't get trapped into thinking that prices will just keep going up; make sure the numbers work based on today's values and costs. "It also means you need to be disciplined in your approach to acqui- si ons," Messina says. "We take the view that if we can't get a deal at the right price, there is always another bus coming. We also look for mul ple ways out of the room." For example, if you acquire raw land and the approvals are delayed or stalled, there are carrying costs. But if there are exis ng buildings with holding income, you can con nue to lease those buildings. "We like to have back-up plans," Messina says. "It helps us sleep at night." Remember that when markets turn, premier loca ons will typically offer more flexibility from leasing, sales and liquidity standpoints. From a leasing perspec ve, NWRE prefers buildings with good leasing appeal that will a ract a wide variety of tenants. "We can't control if the leasing market so ens, but we want to make sure that we have proper es that will a ract strong interest from tenants so we can generate cash flow," Messina says. NWRE also leans into de-risking strategies, for instance, pre-selling strata industrial projects instead of trying to ride up the pricing wave. "This also applies to renewing tenant leasing early," Messina says. "In 2019, we went out of our way to renew a number of large tenants and that strategy paid off when the pandemic emerged in 2020." Finally, investors need to be prepared for the inevitable rise in interest rates. NWRE has been proactive at locking in mortgage rates for the company's long-term leased assets to hedge against higher interest rates in the mid-term. "This also impacts our acquisi on strategy as we look for assets where we can increase rents in the future to off-set rising interest rate costs, instead of acquiring assets that are leased long- term at fixed rents," Messina says. This is just one aspect of NWRE's strategy, which also includes having an entrepreneurial approach to inves ng in real estate through which their team of more than 50 professionals can react quickly to off-market opportuni es and use a crea ve lens to find ways to add value instead of just buying exis ng real estate to clip a rental coupon. "Most importantly, our real estate team and all staff at Nicola Wealth are personally invested in our funds so we have our own skin in the game," Messina says. "Our goal is to provide the best possible return for our investors, which includes ourselves." Learn more at realestate.nicolawealth.com THE LIGHTWORKS BUILDING, MOUNT PLEASANT, VANCOUVER BC nicolawealth nicolawealth nicolawealth This material contains the current opinions of the author and such opinions are subject to change without notice. This material is distributed for informa onal purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular securit y, strateg y or investment product. All investments contain risk and may gain or lose value. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities commissions.