This May, CBRE named company veteran Louis Karam managing director for Quebec, based in Montreal. In his previous role as CBRE’s head of operations in Ottawa, Karam helped the office achieve record growth.
Green Street News caught up with him to chat about his past success and what excites him the most about markets in Quebec.
Last year, CBRE Ottawa recorded the highest revenue in its 25 years of operation. Could you elaborate on the strategic initiatives and operational tactics that led to this achievement and how you plan to bring them to your Quebec team?
Reflecting on this achievement, I recognize the significant advantage of working for the largest real estate services company globally. This success is a testament to the long-term efforts and strategies that have been implemented over the years.
Three key initiatives come to mind. First, we’ve made substantial efforts to diversify and expand our team in Ottawa. Prior to the pandemic, a large portion of our revenue came from office leasing. We’ve since shifted focus, growing our teams and enhancing our capabilities in the industrial, retail and multifamily sectors. We also launched a new debt and structured finance team. These efforts allowed us to diversify our services, strengthen client relationships, and ultimately grow our revenue.
Secondly, we have focused heavily on talent development and retention. By investing in our employees’ training and professional development, we’ve fostered a culture of continuous learning and improvement. This has resulted in better team cohesion and higher employee engagement.
Lastly, — this is something that I’m also very proud of — we’ve significantly enhanced our data capabilities. At the end of the day, we’re all data companies. Our data was already excellent, but we took it to another level. There was a lot of investment on our research and analysis team. We started doing more insightful thought leadership articles and provided superior analysis to our clients and to the market. That allowed us to cement our reputation for being the go-to company for data and real estate information in the market.
You said you are excited about the potential evolution in Quebec City. What are the growth drivers in this particular market, and in which asset classes do you see the best opportunities?
Quebec City is poised for significant growth. Over the past two decades, it has seen the largest GDP growth per working-age person in Canada. This economic dynamism is reflected in the local real estate market, with two key areas of opportunity.
“Quebec City is poised for significant growth”
First, the industrial market has boomed in Quebec City. There’s a lot of interest and attraction to local manufacturing companies, which we are keen to support and expand.
Secondly, the tech market is booming. CBRE’s annual ‘Scoring Tech Talent’ report has seen Quebec City rise in the rankings, indicating a burgeoning tech sector. Two years ago, Quebec City ranked 39 [out of 50], and last year it was No. 35. We are focusing on these areas to capitalize on the growth opportunities they present.
And for Montreal, what emerging opportunities do you see in the market, and what strategies will you implement to capitalize on those opportunities?
Currently, I am on a 90-day listening tour to better understand the market prior to implementing any strategies. However, it is clear that the tech sector, particularly driven by AI, gaming and visual effects, is a major area of innovation in Montreal. So that is something I am focusing on.
The city has been leading on the green front with green technology and better office building technology. So that is something we will have to look out for. There has also been a lot of diversification happening on our team in Montreal. A new [debt and structured finance] team joined us last year and a new team on the national apartment group. These developments position us well for continued growth in the years to come.
What are the biggest challenges you have to face currently as you grow CBRE’s Quebec business, and what do you expect for the second half of 2024?
This is not necessarily specific to CBRE Quebec, it applies to Ottawa as well and in a lot of portions in the world. I think that the economic uncertainty right now is the main focal point that everybody’s looking at. There’s a lot of volatility. Interest rates have gone through a huge cycle of increase and now there’s a quarter point decrease which should help sentiment on the market.
“I think that the economic uncertainty right now is the main focal point that everybody’s looking at”
While the recent quarter-point decrease in rates is encouraging, we are closely monitoring market conditions and sentiment as we move into the latter half of the year. Adjusting to these economic shifts will be crucial for our strategy moving forward.
How much appetite is there from international investors versus domestic investors for the Quebec market? Who are the most active investors in terms of types and geographies? What is attracting international investors to the Quebec market?
In general, there’s interest from both. There’s a strong interest from international investors because it’s a stable market and it gives investors the ability to put their investments in a safe haven here in Quebec. But there’s also interest from local players who have deep market knowledge and have been actively participating in its growth for years. This dual interest underscores Quebec’s robust investment appeal and promising future.
