Why It Matters: Ethics in Commercial Real Estate and Technology

Business ethics have always been a cornerstone of my professional career. Having dedicated nearly all of my adult life—over 30 years—to commercial real estate (CRE), I have seen firsthand how ethical principles shape the industry. Ethics are not just a side note; they are fundamental to how we conduct business, engage with peers, and build trust with clients and colleagues. In CRE, we are surrounded daily by the reminder of ethics in brokerage and other aspects of the business, as our peers are often also our competitors.

However, ethical conduct does not stop at real estate. It is just as critical in every business and in our lives, including the ever-growing technology sector. Recently, we encountered a situation that tested these principles. A so-called competitor signed up for TheAnalyst PRO under a fictitious name and email. While I won’t go into details about their intent, their behavior was anything but professional. They wasted valuable time from our amazing support team and were belligerent to our team members, often citing false information in an attempt to berate them.

One thing I have learned over the years is that the commercial real estate universe is extremely small. Burning bridges in this industry is a costly mistake—it will soon spit you out. There is no room in CRE for fraudulent and belligerent behavior, and the same holds true for the CRE technology industry. While unethical behavior occurs periodically, I am grateful to say it is the exception, not the rule.

At TheAnalyst PRO by CRE Tech, we take pride in our strong relationships with other CRE technology companies. Some may offer similar services, while many are complementary to our platform. In fact, we actively collaborate and even partner with other tech providers to enhance our products and deliver better solutions for the industry. Ethical business practices foster these collaborations, allowing us to drive innovation and provide greater value to our members.

As the commercial real estate and technology worlds evolve—now more rapidly than ever—it is crucial to know who you are working with. 

How long have they been in the industry? 

What is their background? 

New entrants to our industry may not immediately understand that we are a tight-knit group of professionals who value ethics and collaboration above all else.

I encourage everyone to do their homework. If a company or individual is willing to act unethically and fraudulently toward their competition, imagine what they might do with your sensitive and confidential information. Poor ethical standards can jeopardize your deals, your business, and even your reputation.

In an industry built on trust, integrity is not optional—it is essential. Choose to work with those who uphold the highest standards of professionalism, and together, we will continue to build a stronger, more ethical commercial real estate and technology community.

Don't Take Their Word for It: Do Your Own Modeling with TheAnalyst PRO

In commercial real estate, brokers and sellers often present proformas that paint an optimistic picture of a property's financials. While the numbers may look enticing, seasoned investors know to approach these figures with caution. Taking proformas at face value can lead to costly mistakes.

The cornerstone of successful real estate investing lies in thorough, independent research. However, conducting detailed analyses using spreadsheets can be time-consuming, cumbersome, and prone to errors. This article explores strategies for analyzing real estate opportunities with greater precision and confidence.

Scrub the Numbers

The adage "Garbage in, garbage out" is especially true in real estate investment. A property’s proforma is only as good as the assumptions behind it, which makes reanalyzing every opportunity with realistic metrics essential.

Key steps for refining your financial projections include:

• Adjusting income projections to account for market trends or conservative assumptions.

• Reassessing expenses to ensure all operating costs, taxes, and potential capital expenditures (CapEx) are factored in.

• Calculating key metrics like Internal Rate of Return (IRR) and Cash-on-Cash returns using realistic disposition assumptions.

By verifying these figures and recalibrating unrealistic expectations, you can help your clients make more informed investment decisions.

TheAnalyst PRO streamlines this process, providing built-in tools for calculating key metrics to verify the accuracy of financial projections.

Master Cash Flow Analysis

Understanding the long-term cash flow potential of an investment is critical to success. This involves analyzing how different variables—such as holding periods or disposition assumptions—affect overall returns. Tools like sensitivity analyses and cash flow projections can provide insights into the potential risks and rewards of an investment. For example:

• Optimal Holding Period Analyses - can inform your decision about when to sell.

• Acquisition and Disposition Price Sensitivity Analyses - help you negotiate deals that align with client's financial goals prepare for potential market shifts.

• Explore the Impact of Leverage - understand the effect of interest rates on you or your client's returns.

Whether you're evaluating a single-family rental or a multi-unit commercial property, a well-rounded cash flow analysis can mean the difference between a sound investment and a missed opportunity.

With TheAnalyst PRO, you can dive deeper into cash flow scenarios, helping you make data-driven decisions with confidence.

Stand Out in the Market

Real estate professionals—whether investors, brokers, or consultants—can distinguish themselves by providing comprehensive offering memorandums. Beyond financial projections, including factors like environmental conditions, crime rates, and demographics can offer a deeper understanding of a property’s value and risks.

Some critical components to consider include:

• FEMA flood reports to assess risks associated with natural disasters.

• FBI Crime data to gauge an area's safety and appeal.

• ESRI Demographic analyses to identify potential tenant or buyer pools.

• Environmental assessments to uncover liabilities tied to a property’s location.

By presenting this data alongside your financial analysis, you can elevate your decision-making process and establish yourself as a knowledgeable professional in your field.

TheAnalyst PRO brings these insights together in one platform, enabling you to create polished, data-driven presentations that set you apart in the market.

Empower Your Decisions with TheAnalyst PRO

Real estate investment is not about taking someone else’s word for it—it’s about equipping yourself with the knowledge to make informed decisions. Adopting best practices for analyzing, strategizing, and presenting your findings will not only mitigate risks but also build your credibility as a trusted advisor in the market.

Whether you're new to real estate or an industry veteran, prioritizing detailed research and independent analysis will set you apart and help ensure long-term success.

Join the THOUSANDS of CRE professionals that 

are winning assignments and closing deals with ease!

Every member of our sales team comes from a commercial real estate background, so they understand the challenges you face. Schedule a demo with our team today to see how TheAnalyst PRO can transform the way you analyze and market properties!

Unlocking the Power of Demographics: TheAnalyst PRO’s Infographic Reports

In commercial real estate, demographic data often takes a back seat in offering memorandums
(OMs) and property listings. Many professionals include demographic reports as an afterthought, overlooking their potential to influence client decisions. Our latest CRE Training session revealed how demographic infographics can transform CRE marketing by turning complex data into engaging, insightful, and actionable tools.

What Are Demographic Infographics?

Demographic infographics are visually compelling representations of data, simplifying complex
statistics into clear, impactful graphics. Here’s why they matter:

• Visual Representation of Data: Transform intricate demographic information into user-friendly visuals.

• Key Insights at a Glance: Highlight vital metrics like population trends, income levels, and
  housing statistics.
  
  

• Engaging and Sharable: Perfect for presentations, marketing materials, and reports, they captivate and inform.

• Improved Decision-Making: Help clients and stakeholders make better-informed decisions with data presented clearly and concisely.

Why Use Infographics in CRE Marketing?

• Grab Attention:  Infographics stand out from traditional reports, capturing your audience’s interest.

• Showcase Expertise: A well-designed infographic positions you as a knowledgeable industry leader.

• Simplify Complex Information: A picture is worth a thousand words—infographics distill information into impactful visuals.

Why we Trust Esri for Demographic Data

TheAnalyst PRO relies on Esri, a global leader in geographic information systems (GIS) and demographic data. With decades of expertise, Esri delivers precise, up-to-date insights that power deeper market analysis and better decision-making.

Introducing Four Game-Changing Infographic Reports

Our latest update includes four infographic reports designed to revolutionize your OMs and property listings:

• Key Facts: Essential demographics in one concise graphic.

• Population Trends: Track growth patterns and demographic shifts over time.

• Community Profile: Highlight the lifestyle and character of specific areas.

• Lifestyle & Tapestry Segmentation: Dive into psychographic profiles for pinpointed market strategies.

From Static to Dynamic: Elevating CRE Marketing

Including demographic infographics in your OMs and property listings isn’t just a nice-to-have—it’s a strategic advantage. These visuals tell a compelling story about a property’s potential, engaging clients and building trust. By integrating attractive, data-driven insights, you transform traditional property presentations into dynamic marketing tools.

Ready to see these tools in action? 

Watch the full training session embedded above and discover how demographic infographics can elevate your CRE marketing strategy.

Post-Election CRE Outlook: A Fresh Start for 2025!

In recent years, commercial real estate (CRE) transactions have been challenged by inflation and high interest rates. For example, Q1 2024 saw just $31.6 billion transacted across major property types in the U.S., a 28% drop from the previous year and the lowest since early 2013¹. However, there’s optimism for recovery on the horizon, particularly with the Federal Reserve’s recent actions and potential future rate adjustments.

Industry Predictions

On November 7, 2024, the Federal Reserve announced its first rate cut since the election, and second cut of the year, lowering the benchmark rate by 0.25 percent (25 basis points). This move, aimed at providing relief amid cooling inflation, is expected to positively impact borrowing costs in the CRE sector, potentially helping to stimulate transaction volume.

According to MarketWatch, the market may be approaching a bottom in pricing and volume, setting the stage for potential growth². If the Fed signals further rate cuts or maintains steady rates in the coming quarters, the CRE market could see more favorable transaction conditions by late 2024 and into 2025.

 

Supporting this, recent data shows an uptick in CRE lending. In Q3, the CBRE Lending Momentum Index rose 13% from Q2 and 15% year-over-year, nearing pre-pandemic levels³. Life insurance companies led non-agency loan closings with a 43% share, while alternative lenders contributed 34%—a notable trend driving the market’s gradual recovery. Additionally, CMBS issuance surged to $29 billion, tripling from last year’s volume. Multifamily asset lending by government agencies also increased by 40%, as lowered base rates allowed for higher borrowing proceeds.

Reports like Deloitte’s 2025 Commercial Real Estate Outlook suggest a promising shift as the industry prepares for long-term growth scenarios, identifying areas of opportunity in today’s pricing dynamics⁴. In the same vein, the Urban Land Institute’s Emerging Trends in Real Estate 2025 report shows a cautiously optimistic outlook, highlighting market recovery despite ongoing challenges⁵.

 

Adding to these insights, GlobeSt recently reported on the ongoing uncertainty of the interest rate trajectory, which remains a key variable for CRE investors post-election. While rate cuts could invigorate the market, the timing and extent of Federal Reserve actions remain unclear, which means continued caution for CRE investors in the short term⁶.

Upgrade Your CRE Tech® Stack

With transaction volume and investment activity projected to rise, now is the time to elevate your CRE Tech® stack. TheAnalyst PRO offers sophisticated tools for property analysis and marketing that keep you ahead of the curve. Don’t wait until the next assignment lands on your desk to upgrade; prepare today so you’re ready when opportunity knocks—or better yet, proactive in seeking out new assignments.

 

Sign up for a free one-on-one demo and discover how TheAnalyst PRO can empower you to stand out in the market, make data-driven decisions, and secure new business.

References

1.  Altus Group, “U.S. CRE Transactions Q1 2024”

2.  MarketWatch, “Starwood, Newmark, KKR Real Estate Upgraded on Better CRE View”

3.  BizNow, “CRE Lending Surged in Q3 as Alternative Lenders Drove Market Recovery”

4.  Deloitte, “2025 Commercial Real Estate Outlook”

5.  ULI Knowledge Finder, “Emerging Trends in Real Estate 2025”

6.  GlobeSt, “Interest Rate Trajectory Still Unclear”

Unlocking Residential Property Investment

Key Insights from Our Latest Webinar

Presented by Todd Kuhlmann, CCIM, Visionary and Founder of TheAnalyst® PRO by CRE Tech®, Inc.

In this presentation, we took a deep dive into the process of analyzing and underwriting residential investment properties. 

From single-family homes to residential portfolios, this training highlighted the numerous opportunities within the rental market in the USA and Canada. 

Using TheAnalyst PRO, we also demonstrated how to streamline cash flow projections, demographic analysis, and detailed investment evaluations, making this essential knowledge accessible for all real estate professionals.

 

See the top five takeaways from this training session:

1. The Growing Rental Market: Key Statistics and Trends

•  The session began with a look at the rental market in the USA and Canada, covering the rapid growth of single-family rentals, which make up a large segment of the market.

•  We discussed an ongoing rental boom and the cyclical nature of the rental market, including duplexes and fourplexes. With a large population in need of housing, the demand for rental properties remains high, signaling continued opportunities for investors.

 

2. Unlocking Potential in Residential Portfolios 

•  We explored the unique investment opportunities that residential portfolios offer. Managing multiple properties requires precise, time-saving tools, which TheAnalyst PRO provides, allowing users to efficiently assess the viability of each asset.

•  By consolidating multiple properties under one platform, investors can maximize returns and manage risks in a streamlined fashion.

3. The Impact of Demographics in Residential Investment

•  Understanding demographic trends is essential to identifying the best investment locations. This data helps investors make informed decisions on what types of rentals to target and the likely demand in a given area, optimizing portfolio growth and stability.

•  TheAnalyst PRO integrates demographic insights, enabling investors to align properties with tenant demand and income levels.

4. Enhanced Analysis Tools for Single-Family Rentals

•  Forecasting cash flow and potential returns offers a strategic advantage to investors, helping assess each property’s long-term viability and profitability.

•  TheAnalyst PRO equips investors to evaluate key metrics such as cash flow projections, return on investment, and risk mitigation strategies. We reviewed how these tools support critical financing and investment decisions, giving users confidence in their analysis.

5. Case Study: Real-World Application with TheAnalyst PRO

•  The webinar featured a hands-on case study, showing attendees how to use TheAnalyst PRO to evaluate and present a residential investment opportunity to potential investors.

•  Participants saw firsthand how to create professional-grade presentations, complete with cash flow analysis, demographic details, and projected returns, making it easy to showcase properties to stakeholders.

 

Bonus Material: Expanded Analysis for Duplexes and Fourplexes

For those interested in expanding their residential portfolios, we included a bonus section on duplex and fourplex analysis, available in the recorded session. This segment covered additional insights and strategies for diversifying and scaling investments within the multi-family sector.

 

The insights shared in this webinar underscore the advantages of using TheAnalyst PRO to conduct residential investment analysis. With its powerful tools, streamlined interface, and comprehensive reporting capabilities, TheAnalyst PRO empowers investors to make data-driven decisions, optimize returns, and confidently navigate the rental market.

 

Top 5 Limitations of AI for CRE

Reflections on the current state of AI for Commercial Real Estate in 2024. 

Written by: Todd Kuhlmann, CCIM - CEO/President of TheAnalyst PRO

While AI has made significant strides in various industries, its application in CRE comes with certain limitations. Understanding these limitations is crucial for professionals who rely on accurate data and analysis.

1. Data Quality and Accuracy

AI algorithms are only as good as the data they are fed. In CRE, data accuracy is paramount. AI systems often rely on internet sources to gather information, which can sometimes be outdated, incomplete, or incorrect. 

Unlike platforms like TheAnalyst PRO, AI can sometimes present information that lacks the necessary precision for high-stakes decision-making in CRE.  TheAnalyst PRO’s complex and tested algorithms ensure that financial analyses are both accurate and reliable, providing CRE professionals with data they can trust for critical decision-making. These sophisticated algorithms are designed to process and analyze a multitude of variables, delivering precise insights that enhance the overall quality and credibility of property evaluations.

For instance, in a recent analysis and financial assessment of an apartment complex in a major US market, I asked ChatGPT for the current CAP rates. ChatGPT responded with a CAP rate of 4.00%. However, this rate was from two years ago, and the current CAP rates for apartments in that market had risen to 5.50%. This significant discrepancy highlights the importance of using up-to-date and accurate data. It is crucial for commercial real estate brokers to avoid relying solely on AI for current market information, as it may not always provide the most up-to-date and accurate data needed for informed decision-making.

2. Contextual Understanding

Commercial real estate is complex, involving various factors like market trends, economic indicators, and local regulations. AI, despite its advancements, still struggles with contextual understanding. It might not fully grasp the nuances of local market conditions or the specificities of a property that a seasoned professional or a specialized platform like TheAnalyst PRO would consider. This limitation can lead to misinterpretations and potentially flawed analyses.

3. Limited Scope of Analysis

AI excels at processing large amounts of data quickly, but it has limitations in the scope of analysis it can provide. For instance, AI might overlook critical aspects such as the historical significance of a property, the impact of future developments in the area, or unique characteristics that could affect the property’s value.  TheAnalyst PRO, on the other hand, offers tools that enable a thorough and comprehensive analysis, considering all relevant factors to provide a holistic view of the property.

4. Dependence on Historical Data

AI heavily relies on historical data to make predictions. In the dynamic world of CRE, past trends do not always predict future outcomes accurately. Market conditions can change rapidly due to various factors like economic shifts, policy changes, or unforeseen events. TheAnalyst PRO allows users to input real-time data and current market conditions, ensuring that analyses are up-to-date and relevant.

5. Ethical and Legal Considerations

AI’s data-gathering methods can sometimes raise ethical and legal concerns. Issues such as data privacy, consent, and the potential for biased algorithms are significant considerations. In contrast, TheAnalyst PRO adheres to strict ethical guidelines and legal standards, ensuring that all data used in analyses is confidential and handled responsibly.

Conclusion

While AI has undoubtedly brought innovation and efficiency to many industries, its application in commercial real estate has limitations that professionals must acknowledge. Platforms like TheAnalyst PRO; provide a robust addition to your toolkit, offering accurate, reliable, and comprehensive tools for property analysis and marketing. 

By understanding the limitations of AI and leveraging trusted platforms, CRE professionals can ensure they are making well-informed decisions that will benefit their clients and businesses.

TheAnalyst PRO: Simplifying Financial Analysis for Every Commercial Property

Commercial real estate (CRE) is a vast industry, covering everything from multifamily apartments to industrial warehouses. Each property type brings its own financial and operational complexities, making it essential for brokers, agents, and investors to have flexible tools at their disposal.

Enter TheAnalyst PRO—a versatile platform designed to handle the full spectrum of CRE properties. Whether you’re evaluating a multifamily complex or a specialized asset like self-storage, TheAnalyst PRO adapts to meet your needs.

Why Financial Analysis is Key in CRE

Financial analysis is the foundation of any successful real estate investment. Accurate projections of revenues, expenses, and returns guide decision-making and offer insight into future property performance. The most common method used is a Discounted Cash Flow (DCF) analysis, which calculates the present value of future cash flows to estimate a property’s worth.

TheAnalyst PRO excels at running DCF analyses for any type of property. Let’s dive into why this capability is critical for CRE professionals.

Tailored Analysis for Every Property Type

TheAnalyst PRO simplifies the process of creating a DCF by guiding you through organized input steps. One small choice—whether the property is measured by “Units” or “Square Feet”—sets the stage for a customized analysis.

• Multifamily, RV Parks, Manufactured Housing, & Self-Storage: By selecting “Units,” you can easily input details such as the number of units, rent per unit, and unit sizes. The output includes a comprehensive Unit Matrix, giving you a clear breakdown of each unit type. TheAnalyst PRO also allows you to factor in crucial metrics like vacancy rates and rental growth, providing a realistic and accurate financial projection.

• Office, Retail, Industrial, & Other Leased Properties: Selecting “Square Feet” unlocks tools to analyze critical factors such as long-term leases, tenant improvements, commissions, and lease renewals. This allows for a detailed rent roll and lease analysis in your Investment Analysis report. For multi-tenant properties, TheAnalyst PRO also calculates key metrics like Weighted Average Lease Expiry (WALE), which is essential for predicting potential revenue gaps from lease expirations, giving you a more accurate and informed financial outlook.

Features That Drive Value

What makes TheAnalyst PRO stand out is its ability to incorporate advanced features into any financial analysis, tailored to the specific property type.

1. Price Sensitivity for Smaller Properties: Investors in small properties, like duplexes, can easily adjust key variables to see how changes affect returns. This feature is a game-changer for fine-tuning offers and hitting target IRR or cash-on-cash returns.

2. Lease Rollover for Larger Properties: For bigger commercial properties, managing lease expirations and re-leasing costs is crucial. TheAnalyst PRO includes assumptions for tenant turnover, improvement budgets, and leasing commissions, giving a clearer picture of future expenses and optimizing your investment strategy.

3. Universal Flexibility: The platform works across all property types. Whether you’re analyzing a single rental unit or a portfolio of office towers, TheAnalyst PRO delivers the tools to handle any scenario.

In the fast-moving world of commercial real estate, having the right financial analysis tool is more than a luxury—it’s essential. TheAnalyst PRO offers the adaptability you need to evaluate any property type with confidence. From small duplexes and residential portfolios to massive office buildings, its powerful features streamline your decision-making process, helping you make smarter investments.

Ready to level up your CRE analysis? Discover how TheAnalyst PRO can revolutionize your financial modeling today.