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.

The Crucial Role of NDAs and Confidentiality Agreements in Commercial Real Estate

In commercial real estate, the exchange of sensitive information is commonplace. Whether you’re buying, selling, or investing in commercial properties, maintaining the confidentiality of proprietary details is crucial. This is where Non-Disclosure Agreements (NDAs) and confidentiality agreements come into play.

Top Reasons to Use NDAs and Confidentiality Agreements in Commercial Real Estate

1. Protection of Sensitive Information

In commercial real estate transactions, parties often exchange financial records, tenant information, and property valuations. NDAs ensure that this sensitive data remains protected from competitors and unauthorized third parties.

2. Maintaining Competitive Advantage

Confidentiality agreements help keep strategic business decisions, such as potential acquisitions or dispositions, under wraps. This prevents competitors from gaining an unfair advantage by learning about your business plans prematurely.

3. Preserving Business Relationships

NDAs foster trust between parties by ensuring that shared information will not be misused. This trust is essential in maintaining strong business relationships, especially in long-term partnerships.

4. Legal Protection

Should a breach of confidentiality occur, having a signed NDA provides a legal framework for addressing the issue. It clearly outlines the obligations of each party, making it easier to pursue legal action if necessary.

5. Facilitating Due Diligence

During the due diligence phase of a commercial real estate transaction, buyers and sellers need to share detailed information. NDAs ensure that this exchange happens securely, enabling thorough and unimpeded due diligence.

How TheAnalyst PRO by CRE Tech Enhances Confidentiality in Real Estate Transactions

TheAnalyst® PRO by CRE Tech® recognizes the importance of confidentiality in commercial real estate and has seamlessly integrated these safeguards into its platform.

Property Website Hosting and Automation

TheAnalyst PRO not only hosts the property website for you but also fully automates the NDA and confidentiality agreement process. Potential buyers and investors must electronically sign these agreements directly on the property website.

Once the NDA is signed, the full Offering Memorandum (OM) is instantly emailed to the requesting party, ensuring a secure and efficient exchange of information.

Streamlined and Secure Process

This integration simplifies the process for real estate professionals, ensuring that sensitive data is only shared with authorized parties. The automated system saves time and enhances security, allowing you to focus on other critical aspects of the transaction.

NDAs and confidentiality agreements are not just formalities in commercial real estate—they are essential tools for protecting sensitive information, maintaining competitive advantage, and ensuring smooth transactions. With platforms like TheAnalyst PRO, incorporating these agreements into your property marketing strategy has never been easier or more effective.

Want to see this amazing platform for yourself?

Join the THOUSANDS of CRE professionals that 

are winning assignments and closing deals with ease!

Schedule a Demo TODAY!

Any Market. Any Specialization. TheAnalyst PRO has you covered!

Versatility and Adaptability:
Essentials in the World of CRE

You want to be ready to tackle any deal that comes your way, whether you're working in a small tertiary market or the central business district (CBD) of the largest city in the world. That’s where TheAnalyst PRO comes in. 

Built for ALL CRE PROFESSIONALS - Regardless of specialization

TheAnalyst PRO provides an all-encompassing toolkit designed to enhance your performance, regardless of the asset class or market conditions. Whether you're valuing a strip mall for a long-standing client or guiding a new client through potential leasing options, TheAnalyst PRO ensures you have the resources to deliver exceptional results.

Multifamily  |  Self Storage

For multifamily and self-storage properties, TheAnalyst PRO enables you to create detailed Discounted Cash Flow (DCF) analyses with easy-to-read unit matrices. Assess the financial viability of your projects with PRECISION and CONFIDENCE! 

Additionally, TheAnalyst PRO's demographic analysis and due diligence tools help ensure that the surrounding area supports your proposed end use, giving you a comprehensive understanding of the market dynamics.

View Sample Multifamily Package

Retail  |  Industrial  |  Office

When it comes to retail, industrial, and office spaces, TheAnalyst PRO offers robust tools to analyze the profitability of any deal. 

Take into account every aspect of existing leases with ease. TheAnalyst PRO allows you to run Weighted Average Lease Expiry (WALE) analyses, both physical and economic, providing a clear view of the property's performance and risk!

View Sample Retail Package

Leasing

Efficiency is key in leasing. While conducting a property tour, TheAnalyst PRO helps you identify the most time-effective routes to cover all potential sites, saving you valuable time and resources. 

The Property Tour and Rating feature, combined with a Comparative Lease Analysis, ensures you present your clients with the best possible options, backed by solid data and thorough analysis.

View Sample Property Tour and Rating

Elevate Buyer Representation

As a buyer’s representative, presenting information clearly and attractively is essential. 

TheAnalyst PRO transforms poorly prepared materials from sellers into beautiful, comprehensible packages that your clients will appreciate. Our tools allow you to re-package and enhance the seller’s information, making it easy to understand and make informed decisions.

Conclusion

TheAnalyst PRO is designed for all CRE Professionals regardless of specialization. With our comprehensive suite of tools, you can tackle any deal with confidence and expertise. Whether you’re working with multifamily, self-storage, retail, industrial, or office properties, TheAnalyst PRO has you covered. 

Empower your business, impress your clients, and elevate your performance with TheAnalyst PRO – your ultimate CRE toolkit.

Join the THOUSANDS of CRE professionals that 

are winning assignments and closing deals with ease!

Multifamily Analysis and Marketing

Multifamily is a hot topic in commercial real estate these days!

We decided to do an update of where things stand, and how TheAnalyst PRO can help

work those multifamily deals with great speed and little effort.

Presented by Todd Kuhlmann, CCIM and Founder/CEO of TheAnalyst PRO (who is

quite partial to the multifamily sector of investment real estate) we give a quick snapshot

of recent metrics and where multifamily and apartments stand in the market cycle right

now.

Watch training webinar here

Valuable take-aways that can be used to win investment deals right now:

Identify Cash Cow Multifamily Properties

How to Interpret all of these Valuable Metrics

This full session on running a multifamily scenario in TheAnalyst PRO includes:

• Ability to run scenarios by Rent Roll or Unit Matrix.

• Use for rental houses up to multi-hundred units, and investment portfolios.

• Value Add! How to account for renovations and rent increase/customization.

• Include Key Performance Indicators and highly visual graphs!

• In depth presentation on how to create and interpret TheAnalyst PRO reports in a multifamily scenario.

• Compare current performance vs. pro-forma. Show that little changes can increase property performance!!!!

Other valuable features were presented as well:

• Create an impressive marketing presentation to market your multifamily investment/deal: PDF, Flipbook, property website and more

• Feed active properties to your website

• Lead generators

• Chat GPT creates property descriptions for you

• Location risk analysis

• Extensive 24/7 Training Center available for free in TheAnalyst PRO

Want to see this amazing platform for yourself?

Join the THOUSANDS of CRE professionals that 

are winning assignments and closing deals with ease!

Schedule a Demo TODAY!