Welcome to CRE Tech Pulse: your guide to all things AI and Tech in the commercial real estate industry with a little bit of fun. Here's the latest news from the week ending March 21st, 2025:
Google Gemini is Killing It with New Tools and Ways to Collaborate
If you had asked me about Google's AI products late last year, I would have told you they were falling behind, with one of the weaker product lines among the major players. Fast-forward to March 2025, and Google has been absolutely killing it with their latest offerings.
The first one isn’t necessarily a new concept, but they’ve introduced Canvas, a feature that lets you create code alongside your natural language conversations—similar to ChatGPT’s Canvas or Claude’s Artifacts. The younger crowd calls this "vibe coding" if you don’t actually know how to code.
"Vibe coding" is all the rage—it marks the beginning of the democratization of software development. Imagine being able to create any software you need simply by explaining the problem you’re trying to solve. I’ve been vibe coding financial analysis worksheets, which have been incredibly useful and adaptable for different situations. But in the future, just imagine the possibilities—creating complex solutions simply by thinking and speaking in natural language.
Also, if you’re a fan of NotebookLM’s Audio Overview feature, I’ve got good news—Google has now rolled it out to all of its regular Gemini models. Now, you can dive deep into research, generate an audio podcast from your findings, and listen anytime. It’s a new and creative way to share and absorb information.
Currently, the feature is available in English, but support for other languages is coming soon. Imagine sending your international clients a market overview in their native language!
Impact for CRE: High. Creating code on the fly unlocks massive opportunities—whether it’s financial analysis, a custom website, or even a game, the possibilities are endless. Coding isn’t just for millennials in headphones anymore.
Also, the Audio Overview feature is 🔥. It’s such a cool and creative way to share information.
Try it out and let me know what you think! I’ll showcase the most creative one in the next newsletter.
Claude by Anthropic Finally Connects to the Internet. What took so long?
Anthropic’s Claude models are being released from captivity and set loose on the wild internet. Now, you can use the model to find up-to-date information, research, cat videos—whatever your heart desires. Plus, it provides citation sources so you can verify the information it retrieves.
The big question: How good will it be at surfing the web? Will it be like watching your grandpa try to log into Facebook? (“What’s a username again? Where do I click?”) Or will it be a seamless, intuitive experience? We’ll find out soon.
For now, this feature is only available to the fancy premium folks, but according to their product lead, it should roll out to freeloaders in the next few weeks. You’ll probably need to flip a switch in your profile to enable it.
Impact for CRE: Moderate. Having another research buddy certainly doesn’t hurt. I also really like Claude for creativity—imagine pulling fresh internet knowledge and turning it into a blog post or article. I’ll keep you posted on access.
If you’re a premium user, tell me what you think of it!
Prompt of the Week
Create an Apartment Development Financial Model Using "Canvas" Feature
Log in to ChatGPT, Claude or Gemini:
- Select "Canvas" for ChatGPT or Gemini. No need to select anything for Claude.
- Copy and paste the prompt below.
- Use natural language to make edits in real time.
Use this prompt:
I want to create a financial analysis model for an apartment developer using these inputs. Make the inputs adjustable for different scenarios. Put into HTML interactive format and make the development costs and yield spread editable.
- Land & Site Costs * Land Price – Cost per square foot or per unit. * Site Prep & Entitlements – Rough estimate for zoning, environmental, and infrastructure costs.
- Development & Construction Costs * Hard Costs – $X per square foot or per unit. * Soft Costs – Typically 20-30% of hard costs (architecture, permits, legal). * Contingency – 5-10% of total development costs.
- Financing Assumptions * Loan-to-Cost (LTC) Ratio – Typically 60-75%. * Interest Rate & Loan Terms – Construction loan 6-9%, permanent loan 5-7%. * Equity Requirement – Developer + investors cover remaining capital.
- Projected Revenue * Market Rent Per Unit – Comparable rents per unit type. * Occupancy Rate – 90-95% stabilized. * Lease-Up Time – 6-24 months post-construction. * Other Income – Parking, pet fees, storage.
- Operating Expenses (OPEX) * Expense Ratio – 30-40% of gross income. * Property Management Fee – Typically 3-5% of gross income. * Property Taxes & Insurance – Roughly 1.5-2% of asset value.
-
Return Metrics (Quick Checks) * Development Yield (Cap Rate on Cost) = NOI / Total Development Cost
- Target: >6.0% * Stabilized Cap Rate vs. Exit Cap Rate
- If Yield > Exit Cap Rate, likely profitable. * IRR Target – 12-18%+ for investors. * Break-Even Rent Per Unit = (Total Costs / # Units) ÷ Market Cap Rate
- Sensitivity Checks * +10% in costs? Can you absorb it? * -10% in rents? Still cash flow positive? * Exit Cap Rate Shift? If it goes up, do returns still pencil?
Other News:
How Do You PropTech?
Let us know what you're doing! We are going to be featuring different professionals and how they use AI and tools in their business. Tell us about it and maybe you'll be highlighted!
Did you enjoy this email?
|
