Unlocking AI's Potential: 10 Essential ChatGPT Prompts Every CRE Analyst Needs Today

Leverage the Power of AI to Transform Your Commercial Real Estate Analysis

The world of commercial real estate (CRE) is a complex and multifaceted one, with numerous variables that analysts need to keep track of. Thankfully, tools like ChatGPT can help. ChatGPT is capable of understanding and generating human-like text, making it a powerful tool for a variety of applications in the CRE sector.

In previous articles on Prompts.Finance, we've explored how ChatGPT can simplify Property Market Analysis, uncover insights in Commercial Real Estate, navigate Occupancy Rates in CMBS, and even act as a Surveillance Analyst. We've also taken a deep dive into subprime auto deals, specifically AmeriCredit 2020-3.

In this article, our aim is to equip you with 10 key ChatGPT prompts that every CRE analyst can benefit from. Whether you're a seasoned professional or a novice in the field, these prompts are designed to help you harness the power of AI for more efficient and effective analyses.

Understanding the Prompts

Prompts are essentially instructions or queries you give to ChatGPT. They're the starting point of your interaction with the AI, guiding its responses based on the information you provide. A well-crafted prompt can lead to insightful, nuanced responses, while a vague or poorly designed prompt may yield less useful results.

Before we dive into the top 10 prompts for CRE analysts, we recommend you read our post on Crafting Stellar ChatGPT Prompts for Deeper Insights. This article provides a detailed overview of how to create effective prompts, and it's a great starting point if you're new to working with ChatGPT.

In the next section, we'll introduce you to the prompts. Each one includes a brief explanation of the context, the prompt itself, and why it's useful in the CRE sector. Remember, these are flexible tools—you can and should adapt them to suit your specific needs and objectives.

The Top 10 Prompts

1. Market Overview:

   Please provide a general overview of the current commercial real estate market in the United States.

   This prompt will provide an AI-generated analysis of the current state of the market. It’s useful for getting a quick snapshot of market conditions.

2. Market Trends:

   What should I consider when evaluating current trends in the commercial real estate market?

   With this prompt, you can get insights into trends that could impact your investment decisions or strategy. Again, since the basic version of ChatGPT does not have access to date post September 2021, it is tough to ask broad questions about today’s economic climate or specific trends, however, you can phrase it like this and it will often point you in the right direction on how to identify current trends.

3. Property Valuation:

   What factors should I consider when evaluating the value of a commercial property?

   This prompt can help you understand the key variables that influence the value of commercial properties.

4. Risk Assessment:

   What are the main risks in investing in commercial real estate?

   This prompt can help you better understand the potential pitfalls and challenges in the commercial real estate sector.

5. Investment Opportunities:

   Help me create a strategy to identify types of commercial real estate which present the best investment opportunities currently

   Similar to number 2 in this list, trying to ask ChatGPT a question focused on current market conditions is tough. In this case, let’s ask it to generate a strategy to identify current opportunities.

6. Impact of Economic Factors:

   How do changes in interest rates affect the commercial real estate market?

   This prompt can help you understand how broader economic factors can impact the CRE market. For extra credit, you can follow up by providing some interest rate curves in a CSV format. Or simply share current mortgage rate trends and have it identify potential areas to further research.

7. Performance Metrics:

   Can you explain the key performance metrics used in commercial real estate analysis?

   This prompt is useful for novices who need to understand the key metrics used in the industry. With a well prompted conversation, this usually provides a great response.

8. Legal Considerations:

   What are some legal considerations when investing in commercial real estate?

   This prompt can help you identify potential legal issues that might arise when investing in commercial real estate.

9. Comparison of Properties:

   How should I compare two commercial properties to decide which one to invest in? What are the key metrics we should review?

   This prompt can provide a framework for comparing different investment opportunities. This is another one where a great follow up could be providing a csv (simply copy/paste the data into the chat) of the metrics it identifies for the two properties.

10. Future Predictions:

    Understanding that your knowledge ends as of September 2021, how could we work together to come up with a list of predictions for the commercial real estate market in the next five years?

    Again, I like asking something specific like this, with a little opening to collaborate in a conversation. You will most likely get back a list of topics and some thoughts from ChatGPT on those topics. I got back a list of topics, the first one being:

    Impact of Remote Work: The COVID-19 pandemic has changed the nature of work, with many companies adopting remote or hybrid work policies. This could impact the demand for office spaces.

    I could then follow up on a response like that by saying:

    Let's dive into #1 - Impact of Remote Work. How would you go about analyzing it and it's impact on CRE?

    It came back with a pretty detailed list of ways to explore that topic:

    

Leveraging ChatGPT for CRE Analysis

Artificial Intelligence has become an indispensable tool in many fields, and Commercial Real Estate (CRE) is no exception. When incorporated into daily workflows, ChatGPT has the potential to revolutionize how analysts approach their tasks. The prompts provided in this article are not just standalone queries; they're stepping stones towards an efficient, dynamic, and insightful analysis process.

Imagine starting your workday by asking ChatGPT to provide a summary of recent news and trends in the CRE market. Throughout the day, you might ask it to compute complex calculations, clarify real estate jargon, or predict future trends based on historical data. With each prompt, you're saving valuable time and reducing the possibility of human error.

Moreover, ChatGPT doesn't just enhance efficiency—it can also increase the depth and breadth of your analysis. With its ability to process large volumes of data and its access to a vast range of information, ChatGPT can provide insights that might be otherwise missed. This powerful AI tool can be your second brain, always ready to assist you in making more informed and strategic decisions.

Conclusion

As we've seen, ChatGPT is not just a tool—it's a game-changer for Commercial Real Estate analysts. The top 10 prompts we've explored are a testament to its versatility and potential to redefine how CRE analysis is done. Whether it's understanding complex metrics, predicting market trends, or interpreting commercial lease terms, ChatGPT is equipped to handle an impressive range of tasks.

However, these prompts are just the beginning. As with any tool, the key lies in how you wield it. We encourage you to explore and experiment with ChatGPT, to customize these prompts, and to create your own according to your unique requirements and goals. As you do, you'll discover a whole new world of possibilities for analysis and decision-making in the CRE realm.

Let us know how these prompts have worked for you and the type of answers you got back from ChatGPT.

Happy Prompting!