Seth Sinovic | KC Industrial CRE

@credealjunkie This is great!

You're in CRE. You know you’re behind on AI. But you don't know where to start. This post is for you. I've spent 200+ hours building CRE tools in Claude as a non-technical person. I use them every day on live deals. Here's the Claude Starter Kit I wish I had on day 1: Disclaimer: Claude will blow your mind, but will NOT solve your operational challenges on day 1. Tinker, fail, have fun, learn the basics and go from there. You know your business and will figure out where to focus, where to plug in to address your specific pain points. But you can't get there if you don't start. I promise the payoff will come. It has for me and just keeps compounding. Here are five simple use cases, broken down by role, that show what Claude can do. I included pre-made prompts so you can start right away. ACQUISITIONS 1) PDF => Excel The simplest of all AI tricks, this is the one that got me hooked. Drop a PDF rent roll into Claude and see it turn it into Excel. PROMPT: Turn this rent roll into one clean Excel workbook. Include unit number, tenant name, unit type, square footage, current rent, market rent, move-in date, past-due balance, and a live upside column (market minus current). Add annual totals at the bottom and flag any tenant below 20% of market. Next steps: This doesn’t just work for rent rolls of course. Drop in an OM and ask for the Pro Forma in excel, the lease abstract, whatever. This one you’ll find uses for right away. 2. Create neighborhood amenity maps for pitch decks This was my first Skill, created out of pure annoyance that I couldn’t get Claude to easily recreate those POI maps it takes hours to create in Powerpoint. But Claude is so good now, the Skill I built is already obsolete. PROMPT: Create a branded amenity map for [property address]. Show transit stations, hotels, museums, major retailers, and restaurants within a 5-block radius. Show a maximum of five amenities for each category. Produce it as a standalone HTML file with a dark-mode sidebar and light-mode map tiles so I can open it in my browser and screenshot for a pitch deck. (want my actual Skill that creates a more OM-ready version of the map? Shoot me a DM). Next steps: These maps are amazing. Upload your Excel pipeline into Claude and ask for a dynamic map with key stats about each Pipeline property. You’ll be amazed at what comes up. DUE DILIGENCE 3) Turn site visit voice notes into structured DD reports Here’s another immediate winner. Ever leave a site walk, sit down at your desk, stare at half a page of scribbled notes and some janky iPhone photos and realize you lost 80% of what you just saw? No more. Lots of ways to work this into your process, but here’s an easy one. After the walk, go sit in your car and verbally brain dump everything you can remember into Claude. Just hit the voice record button and it will transcribe to text. Next, copy the text into a new chat with the following prompt: Organize this site visit transcript into a structured DD report. Categorize findings by roof, envelope, plumbing, electrical, HVAC, elevator, life safety, structural, and interior/common areas. For each category, summarize condition, flag urgency (immediate / Year 1 / defer), include estimated costs if discussed, and note where a vendor bid is still needed. List any categories not covered. Distribute to your partners and they immediate know what you know. Next steps: Record vendor feedback on site, drop third party reports into a running DD chat, there are dozens of ways to use Claude for DD but this simple brain dump exercise is the way to start. 4. Read any third-party report in plain English Our latest SRA report was 67 pages. The PCA was 113. The ESA was 387. Claude is good enough now to pick up the most important elements of these reports and call them out, summarize and explain in plan English. By all means double check the work, but this will save you a tremendous amount of time. PROMPT: Summarize this report in plain English for an underwriting audience. What are the key findings, what would worry a lender, what capex should I add to my model, and what DD action items should go on my follow-up list? Flag anything that could move pricing. Next steps: Drop in any PDF, ask the same thing. Earnings reports and transcripts, SEC filings, OMs, market studies, etc. Bonus Prompt for work order reports: Review this work order history and tell me what systemic issues the building has. Call out turnover patterns by unit, recurring maintenance categories, emergency response time red flags, and anything that points to deferred capex. Be underwriting-focused, not descriptive. DATA/TREND ANALYSIS 5) Crunch any dataset As a data hobbyist / nerd, this one also hooked me. Claude runs code beneath what we all see, so as long as we ask the right questions, the math is (usually) right and Excel charts are a thing of the past. Try this: Navigate to ApartmentList. com’s data page and download their nationwide rent estimates. Upload the CSV to Claude and ask the following: Analyze rent trends for Austin, Houston, Dallas and San Antonio, normalizing data from 2020-2026, 2022-2026, 2024-2026 and for the past 12 months. Pick any city you want, any time period. Immediate market insights. I find these side by side city comparisons a super helpful way to see how certain factors (Covid, immigration, etc) impact cities differently. I can now choose any combo, for any time period with a simple text prompt. Next steps: dump your expensive, janky CoStar data in and let Claude make sense of it. -- If you got this far, you’re well on your way. Now, here are three tips for general Claude usage I figured out the hard way (ie trial and error). 1) Ask Claude to help This is actually tips 1-100, it totally unlocked my Claude usage. It turns out Claude is much better at using itself than you are, so ask it how. “I want you to help me underwrite deals without losing my personal touch, how can we work together?” “I need to collect rental comp data without breaking any laws – how can you help?” Rather than trying to brute force Claude into following your low-brow human instructions, get Claude to write the prompts, write the instructions, create you a step-by-step guide. Embrace the fact that this is, for our purposes, the smartest thing you’ll ever come in contact with – so use the hell out of it. 2) Use Projects for work you do more than once A Project is a workspace where Claude can more easily do the same thing over and over again. Projects accrue memory so it doesn't lose the script, and you can even have Claude write itself instructions to perform better and create (for example) due diligence reports in the same format every time. I have projects for: Deal underwriting, rental comp collection, portfolio analysis, due diligence and others. For now, don’t worry too much about whether to use Chat or CoWork – you’ll figure that out in time and you can move projects and chats back and forth between the two. 3) Promote good outputs back into your project knowledge An early frustration of mine was that Claude’s output was inconsistent. I’d ask for a DD report and the categories would be different every time, the graphs looked different, etc. This is an easy fix. Grind through with Claude what you want the output to look like - remember you can relentless correct and improve and Claude will just happily chug along like the good little sycophant it is and keep making the report better. Once you have the format you like, save it and upload it back into the project main page and ask Claude to add the report to its memory so whenever you ask for “DD report” you get the same thing. There are more advanced and cleaner ways to do this with Skills, etc but this is an easy start.

@ChadGriffiths @_specofdirt

Investing in industrial real estate is easy. You just need to: • Find a building that tenants actually want (not just today but through different market cycles) • Make sure it works for multiple tenant types and not just one very specific use case • Understand the micro location, surrounding uses, access to major routes, traffic flow and site circulation • Confirm zoning allows current and future uses, including any restrictions, overlays or non conforming risks • Evaluate site layout including yard space, trailer parking, turning radii and site coverage efficiency • Assess building functionality like clear height, column spacing, bay sizes and overall layout efficiency • Analyze loading configuration including dock vs grade, door counts and how it actually functions operationally • Verify power capacity, distribution, and whether it can support different tenant requirements • Review office buildout ratio and whether it aligns with typical demand for that size range • Understand construction type, age and how that impacts maintenance and tenant appeal • Identify any functional obsolescence that could limit future leasing • Benchmark all of it against competing buildings in the market (not just in theory but in active listings) Then run a quick proforma: • In place rents vs market rents vs achievable rents • Lease rollover schedule and downtime assumptions • Tenant improvement allowances and leasing commissions on renewals and new deals • Free rent, inducements and absorption timing • Vacancy assumptions by suite size and tenant profile, not just a flat rate • Operating costs broken down by fixed vs variable and recoverability • Property tax reassessment risk post acquisition • Insurance, utilities, repairs and maintenance with inflation assumptions • Capital expenditures including near term vs long term and reserve planning • Deferred maintenance you didn’t see on day one • Debt terms, interest rate assumptions and sensitivity to rate changes • Loan covenants, DSCR thresholds and refinancing risk • Exit cap rate, disposition costs and timing • Sensitivity analysis on rents, vacancy, cap rates and interest rates • Scenario modeling for best case, base case and what just went wrong case Simple. After that, you and your lawyer review: • Purchase agreement including reps, warranties, conditions, timelines and outs • Title search for encumbrances, easements, rights of way (and any restrictions on use) • Survey to confirm boundaries, access points, encroachments, and site functionality • Existing leases including rent rolls, expiry profiles, renewal options, and assignment clauses • Tenant inducements, side letters, and any off book agreements • Estoppel certificates and tenant confirmations • Service contracts, vendor agreements and termination rights • Zoning compliance and any legal non conforming use risks • Environmental liabilities, both known and potential • Historical issues tied to prior ownership or use of the property • Financing terms, lender requirements and personal or corporate guarantees • Structuring considerations for ownership, tax implications and liability exposure No big deal. Then order a few routine reports: • ESA to confirm the soil isn’t a future science experiment • PCR to make sure the building isn’t quietly falling apart • Appraisal so the lender agrees with your optimism And while you’re at it: • Validate that the rent you’re underwriting is actually achievable • Confirm there’s real tenant demand, not just theoretical demand • Make sure the building still works if your current tenant leaves • Stress test everything in case the market shifts • Figure out who is doing property management. What about asset management? • Don't forget insurance too, which might be a bit more complex than a single family home. Oh and it's not difficult competing with significantly more experienced investors, some of whom have entire teams devoted to sourcing and analyzing deals. But if you just ignore all the asymmetries of information and the considerably high risks maybe they just go away? Anywho, once you get through these details it's really easy peasy.

@rohde88 A - every time

Would you rather own: A) A basic warehouse in a strong market B) A fully leased, highly specialized facility with a big-name tenant Same price. What are you choosing?

@realEstateTrent Time ⏱️

What kills more real estate deals than anything else?

What’s the biggest challenge for KC industrial tenants right now? #industrialrealestate #CRE #KansasCityCRE

@downthebyline I agree he could take a touch but it’s risky. If it’s a bad touch, could be a tap in instead of a turnover. Too much time and space after the turnover as well. Great finish, but need to close him down quicker.

@ssinovic I'll defer to the former pro on that than. I thought he coulda taken a first touch slightly to his left away from the VAN attacker in front of him, which would have allowed him to get his head up and see Reynolds. But yes, a clear from either 1 is probably the better option.

There's nothing wrong with that ball from Pulskamp, Tschantret has space to take a touch before just playing it.

That supply-demand gap is creating really opportunities for owners of existing small-bay product. If you own a flex or small-bay industrial building in the KC metro, your asset may be worth more than you think!

Interesting KC industrial trend right now: Tenant demand for small-bay flex and industrial is climbing. Almost no new construction in that size range. Economics push developers toward larger builds.

@ChrisRamsey60 Looks great, what sort of clear height are we looking at there ?

Attempting to turn this into this 👌

Anything you would add to the list???

5. Early termination or contraction rights. Business changes. Having an out, even with a penalty, is better than being locked into a space you don’t need.

4. Cap on CAM and operating expense increases. NNN doesn’t mean you should ignore what you’re paying. Make sure annual escalations are reasonable and defined.

3. Exclusive use or right of first refusal on adjacent space. If you’re growing, try to protect your ability to expand without relocating.

2. Renewal Options. If you can lock in your right to stay at a predetermined rate or FMV, do it. Don’t leave this to future negotiations where you have less leverage.

5 things I recommend every industrial tenant should negotiate with their lease: 1. Free rent. Most landlords will offer a few months on a longer term deal. If they don’t bring it up, you should.

I’ve been using Claude more frequently in my CRE business. Curious if there is a recommended model of Claude that the CRE community recommends. Thoughts? #CRE #Industrial #IndustrialCRE

@realEstateTrent It seems like no matter how many avenues I try when it comes to networking and prospecting, I always find the most success with the cold call. Not sure where I’d be without it. Always willing to try something new though.

That’s it. People have stopped answering their phones. So now what? It’s all-hands-on deck to find deals right now for our team, and I’ve joined them to cold-call brokers. Out of 10 calls I made yesterday - zero picked up. So I leave a voicemail: “Good Morning. My name is Don Tepman, I’m a principal, and we buy strip centers. I know that’s your focus - we’ve bought 45 of them, and we buy them all cash. Would love to find a way to work together. Please give me a call when you have a moment. Thanks so much.” 2 out of 10 called me back. If you try to reach people via cold-email, many of those go to a spam or promotions folder. People are staring at their phone all day but they’re not using it to actually be on the phone. So it begs the honest question, how exactly do you build new relationships in this new environment? How do you grow your business when the telephone and email are no longer tools you can count on? How do you get people’s attention at scale? I guess since people are scrolling social media every day - I guess that’s the only place you can really reach them and relay your message with any type of scale. In many ways, the cold-call might be dead.

@ClarenceWongCRE @TheCarlosRovira What’s your threshold for requiring a personal guarantee for commercial tenants?

@TheCarlosRovira Yes, ask for financials / P&Ls vs credit scores for commercial tenants. Multifamily is a different animal. Running credit scores is more common.

The worst way to screen a commercial tenant: running their credit score and calling it due diligence. A small business tenant's personal credit tells you almost nothing about whether their business can pay rent. Ask for 2 years of P&Ls, 6 months of bank statements, and their business plan for the space. I've seen 750 credit scores default on leases because the business was bleeding cash. The tenant's financials matter more than their FICO.

Good size hail in North Leawood, KS last night.