Latest news with #LonnieHendry
Forbes
18-04-2025
- Business
- Forbes
How Macro Trends Impact Your Local Real Estate Market
The skyline of St. Paul, Minnesota. the capital and second-most populous city in Minnesota. ... More AFP PHOTO / KAREN BLEIER (Photo credit should read KAREN BLEIER/AFP via Getty Images) While knowing the neighborhood where you are investing is certainly an essential component to real estate success, following macro trends can give you a competitive advantage. You may be able to better understand how your local market could be impacted. In a recent podcast, I spoke with Lonnie Hendry, Chief Product Officer at Trepp and host of The TreppWire Podcast, a weekly show which offers insights on commercial real estate, structured finance, and banking news and trends. Lonnie shared the value of keeping the big picture in mind as you operate in your local market. Most recently, the impacts of new tariffs have hit the headlines; as important as it is to account for their effect in your investing decision-making, sometimes tariffs fall into the category of waiting and see what the ultimate implication will be on commercial real estate. As we wait for this to unfold, here are other macro issues to consider as you move forward with real estate investing. Whether you're buying a small multifamily in the suburbs or underwriting a large office building in a major metro area, your transaction will likely involve some level of capital. Those resources, especially funds coming from banks, private equity, or institutional lenders, will typically be deeply influenced by macro trends. When the Federal Reserve raises interest rates, for example, it immediately affects borrowing costs. Another effect relates to lenders, as they typically react by tightening their underwriting standards. For this reason, even if your local market is performing well, you might find fewer lenders willing to finance deals—or the terms become more expensive. In recent years, insurance premiums in commercial real estate have been influenced by natural disasters and the claims that follow. In some markets, especially where insurance used to be a minimal cost, there could now be higher associated charges. Similarly, macro policies like tariffs and taxes can drive up the cost of building materials, labor, and imported equipment. If you're involved in ground-up development or value-add renovations, this could lead to increases in your project's budget. Macro trends also influence how people view the real estate market and the decisions they make. When rates rise, buyers often opt for the sidelines and wait for price corrections. At the same time, sellers might get nervous if deal activity slows down. Conversely, when rates drop or a favorable economic policy is announced, markets may respond by an increase in transactions. Investors may step forward and sellers might raise their prices. You can set up a routine to follow macro trends and be aware of how they could impact your area. You might start by subscribing to newsletters and listening to podcasts which report on large-scale changes. Key indicators like the 10-year Treasury, inflation rates, unemployment data, and major policy announcements can also provide clues. You may also choose to follow the decisions lenders are making and trends in the debt market. You can check CMBS (Commercial Mortgage Backed Security) delinquency rates, for instance. CMBS is effectively a pool of loans which get bundled together and sold as a bond on the secondary market. The underwriting process and mechanics of the loan are effectively the same as a bank loan; however, there are some nuances. CMBS loans are typically non-recourse so they don't have a personal guarantee attached to them. They often get fixed rate financing for a 10-year term and are covenant driven, so there isn't as much of a relationship component as you might find with a local lender. Your deal may be in your neighborhood, but ultimately your success will depend on your ability to interpret and act on what's happening globally. Real estate is cyclical and macro trends do more than influence your market—they often set the tone. To stay ahead, you can follow the bigger picture to see what effects may come your way. This will help you be prepared to make informed decisions and take advantage of upcoming opportunities.
Yahoo
12-02-2025
- Business
- Yahoo
Trepp Unveils AI-Powered Search, Expanding its Capabilities to Enhance Commercial Real Estate Business
Trepp announced today the launch of new artificial intelligence (AI) tools, including AI search, a powerful feature designed to enhance how professionals navigate and extract insights from TreppCRE. NEW YORK, Feb. 12, 2025 /PRNewswire-PRWeb/ -- Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate (CRE), and banking markets, announced today the launch of new artificial intelligence (AI) tools, including AI search, a powerful feature designed to enhance how professionals navigate and extract insights from TreppCRE. Trepp's AI Search uses a proprietary generative AI (GenAI)-based model to allow users to ask complex, natural-language questions and instantly retrieve relevant commercial property, loan, and financial data. This enhancement simplifies the search process, making it faster and more intuitive for CRE professionals to find assets that match their investment or lending criteria. "Trepp has long been the industry's trusted source for market intelligence, and with AI Search, we're taking the next step in making our data more accessible and actionable," said Michael Holtzman, Chief Technology Officer at Trepp. "By integrating GenAI technology and machine learning, we are transforming the way our clients interact with our data – enhancing their efficiency and allowing them to access new opportunities, faster." AI Search is just one of several next-generation AI tools Trepp has introduced to strengthen market analysis capabilities for CRE professionals. Alongside AI Search, Trepp has also developed: AI-Powered Market Summary Chatbot – Quickly generates insights into any CRE market of interest. Hand-Selected Sales Comps – Unlocks AI-driven property comparisons tailored to specific investment needs. Income & Expense Comps – Allows for benchmarking of asset performance with AI-informed expense and revenue data. Financial Proforma Modeling – Creates detailed financial projections by using advanced AI models to leverage rapid comps, property size and age, demographics, and location data. "The evolution of AI in CRE is accelerating, and Trepp is at the forefront of delivering tools that drive smarter decision-making," said Lonnie Hendry, Chief Product Officer at Trepp. "These enhancements reflect our broader mission to blend Trepp's trusted data with state-of-the-art technology, to give our clients access to the tools they need to more effectively navigate today's real estate marketplace." For more information on Trepp's AI solutions and to experience AI Search firsthand, visit or request a demo here. About TreppTrepp, founded in 1979, is the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York, Dallas, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT). Media Contact Ennys Soydas, Trepp, Inc., 212-754-1010, press@ Twitter View original content to download multimedia: SOURCE Trepp, Inc.
