Neal Bawa joins Matt Faircloth for a wide-ranging conversation on where commercial real estate may be headed next, why he is targeting Q4 2026 for new acquisitions, and how AI is changing the way his company operates. Neal explains why the Midwest currently offers more workable multifamily fundamentals while the Sun Belt may offer stronger long-term potential. The discussion also covers the possibility of a future “debt jubilee,” AI-driven productivity growth, and Neal’s four-stage journey from company-wide ChatGPT adoption to building full-scale internal applications with AI.
Key Takeaways:
- 📉 Neal is targeting Q4 for acquisitions. He wants clearer signs of economic weakness and lower rates before moving aggressively, with the possibility of closing deals in Q1.
- 🏢 Multifamily’s problem is not demand. Neal argues that affordability challenges in single-family housing continue to support renter demand, while supply and interest rates remain the larger obstacles.
- 🌎 The Midwest works better on today’s numbers. Indianapolis, Oklahoma City, and Kansas City stand out because of recent rent growth and higher cap rates. Neal still prefers the Sun Belt over a longer five-year horizon.
- 🤖 AI could become a major productivity engine. Neal sees AI, followed by robotics, as technologies capable of creating productivity gains large enough to change the long-term debt equation.
- 💻 AI adoption goes far beyond ChatGPT. Neal’s company has progressed through four stages, from everyday AI use to custom GPTs, connected workflows, and AI-assisted development of internal applications.
