THIS COURSE MAY BE TAKEN INDIVIDUALLY OR AS PART OF THE PROFESSIONAL CERTIFICATE PROGRAM IN REAL ESTATE FINANCE & DEVELOPMENT.
Evaluating Real Estate Markets is designed to help real estate professionals evaluate property investments in terms of better understanding the economic factors that drive real estate markets. Real estate rents, vacancy, and prices are all determined by the operation of selected economic markets. The course examines those markets and how they determine property fundamentals.
The course distinguishes between the markets for real estate space (occupancy) and the market for real estate investment (capital). It goes on to evaluate the impacts of global, macro, and local market forces on both.
Many current issues in real estate are covered in this course. These include the recent and continuing housing “crisis,” the globalization of real estate capital and its impact on pricing, technology, the changing spatial structure of cities (what this means for location decisions), and the evolution and increasing scale of real estate development.
This course has been approved for 8 CPD credits toward renewal of the CoreNet Global MCR designation.
- Anticipate how U.S. real estate markets will likely behave over the next 10 years
- Recognize the economic factors driving local real estate markets
- Understand theories concerning the causes and consequences of market cycles
Who Should Attend
This course is applicable to a wide range of professionals across the real estate, banking, finance/investment, and insurance industries. Specifically, the course may be of interest to fund managers, investment portfolio managers, financial advisors, investment bankers, fixed-income analysts, financial risk managers, global financial market specialists, professionals working in macroeconomic policy, real estate brokers, and commercial and residential builders. More generally, this class can be valuable to anyone dealing with global financial markets and real estate investments.
Laptops or tablets are required to access course materials. All materials will be distributed electronically.
Class runs 9:00 am – 4:30 pm. Please note that the schedule is subject to change.
9:00 am – 10:30 am: Stylized Facts about Real Estate Markets: Trends, Volatility, Market Integration, Mean Reversion and Classic Monocentric City Theory
10:30 am – 10:45 am: Break
10:45 am – noon: Urban Location and Modern City Spatial Structure
- Polycentric Employment Location
- Future Land Use and Long-term Rent/Price Trends
- MSA Case: Land Use and Rent Patterns
Noon – 1:00 pm: Lunch Break
Afternoon: Part II, Using Econometrics to Answer the Three Most Important Questions in Property Valuation
1:00 pm – 2:30 pm: Real Estate Timing: How Markets Work in the Aggregate
- 4 Q Diagram and Analysis
- Space User Demand Shocks versus Asset Supply Shocks
- Decomposing Market
2:30 pm – 2:45 pm: Break
- ECM modeling
- Relative roles of macro, market, and property factors
2:45 pm – 4:30 pm: Real Estate Cycles: Forecasting Market Reactions
- Data and Real Estate Markets
- Structural versus VAR Modeling
5:00 pm – 6:30 pm: Transforming Kendall Square
- Site visit to MITIMCO (MIT Investment Management Company)
The type of content you will learn in this course, whether it's a foundational understanding of the subject, the hottest trends and developments in the field, or suggested practical applications for industry.
How the course is taught, from traditional classroom lectures and riveting discussions to group projects to engaging and interactive simulations and exercises with your peers.
What level of expertise and familiarity the material in this course assumes you have. The greater the amount of introductory material taught in the course, the less you will need to be familiar with when you attend.