Real Estate Development & Investment



At a Glance

  • Professor Edward Chazen
  • Summer 2014, 9 weeks, June 2 - August 1, 2014
  • 12 credits
  • Refer to "Quick Links" in the right sidebar for more information

Real estate is the largest asset class in the world and we experience it every single day; indeed, you cannot ignore or escape real estate, and you can touch and feel it. When neighborhoods are transformed, real estate is the building block of the transformation. Real estate is a means to address societal imperatives, such as smart growth to reduce congestion and preserve open space, affordable and low income housing to address income inequality and encourage socio-economic diversity, and “green” building design to reduce energy consumption. Real estate is also the subject of conflict between preservationists and private interests pursuing the profit motive, and public authorities that want to control the impact of real estate development on the community and developers that want to maximize density of development on land they own.

In this program, students will learn about the major elements that make real estate different from other assets and its unique financial and operating risks and opportunities; they will learn important terminology used in the real estate industry; they will learn how to do financial and investment analysis to value property and determine financial feasibility; they will learn about the capital markets for real estate, including the role of public sector financing to advance social goals; they will learn how to use market research to evaluate if there is a market for a proposed project; they will learn about the risks in developing property and ways to manage those risks; they will use the case method to learn about successful and unsuccessful real estate projects – and reasons why; they will meet real estate developers and other local experts; they will simulate exercises to develop skills in real estate negotiation; they will develop presentation skills to effectively describe  the merits and explain the risks of an investment; and, they will go into the field to touch, feel and experience real estate.  Greater Boston will be our laboratory.

BUS 35a, Real Estate and Society, is a prerequisite for this program. (On an exception basis, we will consider applicants who have not taken BUS 35a; if approved, these students will need to complete a packet of pre-readings, including chapters from a real estate textbook, and a 25-page real estate financial analysis workbook.)  

Courses:
BUS 137aj Real Estate Finance
BUS 138aj Real Estate Development
BUS 195aj Field Projects