With an aggregate economic value of $5 trillion, income producing real estate in the U.S. represents a large class of investment assets that is highly segmented by geography and property type. While the growth and consolidation of publicly-traded real estate investment trusts (REIT) has increased the scale of the largest market players, the ownership of income producing commercial and residential real estate remains a highly
fractionalized, entrepreneurial business.
This course will focus on real estate investment: the process of buying, financing, operating and selling income producing real estate. First, we will gain perspective on real estate as one of the investment alternatives for a multi-sector investor. Then we will identify the unique characteristics of real estate investments reviewing the significant property types and reviewing historic returns to real estate investment and the sources of
that return. Next we will delve into the investment process itself: gathering and understanding positive and negative information on real estate markets, identifying and evaluating buying opportunities, raising secured real estate debt and understanding the impact of leverage on investments. Lastly we will discuss perspectives on current capital market conditions and their impact on real estate investment including differences in
valuation of assets between public and private markets and most importantly the sources and impact of the current credit crisis.
J. Daniel Adkinson was a Columbia Business School faculty member from 2003 to 2016.