NOTE: YOU SHOULD NOT ENROLL IN THIS COURSE IF YOU HAVE TAKEN OR PLAN ON TAKING REAL ESTATE FINANCE (B7331)
The goal of this course is to make you knowledgeable and conversant about the principles of real estate. As both a physical asset and an investment asset with a defined location in space, real estate is strikingly different from other asset classes. Real estate forms part of the alternative investment asset class and institutional investors invest a substantial part of their portfolio in real estate. We will look at the investors in real estate and the investment management firms and how they are investing internationally. We will give an overview of investing in all major commercial property types: office, logistics, retail and residential, as well as niche sectors like senior housing and student housing. The goal is to give an overview of the international real estate market and provide you with the tool set to identify investment opportunities globally.
As an industry/business sector, real estate has grown in size and complexity over the past several decades. It has always been a capital-intensive business, so sources of capital and the structuring of transactions are essential components of operating in this field. The vast bulk of real estate assets represent almost everything around us—homes, apartments, retail, industrial, office, hotel, and recreational property, among other types—represent the existing stock. The business of real estate is the business of asset management, finance and investment, leasing, and acquisitions/dispositions of the existing stock, and these activities compromise the majority of real estate activity.
Real estate is also an industry that is facing disruptive changes due to advances in technology and the way people live and work. Online shopping has fundamentally changed how we interact with retailers, while use of logistics facilities are rapidly adjusting as retailers attempt to solve for problems with the “last mile.” The potential of driverless cars and trucks may fundamentally impact property values and how people value location. And as millennials bring new patterns and desires, apartment and office owners try to quickly adjust how they can attract this rapidly growing demographic.
This block week course is designed to provide you with an intensive dive into the changing fundamentals of real estate. It will cover several broad topics:
1) Scope and Character of the Global Real Estate Industry,
2) Real Estate Finance and Investment; and
3) Technological Disruption.
Paul Milstein Professor of Real Estate
Christopher Mayer is the Paul Milstein Professor of Real Estate at Columbia Business School. His research explores a variety of topics in real estate and financial markets, including housing cycles, mortgage markets, debt securitization, and commercial real estate valuation. Dr. Mayer is also CEO of Longbridge Financial, an innovative reverse mortgage company focused on delivering responsible home equity products to older Americans to help...