Commercial Real Estate Analysis for Investment, Finance, and Development

Preface

Organization of Book

About the Authors

PART I. Real Estate Investment Foundation, Time Value of Money and NPV Decision Rule

1             Introduction to Commercial Real Estate Investment

2             Present Value Mathematics for Real Estate

3             Measuring Investment Performance: The Concept of Returns

4             Micro-level Valuation of Real Estate: DCF & NPV

PART II. Nuts and Bolts of Property Income Analysis

5             Income Definitions for Commercial Real Estate

6             Determinants of Rent I: Market Level

7             Determinants of Rent II: Property Level

8             Forecasting the Space Market I: Real Estate Market Analysis

9             Forecasting the Space Market II: Estimating Cash Flow Growth

10           Leases and Leasing Strategies

PART III. Completing the Basics of Micro-level Real Estate Investment & Finance

11           Finding the Cost of Capital for Your Real Estate Investment

12           Use of Debt in Real Estate Investment: The Effect of Leverage

13           After-Tax Real Estate Investment Analysis

14           Advanced Topics I: Investment Value in Property Investment & Debt Financing

15           Advanced Topics II: Capital Structure

The following online chapters are available at www.routledge.com/cw/geltner-miller

PART IV. Real Estate Development

16           Real Options and Land Value

17           Investment Analysis of Real Estate Development Projects I: Overview & Background

18           Investment Analysis of Real Estate Development Projects II: Economic Analysis

Part V. Mortgages from an Investment Perspective

19           Mortgage Basics I: An Introduction and Overview

20           Mortgage Basics II: Payments, Yields and Values

21           Commercial Mortgage Analysis and Underwriting

Part VI. Macro-Level Real Estate Investment Analysis

22           Real Estate and Portfolio Theory: Strategic Investment Considerations

23           Equilibrium Asset Valuation and Real Estate’s Price of Risk in the Capital Market

24           Data Challenges in Measuring Real Estate Periodic Returns

25           Real Estate Investment Management

Part VII. REITS, Climate, and Other Selected Topics

26           Real Estate Investment Trusts (REITS)

27           International Real Estate Investments: Markets, Strategies, and Implementation

28           Real Estate, Sustainability, and Climate Risk

29           Technology and Real Estate: A Synthesis

Biography

David M. Geltner is Professor Emeritus of Real Estate Finance at the Massachusetts Institute of Technology. He taught real estate investments for 13 years at the University of Cincinnati, and for 20 years at MIT where he held leadership positions in the Center for Real Estate and the Master of Science in Real Estate Development degree program. He is the recipient of the David Ricardo Medal of the American Real Estate Society, the James Graaskamp Award of the Pension Real Estate Association, and the John Quigley Medal for Advancing Real Estate and Urban Economics of the American Real Estate and Urban Economics Association. Geltner was the lead author of the prior three editions of this textbook.

Norman G. Miller is an Emeritus Professor at the University of San Diego and the University of Cincinnati, and Vice-President of the Homer Hoyt Institute, a think tank of global urban economic scholars and industry research directors. He is a housing, finance and capital markets expert. He started the Journal of Sustainable Real Estate, and served as the President of the American Real Estate Society. See https://www.linkedin.com/in/norm-miller-8167935 / Contact at [email protected]

Alex van de Minne received his PhD from the University of Amsterdam in 2015. After which, he tried his luck on the other side of the pond in the United States. Since then, he held both academic and industry positions in renowned institutes, including MIT, Moody’s, Real Capital Analytics, and the Federal Reserve of Philadelphia.

Piet Eicholtz is Professor of Finance and Real Estate at Maastricht University, where he chaired the Finance Department. His academic work, which is published internationally in academic and practitioner journals, focuses on real estate sustainability and climate risk, (long-term) real estate investment performance, REITs, and international real estate investment. His teaching in real estate and finance has won numerous awards and he is one of the initiators of the Global Real Estate Leaders Program. Besides his academic career, Eichholtz is an active entrepreneur, having started several companies. He also serves and served in advisory and non-executive roles with institutional investors and property developers.

Thies Lindenthal is the Grosvenor Professor of Real Estate Finance at the Department of Land Economy, University of Cambridge, England, and a professorial fellow at Pembroke College. His research interests are twofold: First, he analyzes property investments in the very long term, tracking rents, prices, and returns for up to 500 years. The second research line focuses on applied machine learning techniques to utilize high-dimensional “Big(ish)” data. Put differently, he uses images and other data that are too complex for spreadsheets to better understand property values, household preferences, and decisions made by very human and not always rational agents.

Lily Shen is an Associate Professor of Real Estate Finance at Clemson University and a visiting scholar at the Federal Reserve Banks. After witnessing the 2008 financial crisis, she dedicated her career to advancing real estate research aimed at fostering more resilient financial systems. Leveraging her experience in Silicon Valley, she has been at the forefront of integrating AI into real estate teaching and research. Her work has been featured in The Economist and The Washington Post, and published in leading academic journals, including the Journal of Financial and Quantitative Analysis, Management Science, and the Journal of Urban Economics.