Thesis: M. Arch. in Real Estate Development, Massachusetts Institute of Technology, Department of Architecture, 2016. / Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (page 97). / The thesis project is a reaction to the alarming rate of building and development depreciation caused by foreign investment in the Middle Eastern city of Dubai. The intervention looks at how architects, developers, and planners can counteract this phenomenon by designing for speculation in order to mitigate future crises or successes. Understanding the economic terms of "creative destruction" and "planning obsolescence" are imperative to help structure such a proposal Though such terms were attributed to industrial products such as cars and electronics, they are today applicable in the context of Dubai and similar cities worldwide. Architecture and real estate products have become victim to this capitalist phenomenon. The project is framed as an architectural reaction to the world's increasing capability to make and accumulate in conjunction with a growing desire to be transient and global. Has architecture become a mere toy product which can be changed around as it become obsolete? Rather than be destroyed, how can architecture morph and be updated into something new? Architects are not in complete control of consumer wants and needs; these, too, continue to change at a dynamic pace. I argue that a synchronized system that can reflect flexibility is integral in order to maintain equilibrium in the urban economic model today The project design is an infrastructure capable of harnessing capital inflow and outflow while withstanding volatility, temporality and a population in-transit Dubai is the core case-study and the thesis explores how such a generic system can adapt to cities such as Miami, New York City and Juba. / by Marwan Joseph Abou Dib. / M. Arch. in Real Estate Development / S.M. in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2014. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (pages 75-80). / Global development has currently become an important business for developers. Although the business involves complex economic, political, and cultural issues, international real estate has been more attractive. Economic and political analysis tells the timing of getting into the market. Demographic analysis indicates if the market would expand and which target developers should focus on. Also, we can find out competitiveness and how to differentiate from other companies. Japan has not showed dramatic economic improvement for 20 years. The mature country has several issues: aging, low birth rate, and natural disasters. On the other hand, Summer Olympics 2020 will be held in Tokyo and the government has decided to dramatically improve the infrastructure. Japan will change and I would like to find out the opportunities and challenges of Japanese real estate. Hawaii market has been influenced by tourism. The market is really unique; the resort area attracts house buyers and renters from all over the world. Most visitors come from the US main land and Japan. Glancing the US and Japanese economy, developers can find out the real estate business opportunities. Vietnam has developed the infrastructure and real estate legal systems. With the new infrastructure development and the assistance of private developers, the country provides more housing. Moreover, the legal system had not allowed foreigners to own properties but has been changed to invite more capital from other countries. I have worked for a Japanese developer and experienced a short period of economic growth but we did not significantly invest and the good economy was over by the financial crisis. Most Japanese developers experienced the bubble economy and were tremendously influenced by that time, becoming more cautious in their outlook. The timing for expanding business now is perhaps not optimal. However, the benefits and challenges in these regions can be well-balanced for global developers who are eager to gain a foothold into international real estate markets. / by Mitsuhiro Nomura. / S.M. in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2018. / Cataloged from PDF version of thesis. / Includes bibliographical references (page 31). / In equity markets, dividend yields are highly correlated with future returns, largely through capital appreciation. Taking the same logic and applying it to the commercial real estate market -- could cap rates therefore predict future appreciation return? This paper finds that absolute cap rates are not significantly correlated with future appreciation or depreciation. However, regressions of first-differenced cap rates on future price appreciation find strong statistical significance at one, two, and three-quarter forecasts. The relation is strongest at a two quarter forecast, declining at four-quarter forecasts and thereafter. These findings support a case for momentum in commercial real estate pricing. Pricing movements, via cap rate changes, predict future appreciation or depreciation. The statistical results show that changes in cap rates are inversely correlated with future price appreciation or depreciation. When cap rates shift downward. properties tend to appreciate in future quarters, on average. And when cap rates shift upward, properties tend to depreciate in future quarters, on average. The analysis is bifurcated by asset type and market size. When analyzing this relation on an asset-class level, the predictive power of cap rate changes on future appreciation and depreciation is strongest in retail. Additionally, this relation is stronger in Primary CSAs than in Secondary CSAs. Astute investors should keep a close watch on the capital markets as they implement portfolio management strategies. While not to be utilized in isolation, these findings on momentum should be taken in context of a greater acquisition and disposition strategy. / by Frank Kettler. / S.M. in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2015. / Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (pages 71-73). / The rising supply of both domestic and international capital pursuing yield in major U.S. real estate markets is staggering and has resulted in substantial unmet demand for quality, institutional assets. This thesis examines the pricing and yield arbitrage between institutional and sub-institutional grade assets, as defined by valuation parameters, alongside the feasibility of an investment model to capitalize on the aggregation of subinstitutional assets into portfolios attractive to institutional investment. The U.S. market was analyzed both quantitatively and qualitatively to determine the viability of the perceived arbitrage, the components comprising both institutional and noninstitutional markets, and where these have been successfully capitalized on with an aggregation investment model. In order to assess the viability and best practices of an aggregation strategy, interviews were conducted with firms invested in or executing this model. A repeat sales index was also created using data provided by Real Capital Analytics which comprised over 68,000 transactions of assets valued above $2.5 million which transacted between 2000 and 2014 across the United States. The interviews, regressions, and corresponding data analysis revealed distinguishable trends underlying institutional and sub-institutional assets within specific markets. These trends suggest that there is inefficiency in the real estate market regarding the pricing of certain sub-institutional assets in older, land-constrained cities making them target locations for an urban aggregation model. The largest disparities between sub-institutional and institutional investments were found in the yield and growth rates of specific assets based on underlying market criteria. By aggregating these two metrics for total return averages for non-institutional and institutional assets, and by analyzing the risk performance of each, we conclude the existence of a different pricing of risk, which generates the potential for arbitrage. Specifically, non-institutional properties exhibited better risk-adjusted returns relative to their larger counterparts for land constrained, older regions and cities, confirming our hypothesis. / by Bernardo A. Sacchini Bruzual. / S.M. in Real Estate Development

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012. / This thesis was scanned as part of an electronic thesis pilot project. / Cataloged from PDF version of thesis. This thesis was scanned as part of an electronic thesis pilot project. / Includes bibliographical references (p. 115-123). / This thesis analyzes condominium and apartment development in the downtown Chicago residential market between 1997 and 2011. Specifically, it focuses on developments that converted from apartments to condominiums mainly during the boom years between 1997 and 2007 and developments that converted from condominiums to apartments during the bust years between 2008 and 2011. In the case of the latter, this thesis seeks to determine the reason or reasons that these developments had to convert from condominiums to apartments through a detailed analysis of four such developments. This analysis addresses development drivers including timing, pricing, and location. Additionally, this thesis considers the overall market conditions including supply, demand, economics, and demographics to determine what caused the boom and the ultimate bust of the market and these developments. / by Canan Ceylan Safar and Daniel Pollard. / S.M.in Real Estate Development

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2013. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (pages 44-45). / This paper seeks to answer a question that real estate developers have wrestled with for years: apartment or condo? Given that the two types of residential units typically occupy similar buildings and structures, the goal of this research is to determine if condo prices follow rents. If a correlation is found it could have significant impact on the development of residential housing. To answer these questions historical housing prices from 1996 to 2012 for 44 of the largest metropolitan statistical areas in the U.S. will be studied. Linear regression analysis will be utilized at the metro level to understand how condo prices are influenced by apartment rents, single family home prices, the housing price index (HPI) and the yield on the 10-year U.S. treasury. The results of the analysis tell us that condo prices have followed and acted very much like single family home prices during the last 16 years. The easy credit and cheap lending that was available during the housing boom separated the single family and condo markets from the rental market by turning renters into owners. During this time rental prices remained relatively flat whereas condo and single family prices moved together and were correspondingly hit harder as a result of the financial crisis. The main implication of these findings is that it appears the type of tenure associated with a housing product has a measurable effect on the price. The physical similarity between condominium units and apartment units in large metropolitan markets does not necessarily signal a relationship in price and thus, apartment rents typically do not represent the present discounted value of condo prices. / by James D. Hughes. / S.M.in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 68-71). / U.S. commercial real estate debt capital market is experiencing some underlying structural changes. New regulations in banking and CMBS industry have resulted in reduced roles of these regulated lenders in the commercial real estate financing market. Funding gaps appear in the market as regulated lenders pullback from various types of lending. This paper delivers a comprehensive and most updated analyses on the current U.S. commercial real estate debt capital market opportunities and investment strategies. The paper illustrates the current debt capital market landscape, summarizes the key regulation changes that created challenges for regulated lenders, identifies the current dislocations and opportunities in the U.S. commercial real estate debt capital market, analyzes appropriate investment strategies that can capitalize on these opportunities, and finally identifies target investors for each strategy. This paper takes the angles of both investment managers and institutional investors, as it provides insights and analyses for both audience groups. / by Yunda Li. / S.M. in Real Estate Development

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2011. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (p. 53-54). / Over the last decade, Morocco has witnessed an accelerated process of political, economic and social reforms aimed at improving the business climate and solidifying the economic indicators. Morocco's structural reforms share the objective of positioning the country as an attractive investment destination. The impact of these reforms has been felt in many sectors particularly real estate which has been developing at phenomenal rates in recent years. Aware of the great strides that Morocco has taken to position the country as an attractive investment destination, many foreign real estate developers expressed their interest to participate in the real estate sector. However, the financial crisis forced these developers to revise their business plans and put their projects on hold. Structured into three sections, the thesis aims to answer the question of: Is Morocco an attractive destination for foreign investors looking to invest in the residential real estate segment? The first chapter introduces the country and highlights key social and economic reforms which establish Morocco as a growing emerging economy whose government is proactively introducing investor-friendly reforms, incentives and programs. The second chapter presents an analysis of the housing sector, its demand drivers and supply indicators. A market segmentation is then performed which coupled with a market analysis, case studies and interviews, reveals that the low income segment is the best segment to target for investment. The third chapter sheds light on the evolution of foreign direct investments in the real estate sector. It proceeds to identify the differences between the local and foreign developers in terms of focus, strategy and profitability as well as outline key measures that the Moroccan government should take in order to encourage foreign participation in the sector. The paper concludes with a summary of findings and an investment framework for future developers looking to participate in what seems to be a lucrative and rewarding sector. / by Khadija Oubala. / S.M.in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2014. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (pages 75-76). / A central consideration in real estate is how value is created in real estate development and investment deals. A biomass power plant is not only an asset which generates revenues, but from a real estate perspective, it also creates additional value to the owners' existing farmlands. Biomass energy assets are similar to traditional real estate and infrastructure in a lot of ways. On the other hand, biomass energy assets are characterized by the feedstock fuel and multiple revenue generators such as sale of power, carbon credits and biomass ash. Furthermore, favorable regulatory policies make biomass energy assets more distinct and attractive. The current biomass investment market is a relatively young and evolving market. Southeast Asia has a huge potential for biomass investment. The market players are mostly dominated by investors and firms with specialized technical knowledge about renewable energy and/or traditional power production, and private equity and venture capital firms are not very active in this market. The lack of technical insight and information transparency are stopping these financial institutions from entering the market. Therefore the Biomass Valuation Model (BVM), developed in Excel®, allow the critical technical and financial components to communicate effectively, which would help to determine the viability of the biomass investment projects with greater certainty. The BVM would be able to generate financial outputs from the perspectives of real estate development, financial and economic conditions, and the biomass power generation technical process. This valuation model (BVM) would be helpful to investors, considering the amount of time and effort required in overcoming the technical barrier, hence providing investors the "first-mover" advantage in tapping into the biomass investment market. / by Chester Ren Jie Foo. / S.M. in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 57-58). / Since 2000, the population structure has been rapidly changing in Korea. Especially, with the trends of delayed marriage, low fertility rate, high divorce rate, separated family due to jobs and education, and the growth of the senior population, the number of single or two-person households is expected to increase despite the decline in population. The government has recognized the importance of the small-sized rental housing market, and it introduced various policies to satisfy the increased demand. However, the supply market has not yet been boosted, because many big companies hesitated to execute their business concerning their profitability, and small companies and individuals suffered from lack of expertise while operating and managing their land and properties. In this situation, this study develops some strategies to increase the supply of small-sized rental housing and to improve the quality of living environments by reviewing the diverse cases and business models in Korea and in other countries. To understand the characteristics and needs of single and two-person households, they can be classified into 4 groups. This classification will be a base for developers and construction companies when they supply housing units and when the government provides subsidies and tax benefits. The biggest problem with the supply is the lack of land because of its high price. To solve this problem, a sub-lease business model is suggested, and using existing multi-family and multiplex housing is another way. With the sub-lease business model, the introduction of professional lease management services will help satisfy all the needs of landowners, tenants, developers and construction companies. For development projects, project financing is a common method to raise funds in Korea. As in the United States, various funding sources, such as asset-backed securities, Real Estate Investment Trusts, and a portfolio, are required. For construction, the modular method can be an option to save construction cost and time. / by Jung Mi Lee. / S.M. in Real Estate Development