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. / Appendixes are printed landscape orientation. Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (pages 50-51). / An emerging trend in real estate is the development of sustainable buildings, partially due to the huge environmental impact of the design, construction and operation of commercial buildings. This thesis provides a brief history of the green building movement and the two (2) programs that encourage the development of energy-efficient and sustainable buildings in the United States: the U. S. Green Building Council's Leadership in Energy and Environmental Design (LEED) program and the Energy Star program, jointly sponsored by the Department of Energy and the Environmental Protection Agency. This thesis also summarizes a study by Piet Eichholtz, Nils Kok and John Quigley titled "Doing Well by Doing Good? Green Office Buildings" published December 2010 in the American Economic Review. This study found a commercial building with an Energy Star rating will rent for three percent (3%) more per square foot. The addition to effective rent was approximately seven percent (7%). The increase in value for a sale of a green building was as much as sixteen percent (16%). Then, using the same data as Eichholtz, Kok and Quigley, this thesis reports on the location and ownership of these green buildings, and calculates Loan to Value (LTV) ratios using the most recent sales price and financing amounts from the CoStar Group. In addition, the property's current LEED certification status is provided as well as a review of Federal and State incentives for sustainable buildings. The results indicate that more green buildings are located in California, Texas and Colorado. Investment Management firms, National Developer/Owners and Real Estate Investment Trusts own the majority of green properties. The Loan to Value (LTV) ratio for green buildings is no higher than those for conventional office buildings. Not enough information is available to compare mortgage interest rates between green and conventional properties. The number of LEED buildings and level of certification has increased since 2008. The states with the largest number of LEED buildings are California, Texas, Colorado and Virginia, correlating with the top states for green buildings overall. Although a worthy goal, there is limited Federal and State assistance for financing of sustainable buildings. / by Christopher John Pierce. / 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. 52-53). / The purpose of this research project is to examine the market pricing behavior of condos with hotel amenities in the Manhattan condo market. To do this, data was compiled from multiple sources to track variations in price paid per square foot controlling for whether the unit was part of a building with hotel amenities, among other things. Prices were tracked from 2004 through 2011 to capture the peak and fall of the most recent real estate cycle, during which luxury branded condos with hotel amenities saw a surge in popularity. The resulting analysis reveals a number of buyer preferences for building attributes as well as unit attributes. To determine the value of each attribute, the regression controls for variables such as neighborhood, floor on which each unit is located, maintenance fees per square foot and bedrooms and baths. The results of this analysis reveal that buyers are willing to pay a premium for units in buildings which have been branded. It also reveals that, controlling for all other variables, buyers do not value hotel amenities as part of the branded package. The timeliness of this research given the current surplus of unsold luxury condos should help developers responsible for the disposition of these assets by providing quantitative data to support the market and financial analysis tools already at their disposal. While this data focuses on the Manhattan condo market, the analysis and process can easily be translated to other major markets making this paper applicable to a wide range of readers. / by Amelia Jane Dolan. / 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 (page 45). / In the last years, Fort Lauderdale, West Beach, and Miami together became the 8th largest metropolitan area in the U.S. with a population of approximately 6 million people. During the last four years the population of such area increased almost 5%. Along with the population, the number of jobs and firms, the supply of new homes, the car commuters, and traffic congestion increased exponentially throughout the area, especially in Miami. The former Miami zoning code, Z.O. 11000, incentivized the large availability and construction of parking spaces in new real estate developments throughout the city, encouraging people to own and use cars even more. The excess of parking spaces due to the former parking requirements, in practice, generated two distinct, immediate effects: (i) an increase in the number of cars throughout the streets; and (ii) higher construction costs for real estate developers. In 2010, the City of Miami adopted the Miami 21 form-based zoning code, changing the zoning and parking requirements. These changes incentivized the construction of transit-oriented developments throughout the city. The parking ratios for all the uses were reduced and some exceptions to the parking requirements were implemented, especially for new residential developments in urbanized transects. The reduction in parking ratios diminished significantly the construction costs of parking garages for real estate developers, increasing their returns on investments. The outcome is that real estate developers became even more interested in developing in the core of Miami. In addition to these economic incentives, the new residents of Miami are willing to live, work, and play in the same area without having to commute long distances. These conditions are transforming the skyline of Miami. There are now approximately 50 new residential developments being built in transit-oriented areas throughout the city, which represents an increase of more than 400% within the last 15 years. The purpose of this thesis is to analyze (i) the current parking requirements; (ii) the impact of parking ratios in the construction costs; and (iii) the changes that occurred in the location of new constructions in Miami after the adoption of the Miami 21. / by Rafael Libman. / 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. / "September 2012." Cataloged from department-submitted PDF version of thesis. This electronic version was submitted and approved by the author's academic department as part of an electronic thesis pilot project. The certified thesis is available in the Institute Archives and Special Collections. / Includes bibliographical references (p. 82-84). / Commercial Real Estate is a large asset class, increasingly owned by professional investment managers. Investment managers need a thorough understanding of the risk return relationship and tools to adequate implement sound investing, portfolio management and risk management strategies. Equilibrium asset pricing models are tools that identify and quantify the risk factors priced by the capital market and establish risk adjusted LONG RUN expected returns. This thesis creates portfolios of properties by property type, geographic location and asset size. Total return indices are created for each portfolio to test single factor and multifactor asset pricing models cross sectionally within the commercial real estate asset class. Historical total return data is used from three sources including: NCREIF; the stock market-based FTSE NAREIT Pure-Property Index Series; and a novel "synthetic" total return index created by the researcher from the repeat sale transaction-based Moody's/RCA CPPI Indices. The asset pricing model test results for the NCREIF and PureProperty indices show that a substantial amount of the variation in LONG RUN total return can be explained by a portfolio's beta with respect to a market index and property specific variables such as property type, location and asset size. The asset pricing model test results for the RCA indices were poor and failed to explain the cross-section of commercial real estate returns. Thus, it appears that certain parts of the commercial real estate market may be operating without a systematic relationship of risk and return. / by Ryan Hunter Jones. / 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 46-47). / Current demographic patterns suggest that the future will offer denser and more crowded cities globally, leading to smaller and more expensive apartments for those who wish to live in urban environments. The viability of robotic furniture systems to enhance the utility of smaller residential units could alter the landscape of real estate development in urban environments. This thesis examines the feasibility and value generated through robotic systems in real estate. / by Leonel Felipe Fierro Peñuela. / S.M. in Real Estate Development

Thesis (S.M.)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2009. / 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. 65). / This thesis examines how the basis risk affects property derivative hedging in the UK market, based on the tracking error (basis risk) report from the Investment Property Forum study in 2007 (the IPF Study). The thesis first analyzes the risks relevant to hedging and defines the basis risk. Considering hedgers with different objectives measure hedging efficiency differently, this thesis divides the hedging users into two major categories: β-Avoidance hedgers and a-Usage hedgers. Each of these has two sub-ordinate groups. In order to quantify the basis-risk influences on hedging, a Monte Carlo simulation designed for short contract of the swap is used. Basis risks of portfolios with different sizes are selected from the IPF Study. To shed light on different hedging uses, three scenarios are tested based on different assumptions on the expected alpha and leverage. Other relevant elements are also studied, such as the price of the debt and the swap. The analysis results in a useful reference for investors who are interested in eliminating portfolio risks with hedging strategies. In the end, the thesis suggests avenues for the further study. / by Jia Ma. / S.M.

Thesis (S.M.)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate , 2009. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 86-87). / Universities within the Unites States have long been active in the real estate development market surrounding their respective campuses. However, beginning with the baby boom in the late 1950s, colleges have begun expanding their campuses at ever increasing rates to account for the influx of new students. In order to accommodate this increased need for campus expansion, universities have begun to look increasingly to private development firms as a means to facilitate the development of university real estate product. As these development partnerships between the institution and the private sector become more widespread, in what ways can private firms provide a benefit to the university by building facilities that utilize private market efficiencies of design and construction. The question will be answered by studying three cases of university - private sector development: Harvard University, The University of Pennsylvania, and the Massachusetts Institute of Technology. By focusing on two types of real estate product in particular, student housing and laboratory space, the case studies will compare product developed privately for each university to product developed by the university's internal facilities department. Financial, construction, and design metrics of privately and university developed products will be compared and contrasted to determine where and how private, market influence might provide the university with an advantage in developing real estate. / by James F. Gerrity, IV. / S.M.

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. 54-55). / The global economic expansion and subsequent creation of wealth as well as increased purchasing power and disposable income has contributed to the growth in the secondary home market. Over the past decade developers that cater to such discerning buyers have focused significantly on bringing to market products that will meet the wants, needs, and expectations of their target customers. Despite the significant growth in the secondary home market and general infatuation that most individuals have with real estate, there are limited studies that analyze the second home market. Instead most research has focused on the commercial and primary home real estate markets. This study examines a specific development, The Sporting Club at The Greenbrier Resort in White Sulphur Springs, WV. The study focuses on the residential home price transactions that occurred at The Greenbrier Resort since 1980. The data collected from the Greenbrier County Assessor!s Office will be used to derive a hedonic price equation. This equation will help to explain the value derived from key home attributes; beds, baths, home square footage, and location. Then a nominal and real price index will be constructed and used to understand the correlation between home prices and supply and GDP. The end goal is to calculate, through regression analysis, a price equation with the dependent variable price and independent variables of supply and demand (GDP) and a supply equation. The analysis has three conclusion sections. The first is the hedonic price equation that implies the law of marginal utility is recognized with respect to the number of bedrooms a home has and that any more than three a negative affect on price occurs. However, with respect to bathrooms, additional bathrooms do add to the price of the residence. The second and third conclusions are derived from time series equations. The first explains that for every increase by 1% in GDP the real price of a property increases by $4,332. The second equation tries to explain supply and concludes that a 5% increase in the real price index causes a 5.4% increase in supply or unit supply elasticity is observed. A recommendation for the owner/developer of The Greenbrier Sporting Club is to buyback vacant lots because currently 78% of the supply is in control of the owners. This phenomena will most likely lead to future price volatility as supply will be delivered to the market as families and speculators chose. In other words supply will not be delivered to the market at a rate that will stabilize prices. / by Hunter L. Kass. / 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 PDF version of thesis. / Includes bibliographical references (page 48). / The current generation of young adults dubbed the "Millennials" are far different from past generations in many ways. They prefer renting to owning, shun the suburbs for cities, are likely to live at home with their parents, are putting off marriage and they are well educated. This thesis seeks to study how the living arrangements of the Millennial generation compare to those of the past generations to find out how true this conventional wisdom is. It studies U.S. Census Data from past decades, focusing on the population segment between ages 22 and 31 at each decennial census from 1980-2010. The demographic characteristics of age, marriage and education are studied to determine their influence on the living arrangements of this young adult cohort. Using linear regression models, the propensity to live in different forms of tenure or within a center city of and MSA are parsed out to find what portion of this propensity is due to the delay of marriage, increase in education or changes in the young adult population. The study is then further broken down to determine to what extent changes in living arrangements are due to changes in the preferences of the population versus changes in the demographic composition of the population. From 1980-2010 there has been a decline in the marriage rate and homeownership rate of the population, markedly so amongst young adults. Conversely, there has been an increase in those completing four years of college and the rate of the population living in a home where their parent is the head of household. This study shows that the decline in marriage has reduced the homeownership rate, but there is an increased preference for homeownership amongst those never married especially so amongst young adults. In general there has been a large increase in the preference of young adults to live at home and a decline in the preference to own or rent indicating that those not buying are opting to move in with their parents rather than rent. There has not been an increase amongst Millennials in preference or total propensity to live in center cities. / by David William Roache. / 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, 2017. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 59-60). / This thesis explores the development potential and land value of a vacant parcel of land listed for sale in Dallas, TX. Further, this thesis proposes three different multifamily rental site plan designs for the parcel in an effort to maximize the value of both the development and the land. The site is located just two blocks from Dallas' popular Bishop Arts retail district. This area has seen a renaissance and has become a desirable location to live over the last several years for residents who might not have considered the location previously. The development potential of the site is restricted by its zoning designation, which does not allow for mixed-use developments, its height restrictions, its parking requirements and its lack of scale - the site is quite small and rectangular. The zoning of this and the surrounding parcels aims to create an urban residential area that is walkable and pedestrian friendly, reducing traffic overall. Pedestrian permeability and the character of the Bishop Arts District should be considered in the design. Seen through the lens of a real estate developer evaluating a business opportunity, this document is formatted in sections focusing on the economic and real estate potential of the city of Dallas, the Bishop Arts area and the parcel itself, the parcel's zoning and parking issues, alternative design schematics for the parcel, and prevailing financial metrics of Dallas, Bishop Arts and the multifamily sector as they relate to each design's projected financial performance. This thesis concludes with a determination of the ultimate land value as dictated by the most financially successful site plan. / by Justin L Rice. / S.M. in Real Estate Development