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 105-108). / Robot van der Rohe is a redevelopment proposal for the Seagrams Building at 375 Park Avenue in New York City. A concept for a Conscious Building is developed after a thorough introduction of financial, architectural and technological underpinnings. The topics of innovation economics, real estate finance, building design and construction, architectural history and theory, ubiquitous computing, sensor technologies, urban economics and design, zoning and network science are covered. Robot van der Rohe represents a future vision of a dynamic and fluid high-rise, mixed-use office tower. By utilizing a sophisticated suite of sensors, the building is able to better respond to the needs of its occupants, operate more energy efficiently and encourage a productive and happy workplace. By quantifying how teams work within the building, Robot van der Rohe represents the next generation of office environments and will allow for the reduction in the economic cost of social capital. By reducing the cost of a fundamental input of production, such a Conscious Building is poised to capture entrepreneurial profits through increased rents. In the world of the Conscious Building, the computer programmer augments the architect and the building owner becomes curator of a forever-innovating network of tenants. / by Charles Alexius Steelman-Dyer. / 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 50-51). / We all know for diversification purposes we cannot "put all our eggs in one basket." Markowitz's Modern Portfolio Theory leads us to diversify our portfolio to achieve the highest Sharp ratio. Fama-French's Three-Factor Model links the asset's characteristics to the risk-return profile and further advances the portfolio theory. However, in practice, due to uncertainty and lack of data, none of those theories gets implemented in a way that can help construct a complex portfolio and generate portfolio optimization strategies. Especially for the Commercial Real Estate Industry, investors face challenges in long-term data collection and a tremendous amount of data processing. In 2009, Michael W. Brandt, Pedro Santa-Clara, and Rossen Valkanov explored a new approach that fundamentally improves the portfolio optimization methodology. They modeled the portfolio weight in each asset as a function of the asset's characteristics and the associated capital market conditions. The coefficients of this function are found by optimizing the investor's average utility of the portfolio's return over the sample period. This approach is computationally simple, and can be easily modified to include more asset characteristics and capital market variables. In a later study, Alberto Plazzi, Walter Torous, and Rossen Valkanov applied Brandt, Santa-Clara, and Valkanov's methodology to optimize commercial real estate portfolios, and explored several techniques in commercial real estate portfolio management. This thesis follows Plazzi, Torous and Valkanov's research framework, applies the methodology to a specific real estate investment fund, and proposes several innovations to further explore the application of this theory in real estate fund management. First, I propose to rebalance the portfolio annually because real estate transactions are less frequent compared with other types of assets, such as stocks or bonds. Second, I construct sub-portfolios by property type and region because the sub-portfolio optimization can provide practical suggestions to specific asset managers in charge of a specific type of property or a specific region. Finally, I include capital market indicators, such as the Chicago Fed National Activity Index and Liquidity Metrics. These innovations use academic research to inform practice, thus providing asset managers practical suggestions to guide wealth allocation across different commercial properties, and to take advantage of movements in expected returns arising from the changing macroeconomic conditions. / by Yanjia Liu. / 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 62-63). / The main objective of this study is to understand and analyze the risk adjusted returns of office building and portfolios and determine whether institutional real estate investors are allocating capital efficiently. NCREIF data from years 1999 to 2014 years will be analyzed. The data will be split into three proportional classes, upper (Class A), middle (Class B), and tertiary (Class C) classes based on asset price per square foot and then their risk adjusted returns will be analyzed with the Sharpe Ratio. Further, based on these findings, the thesis will determine whether a quantitative measure of building classification can be established. Currently, real estate assets, office or otherwise, are only classified qualitatively / by Nason Khomassi and Swapn Shah. / 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. 93-95). / This thesis presents a pioneering application of an engineering systems framework, the Design Structure Matrix (DSM), to model the real estate development (RED) process. The DSM is a process modeling tool that originated recently in the branches of engineering systems and management science, and is primarily used to study product development processes. The DSM is an n-squared graphical matrix representation of a process that is particularly well suited to model both the sequential and iterative informational relationships between tasks in a product development process. The similarities between product development and the real estate development process make DSM an excellent fit for applying the DSM. The thesis first reviews existing models of the RED process but finds them lacking a combination of granularity and ability to model the highly iterative nature of the RED process. This limits their effectiveness for conveying information useful to practitioners. No previous RED model describes the process at a task level or has the ability to model iterative or sequential information flows between tasks. The DSM developed in this thesis first presents a normative or baseline model of a RED project. The model was developed through the participation and assistance of MIT/CRE industry partner, Jones Lang LaSalle (Boston Office). Through a series of interviews and meetings, the authors first developed a Six Stage Event Sequence model of RED with decision-gates found to occur during the process. The six stages were then expanded with JLL's assistance into a table of 91 individual tasks necessary for successful completion of a RED project. / (cont.) Finally, again with JLL's engagement, the 91X91 'Baseline' RED process DSM was constructed, identifying 1,148 planned informational inter-task interactions (out of 8,281 potential interactions). The 'Baseline' DSM model was then manipulated to highlight important aspects of the RED process including the iterative and interdisciplinary nature of RED. Several typical development scenarios are then modeled to highlight the utility of DSM as a management tool in practice. The models show how unplanned iteration can become a significant cause of project risk and failure. They also highlight the risks and opportunities that task re-sequencing can have on a project. This thesis demonstrates the DSM to be a useful and effective model of the RED process enabling new insight and understanding. The highly complex and iterative RED process can be graphically modeled in great detail in a visually appealing manner. Additionally, the RED DSM proves to be an adaptive and manipulative tool that allows for a multi-layer grasping of the RED process, able to assist in project management, change management, identification of risks and opportunities, and firm-level organizational structure and procedures. Additionally, the RED DSM model proves to be a useful pedagogical device for teaching real estate students. / by Benjamin Bulloch and John Sullivan. / 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, 2016. / 880-01 / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 75-76). / In recent years, global interest in the effects of climate change have increased dramatically. Private industries are becoming aware of the needs to address environmental impacts of development. Thailand's commercial real estate industry has been under little pressure despite being responsible for over 40% of all the energy consumption in Thailand. The real estate industry is in a distinct position to address the issue of energy consumption and the barriers to green building adoption. As part of the corporations' marketing strategy, green certification is a branding approach that limits the environmental impact of real estate development. By conforming to the LEED criteria, the green certified building introduces a new office product and building management paradigm to mainstream commercial real estate development. However, the barriers to green buildings continue to exist, including the ability to deliver green projects within appropriate cost expectations. Modifications must be made to traditional project management practices for project managers to deliver green construction projects. The objective of this paper is to recommend specific modifications to traditional building practices in Thailand with the goal of optimizing the delivery of cost-efficient green office buildings. Through the analysis of five LEED certified offices, this thesis explores the innovation sources, delivery methods, contractual forms, and risk allocation in implementing of Grade A green office buildings. The thesis finds that the private sector plays a crucial role in advancing green development practices. Project success motivates the government to encourage innovation through regulation and training. The projects that illustrate the most innovative method comprise of small and multi-disciplinary development team structures with a heavyweight project manager. An examination of the implementation process of green certified office buildings reveals that much of the anticipated risks related to innovation's stage of green adoption is related to educational gaps in the industry. Specific provisions which include incentive and penalty systems designed for constant adjustments help to mitigate risks and regulate relationship between developers and consultants. In implementing green construction practices, design phase could also incorporate environmental analysis by an in-house team with energy and sustainability backgrounds who inspire collaboration of generalists and a specialized workforce. / by Peerati Upatising. / 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 (pages 69-75). / This thesis examines the rules and regulations influencing foreign investments in India's real estate sector. Specifically, this thesis discusses the Foreign Direct Investment Policy, The Foreign Exchange Management Act and the Reserve Bank of India's Foreign Exchange Management Regulations. Combined, they presents a comprehensive regulatory roadmap for the foreign investor evaluating an entry into the country's real estate sector. / by Navaneeth Raj Conjeevaram. / 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 65-66). / This thesis explores the relationship between Sovereign Wealth Fund participation in the United States and office risk premium. Over the past 10 years the commercial real estate industry has been the benefactor of a shifting tide in equity capital formation. Sovereign Wealth Funds, proliferating over the past 15 years, have discovered that commercial real estate is a well aligned asset class along side equities, bonds, and other alternative assets. With that said, Sovereign Wealth Funds are not typical sources of equity. Unlike private capital, sovereign capital receives special treatment in their home county as well as most recipient countries. For example, some advantages that Sovereign Wealth Funds enjoy over private sources include the following; no disclosure requirements, no stock/stake holders to report to, and limited or zero taxation. Additionally, due to the extreme ground swell of foreign reserves and current account balances, there is nearly zero obligation for the return of capital. With no direct need for a return of or on capital, many of these Sovereign Wealth Funds operate under an effective "indefinite" time horizon. Finally, as government entities, there may be non-economic strategic goals when informing the investment decision. Combining these issues of limited transparency, preferential taxation, limited discloser requirements, indefinite investment horizon, and noneconomic motivations, Sovereign Wealth Funds have a clear pricing advantage over privately sourced investment funds. After achieving a statistically significant regression model, this thesis quantifies the magnitude and character of this advantage by looking at the estimated market risk premium paid as a result of Sovereign Wealth Fund participation. / by Robert Joshua Lehr. / S.M. in Real Estate Development

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 96). / Pedagogical experiments played very important role in shaping architectural discourse and practice in the second half of the 20th century. Along the history, the architecture discipline developed and struggled for new territories by articulating its relationship to the technological, socio-political and cultural transformations of the time -- and education became a vehicle for these actions. The rise of information technology brought sharing economy to urban life. Accessibility to spaces has been redistributed along with the notion of private and public territories. As companies starting to build platforms like Airbnb, Breather to accelerate the mixing of multi-programmatic spaces, institutional organizations tend to stay unchanged for their spatial arrangements. With the title of "Sharing School of Architecture", this thesis is putting together an argument as well as an attempt to push architecture school to the frontier of sharing economy by reimaging its spatial and programatic organization in the contemporary urbanism context, which eables architecture elements to access, curate and reinvent spaces into pedagogical programs. Instead of a static campus with traditional curriculum, architecture school should be an ever-growing network of spaces as part of urbanization, and a system continuously generating creative content that fullfills people's contenporary urban life. / by Kun Qian. / 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, 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. 49-51). / Much research has been done to examine the volatilities of return on public and private real estate investments. However, little is known about market volatility in real estate in general and in apartment real estate in particular. This paper uses 21-year quarterly data across 46 markets in the United States to analyze the market volatility behavior of apartment real estate markets. In addition to summarizing the general profile of apartment volatilities such as vacancy change and revenue change, this paper conducts a significant amount of cross-sectional time-series regression analysis to test the determinants of such volatilities. It is found that demand volatilities dominate the volatility of vacancy change of apartment markets. As for the revenue change volatility, it is almost equally determined by occupancy change and rent change volatilities. Furthermore, the paper finds that big markets, fast economic growth, and a decreased concentration magnitude tend to reduce vacancy and revenue volatilities. Regulations on redevelopment tend to increase the volatilities of revenue change and rent change. The supply elasticities are proved to increase the volatility of vacancy change and revenue change, but to decrease the volatilities of demand and rent change. This paper provides a better understanding of apartment market volatilities, and can be used to hedge risk by improving apartment diversification strategies for both private equity real estate firms and public real estate investment trusts (REITs). / by Mai Luo. / 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. / The purpose of this thesis is to analyze how a developer can best redevelop a vacant big box retail property. To accomplish this, statistical, geographical and demographical analysis was done on previously repositioned vacant big boxes. To make this project manageable, the timeline for this study was limited to properties redeveloped within the last ten years and the geographic scope was narrowed to the state of Texas. Sales data on vacant big boxes sold in Texas within the last ten years was collected from Real Capital Analytics. Research was conducted via Internet, telephone and site visits in order to determine the current use of each property and was later categorized by current use. Each property-s tax appraised value at the time of sale and today was collected from each properties county appraisal district and compared in order to measure changes in value from the re-positioning. Three previous and relevant studies have been conducted prior to this thesis, two by Colliers International and one by Texas A&M University. All three are discussed in detail and incorporated into this thesis. Results show that big boxes in high population density locations found new tenants much faster than those in less dense locations. Rental rates on average fell further for freestanding repositioned big boxes when compared to big boxes that were a part of a multi-tenant property. The properties where the old structure was demolished and a new structure was built had the largest increase in both total tax-assessed value and tax-assessed land value. Properties that still had the same existing structure and remained vacant lost the most tax-appraised value. / by Alfonso Barrera-Villarreal. / S.M.in Real Estate Development