Introduction to Commercial Real Estate BUS 135Processing

Java Python Introduction to Commercial Real Estate BUS 135

Course description:

This course serves as an introduction to the real estate industry, touching on valuation, financing and operations of income producing properties as well as some societal issues related to the ownership, financing and regulations of real estate. Using  lectures, case studies, and guest speakers we will explore the largest asset class in the world.   We will learn industry terminology, review determinants of value, and discuss the regulatory and legal environment of real estate. In  addition, we will study affordable and senior housing.

The course also utilizes basic finance principles including mortgage calculations and discounted cash flow analysis.   These concepts are covered in class as well as in tutorials available to students outside of class time.   Coverage will include  basic excel and discounted cash flow analysis.

Attendance/Credit Hours/Workload statement:

Class attendance is required and students are expected to arrive at class prepared to discuss the day’s   topics.   If  you are in a timezone which does not allow for you to attend class in real time, please contact meso that we can establish a method of participation.

Each class will begin with a  10 to  15  minute curr Introduction to Commercial Real Estate BUS 135Processing ent  event  article discussion. In the  first few classes, these articles will be sourced by myself or your TA.

For a number of classes, a case is assigned – some of these are individual assignments and some are team. It is critical to the learning process that each student come prepared to discuss the reading, case, and any problem and their solutions in detail. Students are expected to use name cards at every session.

Success in this four- credit course is based on the expectation that students will spend a minimum of 9 hours of study time per week in preparation for class (readings, papers, discussion sections, preparation for exams, etc.)

The expectation is that preparation work will be done in ADVANCE of class discussion. As much as possible, we will be using that advance preparation to do exercises and applications in class. Some errors are expected as a part of the learning process,  by  identifying  areas  requiring  further discussion and clarification, advance preparation enhances the learning process.

Learning Goals:

Know the terminology used in the real estate industry: develop  familiarity with the terms  used  in development, financing, leasing and valuation of income property

Be familiar with the legal and regulatory environment for real estate: property  rights  and  limitations, regulatory concerns, and contracts related to real estate such as leases and purchase contracts

Understand the sources of capital and capital structure of real estate acquisition: including  the  amount, cost, and other market terms for debt

Estimate the value of income producing properties: understand the  factors that impact  real estate value including design, markets – including capital markets, public policy and the financial methods used

including the income approach, market approach, and sales approach with emphasis on the discounted cash flow analysis

Explore societal challenges and opportunities: including  affordable  housing, senior housing, green/LEED buildings, and the government role in encouraging these goals

Be aware of ethical situations:  including those that  arise while investing, owning, or using  real estate

Prerequisites

Pre-requisite – BUS 10a