Why Study Real Estate

  • The Role of Real Estate Studies in Business Education
    • People need places to live and businesses need places for their activities
    • Effective real estate decision making requires specialized knowledge of real estate assets and the markets in which they are traded.
    • A specialty area under business
  • Personal Real Estate Decisions
    • Should I buy or lease?
    • What neighborhood should I invest?
    • What type of financing should I use?
    • Should I use a broker?
    • How should I structure the contract for the best deal?
    • How do I decide in which property I should invest?
  • Business-Related Real Estate Decisions
    • Should the company buy or lease?
    • Should the company expand the current building or buy a new one?
    • What type of financing should be used?
    • Should the company acquire a larger building than needed and rent out the rest?
    • Should the company consider relocation?
  • Organization of This Book
    • Part One – Real Estate Legal Analysis Chapters 2-7
    • Part Two – Real Estate Service Industries Chapters 8-10
    • Part Three – Real Estate Market Analysis Chapters 11-15
    • Part Four – Real Estate Finance and Investment Analysis Chapters 16-19
  • What Is Real Estate?
    • Land and buildings (or land and things attached to it)
      • Owner-occupied residential
      • Tenant-occupied residential
      • Commercial
      • Industrial
      • Farm and open land
  • Special Characteristics of Real Estate
    • Fixed location
    • Uniqueness
    • Interdependence of land uses
    • Long life
    • Long-term commitments
    • Large transactions
    • Long gestation period
  • The Economic Importance of Real Estate
    • A vital part of the economy
      • 21% of total household assets in real estate
      • 33% of total business assets in real estate
      • 5% of national gross domestic product
      • 36% of gross private investment annually
      • $13.3 trillion in outstanding mortgage debt
  • U.S. Economy is Very Sensitive to Housing Values
    • Declining housing values beginning in mid-2006 was first major event marking the greatest recession in the S. since 1930s
    • Sub-prime lending partially to blame
    • Housing values rose 47% 2000 to mid-2006
    • Housing values fell 32% mid-2006 to 2009
  • The Real Estate Industry: Career Opportunities
    • Real Estate Brokerage
    • Property Management
    • Real Estate Finance
    • Appraisal
    • Consulting
    • Development and Construction
    • Corporate Asset Management
    • Legal Experts
    • Land Planners