LCME Visit Fact Sheet

Plans and projections for the development of the Academic Health Sciences facility.

Lodging Real Estate Finance: Securitization

Commercial Mortgage Backed Securities (CMBSs) introduced to the U.S. lodging industry in the early 1990’s were a panacea during a period of severe shortage of debt capital. These instruments changed commercial real estate capital markets by providing flexibility and liquidity to an otherwise illiquid investment As a relatively new form of financing to the lodging industry, the mechanics of securitization, the types of CMBS investments, and their structure are not well understood. The article illustrates the process of securitization and its importance as a significant source of debt financing to the lodging industry

Vulnerabilidade socioambiental no bairro de Mãe Luíza, Natal – RN/Brasil

This work has as object the elaboration of social environmental indicator of disaster risk that are present in precarious areas of human occupation, related to intense environmental dynamic from the perspective of the studies about the subject in Geography. The District of Mãe Luiza in Natal, capital city of Rio Grande do Norte, was defined as the study area. The place was chosen because it presents –historically- several vulnerability conditions and exposure to disaster risk. After a local social environmental description, two indexes were elaborated: the Social Vulnerability Index (SVI or IVS in Portuguese), based on 17 (seventeen) variables arranged on a questionnaire addressed to the population nucleus of the district, on regular grid (systematic sampling), classified into 5 (five) levels of SV from the weighted average; and the Physical and Natural Exposure to the Mass Movements Index (EMMI or IEMM in Portuguese) which had 16 (sixteen) variables that feature conditions of exposure to the mass movements in the district with classified levels from the weighted average of 1 (one) to 5 (five). The relationship between these two results, specialized in the district map, produced the Social Environmental Vulnerability Index (SEVI or IVSA in Portuguese) of Mãe Luiza, also classified into 5 (five) levels, following the Boolean logic correlation for cartographic overlay with use of computer software ArcGIS v.9.3, being named as: Very Low; low; average; high; and Very High Environmental Vulnerability in District. The study is based on the methodology proposed by Guerra et al (2009) for EMMI and by Almeida (2010) for SVI. They were modified and adapted according to the local reality, producing a new methodology in this study area. It was concluded that the neighborhood has most of its area with High and Very High Socio-environmental vulnerability to disasters, defined seven (7) critical areas, with Very High IVSA, and hazards associated with mass movements or flooding. In the end, the main issues that were found, such as generating elements for proposing mitigation measures and/or the proposed interventions were enumerated, related to structural order of vulnerability factors: how low constructive pattern of households; poor urban drainage; Real Estate forsaken in landslide routes; infrastructure ready access roads and slope containment. And social: as a lack of education about environmental risk; income and education of residents; presence of persons with limited mobility and/or those with special needs. This reality highlights the need for urgent action applied to the resolution and/or reduction of these problems, which is focusing the end of this work.

Real Estate Research in Europe

Peer reviewed

Risk factors of European non-listed real estate fund returns

Acknowledgements: We thank INREV (the European Association for Investors in Non-Listed Real Estate Vehicles) for funding a previous version of this research and providing non-listed fund data as well as very useful comments. This version is published as Delfim, J.-C. and Hoesli, M., 2015, Risk Factor Analysis of European Non-Listed Real Estate Funds, Amsterdam: INREV. The usual disclaimer applies. We also thank three anonymous reviewers and the guest editor, Graeme Newell, for insightful remarks.

Technology is Set to Change Real Estate Forever

Major developments in the technological environment can become commonplace very quickly. They are now impacting upon a broad range of information-based service sectors, as high growth Internet-based firms, such as Google, Amazon, Facebook and Airbnb, and financial technology (Fintech) start-ups expand their product portfolios into new markets. Real estate is one of the information-based service sectors that is currently being impacted by this new type of competitor and the broad range of disruptive digital technologies that have emerged. Due to the vast troves of data that these Internet firms have at their disposal and their asset-light (cloud-based) structures, they are able to offer highly-targeted products at much lower costs than conventional brick-and-mortar companies.

Living with Terminal Capitalization Rates: A Look at Real Estate Valuation Model Parameter Setting

This paper examines assumptions about future prices used in real estate applications of DCF models. We confirm both the widespread reliance on an ad hoc rule of increasing period-zero capitalization rates by 50 to 100 basis points to obtain terminal capitalization rates and the inability of the rule to project future real estate pricing. To understand how investors form expectations about future prices, we model the spread between the contemporaneously period-zero going-in and terminal capitalization rates and the spread between terminal rates assigned in period zero and going-in rates assigned in period N. Our regression results confirm statistical relationships between the terminal and next holding period going-in capitalization rate spread and the period-zero discount rate, although other economically significant variables are statistically insignificant. Linking terminal capitalization rates by assumption to going-in capitalization rates implies investors view future real estate pricing with myopic expectations. We discuss alternative specifications devoid of such linkage that align more with a rational expectations view of future real estate pricing.

Findings from the 2015 Institutional Real Estate Capital Allocations Monitor

Since 2013, the Baker Program in Real Estate and Hodes Weill & Associates have co-sponsored the Institutional Real Estate Capital Allocations Monitor (the “Allocations Monitor”). The Allocations Monitor was created to conduct a comprehensive annual assessment of institutional allocations to real estate investments through analyzing trends and collecting survey responses of institutional portfolios and allocations by region, type, and size of institution. The Allocations Monitor reports on the role of real estate investments in institutional portfolios, and the impact of institutional allocation trends on the investment management industry.

Joint Leverage and Maturity Choices in Real Estate Firms: The Role of the REIT Status

We explore the interdependence of leverage and debt maturity choices in Real Estate Investment Trusts (REITs) and unregulated listed real estate investment companies in the U.S. for the period 1973-2011. We find that the leverage and maturity choices of all listed real estate firms are interdependent, but in contrast to industrial firms, they are not made simultaneously. Across the different types of real estate firms considered, we find substantial differences in the nature of the relationship between leverage and maturity. Leverage determines maturity in non-REITs, whereas maturity is a determinant of leverage in REITs. We suggest that the observed differences reflect the effects of the REIT regulation, rather than solely being a function of real estate as the underlying asset class. We also present novel evidence that the relationship between leverage and maturity in both firm types can be used to moderate the effects of other exogenous financing policies.

Macroeconomic Risk Factors and the Role of Mispriced Credit in the Returns from International Real Estate Securities

The benefits of diversification from international real estate securities are generally well established. However, the drivers of international real estate securities returns are insufficiently understood. We jointly examine the empirical implications of three major international asset pricing models that account for broad macroeconomic risk factors. In addition, we develop the hypothesis that an indicator of mispriced credit is significant in explaining the time series variation in international real estate securities returns. We employ the returns generated by a large sample of firms from 20 countries over the period 1999 to 2011 to test our hypothesis. We find support for the predictions of the major international asset pricing models. We also find evidence in favour of our hypothesised link between local credit conditions and the performance of international real estate securities.

On the Capital Structure of Real Estate Firms

The leverage and debt maturity choices of real estate companies are interdependent, and are not made separately as is often assumed in the literature. We use three-stage least squares (3SLS) regression analysis to explore this interdependence for a sample of listed U.S. real estate companies and Real Estate Investment Trusts (REITs) traded between 1973 and 2006.We find substantial differences in the nature of the relationship between leverage and maturity for the two firm types. Leverage is a determinant of maturity for non-REITs, whereas maturity is a determinant of leverage for REITs. We also find that the drivers of capital structure choices in real estate companies and REITs clearly reflect the effects of the REIT regulation.

Strategic interactions of urban land developers in the housing market

This thesis studies the supply side of the housing market taking into account the strategic interactions that occur between urban land developers. The thesis starts by reviewing the literature on new housing supply, concluding that there are very few studies where strategic interactions are taken into account. Next, we develop a model with two urban land developers, who rst decide the quality of housing and then compete in prices, considering that the marginal production costs depend on the housing quality. First, we analyze the price competition game and characterize the Nash equilibrium of the price game. Finally, we examine the rst stage of the game and determine numerically the subgame perfect Nash equilibrium (SPNE) of the quality-price game. In the price competition game, our results show that the equilibrium price of an urban land developer is an increasing function of its own quality, while it is a non-monotonic function of the rival s quality. The behavior of the equilibrium pro ts reveals that, in general, urban land developers gain by di¤erentiating their quality. However, the urban land developer located at the Central Business District (CBD), may prefer to have the same quality than the rival when transportation costs are high by exploiting its locational advantage. The analysis of the rst stage of the game also reveals that, in general, the rms best response is to di¤erentiate their quality and that, in most cases, there are two subgame perfect Nash equilibria that involve quality di¤erentiation. However, the results depend on transportation costs and the quality valuation parameter. For small quality valuations, in equilibrium, the market is not fully covered and, if the unit transportation costs are high, only the urban land developers located at the CBD operates. For higher quality valuations, all the consumers are served. Furthermore, the equilibrium qualities and pro ts are increasing with quality valuation parameter. RESUMO: Esta tese estuda a oferta no mercado da habitação, tendo em conta as interações es- tratégicas que ocorrem entre os produtores de habitação. A tese revê a literatura sobre a oferta de habitação, concluindo que existem poucos estudos que tenham tido em conta as interações estratégicas. De seguida, desenvolvemos um modelo com dois produtores de habitação, que primeiro decidem a qualidade da habitação e depois competem em preços, considerando que os custos marginais de produção dependem da qualidade. Primeiro analisamos o jogo em preços e caracterizamos o equilíbrio de Nash. Posteriormente, ex- aminamos o primeiro estágio do jogo e determinamos numericamente o equilíbrio perfeito em todos os subjogos (SPNE) do jogo. No jogo de competição em preços, os resultados mostram que, o preço de equilíbrio, é uma função crescente da qualidade da habitação, sendo uma função não monótona da qualidade do rival. O lucro de equilíbrio revela que, geralmente, os produtores de habitação têm ganhos em diferenciar a qualidade. No entanto, o produtor localizado no Centro (CBD), pode preferir oferecer a mesma qualidade que o rival, caso os custos unitários de transporte sejam elevados, através da sua vantagem de localização. A análise do primeiro estágio do jogo, revela que, geralmente, a melhor resposta de um produtor é a de diferenciar a qualidade. Na maior parte dos casos existem dois SPNE que envolvem essa diferenciação. No entanto, os resultados dependem dos custos unitários de transporte e da valorização da qualidade por parte do consumidor. Para uma reduzida valorização da qualidade, em equilíbrio, o mercado não é totalmente coberto e, se o custo unitário de transporte é elevado, apenas o produtor localizado no CBD opera no mercado. Para uma valorização elevada da qualidade, todos os consumidores são servidos. Além disso, as qualidades e os lucros de equilíbrio são crescentes com a valorização da qualidade.

Improving the Efficiency of the South Carolina Real Estate Commission's License Renewal Process

The goal of this project is to increase the amount of successful real estate license renewals while reducing the disruption caused by manual processing and calls for assistance with renewals and technical issues. The data utilized in this project will demonstrate that the Real Estate Commission renewal process can be improved by utilizing electronic resources such as more detailed website information and repeat e-mail notices, through modifications to the online renewal process to reduce applicant error, and by increasing the visibility of online renewal log-in instructions while decreasing the visibility and use of mail-in applications.

Urban-rural connections and development perspectives in Portugal

Portugal is characterized by a significant asymmetry in the population distribution/density and economic activity as well as in social and cultural dynamics. This means very diverse landscapes, differences in regional development, sustainability and quality of life, mainly between urban and rural areas. A consequence coherent with the contemporary dynamics: urbanization of many rural areas that loose their productive-agricultural identity and, simultaneously, the reintegration in urban areas of spaces and activities with more rural characteristics. In this process of increasing complexity of organization of the landscape is essential to restore the continuum naturale (between urban and rural areas) allowing closer links to both ways of life. A strategy supported in the landscape, which plays important functions for public interest, in the cultural, social, ecological and environmental fields. At the same time, constitutes an important resource for economic activity, as underlined in the European Landscape Convention. Based on this assumption, and using a multi-method approach, the study aims to analyse a) the links between urban and rural areas in Portugal and b) the reasons why these territories are chosen by individuals as places of work and mobility, residence or evasion, culture and leisure, tranquillity or excitement – meaning overall well-being. Primary information was obtained by a questionnaire survey applied to a convenience sample of the Portuguese population. Secondary data and information will be collected on the official Portuguese Statistics (INE and PORDATA). Understanding the urban-rural links is essential to support policy measures, take advantage from the global changes and challenge many of the existing myths.