Wondering how U.S. real estate markets will evolve over the next decade? Acquire valuable insights into the future of real estate from leading MIT experts in this focused, one-day course. Join peers from real estate, banking, finance/investment, and insurance to explore the economic factors driving local real estate markets, asses theories related to the causes and consequences of market cycles, and enhance your ability to make smart investment decisions. 

Course Overview

THIS COURSE MAY BE TAKEN INDIVIDUALLY OR AS PART OF THE PROFESSIONAL CERTIFICATE PROGRAM IN REAL ESTATE FINANCE & DEVELOPMENT.

What city skylines look like, and how cities operate internally results from the interplay of a series of economic forces. Understanding these is critical for successful real estate development and investing. 

Locational amenities (broadly construed) determine the residential pattern of housing and land rents. Overall market growth capitalizes these “rents” into housing and land values. Transportation systems – including autonomous vehicles – and more recently COVID-19, play a critical role in shaping these. The residual value assigned to land determines/is determined by density or FAR. Market based densities can vary greatly from those evolving historically or from those resulting from planning. In some cases, there are economic reasons to plan and regulate density. Business land use also creates land “rents”, that must exceed residential land use to create commercial or industrial Land Use Districts.

Certain businesses (those selling products or services outside the market) select locations to reduce the commuting of their workers and enhance their productivity with other firms. This tradeoff is shaped by transportation and work-from-home patterns (including COVID19 impacts).  Other businesses primarily sell services to local consumers. These historically have followed the location of residences to minimize consumer travel for purchases.  The advent of ecommerce offers the alternative of delivery. Careful analysis of relative costs and convenience suggests ecommerce is winning this battle, changing urban retail forever. What will the future hold? What will cities look like in the twenty-first century as they face the changes resulting from the evolution in transportation and transit oriented development (TOD) the impact of the internet, and even the growing specter of Climate Change?
 

This course has been approved for 8 CPD credits toward renewal of the CoreNet Global MCR designation.

Participant Takeaways

Anticipate how U.S. real estate markets will likely behave over the next 10 years Recognize the economic factors driving local real estate markets Understand theories concerning the causes and consequences of market cycles

Who Should Attend

This course is applicable to a wide range of professionals across the real estate, banking, finance/investment, and insurance industries. Specifically, the course may be of interest to fund managers, investment portfolio managers, financial advisors, investment bankers, fixed-income analysts, financial risk managers, global financial market specialists, professionals working in macroeconomic policy, real estate brokers, and commercial and residential builders. More generally, this class can be valuable to anyone dealing with global financial markets and real estate investments.

Requirements

Laptops or tablets are required to access course materials. All materials will be distributed electronically.

Program Outline

Class runs 9:00 am – 4:45 pm. Please note all times are US Eastern Daylight Time. Schedule is subject to change.

PM Sessions:

9:00 – 10:30 a.m. Residential Land Use: rents, prices, density. 
10:30 – 10:45 a.m. Break 
10:45 – 12:30 p.m. The Location of Businesses, City Form, and Technology Impacts.
12:30 – 1:30 p.m. Lunch Break
1:30 – 3:00 p.m. Transit Oriented Development: Land Use and Financial Instruments
3:00 – 3:15 p.m Break 
3:15 – 4:45 p.m. How Autonomous Vehicles Will Impact Real Estate