What Youll Learn In This Data Science In Real Estate Course
This online program integrates rich, interactive media such as videos, infographics, and e-learning activities, as well as didactic components such as downloadable course notes. There are also opportunities for collaborative learning through discussion forums. The following modules contribute to the holistic approach your learning path takes:
ORIENTATION MODULEWELCOME TO YOUR ONLINE CAMPUSONE WEEK
Youll be welcomed to the course and begin connecting with fellow participants, while exploring the navigation and tools of your Online Campus.
Be alerted to key milestones in the learning path, and review how your results will be calculated and distributed. Youll be required to complete a participant profile, confirm your certificate delivery address, and submit a digital copy of your passport/identity document.
MODULE 1DATA SCIENCE AND MACHINELEARNING PRINCIPLESUnderstanding data science and machine learning concepts used in the built environment.
MODULE 2Learn how to prepare real-world data for analysis.
MODULE 3Understand the value of quantifying and detecting patterns in data.
MODULE 4USING DATA SCIENCE TO ASK QUESTIONSDiscover relationships in data to explain and predict real estate data features and outcomes.
MODULE 5RELATIONSHIPS IN REAL ESTATE DATAUnderstand relationships between outcomes and features using regression analysis.
MODULE 6Discover how to use machine learning to forecast outcomes and support decision-making in real estate.
Discover New Real Estate Financeand Development Frameworks From Mit
The MIT Professional Education and MIT Center for Real Estate Professional Certificate is a formal recognition of your professional development and commitment to life-long learning. Pursuing a Professional Certificate allows you to further your knowledge and skills in an accelerated, convenient format. Our courses run each summer over a two-week period. This program will help focus your development on a set of competencies that will allow you to have an immediate as well as lasting impact on your organization’s future.
Commercial Real Estate Analysis And Investments
- Date
- Expertise
- Investments
These chapters describes the two major types of markets relevant to the analysis of commercial property: the space market and the asset market. The space market is the more fundamental of the two in the sense that it determines the cash flows property can generate, and these cash flows underlie any value the property asset can have. However, the asset market is of equal importance because it determines the valuation of property assets, and this in turn governs the flow of financial capital to real estate. Also, the asset market is most directly relevant to the analysis of investment in commercial property, which is the main subject of this book. In introducing these two real estate markets, this chapter has also presented a few of the most basic analytical tools and measures that are widely used in real estate investment practice, including such concepts as the kinked space market supply curve and the cap rate shortcut measure of real estate pricing in the asset market.
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Commercial Real Estate Investing For Beginners
Run by online education marketplace Udemy, this course covers the basics of investing in real estate. Whats more, its run by author Peter Harris, who wrote Commercial Real Estate Investing for Dummies. According to the course prospectus, youll learn:
- How to own your first CRE property
- The different asset classes, including which classes individual investors target and why
- How to evaluate a deal like a pro
- Major pitfalls to avoid when investing in CRE
- Tips for specific property types
- Secrets to building wealth
Choosing The Right Site
When using this strategy, its important to find a building that also works for your business.
If your business cant succeed or operate out of the investment, you wont have it for very long, anyway.
This strategy is almost a business first, investment second thought process.
These investments can be a multi-tenant situation or you could be in a standalone building totally your call.
Most investors that take this route prefer to have at least one other tenant, in addition to their business, to help cover the costs of the building.
Depending on how much of the space youre taking, you could use owner-occupied financing.
These terms are, for good reason, better than typical commercial loans.
Why?
Because the lenders risk is lower since your business is operating there.
Depending on your lenders requirements for owner-occupied, your business may need to inhabit at least 51% of the leasable space.
However, Ive seen lenders offer as low as 30% of the space.
Youll find interest rates and down payments are lower when exploring this investment strategy.
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The Truth About Real Estate Market Analysis
In this case, the conclusions are simple: were probably too optimistic with most of our assumptions, ranging from rent and expenses to renewal probabilities to likely changes in average rents.
But thats also because were looking at this from an equity perspective , which means that we need some amount of optimism to sell the deal and get others to buy into it.
A lender analyzing this deal would use much lower numbers and find ways to justify below-market rates for many of these assumptions.
In tests and case studies, you dont need to do much more than what we did here: review the provided data and make sure your numbers arent too far off.
But in real life, you might go far beyond this with on-the-ground research, interviews, and more.
Different firms and groups have different standards for this process, so maybe its not so surprising that articles about real estate market analysis present wildly different views.
Certificate In Commercial Real Estate
This course is designed to provide students with an overview of the CRE industry, helping you understand the range of factors affecting the value and management of your commercial property.
Run by the RICS online academy, its designed by industry leaders and uses case studies to help build a practical understanding of the topics covered. Additionally, students have access to an industry expert during the course, allowing them to ask questions.
This course is designed for people who are already working in CRE who want to progress their careers and gain an in-depth understanding of the sector, but may not be ready to commit to an APC just yet. It features nine modules, which include: inspection, measurement, valuation, letting and leasing, purchase and sales, development appraisals, landlord and tenant, property finance and funding, and investment management.
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Entrepreneurship In Architecture Planning And Real Estate
Taught by Gilad Rosenzweig, executive director for MITdesignX, this course explores innovation for good in the built environment. Youll learn to identify and address the challenges facing citizens in urban settings as well as gain the tools to turn your solutions into marketable ventures. Starting with a conceptual solution, youll learn to apply design-based approaches to your concept, develop an action plan, and eventually how to launch a viable business that provides answers to real-world problems.
Entrepreneurship in Architecture, Planning, and Real Estate is an eight-week course. Enrollment dates for the 2022 presentations are as follows:
- Course start date: 26 January 2022, registration close date: 18 January 2022
- Course start date: 20 April 2022, registration close date: 12 April 2022
Comparable Property Sales Comparable Properties And Rent Expense And Other Trends
We used the JLL report here to check/confirm potential trends for the change in rent and Cap Rates, called Yields here:
With the Prime Rents graph, its important to focus on the percentage change and, specifically, how much rents fell in the last recession.
The nominal rent figures have increased since then, so rents would not necessarily decline to £45 or £40 per square foot if another recession struck.
However, they could fall by the same percentage as they did in the last downturn .
That makes our assumed decline rates of 7%, 3%, and 1% in the Downside Case here a bit too optimistic.
Therefore, we might want to reconsider the Downside Case numbers for both Prime Yields and the Change in Prime Rents if we believe another 2009-style recession is plausible.
Moving on, we found information on current rents in the City of London from another source :
And then we found information on current expenses and rent-free periods in the same report:
There wasnt much information on expense trends, but looking at past reports, expenses tended to move in the same direction as rents, but by lower percentages.
So, if rents increase by 6%, we might assume only a 3-4% expense increase.
We did not create explicit sections for Comparable Properties or Comparable Property Sales here because we relied on the market-wide data instead.
Also, since this is a new development, lists of individual properties are arguably less relevant than data for the entire region.
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What Youll Learn In This Commercial Real Estate Course
This online program integrates rich, interactive media such as videos, infographics, and e-learning activities as well as traditional didactic components such as written study guides . There are also opportunities for collaborative learning through discussion forums. The following modules contribute to the holistic approach your learning path takes:
ORIENTATION MODULEWELCOME TO YOUR ONLINE CAMPUSONE WEEK
Youll be welcomed with a personal call and get introduced to your online teaching and technical support network. Begin connecting with fellow participants while exploring the navigation and tools of your Online Campus.
Be alerted to key milestones in the learning path, and review how your results will be calculated and distributed.Youll be required to complete your participant profile, confirm your certificate delivery address, and submit a digital copy of your passport/identity document.
MODULE 1FINANCIAL ECONOMIC CONCEPTS AND TOOLS FOR REAL ESTATE
Apply financial economic concepts and toolsto real estate investments.
MODULE 2THE REAL ESTATE SYSTEM AND THE SPACE MARKET
Analyze interactions within the real estate system, and the space market in particular.
MODULE 3MICRO LEVEL: PROPERTY VALUATION AND INVESTMENT ANALYSISEvaluate individual real estate investments using financial tools.
MODULE 4LEVERAGE, AND FINANCING THE INVESTMENTLeverage, and financing the investment.
Commercial Real Estate Market Analysis In Practice
Heres an example of how you can find market information and use it to check your assumptions in a financial model for a real estate deal, taken from the office development case study in our Real Estate Financial Modeling Course.
This deal corresponds to 100 Bishopsgate, a 36-story office development in London.
Many assumptions go into this model, including the land price per square meter, the construction costs, the number of tenants and their lease types, the annual change in office rents in London, the annual rental escalations, and the expense growth rate.
Then there are also concessions for the tenants, such as a certain number of free months of rent, and tenant improvements, which give the tenants money to customize their space.
I found all the reports required for this real estate market analysis with simple Google searches for terms like London office market rent trends and London office prime yield.
You can get two of the reports, with the key sections highlighted, below:
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Real Estate Finance And Investment
Now, we have arrived at the last real estate finance certification course on our list. In this course, you will learn the specialized skills and the core concepts required to evaluate income-producing properties, calculate investment returns, assess financing options, and finally make well-thought-of real estate investment decisions.
This courses real estate finance classes also cover leases, income statements, Excel modeling, financial analysis, capitalization rates, leases, direct capitalization, debt finance, valuation, private equity and investment analysis, discounted cash flow analysis, and a lot more.
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How To Conduct Real Estate Market Analysis
In real life, youll do a combination of online research and offline work to analyze the market.
Major components of this analysis might include:
- Comparable Property Sales What have similar properties in the area sold for on a per-unit and per-square-foot basis in the past few years? What about the Cap Rates?
- Comparable Properties What are the average rents at similar nearby properties? What about the occupancy rates and concessions given to tenants?
- Historical Rent, Expense, and Other Trends How have rents changed over the past 5-10 years? What about expenses, such as property taxes and maintenance? How have Cap Rates changed over the past few cycles?
- Lease Terms and Renewal Probabilities Whats the average term of a lease? How many free months of rent do tenants receive? On average, what percentage of tenants renew their leases upon expiration?
- Absorption Data What is the total amount of space that becomes occupied in a given period, minus the amount that becomes vacant? How many new units, properties, or square feet are constructed each year, and how many are leased out?
- Demographic Trends Is the population in the area rising or falling? Whats the average family income, and what is the unemployment rate? Is the population relatively young, or is it aging rapidly?
- In-Person Assessment of Property and Neighborhood There are some things you can only figure out in-person.
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Commercial Re Analysis And Investment Online Certificate
This six-week, online certificate in RE analysis and investment course from MIT covers a range of topics, including the tools, techniques and terms used in the real estate industry, which were actually pioneered by leading professor and faculty director, David Geltner.
In particular, the course focuses on the investment side of the industry and how to reduce risks. The course prospectus states: Commercial real estate investments are appealing assets for investors seeking to diversify their portfolios offering many advantages, including high-income potential and steady cash flows. However, due to the financial losses associated with mismanagement, these investments can be high-risk.
As such, the focus of the course is to bring the potential of lucrative commercial real estate to investors, while introducing key concepts and tools needed to reduce risk and make intelligent real estate investment decisions.
Note that this certificate is run separately from the MIT Center for Real Estates On-Campus Certificate Program in Real Estate Development and Finance.
An Online Education That Sets You Apart
This MIT SA+P online program is delivered in collaboration with online education provider GetSmarter. Join a growing community of global professionals, and benefit from the opportunity to:
Gain verifiable and relevant competencies and earn invaluable recognition from an international selection of universities and institutions, entirely online and in your own time
Enjoy a personalized, people-mediated online learning experience created to make you feel supported at every step
Experience a flexible but structured approach to online education as you plan your learning around your life to meet weekly milestones
Also Check: Mit Commercial Real Estate Analysis And Investment Certificate
Obtenez Un Certificat Officiel De Russite Professionnelle De La Mit School Of Architecture And Planning
Prendre des décisions d’investissement éclairées dans l’immobilier commercial repose sur la compréhension des théories et des cadres micro et macroéconomiques et sur l’utilisation d’outils d’analyse financière pratiques. Le cours en ligne sur l’analyse et l’investissement dans l’immobilier commercial de la MIT School of Architecture and Planning s’appuie sur des exemples concrets de projets d’investissement et de développement immobiliers, en mettant l’accent sur des outils, des termes et des théories uniques qui ont a été mis au point et développé par le directeur de la faculté, David Geltner. À la fin de ce cours, vous serez armé des compétences nécessaires pour l’évaluation immobilière, l’analyse des investissements et la prise de décision, et vous obtiendrez un certificat MIT SA+P, validant vos nouvelles connaissances en financement et développement immobiliers.
Is This Course For You
This online short course is geared toward finance, property investment, and real estate professionals who want to understand how to apply financial tools to analyze the commercial real estate market and make informed investment decisions. This program has a technical focus, and previous financial or real estate investment experience will significantly benefit you.
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Mitigation Of Debt Risk
Debt risk can be particularly tricky to manage because high amounts of leverage can also boost returns. So, it is incumbent upon investors to find the right mix of debt and equity when financing a transaction. In many cases, this decision is driven by the lender who will dictate the maximum amount of debt that can be placed on the property, usually ~75%.
Ongoing Operations Of The Property
As the investor, you likely wont want to be involved in the day to day operations.
Especially if you intend to purchase more commercial property.
From day one, you should hire a property management company and a commercial leasing team to oversee the ongoing operations onsite.
Owner-occupied commercial real estate is the exact same strategy.
Except, for, you know, on commercial property.
You move your business in to the property, maybe lease to another tenant or two, and use your business to help pay down the mortgage.
What Is Commercial Real Estate ?
Definition of Commercial Real Estate: Commercial real estate refers to non-residential property used by companies to support business activities and which generates income by charging the companies rent to use this space.
The main categories include office buildings, retail properties such as shopping malls, industrial complexes such as warehouses, hotels, and apartment complexes or multifamily properties.
Commercial real estate does NOT include single-family owned homes or condominiums because those properties are used for residential purposes rather than business purposes.
Apartment complexes are an exception to this rule. They are considered commercial because they are owned by investors and rented out to individuals .
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Brief Summary Of Book: Commercial Real Estate Analysis And Investments By David M Geltner
Here is a quick description and cover image of book Commercial Real Estate Analysis and Investments written by David M. Geltner which was published in 2000-9-1. You can read this before Commercial Real Estate Analysis and Investments PDF full Download at the bottom.
This comprehensive book is ideal for graduate-level MBA or anyone interested in learning more about real estate. The content presents the essential concepts, principles, and tools for the analysis of commercial Real Estate from an investment perspective. This book integrates relevant aspects of urban and financial economics to provide learners with a fundamental analytical understanding of Real Estate investments. It bridges the gap between mainstream finance and the current cutting edge of professional Real Estate practice, in order to address the implications of their key difference.
