Skip to content
Home » Course Catalogue » MBA Electives » RSM2130H – Real Estate Investment (Spring 2022)

RSM2130H – Real Estate Investment (Spring 2022)

General Information

Instructor(s)

Applicable Major(s):
(c) = Core, (r) = Recommended

  • Management Analytics (r)
  • Real Estate (c)

Description

Real estate assets account for about one-third of the value of all capital assets in the world. An understanding of real estate is important no matter what line of business a student plans to be in.  This class is, therefore, designed to be useful across the MBA program.

Format

In order to emphasize the interaction of theory and practice, academic lectures are supplemented by student presentations, case discussions, and guest lectures. 

Course Mission

To help students to understand the economics of, and financial metrics used in the analysis of real estate investments and capital markets; to introduce students to the principal concepts and theories in real estate investment and finance-based investment analysis building on the student’s academic background; and to understand the drivers of a commercial property’s cash flows and value.

Course Scope

The objective of the course is to provide students with an understanding of how investment real estate fits in the range of investment opportunities, practical commercial property valuation skills, and the ability to conduct acquisition underwriting. This quantitatively heavy course will expose students to the three major valuation approaches (sales comparison approach, cost approach, and income capitalization approach), cash flow pro-forma modeling and the financial impact of leverage from a lender and borrower perspective. It will develop a student’s ability to conduct direct research on the financial factors that drive income-producing real estate’s profitability and apply sensitivity analysis. This course will involve interaction with industry practitioners through a real-world assignment.

Evaluation and Grade Distribution

ComponentWeight
Midterm Exam30%
Group Assignment: Case Study of a Potential Investment Opportunity 10% Group Presentations
20% Written Submission
Final Exam (during exam period April 11-22, 2022)40%
*Denotes group work. Students are allowed to choose their own groups, with each group having 4–5 members.

Required Resources

The course will make use of a textbook, Real Estate Finance & Investments by William Brueggeman and Jeffrey Fisher. 

Last Updated: 2022-04-14 @ 11:08 am