11.434J | Spring 2007 | Graduate

Advanced Topics in Real Estate Finance


There are no formal required materials. Students may find the following text useful for some topics:

Geltner, David M., Norman G. Miller, Jim Clayton, and Piet Eichholtz. Commercial Real Estate Analysis and Investments. Cincinnati, OH: South-Western Educational Publishing, 2007. ISBN: 9780324305487.

1 Transaction index methodology Chapter 25
2 Guest lecture on transaction-based indices  
3 Guest lecture on CDO’s (collateralized debt obligations)  
4 Guest lecture on CMBS (commercial mortgage-backed securities) default modeling  
5 Guest lecture on commercial real estate derivatives Chapter 26 (section 26.3 only)
6 No class (optional trip to New York)  
7 No class (optional trip to New York)  
8 Valuing flexibility in real estate development projects using spreadsheet-based simulation Chapter 29, especially 29.4 and CD Appendix 29
9 Simulation nuts and bolts  
10 Derivatives (pricing and technical issues) Chapter 26.3
11 International real estate investment Chapters 24 and 26 (sections 26.1-2 only)
12-13 Student presentations  

Additional Readings

de Neufville, Richard, Stefan Scholtes, and Tao Wang. “Real Options by Spreadsheet: Parking Garage Case Example.” Journal of Infrastructure Systems 12, no. 2 (2006): 107-111.

Fisher, Jeff, David Geltner, and Henry Pollakowski. “A Quarterly Transactions-Based Index of Institutional Real Estate Investment Performance and Movements in Supply and Demand.” Journal of Real Estate Finance and Economics 34, no. 1 (2007): 5-33.

Fisher, Jeff, Dean Gatzlaff, David Geltner, and Donald Haurin. “Controlling for the Impact of Variable Liquidity in Commercial Real Estate Price Indices.” Real Estate Economics 31, no. 2 (2003): 269-303.

Geltner, David, and David Ling. “Considerations in the Design and Construction of Investment Real Estate Research Indices.” Journal of Real Estate Research 28, no. 4 (2006): 411-444.

Geltner, David, and Henry Pollakowski. “A Set of Indexes for Trading Commercial Real Estate Based on the Real Capital Analytics Transaction Prices Database.” Working paper, MIT Center for Real Estate, 2006.

Course Info

As Taught In
Spring 2007
Learning Resource Types
Lecture Notes