Course Textbooks

[Geltner] = Geltner, David M., Norman G. Miller, Jim Clayton, and Piet Eichholtz. Commercial Real Estate Analysis and Investments. 2nd ed. Mason, OH: South-Western Educational Publishing, 2007. ISBN: 9780324305487.

[de Neufville] = de Neufville, Richard, and Stefan Scholtes. Flexibility in Design. Cambridge, MA: MIT Press, 2011.

L1 Introduction: course organization and learning objectives, uncertainty exercise, Garage case concepts

Zhang, Na. “Difficulty in Identifying Trend and Volatility of Price Indices: Examples from International Real Estate Market.” MIT, 2010.

de Neufville, chapter 1

———, “Thesis Manual.”

L2 Discounting: standard and certainty-equivalence Geltner, chapter 10 (including appendix C)
L3 Economic model of options applied to real estate Geltner, chapter 27
L4 Economic model of options (cont.): underlying asset dynamics and GIGO issues Geltner, chapters 27 and 29 (appendix)

Design structure matrix (DSM)

Identification of points of flexibility

Bulloch, Benjamin, and John Sullivan. “Application of the Design Structure Matrix (DSM) to the Real Estate Development Process.” Master’s thesis, MIT, 2009.

DSM follow-up

Discussion of development process

Bartolomei, Jason E. “Qualitative Knowledge Construction for Engineering Systems: Extending the Design Structure Matrix Methodology in Scope and Procedure.” PhD dissertation, MIT, 2007.
L7 Garage case: detailed analysis and exposition of “engineering analysis approach”  

Multidimensional evaluation

Satellite fleet case

de Neufville, chapter 6

Ohama, Dai. “Flexible Design of Airport System Using Real Options Analysis: Case Study of New Runway Extension Project of Tokyo international Airport.” 1.231 project, MIT, 2007.


Discussion of Monte Carlo analyses

Workshop on finalizing your reports

L10 Flexibility in real estate development – case examples of vertical and horizontal expansion de Neufville, appendix
L11 Scheduled reviews with teams: what does your model teach us?  
L12 Team presentations