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.
| SES # | TOPICS | READINGS |
|---|---|---|
| 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) |
| L5 |
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. |
| L6 |
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” | |
| L8 |
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. |
| L9 |
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 |
