Introduction to Commercial Real Estate - Yale Architecture (2024)

This seminar introduces commercial real estate. It does not require any prior knowledge of finance, accounting, or taxation policies. Commercial real estate is income-producing property that is built, financed, and sold for investment. This course examines five basic types of commercial real estate (office, industrial, retail, multifamily, and hotel) from the standpoints of the developer, lender, and investor. Principles of location, financing, timing of market cycles, leasing, ownership structure, and external factors are explored. Students are expected to evaluate assets, partnership interests, and other positions such as debtor interests through valuation measurement, which requires the use of some simple mathematics. An HP-12C calculator or laptop computer with Excel for use in class is required. Students also examine commercial deeds, leases, partnership agreements, and other legal documents. Each student selects a building or development site within New Haven County for a due diligence analysis of zoning, real estate taxes, deeds, liens, market supply and demand, projected income and expenses, and availability of debt. In addition to out-of-class assignments, a brief exercise is included during each class. Limited enrollment.