Graduate real estate education

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The study of real estate at the graduate school level has taken many forms, giving rise to various educational models in different countries. The decision for individuals pursuing higher education in this field often comes down to choosing between a traditional degree with a focus on real estate (e.g., MBA with concentration in real estate) or an interdisciplinary, comprehensive degree (e.g., Master of Real Estate) focused wholly on real estate studies. Students who opt to study in a full-time Master of Real Estate program spend one or two years focused on areas of real estate such as development, consulting, finance, investments, market analysis, asset management, research and others.

History

Historically, graduate level coursework in real estate was limited to a major or minor in business, or training in architecture and urban planning schools. While Business school programs might emphasize the business side of real estate, MBA students typically lack adequate understanding of real estate principles and processes. Over the last several decades, the real estate industry has matured to one with great complexity and an increasingly institutional ownership structure. The increased complexity of the industry created a demand for practitioners who possessed a comprehensive knowledge of real estate beyond that of traditional MBA generalists. One and two-year graduate level real estate degree programs originated first with the founding of the NYU Real Estate Institute in 1967 [1] (now known as the NYU Schack Institute of Real Estate) and in 1983 with the formation of the MIT Center for Real Estate. Soon after, other schools followed with Harvard University (1983) Texas A&M University (1984), Columbia University (1985), the University of Southern California (1986), Johns Hopkins University (1989), and Cornell University (1996) all forming professional graduate programs focused solely on real estate education.

According to the Urban Land Institute, during the mid-1990s strong academic interest in real estate "was never greater, whether for repositioning products, redeveloping inner cities, or developing more affordable housing. Students seemed to be acting on the notion that it's a temporary downturn and graduate school is a good place for the moment."[2] As enrollment grew, real estate programs responded by adding more course offerings to satisfy the demand.

In the early 2000s, prior to the Great Recession, the industry again acknowledged increasing need for graduates with superior qualifications — providing the research-based expertise necessary to solve complex problems in contemporary real estate development.

The late 2000s saw significant expansion of real estate programs to second-tier universities such as George Mason University, as well as additional coursework added by MBA programs that commonly did not have an emphasis on real estate. To deal with the complexity of the field and its far-reaching effects, today's industry professionals require advanced training to prepare them to operate in increasingly technical and interrelated areas.

As education needs have changed, business schools such as the University of Wisconsin, University of Pennsylvania, and University of California, Berkeley continue to cater to students interested in the flexibility of an MBA. Wharton's real estate program, for example, takes advantage of being housed in one of the top business schools in the United States and having some of the top real estate professionals in the world as advisers.[3]

Graduate-level education rankings in the US

Rankings for graduate level education are not specifically formal as other professional disciplines. MBA programs with concentrations in real estate may be ranked according to organizations such as U.S. News & World Report or Business Week, but are not relative to the depth of the real estate industry studied in a MBA concentration compared with a specialized master's degree in real estate or real estate development. Real estate education has increased in recent years to fill the demand for well-educated practitioners in the industry. However, there has been a great deal of debate on what elements should be an essential part of a graduate program in order to help students succeed in the industry. Rankings have been conducted by editorial board representation of faculty members at university real estate departments,[4] however, these results prove to be ineffective in judging the program as a whole. Many graduate programs utilize adjunct professors or guest speakers from the industry, which do not sit on editorial boards of scholarly real estate journals.

Currently there are no rankings of graduate degree programs in real estate development. The best method to evaluate the various degree programs is through due diligence by individual applicants, including a review of each program's curriculum and how it applies to the students academic and career goals. While there are no formal rankings for graduate real estate education, and programs are subject to greater locational impact factors than are MBA programs (due to regional and local policy influence).

ULI Student Competition

A separate metric to evaluate the success of graduate real estate programs is the review of past winners in the Urban Land Institute Gerald D. Hines Student Competition. The Urban Land Institute is a non-profit research and education organization with membership by real estate developers, urban planners, architects and allied professionals. Each year graduate-level students form their own multidisciplinary teams (from real estate, urban planning and business schools) and have two weeks to devise a comprehensive design and development program for a real, large-scale site full of challenges and opportunities. Submissions will consist of boards that include drawings, site plans, tables, and a myriad of market-feasible financial data.[5]

Multidisciplinary teams are not limited to including students from real estate development graduate programs. Students may also come from Master of Landscape Architecture, Master of Architecture, Master of Urban Planning, Master of Urban design or MBA.

Year Winner Finalist Finalist Finalist
2003 Harvard USC MIT
2004 Arizona State Harvard MIT
2005 Colorado Columbia Harvard
2006 Harvard Columbia UC Berkeley
2007 UC Berkeley Harvard Illinois
2008 Penn Michigan Texas
2009 MIT Columbia Kansas State
2010 UNC Chapel Hill Harvard Maryland
2011 Michigan Michigan Oklahoma Maryland
2012 Harvard-Colorado UC Berkeley Columbia Michigan
2013 UMKC-KSU-Kansas Harvard Yale BSU-Purdue
2014 Maryland GT Harvard Texas

ARGUS Software University Challenge

An additional measure of the reputations of graduate real estate programs is the ARGUS Software University Challenge, which has been held in 2009, 2011 and every year thereafter. In the challenge, participating teams from universities around the world are required to simulate a comprehensive real-life development analysis of a fictitious commercial real estate project by modeling the provided assumptions specifically using ARGUS software. Team submissions are judged by a panel of industry and academic professionals. The winning teams receive cash prizes.

Year Winner Second-Place Third-Place Honorable Mention
2009 University of San Diego Arizona State University and Baruch College University of Colorado and University of North Carolina
2011 University of San Diego Emory University University of North Carolina
2012 York University University of San Diego New York University
2013 York University University of San Diego Florida International University
2014 University of San Diego University of Pennsylvania York University
2015 University of San Diego University of New Brunswick Florida International University University of Edinburgh

National Real Estate Challenge

The National Real Estate Challenge, a 20 team invitation-only real estate case competition hosted annually by the McCombs School of Business at the University of Texas at Austin, is yet another metric to compare graduate real estate programs. The competition tests teams from universities across the United States on issues regarding real estate finance and private equity. The event is sponsored by firms such as JP Morgan, Equity Office Properties, and Hines. The 19 universities that competed in 2014 included: Berkeley, Carnegie Mellon, Chicago, Columbia, Cornell, Georgetown, Michigan, MIT, Northwestern, NYU, Rice, UCLA, UNC-Chapel Hill, USC, UT, Vanderbilt, Wharton, Wisconsin and Yale.[6]

Year Winner Second-Place Third-Place Fourth-Place
2011 University of North Carolina at Chapel Hill University of California, Berkeley University of Virginia University of Michigan
2012 Columbia University University of Pennsylvania, Wharton School University of North Carolina at Chapel Hill The University of Texas at Austin
2013[7] University of Southern California University of Pennsylvania, Wharton School University of Texas Cornell University
2014[8] Columbia University University of Southern California Cornell University University of North Carolina at Chapel Hill
2015 University of Texas - Austin Cornell University

The CASE at MIT

Yet another measure to gauge the quality of graduate real estate programs, the CASE[9] is an annual real estate competition that provides current graduate student teams an opportunity to compete, showcase their knowledge, and learn from each other through the analysis of a complex real world development site. The CASE is organized and hosted by the Alumni Association of the MIT Center for Real Estate.[10]

Unlike other competitions, The CASE focuses on real estate acquisition, development programming and financial underwriting at the asset level. The competition mimics the professional circumstances and assignments that students interested in real estate finance, acquisitions and development are likely to encounter after graduation. 2014 finalists included: Harvard, Columbia, NYU, MIT, Cornell, Villanova, York University, Cambridge and Hong Kong Institute of Technology.

Year Winner Second-Place Third-Place
2011 Cornell University Massachusetts Institute of Technology Columbia University
2012 York University Columbia University Dartmouth College
2013[11] Cornell University Massachusetts Institute of Technology Georgetown University
2014 [12] Georgetown University Columbia University Harvard University
2015[13] Cornell University Massachusetts Institute of Technology New York University

Undergraduate real estate education

As with many MBA programs, undergraduate real estate education is commonly offered as a concentration, or focused area of study. Very few universities with varying academic reputation offer a bachelor degree with a concentration in real estate (typically two courses during the senior year). An undergraduate degree in real estate is not a prerequisite for admission to a graduate real estate development program. Students from diverse backgrounds in geography, urban planning, business, economics, liberal arts, architecture or seeking a career change are encouraged to apply.

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Graduate real estate programs

The academic study of real estate reflects programs offering an approach weighted toward an interdisciplinary approach, the 'Master of Real Estate Development', and programs or universities that offer a more focused degree on finance and investment. Graduate real estate programs may award any number of degrees (e.g. Master of Real Estate Development, Master of Science in Real Estate, Master of Professional Studies in Real Estate, Master of Design Studies in Real Estate), however, the key is to review each degree curricula independent of their respective naming conventions, as there are broad differences in their content and foci that may not necessarily be reflected in the degree's name.

A few examples of graduate real estate degree naming conventions include:

Master in Real Estate Development (MRED or MSRED)

The Master of Real Estate Development degree (MRED) (or sometimes called the Master of Science in Real Estate Development (MSRED)) largely focuses on specific areas within real estate rather than taking a more generalist approach. Areas of concentration may include: real estate development, finance and investment, planning and policy, infrastructure and construction, market analysis, and real estate law. Students are generally exposed to the full range of functions and most real estate product types (e.g. residential, retail, office, hospitality, and industrial). MRED programs typically teach the subject matter through case studies and field experiences and by way of traditional class lectures. Whether in the context of urban redevelopment, historic preservation, or suburban growth, MRED students learn from both the investor's and developer's perspective, the importance of relevant issues in law, economics, finance, market analysis, negotiation, lease analysis, architecture, planning, and management.[14] Many focus on the entire spectrum of the real estate development process-from dirt-to-deal, finance to façade-and include industry topics presented by leading local and national developers, financiers, and other players in the market. Included in this is the analysis of existing real estate assets and partnership structures.

Master of Science in Real Estate (MSRE)

The Master of Science in Real Estate degree (MSRE) often combines learning comprehensive business management skills with the understanding of how real estate markets work. Graduate programs that award a Master of Science in Real Estate degree are sometimes the expansion of real estate courses in a Business school into a degree of increased specialty or they are organically formed real estate centers within a larger college. Students who complete Master of Science in Real Estate degrees oftentimes go on to careers as real estate "project managers, asset management advisors, analysts, planners, and others." [15] Most Master of Science in Real Estate degrees are completed in one year though two year options with the opportunity to complete a summer internship between the first and second year are available (e.g. the University of Washington) [16] The Master of Professional Studies in Real Estate is also similarly found here, as it is simply a naming convention at Georgetown University and Cornell University.

Coursework

The course work of real estate programs vary between universities. Many programs utilize HBS-style case studies of complex real estate scenarios to heighten the student's knowledge and strategic decision-making skills. Program lengths range from 30 to 72 credit hours. Programs that have more than 33 hours will sometimes allow its students to add a concentration. A required core curriculum is typical with the core curriculum's size and makeup being largely dependent on the length and focus of the program.

Example Core Curriculum:[17]

  • Real Estate Development Principles
  • Market Segmentation and Analysis
  • Real Estate Finance and Analysis
  • Real Estate Development Project Management
  • Advanced Real Estate Finance
  • Real Estate Site Analysis and Design
  • Public Entitlement Process

In addition to the core curriculum, most two-year programs and some one-year programs offer students the opportunity to pursue a concentration, a focus on a specialized area of interest within the real estate industry. Concentrations differ between programs and universities.[18]

Example Areas of Concentration:[19]

  • Development
  • Finance
  • Investments
  • Consulting
  • Sustainable Development
  • Property and asset management
  • Real estate marketing and market analysis
  • International real estate concentrations
  • Affordable housing
  • Public-private partnerships
  • Urban infill

Some programs, such as the MS in Real Estate Development at George Mason University,[20] offer students the opportunity to combine elective coursework from several disciplines including business management, public policy and civil engineering.

Design education related to real estate development

The practice of real estate development requires practitioners to work with selecting building types and designs, determining appropriate dimensions, programming internal spaces, shaping the site, and appropriately fitting the project to surrounding contexts. Some programs, including Harvard University's Master of Design and Columbia University's MSRED include design education in the study of real estate development. A new program established at the University at Buffalo in 2015 situates real estate development within an MS in Architecture.[21]

Executive programs in real estate

Executive degree programs in real estate offer practicing professionals the opportunity to learn while they are working. These programs are distinguished from distance programs through their uniquely blended model of residency classroom experience, distance education modules, and executive field study courses. Classes meet at the beginning of every semester, usually from five to seven days, and then complete the coursework through synchronous webinars, asynchronous discussion boards, and video lectures. Executive education in real estate is taught at numerous accredited institutions such as Auburn University.[22]

List of United States graduate real estate programs

University Degree granted Since Credits Location Full-Time/Part-Time
American University MSRE [23] 30 Washington, D.C. Flexible
Arizona State University MRED[24] 2006 33 Tempe, AZ Full-Time
Auburn University Exec. MRED[25] 2009 39 Auburn, AL Part-Time
Baruch College MSRE [26] 30 New York, NY Flexible
Clemson University MRED [27] 2004 54 Clemson, SC Full-Time
Columbia University MSRED[28] 1985 45 New York City, NY Full-Time
Cornell University MPS/RE [29] 1996 62 Ithaca, NY Full-Time
DePaul University MSRE [30] 36 Chicago, IL
Florida International University MSIRE [31] 2006 30 Miami, FL Part-Time
Georgetown University MPS/RE [32] 2010 30 Washington, D.C. Part-Time
Georgia State University MSRE [33] 30 Atlanta, GA Part-Time
George Mason University MSRED[34] 2010 36 Fairfax, VA Part-Time
Harvard University Mdes [35] 1983 48 Cambridge, MA Full-Time
Johns Hopkins University MSREI [36] 1989 36 Washington, DC Flexible
Massachusetts Institute of Technology MSRED[37] 1983 27 Cambridge, MA Full-Time
New York University MSRE [38] 1967 42 New York City, NY Flexible
New York University MSRED[39] 2010 42 New York City, NY Flexible
Nova Southeastern University MSRED[40] 40 Fort Lauderdale, FL Part-Time
Portland State University MRED 2012 55 Portland, OR Flexible
REALTOR® University MRE [41] 2012 36 Chicago, IL Flexible
Roosevelt University MSRE [42] 2002 31 Chicago, IL
Texas A&M University MSRE [43] 1985 38 College Station, TX Full-Time
Texas A&M University MRED [44] 1984 36 College Station, TX Full-Time
Tulane University MSRED [45] 2010 43 New Orleans, LA Full-Time
University at Buffalo MS Arch[46] 2015 48 Buffalo, NY Flexible
University of Arizona MRED[47] 2013 36 Tucson, AZ Part-Time
University of Central Florida MSRE [48] 2011 30 Orlando, FL Part-Time
University of Denver MRECM [49] 1947 50 Denver, CO Flexible
University of Florida MSRE [50] 34 Gainesville, FL Full-Time
University of Illinois at Chicago MARE [51] 35 Chicago, IL Part-Time
University of Maryland MRED [52] 2006 33 College Park, MD Flexible
University of Miami MRED+U [53] 2009 36 Coral Gables, FL Flexible
University of Missouri Kansas City MERE[54] 2012 36 Kansas City, MO Flexible
UNC Charlotte MSRE [55] 2012 32 Charlotte, NC Flexible
University of Saint Thomas MSRE [56] 36 St. Paul, MN Flexible
University of San Diego MSRE [57] 2003 32 San Diego, CA Flexible
University of Southern California MRED [58] 1986 44 Los Angeles, CA Flexible
University of Texas at Arlington MSRE [59] 36 Arlington, TX Part-Time
University of Utah MRED [60] 2010 42 Salt Lake City, UT Flexible
University of Washington MSRE [61] 2010 72 Seattle, WA Full-Time
University of Wisconsin–Madison Global-REM [62] 2010 15 Madison, WI Full-Time
Virginia Commonwealth University MSRE-Valuation[63] 28 Richmond, VA Part-Time

List of graduate real estate programs outside the United States

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A number of universities around the world offer graduate degrees in real estate and related subjects. See the list in Graduate real estate programs outside the United States.

Nationally recognized research centers

Real estate programs and alumni donors sponsor research by real estate faculty in numerous areas of real estate including the economics of property markets, the impacts of regulation, and the sources of equity and debt financing. Additional research, in the form of faculty-supervised student thesis work, contributes to a growing inventory of new information. The research program is essential to promoting new knowledge, advancing teaching techniques, and bridging the gap between theory and practice. Not all graduate real estate programs conduct research.

Name University
Real Estate Academic Initiative [64] Harvard University
MIT Center for Real Estate [65] MIT
Center for Urban Real Estate (CURE) [66] Columbia University
The Center for Real Estate and Finance (CREF) [67] Cornell University
Center for Real Estate Entrepreneurship [68] George Mason University
The Richard H. Pennell Center for Real Estate[69] Clemson University
NYU Schack Center for Sustainable Built Environment,[70] NYU Schack REIT Center[71] NYU Stern Center for Real Estate Finance Research [72] New York University
The Graaskamp Center for Real Estate[73] University of Wisconsin-Madison
Lusk Center for Real Estate [74] University of Southern California
Burnham-Moores Center for Real Estate [75] University of San Diego
Colvin Institute of Real Estate Development [76] University of Maryland
Runstad Center for Real Estate Studies [77] University of Washington
The Center for Real Estate Education and Research[78] Florida State University
Bergstrom Center for Real Estate Studies [79] University of Florida

Related graduate program offerings

Professionals in real estate often hold degrees in related fields such as city planning, construction management, accounting, property management, architecture or law. One of the most common programs continues to be a Master of City Planning, regional planning, or urban planning degree with a real estate emphasis. Planning programs tend to emphasize land use planning, transportation or infrastructure development, land use law and policy and other planning topics; students who take a concentration in real estate development will learn how it relates to planning.

MBA with Real Estate Concentration

Business degrees with real estate concentrations generally provide students with the opportunity to pursue a general management degree, but to specialize in real estate development or some segment of the real estate industry through a sequence or group of electives. For a long time, those wishing to study real estate had to content themselves with primarily pursuing a Master of Business Administration degree, perhaps with the option of concentration in real estate, and usually with a focus in finance. These MBA programs typically only include one or two courses focused in real estate. Many MBA programs do not specialize in real estate.

For those weighing an MBA versus graduate real estate education, there are some issues to consider:

MBA Graduate Real Estate (MSRE, MSRED, MRED, MPS/RE)
Timeframe 2 years full-time 1 or 2 years; part or full-time
Curriculum 1st year - Business Basics; 2nd year - Specialization largely focused on finance-related areas Real estate focus and specialization throughout
Specialization Real Estate in MBA programs is very rare. Specialization tends to be finance focused Broad-based real estate education in design, management, law, development, economics and significant focus on finance, e.g., real estate finance, capital markets
Program size Typically, the programs are large with real estate students representing a relatively small (2% - 3%) percentage Small groups, with commonly 25 to 50 students
Industry Commitment Students pursuing a MBA may not be committed to a real estate career; therefore they are seeking a broader base All students are committed to the real estate industry and many have real-estate related experience prior to coming to the program. An important part of the programs are the learning between students.
Career opportunities Varied but with a heavy concentration in finance-related areas of the real estate industry Significant representation in project management, development, finance-related areas, acquisitions, entrepreneurship and government
Thesis Generally, not required Typically required, usually as a professional publication or a real-life capstone competition
Alumni network Usually extensive, but predominantly outside of the real estate industry Alumni are involved in all facets of the industry and located throughout the world
Recruitment Limited recruitment by real estate companies Many students seeking employment find opportunities through peers, professors or on-site recruitment

MBA real estate concentration offerings

A limited number of MBA programs offer courses in real estate as part of the typical study in business.

University Location
Cornell University [80] Ithaca, NY
Columbia University [81] New York, NY
Florida State University [82] Tallahassee, FL
George Washington University [83] Washington, D.C.
Georgetown University [84] Washington, D.C.
Hofstra University [85] Hempstead, NY
Johns Hopkins [86] Baltimore, MD
Longwood University [87] Farmville, VA (online)
Pacific States University [88] Los Angeles, CA
Roosevelt University [89] Chicago, IL
University of Georgia [90] Athens, GA
University of Missouri Kansas City [91] Kansas City, MO
University of North Carolina at Chapel Hill [92] Chapel Hill, NC
University of Pennsylvania [93] Philadelphia, PA
University of Texas at Austin[94] Austin, TX
University of Texas at Dallas [95] Richardson, TX
University of Wisconsin [96] Madison, WI

Certificate programs

University Name of Certificate Credit Hours Description
Boston University Certificate in Commercial Real Estate [97] 8 classes [98]
Boston University Certificate in Real Estate and Finance [97]
The Catholic University of America Certificate in Real Estate Development [99]
Cornell University Certificate in Hotel Real Estate Investments and Asset Management [100] 18 Certificate offered by the Cornell University School of Hotel Administration
Florida State University Certificate in Real Estate Development [101] 12 Offered jointly by the Department of Urban and Regional Planning and College of Business
University of Louisville Certificate in Real Estate Development [102] 18 Offered by the Department of Urban and Public Affairs
University of Michigan Certificate in Real Estate Development [103] 17 [104] Offered by the Taubman College of Architecture and Urban Planning
University of Pennsylvania Certificate in Real Estate Design and Development [105] 18 Certificate offered by the University of Pennsylvania School of Design, with participation by the Wharton School of the University of Pennsylvania.
University of San Diego Real Estate Finance, Investments and Development Certificate Certificate offered by the University of San Diego’s Burnham-Moores Center for Real Estate in collaboration with the University of San Diego's Professional and Continuing Education.
University of Southern California Certificate in Real Estate Development [106] 12 Certificate offered by the USC Sol Price School of Public Policy.
University of Texas at Arlington Certificate in Property Repositioning and Turnaround Strategies [107] 13 A unique program offered by the School of Architecture and College of Business. Participants in this graduate-level certification course learn how to reposition distressed properties and participate in workout teams in four months of concentrated sessions.

Loyola University of New Orleans offers a Real Estate Investment Course as an elective.

Career opportunities

A sample of careers include large public real estate companies; small private entrepreneurial organizations; regional investors; companies that specialize in a single product (e.g. office/retail/multi-family); non-profits involved in areas such as affordable housing; corporations that own real estate; companies that finance real estate; and companies that provide services such as design and architecture firms, brokerage companies, investment banks, REITs, and various consultancies. Careers in the public sector at the city, county, state, federal or military level offer interesting and rewarding career opportunities related to real estate.[108] The skill sets are also transferable to other industries and sectors of the economy.

Graduate real estate programs outside the US

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See also

References

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  2. Urban Land, Teaching Real Estate Today, April 1992, pg. 32.
  3. Urban Land, October 1991, pg. 38
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  14. Urban Land Magazine School for Developers, c, D.C.: Urban Institute, March 2008
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  95. Lua error in package.lua at line 80: module 'strict' not found.
  96. Lua error in package.lua at line 80: module 'strict' not found.
  97. 97.0 97.1 Lua error in package.lua at line 80: module 'strict' not found.
  98. Lua error in package.lua at line 80: module 'strict' not found.
  99. Lua error in package.lua at line 80: module 'strict' not found.
  100. Lua error in package.lua at line 80: module 'strict' not found.
  101. [7][dead link]
  102. Lua error in package.lua at line 80: module 'strict' not found.
  103. Lua error in package.lua at line 80: module 'strict' not found.
  104. Lua error in package.lua at line 80: module 'strict' not found.
  105. Lua error in package.lua at line 80: module 'strict' not found.
  106. Lua error in package.lua at line 80: module 'strict' not found.
  107. Lua error in package.lua at line 80: module 'strict' not found.
  108. Ross, Stan. The Inside Track to Careers in Real Estate. Urban Land Institute, Washington, D.C. 2006.

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