second EDITION (2021)

Real Estate Investment and finance

Strategies, Structures,  Decisions

The fully revised and updated version of the leading textbook on real estate investment, emphasising real estate cycles and the availability and flow of global capital

Real Estate Investment remains the most influential textbook on the subject, used in top-tier colleges and universities worldwide. Its unique, practical perspective on international real estate investment focusses on real-world techniques which measure, benchmark, forecast and manage property investments as an asset class. The text examines global property markets and real estate cycles, outlines market fundamentals and explains asset pricing and portfolio theory in the context of real estate.

In the years since the text’s first publication, conditions in global real estate markets have changed considerably following the financial crisis of 2008-2009. Real estate asset prices have increased past pre-crisis levels, signalling a general market recovery. Previously scarce debt and equity capital is now abundant, while many institutions once averse to acquiring property are re-entering the markets. The latest edition – extensively revised and updated to address current market trends and practices as well as reflect feedback from instructors and students – features new content on real estate development, improved practical examples, expanded case studies and more. This seminal textbook:

  • Emphasises practical solutions to real investing problems rather than complex theory
  • Offers substantial new and revised content throughout the text
  • Covers topics such as valuation, leasing, mortgages, real estate funds, underwriting and private and public equity real estate
  • Features up-to-date sections on performance measurement, real estate debt markets and building and managing real estate portfolios
  • Includes access to a re-designed companion website containing numerous problems and solutions, presentation slides and additional instructor and student resources

Written by internationally-recognised experts in capital management and institutional property investing strategies, Real Estate Investment, Second Edition: Strategies, Structures, Decisions is an indispensable textbook for instructors and students of real estate fund management, investment management and investment banking, as well as a valuable reference text for analysts, researchers, investment managers, investment bankers and asset managers.

Table of contents

Part one: Real Estate as an Investment: An Introduction

Chapter one

Real Estate –
The Global Asset
Page 3

Chapter two

Global Property Markets and Real Estate Cycles, 1950–2020
Page 33

Chapter three

Market Fundamentals and Rent
Page 83

Chapter four

Asset Pricing, Portfolio Theory, and Real Estate
Page 109

Chapter five

Basic Valuation and Investment Analysis
Page 145

Chapter six

Page 159

Chapter seven

Techniques for Valuing Commercial Real Estate and Determining Feasibility: The Unleveraged Case
Page 187

Chapter eight

Mortgages: An Introduction
Page 205

Chapter nine

Commercial Mortgage Underwriting and Leveraged Feasibility Analysis
Page 229

Chapter ten

Real Estate Development
Page 247

Chapter eleven

Unlisted Real Estate Funds
Page 277

Chapter twelve

Real Estate Private Equity: Fund Structure and Cash Flow Distribution
Page 301

Chapter thirteen

Listed Equity Real Estate
Page 323

Chapter fourteen

Real Estate Debt Markets
Page 345

Chapter fifteen

Building the Portfolio
Page 387

Chapter sixteen

International Real Estate Investment: Issues
Page 411

Chapter seventeen

Performance Measurement
and Attribution
Page 451

Chapter eighteen

Page 491