http://knowledge.wharton.upenn.edu/ Knowledge@Wharton is an online resource that offers the latest business insights, information, and research from a variety of sources. Content includes analysis of current business trends, interviews with industry leaders and faculty, articles based on the most recent business research, book reviews, conference and seminar reports, and links to other websites. en-us Copyright (c) 2007 The Wharton School of the University of Pennsylvania Fri, 06 Nov 2009 00:00:00 EST Fri, 06 Nov 2009 14:33:38 EST http://www.wharton.upenn.edu/globals/images/katw_white.gif http://Knowledge.wharton.upenn.edu/category.cfm?cid=8 125 45 Knowledge@Wharton Real Estate Research Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2318 Although some upbeat economic news in recent weeks might indicate the beginning of the end of the recession, there's still plenty of "wreckage" to deal with, says Wharton real estate professor Peter D. Linneman. Nowhere is this more apparent than in the housing and commercial property sectors, which have taken one of their worst beatings ever. In an interview with Knowledge@Wharton, Linneman draws on policy missteps of the past to caution the Obama administration to tread carefully and avoid "trying to cure things they can't cure," while contending that the U.S. might have more in common with countries like Venezuela, Russia and Japan than most observers think. Wed, 19 Aug 2009 21:11:16 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2296 As the global recession drags on, new concerns are rising about commercial real estate. Loans taken out during the boom years are coming due, but commercial property owners are contending with higher vacancy rates, lower rents and a less-than-receptive environment for refinancing their obligations. Industry analysts and politicians suggest that commercial real estate is about to become the next high-profile casualty in the ongoing economic meltdown. "The shoe has already dropped," says one Wharton real estate professor. Wed, 22 Jul 2009 15:41:58 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2257 Owning a home has long been viewed as the cornerstone of the American Dream, the foundation for a happy family life and long-term financial security. Now, a new research paper challenges that conventional wisdom. Wharton's Grace Wong Bucchianeri, a professor of real estate, says her research shows that while homeowners experience significant joy, they also face more aggravation, spend less time with friends, and are even heavier than renters living in comparable homes. Wed, 10 Jun 2009 17:08:51 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2221 Rafael became an entrepreneur when he moved to Brazil about a year ago to work in the country's nascent housing market. Before that, he was a successful portfolio manager at a hedge fund in London where he had been saving his bonuses and waiting for the right moment to strike out on his own. That moment came -- in the real estate industry. But it was followed by what turned out to be a devastating blow -- the global financial crisis. Mon, 20 Apr 2009 21:39:19 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2182 Despite press reports to the contrary, shopping malls are here to stay, at least according to David Simon, chairman and CEO of Simon Property Group, owner of more than 350 malls, outlet centers and other retail-oriented properties in the U.S., Europe and Asia. Indeed, Simon said during a recent Wharton Leadership Lecture, his firm might consider making acquisitions again given that prices have recently fallen to levels last seen in 2002. Wed, 18 Mar 2009 16:34:51 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2176 In 2002, oil prices in the nations of the Gulf Cooperation Council (GCC) stood at $25 a barrel. By July 2008, that number had jumped to $147. The increase enabled the GCC's six member countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) to almost triple their gross domestic product -- from $350 billion to more than $1 trillion. Now oil prices have fallen again -- this time to below $40 a barrel -- and the oil boom and bust have come at a steep price, especially for Dubai. Wed, 11 Mar 2009 16:25:25 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2157 What impact has the global financial crisis had on India's real estate market? According to Aniruddha Joshi, executive director of Hirco Group in Britain, which develops residential properties and mixed-use townships in India, the credit crisis has affected portfolio allocations. Still, Hirco's strategy toward property development in India will not change, Joshi told Knowledge@Wharton in an interview during the recent Knowledge@Wharton Real Estate in Emerging Markets Forum. "We believe that the long-term India story and the fundamentals are still intact." Thu, 05 Feb 2009 15:41:20 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2141 The unstoppable consumer demand and high returns once guaranteed by "hypergrowth" markets like the fabled BRICs -- Brazil, Russia, India and China -- are no longer a given, according to global real estate developers, investors, finance specialists and executives who spoke at the recent Knowledge@Wharton Real Estate in Emerging Markets Forum. Instead, investors need to evaluate each market individually and, given the current economic climate, focus on the long term. Wed, 21 Jan 2009 16:32:55 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2140 Having bounced back from its own profound financial crises in 1994 and 2000, Turkey is well prepared to ride out the current global economic storm, according to Bahadir Teker, CEO of Istanbul Mortgage. In an interview with Knowledge@Wharton, Teker noted that the stability of Turkey's banking system and its dramatic rise in housing demand will help to temper any slowdowns in the country's real estate industry over the next couple of years. Fri, 16 Jan 2009 10:09:29 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2136 From Colin Dyer's perspective, the worldwide real estate market is in pretty bad shape. As president and CEO of global real estate services firm Jones Lang LaSalle, Dyer has seen firsthand the problems that an absence of liquidity is causing for buyers who need financing for real estate transactions. Yet he is also optimistic that comparatively little competition and some good bargains provide excellent market opportunities for those who know where to look. Dyer expanded on these points during an interview with Knowledge@Wharton. Fri, 16 Jan 2009 10:09:21 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2139 While Russia initially may have been insulated from the impact of the global financial crisis -- due to the once-high price of oil -- the country is now feeling the impact of the slowdown. What does this mean for the Russian real estate market? How are real estate companies responding to the crisis? And what should international companies look for when doing business there? Bruce Gardner, managing director of MLP Russia and a participant in the recent Knowledge@Wharton Real Estate in Emerging Markets Forum, offers some answers. Fri, 16 Jan 2009 10:09:14 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2137 China's unsurpassed demand, cash reserves and willingness to invest heavily in new infrastructure make it an attractive option for foreign real estate investors, according to Gilles Assouline, president of Wuxi Iparks Creative Design & Development. In an interview with Knowledge@Wharton, Assouline spoke about why conditions in China are ripe for real estate development, and how partnering with the world's fastest-growing economy may be a requisite for survival in the current economic downturn. Fri, 16 Jan 2009 10:09:10 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2138 Those countries that had easy access to debt -- such as the U.S. and Japan -- are taking the biggest hit from the current financial crisis, while those countries without access to debt capital -- such as Brazil -- have been somewhat spared, according to Gary Garrabrant, CEO of Equity International. During the Knowledge@Wharton Real Estate in Emerging Markets Forum, Garrabrant spoke about his company's strategy for weathering the down market, how investment decisions are made, and what he sees happening in the next 18 to 24 months. Fri, 16 Jan 2009 10:09:04 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2116 These are volatile times for Brazilian real estate, which mirrors the situation in most countries. But according to Elie Horn, chairman and CEO of Cyrela Brazil Realty, Brazil's largest developer of residential properties, Brazil doesn't have the deep-rooted problems of the U.S. market. It's just a matter of lying low for some time until confidence returns, he suggests in an interview with Knowledge@Wharton. Thu, 18 Dec 2008 17:39:42 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2113 Back in the heady days of the real estate boom, property prices in New York City soared along with those in the rest of the U.S. When the subprime mortgage crisis hit and prices collapsed, the city's market held out longer than others -- for two reasons. First, it is a major financial center with strong demand; and second, the weak dollar made it possible for international buyers and investors to find deals at discounts as high as 40%. Where will the New York market be in 2009? Where are the most attractive deals to be found in emerging markets? In a podcast recorded at the Knowledge@Wharton Real Estate Forum on Emerging Markets on December 2, Donald Trump, Jr., executive vice president of development and acquisitions at the Trump Organization, speaks about those questions and more. He also discusses how he views his unique contribution to expanding the Trump brand overseas, building on the foundation laid by his famous father. Wed, 10 Dec 2008 17:25:28 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2110 Can urban amenities -- like ballparks, aquariums and river walks -- help stabilize U.S. cities and improve their economic outlooks? A new paper by Wharton real estate professor Albert Saiz and a colleague quantifies the importance of leisure amenities but also provides evidence that spending public dollars on leisure and cultural activities may offer more long-range benefit than traditional economic development focused on job creation. "For the last 50 years, we have been trying to bring businesses to cities," says Saiz, "but maybe it makes more sense to get people in there -- and the businesses will follow." Wed, 10 Dec 2008 17:25:28 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1993 The drive to securitize mortgages combined with deregulation were key triggers of the credit crisis, says Wharton finance professor Susan Wachter. She is one of seven Wharton professors interviewed by Knowledge@Wharton for this special report on the credit crisis. Fri, 20 Jun 2008 12:29:28 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1992 Don't think of your house as an investment comparable to savings or a stock portfolio, says Wharton finance professor Todd Sinai. He is one of seven Wharton professors interviewed by Knowledge@Wharton for this special report on the credit crisis. Fri, 20 Jun 2008 12:29:21 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1809 Sam Zell, the master real estate investor, has built a fortune on the cycles that shape his industry. These days, he believes the current turmoil in financial markets is more an emotional reaction to yet another period of excess rather than a true credit collapse. In a talk at Wharton moderated by real estate professor Peter Linneman, the Chicago-based investor said markets currently are spooked by problems with U.S. subprime lending. However, they still have capital to deploy, unlike other real estate downturns. "We're not really in a 'credit crunch.' I think what we are in is a 'confidence crunch,'" Zell told his audience. Wed, 19 Sep 2007 15:42:32 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1802 The sub-prime mortgage crisis and the credit crunch that has followed in its aftermath are taking their toll on the housing market. On August 28, the S&P Case-Shiller U.S. National Home Price Index showed that home prices fell 3.2% in the second quarter. According to the National Association of Realtors, the inventory of unsold homes is at a record high. As sales have fallen, many home builders have seen their stock prices drop by more than 60% during the past year. How serious is this situation? Is there light at the end of the tunnel? Joseph Gyourko, director of Wharton's Samuel Zell and Robert Lurie Real Estate Center, and Todd Sinai, a professor of real estate, spoke to Knowledge@Wharton about these questions and more. Wed, 05 Sep 2007 15:55:12 EST