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 Thu, 09 Feb 2012 00:00:00 EST Thu, 09 Feb 2012 13:38:54 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=2891 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2891 How has the housing bust and accompanying recession impacted the mobility of homeowners? Are divestitures always a smart move for companies? Can multinationals create a fact-based case for the real economic impact of their investment in different countries? Professors Joseph Gyourko, Emilie Feldman and Ethan Kapstein, respectively, examined these issues -- and what they mean for business and consumers -- in recent research papers. Wed, 07 Dec 2011 15:00:31 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2775 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2775 Amid all the uncertainty in the economy, a number of regulators, lawmakers and market experts continue to wonder: What will the mortgage market, so essential to a healthy housing sector, look like in the future? Key to that is a rekindling of the private market for securitizations -- the process of converting mortgages into bonds for sale to investors. Meanwhile, a group of federal agencies recently released a proposed set of requirements likely to toughen standards for both borrowers and lenders. But many experts feel the proposals would not correct the mortgage market's problems. Wed, 11 May 2011 16:38:59 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2737 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2737 By most accounts, the federally sponsored mortgage giants Fannie Mae and Freddie Mac did not cause the housing and mortgage crisis. But they were a big part of the problem, prompting a taxpayer bailout costing more than $130 billion. Now the Obama administration wants to phase out the two firms. How would this affect the availability of mortgages, loan rates and home prices? In the end, would such a dramatic change be good for homeowners or bad? Wed, 16 Mar 2011 15:44:15 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2654 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2654 Gazit Globe (usually called Gazit) is among the world's top real estate investment multinationals. Listed on the Tel Aviv stock exchange, the firm operates in some 20 countries and owns or operates 6.3 million square meters of space spread over more than 650 properties. In the U.S., Gazit's investment vehicles include Equity One, a real estate investment trust that focuses on high quality retail properties. Gazit's total asset value exceeds $15 billion. Chaim Katzman, Gazit's chairman and founder, spoke recently with Wharton real estate professor Peter Linneman and Knowledge@Wharton about the company's origins, strategy and his personal management philosophy. Wed, 12 Jan 2011 13:16:04 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2625 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2625 The U.S. housing market has been wobbly for several years, but it has shown some signs of perking up in recent months. The latest reports, however, indicate a setback, with median home prices dropping slightly and sales well below the already depressed levels of 2009. Yet a combination of low mortgage rates and apparent home-price bargains should still be drawing some buyers into the market. Knowledge@Wharton spoke with Wharton real estate professor Susan M. Wachter about the housing market's slow recovery, the prospect of another sharp dip in prices, the effect of foreclosures on the economy, and what it will take to get the market back on track. Wed, 27 Oct 2010 13:14:17 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2616 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2616 After suspending foreclosures in order to review cases that may be flawed by procedural errors or fraud, major mortgage companies have injected new uncertainty into the already weak housing market. But the foreclosure flap is just the most recent of many setbacks for the troubled industry, even as a new generation of potential buyers is rethinking the traditional dream of homeownership. As one Wharton professor notes: "Buying a home doesn't make sense for a large proportion of the population." Wed, 13 Oct 2010 14:48:17 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2595 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2595 As the housing market languishes in the doldrums, an astoundingly high number of homeowners in the U.S. are defaulting on their mortgages. While some simply cannot afford the payments, others own properties that are in "negative equity" -- that is, the value of their homes is less than the amount of the mortgage. As a result, these homeowners have decided to stop paying their mortgages and start fresh. A new incentive program from Wharton finance professor Alex Edmans, however, might give the latter group another choice that could benefit them -- along with lenders and society at large. Wed, 29 Sep 2010 15:30:23 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2545 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2545 With the financial crisis wiping out trillions of dollars in property values worldwide, the challenges facing the global real estate industry are greater than they have been in decades. Within the turmoil, however, are opportunities for players in both the commercial and residential real estate markets, a point made by members of a panel at the recent Wharton Global Alumni Forum in Madrid called, "Real Estate: Exploring the Road to Recovery." Wed, 14 Jul 2010 14:26:05 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2460 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2460 Nearly 11 million homeowners -- or about one-fifth of those paying mortgages -- are now considered "underwater" because they owe more on their houses than they are worth. But while sharp declines in prices might be enough to make even the most cavalier consumer think twice before buying a home, new Wharton research suggests that homeownership is less risky than might be expected. Indeed, it can effectively hedge against volatile prices for shelter, including rental rates, if a buyer does not take on excessive debt to make the purchase. Wed, 31 Mar 2010 14:51:19 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2413 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2413 The global real estate community is breathing easier than it was a year ago, judging by the sentiments of participants at a recent Knowledge@Wharton global real estate forum titled, "The Road to Recovery: Investing in the Global Real Estate Rebound." Held at the New York Stock Exchange on December 11, in conjunction with Interconnect Events, the forum focused on the developed world's challenges in freeing up private capital and finding opportunities in distressed real estate assets, among other topics. According to some speakers and panelists, opportunities that receded in the West in the wake of the financial crisis can still be found in emerging markets, although the barriers to entry remain high. Wed, 20 Jan 2010 16:35:09 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2393 http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2393 Real estate is showing some early signs of recovery as an attractive investment, at least compared to some other opportunities like corporate debt. But capital markets must open further to revive normal deal flows, said panelists at the recent Zell Lurie Real Estate Center conference. And while glimmers of confidence are returning to some sectors, the positive signs are distributed unevenly. Panelists also discussed lessons learned from regulatory lapses, ways to fix them and growth drivers that might stimulate the economy. Tue, 24 Nov 2009 16:13:30 EST Real Estate http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=2318 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 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 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 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 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 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 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 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 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