Commercial Real Estate Analysis and Investments (with CD-ROM) [Hardcover]

David M. Geltner (Author), Norman G. Miller (Author), Jim Clayton (Author), Piet Eichholtz (Author)

Book Description

ISBN-10: 0324305486 | ISBN-13: 978-0324305487 | Publication Date: December 1, 2006 | Edition: 2

Learn to analyze commercial real estate from an investment perspective with COMMERICAL REAL ESTATE ANALYSIS AND INVESTMENTS and its accompanying CD-ROM! Presenting the essential concepts, principles, and tools for the analysis of commercial real estate, this real estate text provides you with the tools you need to understand real estate investments in today's dynamic economy. Studying is made easy with the CD-ROM that provides expanded coverage as well as spreadsheet examples of methodologies, data used in exhibits, lecture slide notes, and answers to study questions.

Editorial Reviews

From the Back Cover

This book presents the essential concepts, principles, and tools for the analysis of commercial real estate from an investment perspective—integrating relevant aspects of urban and financial economics. It bridges the gap between mainstream finance and the current cutting edge of professional real estate practice with a look at asset market inefficiency and illiquidity, after-tax analysis for various types of investors, tax-exempt institutions, and private investment. Other chapter topics include periodic returns measurement, risk analysis, asset valuation, investment analysis, leverage, capital structure, portfolio theory, and option valuation theory. For individuals aware of the importance of real estate, and interested in its financial economic aspects. --This text refers to an out of print or unavailable edition of this title.

About the Author

David Geltner is a professor at MIT where he is also Director of the Real Estate Center. He received his Ph.D. in 1989 from the Massachusetts Institute of Technology and was a Professor of Real Estate at the University of Cincinnati from 1989 through Spring, 2002. He specializes in the areas of real estate investments, urban economics, and the financial economics of the real estate industry. He has published extensively in leading academic journals, including Real Estate Economics (formerly The AREUEA Journal), The Journal of Urban Economics, The Journal of Real Estate Finance and Economics, The Journal of Real Estate Research, The Journal of Housing Economics, and The Journal of Property Research, among others. He serves on the editorial boards of the three leading US academic real estate journals (Real Estate Economics, The Journal of Real Estate Finance and Economics, and The Journal of Real Estate Research) and of the leading British journal (The Journal of Property Research). He is a co-managing editor of a leading real estate research journal, Real Estate Economics for AREUEA. He serves on the Academic Advisory Board of the Real Estate Research Institute, a research promotion and funding agency sponsored by the leading real estate investment firms. Dr. Geltner has consulted for leading real estate investment advisory firms including serving on the Board of Ohio based STRS. --This text refers to an out of print or unavailable edition of this title.

Product Details

• Hardcover: 848 pages
• Publisher: South-Western Educational Pub; 2 edition (December 1, 2006)
• Language: English
• ISBN-10: 0324305486
• ISBN-13: 978-0324305487
• Product Dimensions: 10 x 8.4 x 1.4 inches
• Shipping Weight: 3.6 pounds (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #29,298 in Books (See Top 100 in Books)
  • #9 in Books > Business & Investing > Real Estate > Mortgages
  • #26 in Books > Business & Investing > Real Estate > Investments

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Customer Reviews

Most Helpful Customer Reviews

9 of 9 people found the following review helpful:

5.0 out of 5 stars Great book, but you need to compliment it with others..., April 25, 2010

By 

Michael Rand "Begbie00" (Trumbull, CT) - See all my reviews
(REAL NAME)   

Amazon Verified Purchase

This review is from: Commercial Real Estate Analysis and Investments (with CD-ROM) (Hardcover)

Overall, my favorite real estate book and the one I consult most often.

At the risk of oversimplification, commercial real estate valuation can be broken apart into 3 activities:

1) Figuring out how much cash a property will generate (e.g. pro-forma property financials)
2) Figuring out how to discount that cash for time and risk (e.g. discount/cap rates)
3) Figuring out how to slice this asset value into various claims against it (e.g. mortgages/CMBS, preferred equity structures, etc.)

This book is amazing at #2 and only slightly less amazing at #3. In fact, I find its treatment of some materials (e.g. risk-neutral discounting as it relates to development properties) to be an excellent complement to and in some ways more informative than standard finance textbooks (e.g. Brealey / Myers). The authors do admit that their approach is slightly more academic than rules-of-thumb used in practice, but it never hurts to be more informed than your peers. If you're concerned about being too academic, also pick up the text by Peter Linneman Real Estate Finance & Investments: Risks and Opportunites; (2nd Edition), which covers similar material in a less academic, though still logically sound manner.

I found, and many of you may find, the treatment of #1 (cash flow forecasting) somewhat limited. The book does deal in Part II with urban economics and in Part IV with property-level pro-formas, but these topics fly well above the depth available in other texts.

I recommend that you compliment this text with something on market analysis...I own Real Estate Market Analysis: A Case Study Approach. A text like that gets you up the learning curve on key supply-and-demand metrics for each collateral type. There are also books on real estate operations (e.g. property management and loan servicing) that could compliment the Geltner text if you're into that level of detail.

Side note: make sure to print out the appendices. They are a very useful supplement to the text.

7 of 7 people found the following review helpful:

5.0 out of 5 stars Solid Book, August 28, 2007

By 

Soros - See all my reviews

This review is from: Commercial Real Estate Analysis and Investments (with CD-ROM) (Hardcover)

This book is really serious. It gives you data sets, a massive amount of study questions with solutions and sample programs (Argus & Crystal Ball--which is used for probability). This book is like the bible. It goes from simple real estate i.e buy low & sell high all the way to mortgage backed securities, options and derivatives. After reading the book you will know more than most executives.

It may not be for those that are more into urban planning or construction management, but if you need and want a book that blends real estate with the capital markets this is the one.I highly recommend it.

4 of 4 people found the following review helpful:

5.0 out of 5 stars Great Advanced Text on Commercial Real Estate, February 26, 2008

By 

Anton (Summit, NJ) - See all my reviews

This review is from: Commercial Real Estate Analysis and Investments (with CD-ROM) (Hardcover)

This is one of the most comprehensive, analytical and thorough texts on topics concerning commercial real estate investment that I have come accross. It would be useful for both advanced students with real estate interests and finance professionals, who seek exposure to fundamental real estate (and real estate securities) analysis. Participants in the real estate industry mishgt find the text useful, but basic. The book is also useful as a reference guide for real estate professionals looking for a particular mathematical formula.

The authors cover a very broad range of topics - from urban economics, to fundamental (supply/demand) real estate analysis, to real estate valuation techniques as well as more specialized topics, such as commercial mortgage backed securities and real estate development. The book really stands out in the breadth of its disourse both on qualitative and quantitative topics.