Real Estate Investing
Taught by Columbia Business School’s top real estate faculty from the School’s esteemed Paul Milstein Center for Real Estate, the Real Estate Investing program provides participants with a deep understanding of real estate valuation and investments — sharpening their acumen of real estate principles, teaching them how to mitigate risk in real estate investing, and strengthening their strategic decision-making capabilities in the field.
While touching on residential housing, the program primarily focuses on the acquisition and management of income-producing commercial properties. Suitable for professionals on the periphery of the real estate business or those who do not have a background in real estate but need to acquire or enhance their understanding of the sector. Familiarity with Microsoft Excel and basic financial concepts such as net present value, internal rate of return, or discounted cash flow is expected.
The last few decades have seen rising capital allocations to real estate as bond yields have compressed. With financing attributes beneficial to institutional investors, fund managers, and entrepreneurs alike, real estate has become an avenue to wealth building and a source of portfolio diversification for a wide range of investment entities.
More recently, the COVID-19 pandemic has had a profound impact on the real estate industry across the globe that could last for years. The disruption to financial markets and the global economy presents unique challenges for all aspects of real estate dealmaking, including fair valuation of real estate assets, decision making under uncertainty, regulatory changes, long-run implications of work from home, and risk to tenants whose ability to pay rent has been impeded. Yet, the dislocation also presents tremendous opportunities not seen since at least the great financial crisis of 2008–2010. Hotels and retail properties in particular are ripe targets for distressed-asset investors.