AI2147 Commercial Real Estate Investments 7.5 credits
Analys av kommersiella fastighetsinvesteringar
Educational levelSecond cycle
Academic level (A-D)C
Subject areaBuilt Environment
Grade scaleA, B, C, D, E, FX, F
PeriodsSpring 13 P3 (7.5 credits)
Start date2013 week: 2
End date2013 week: 11
Language of instructionEnglish
Number of lectures
Number of exercises
Form of studyNormal
Number of placesNo limitation
ScheduleSchedule (new window)
Students in the masterprogramme Real Estate Development and Financial Services (TFAFM).
Open to all programs.
Part of programme
- Master (Two Years), Real Estate Development and Financial Services, year 1, FAFA, Conditionally Elective
- Master (Two Years), Real Estate Development and Financial Services, year 1, FAFD, Conditionally Elective
- Master (Two Years), Real Estate Development and Financial Services, year 1, FAFF, Conditionally Elective
The overall aim of this course is to provide students with good working and theoretical knowledge of the art and science of commercial real estate investment decisions. Students should after this course be able evalute investments of existing income-producing commercial properties, as well as how to analyze real estate development projects and investments in land.
By the end of this course, students should be able to answer and analyze questions like:
- What investments should the investor make (the investor’s investment decision)?
- How do investors determine the price they are willing to pay for a commercial property (estimating the investment value)?
- How should the investors finance the real estate investment (The financing decision)?
- How should a good investment evaluation report be structured?
Students should also be able to develop real estate investment evaluation models in Excel.
Course main content
Real estate investment evaluation process; Market analysis; Real estate as an asset class; Measuring Real estate returns; Cash flow proformas and discount rates; Financial leverage in real estate; Alternative sources of financial and non-financial resources; After-tax investment analysis; Real estate investment capital structure; Real options and land value; Real estate development investment analysis; Excel modelling of real estate investments.
For single course students:
180 credits in Engineering or Economics/Business Administration/Finance including at least 30 credits in Business Administration, or equivalent.
Documented proficiency in English B or equivalent (TOEFL, IELTS e g).
For students in the master programme Real Estate Development and Financial Services:
AI2135 Financial Investments.
Commercial Real Estate - Analysis and Investments: Latest International Edition
By Geltner, Miller, Clayton and Eichholtz
Articles published in academic journals (Free download from KTH library) and other articles that can be downloaded for free.
- TEN2 - Written Exam, 4.5 credits, grade scale: A, B, C, D, E, FX, F
- ÖVN2 - Assignment, 3.0 credits, grade scale: P, F
ABE/Building and Real Estate Economics
Han-Suck Song, e-post: email@example.com, tel: 08-790 9569; Abukar Warsame, e-post: firstname.lastname@example.org, tel: 08-790 6912
Han-Suck Song <email@example.com>
Course plan valid from:
Examination information valid from: Autumn 12.