This News Archive page compiles articles that are older, but still retain interest or significance. To see more recent news and events items, please visit the following pages:
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December 5, 2007
Though his work at AMB Property Corporation keeps him as busy as a Chairman of the Board and CEO should be, Hamid Moghadam keeps his schedule flexible enough to ensure he can regularly present for Professor Gloria Schuck’s "Leadership in Real Estate" class. This year, via MIT/CRE's Learning from Leaders series, all area graduate students in real estate were able to hear him speak on the value of flexibility in development. Read synopsis of talk.
As reported by national media outlets, market indexes developed by the MIT Center for Real Estate are showing that the woes of the beleaguered subprime market have reached real estate's commercial sector. Read news articles published by the Wall Street Journal, Chicago Tribune, and more.
August 27, 2007
Technology stocks have provided a "safe haven" from the market's subprime-driven credit woes. "A lot of money left the tech sector in the early part of this decade and went to real estate," said MIT/CRE's David Geltner. "Now maybe some of that money will leave real estate and make its way back to tech." According to Geltner, the shift is already happening. Full story (pdf, 29K).
In its monthly Global Real Estate Monitor, the National Real Estate Investor magazine explores the potential for the real estate derivatives market, quoting MIT/CRE's David Geltner. "Given the size of the commercial real estate market," Geltner said, "there's every reason to believe that a derivatives market would be huge." Professor Geltner has written and talked extenstively about real estate derivatives in the U.S. market as a powerful new asset class.
Professor William Wheaton Quoted on CNN
August 23, 2007
In an article detailing how rising interest rates on jumbo home loans are hitting wealthier borrowers -- and potentially taking down the healthiest part of the sickly housing market -- CNN asked Bill Wheaton to weigh in. "If jumbo rates stay higher for a couple months, that could have an additional adverse affect on the higher-priced markets," he said. Full story: visit CNN website or view PDF (30K).
Posted August 2007
Blake Eagle, founder and CEO of the National Council of Real Estate Investment Fiduciaries (NCREIF), will deliver the commencement address to the MIT Center for Real Estate's 2007 Graduating Class on Saturday, September 29th. Eagle was key to the development of the flagship NCREIF Property Index (NPI), the first large-scale industry benchmark of its kind.
August 6, 2007
"The U.S. housing boom over the past decade turned about five million renters into homeowners, says William Wheaton, a professor of economics and real estate at the Massachusetts Institute of Technology. But many of the loans that made that possible have proved unsustainable. Dr. Wheaton expects about two-thirds of those people to go back to renting. Eventually, he says, rents will rise, and more people will see owning as a better alternative, helping to revive the housing market, perhaps in 2009 or 2010." Download full article (pdf, 23K) or visit WSJ online.
MIT/CRE's 40B Research Becomes the Talk of Boston
June 21, 2007
With the release this week of its reseach into the 40B permitting process, the Center's Housing Affordability Initiative (HAI) has created a flurry of media interest. With an article appearing first in the Boston Sunday Globe, then in Banker and Tradesman, and finally in a daily edition of the Boston Globe, HAI has created a stir with its exhaustive research revealing surprising findings.
June 18, 2007
MIT/CRE's Housing Affordability Initiative today released the findings of its exhaustive investigation into the Chapter 40B permitting process. Results are surprising, and include evidence that even though a majority of Chapter 40B zoning override cases in the Boston area are approved by town zoning boards in a manner acceptable to developers, many projects are not being built. Read press release. Read full report.
In a whirlwind tour of one of the world's new economic superpowers, students at the MIT Center for Real Estate are currently visiting China for an unforgettable look at the country's booming real estate market. See travelogue!
Geltner Delivers Keynote at 1st-Ever U.S. Real Estate Derivatives Conference
April 26 , 2007
MIT/CRE Director David Geltner presented a keynote address at the first and (as of this writing) the only real estate derivatives conference held in the U.S. Organized by Terrapinn, and held April 24th—26th at Bridgewaters in Manhattan, the ground-breaking conference agenda focused on strategies for success in developing a new liquid real estate derivatives market. Read more.
Boston Globe Shares Pollakowski's Tips on Homebuying
April 14, 2007
The Boston Globe cites Henry Pollakowski, Director of the Housing Affordability Initiative at MIT/CRE, in an article giving tips to buyers looking for a deal during the current homebuying season. "Finding small houses is really part of the trick," Pollakowski said, explaining that homes on less-spacious lots can offer a wealth of bargains. "Suburban zoning tries to keep lot sizes large, to bring in above-average income people. But you can find little niches where there are small homes . . . nooks and crannies that you can poke into." Read more.
Reuters Notes MIT/CRE Indexes
April 4, 2007
The real estate indexes launched in December 2006 by the MIT Center for Real Estate and its industry partner Real Capital Analytics (RCA) are generating increasing interest among market watchers, who see a growing enthusiasm for real estate derivatives. Reuters notes that a "slew of new property derivatives are becoming available due to a growing access to real estate indexes," and includes the MIT-RCA indices among seven of the most significant. Read more.
MIT/CRE's Wheaton Interviewed by NPR
March 16, 2007
In his third appearance on National Public Radio this year, Professor Bill Wheaton discussed subprime lending in an interview with Robert Siegel on NPR's All Things Considered. Wheaton considered the development of the subprime mortgage market and offered his analysis of how recent events might affect the wider economy. "The cooling housing market could slow economic growth," he said, "but I don't think it'll be strong enough to put us into a recession." Hear NPR interview (RealPlayer, 4:54).
Bloomberg Cites MIT/CRE Professor Wheaton
February 28, 2007
Bloomberg columnist Caroline Baum cites William Wheaton, MIT Center for Real Estate Director of Research, to suggest that the ongoing woes of the subprime market are creeping into other sectors of the real estate industry. Quoting Professor Wheaton as saying that the "explosive growth of the subprime market" was the result of the "unprecedented" shift from renting to home ownership, Baum blames too much supply on increased risk. Download column (pdf, 26K) or visit Bloomberg website.
February 20, 2007
In a report on the growing market for property derivatives, the Financial Times newspaper drew attention to the indices launched in December 2006 by MIT/CRE and its industry partner Real Capital Analytics. Detailing the increased interest in indices to support the derivatives market, the Times noted the 29 new indices set up by "MIT's renowned Center for Real Estate" for tracking commercial property prices in the US. Learn more about the MIT/RCA indices by reading the launch press release or visiting the MIT/CRE research pages.
Boston Globe Editorial References MIT/CRE Study
February 11, 2007
"According to a study released last year by the Massachusetts Housing Partnership and the MIT Center for Real Estate, the average lot size for new homes built in Greater Boston from 1998 to 2002 was just under an acre – three times the national average.... Massachusetts cannot sustain itself unless young, educated workers can afford to put down roots and raise families here.... Massachusetts needs more small houses on tidy little lots." Download editorial (pdf, 20K) or visit Boston Globe editorial page.
January 29, 2007
U.S. private equity firm Warburg Pincus of New York has agreed to buy a 25% stake in Shanghai ZK Real Estate Development to increase Warburg's emerging market exposure.
ZK Real Estate was founded in March 2006 by CEO and MIT/CRE graduate Qian Wang ('03), who established the company as a joint venture with MIT/CRE partner Zhongkai Group. Developing over 6 million square feet of floor space in China's second-tier cities, ZK Real Estate is recruiting talented professionals to work in China's booming real estate market. Interested MIT/CRE affiliates are invited to apply. Visit ZK Real Estate's website.
January 26, 2007
Anglo Irish Bank has named Richard Muraida as Senior Vice President of Commercial Real Estate Lending for the bank’s Boston representative office. Mr. Muraida, a graduate of MIT/CRE's Minority Developers Executive Program, will be responsible for originating loans in the Boston market.
Posted January 18, 2007
David Geltner, Director of the MIT Center for Real Estate, was named the most influential researcher in the real estate field from 2000-2004 by the journal Real Estate Economics (REE). Widely regarded as the leading real estate journal, REE also named MIT the second most influential real estate research institution.
NYC Stays Hot as Hub Cools: Big Apple Leads in Housing & Jobs
Boston Herald, December 24, 2006
"The once-hot condo market has cooled in Boston.... All of which is in stark contrast to the Hub’s archrival, New York, which is experiencing a boom of historic proportions." According to the MIT Center for Real Estate's William Wheaton, New York's condo boom is due in part to an influx of new residents — over three quarters of a million. View article (pdf, 110K).
Boston Mayor Eyes Push for Job Growth
Boston Herald, December 22, 2006
Massachusetts has lost 143,800 jobs since 2001. "We are just not able to generate center-city-type jobs," said William Wheaton, an economist and faculty member of the MIT Center for Real Estate. "It's been a very difficult five years, that's all I would say." View article (pdf, 58K).
Houston Chronicle, November 28, 2006
"Fannie Mae and McLean, Va.-based Freddie Mac were created by Congress to buy home loans from banks and other lenders and sell them bundled in securities for sale on Wall Street. The static limits reflect the rule of increasing prices yielding higher loan ceilings, but 'prices are clearly falling,' said William Wheaton, a professor of economics at the Massachusetts Institute of Technology. 'They bump the limits every year to reflect average, middle-income housing, and as those prices have gone up, the limits have gone up,' said Wheaton, who is also research director at MIT's Center for Real Estate. 'By having limits, they force jumbo loans, or loans to people with bad credit, into other pools.'"
CNNMoney.com, November 7, 2006
"The roughly 50 percent increase in median home prices since 2000 makes the job much more attractive compared to other professions which have seen modest increases in compensation, said William Wheaton, director of the Massachusetts Institute of Technology's Center for Real Estate. 'If you're able to make $100,000 selling a house rather than $50,000 everyone and their cousin wants to be a broker,' he said. 'All that demand to be brokers is caused by the fact that the commission structure is fixed. Commissions should be plummeting from 6 to 4 to 2 percent because it's not.'
Boston Globe, November 5, 2006
"A study earlier this year by the Massachusetts Institute of Technology's Center for Real Estate concluded that new homes built in Greater Boston between 1998 and 2002 used an average of 1.3 acres per lot -- much more than homes elsewhere in the country. The ballooning house lots here, said Henry Pollakowski, director of the Center's Housing Affordability Initiative, are a result of more restrictive zoning rules adopted by communities since the 1980s. "It's anti growth. It's a way of keeping other people out" of those towns, he said."
Planetizen, November 1, 2006
The first national study in many years has (again) confirmed that MIT is home to the top graduate program in Urban Planning. In addition, out of 94 North American departments assessed, DUSP was ranked #1 for International Development, #1 for Housing, Social, and Community Development, #1 for Economic Development, #1 for Technology, #2 for Real Estate, and #3 for Environmental Planning, for Land Use Planning, and for Urban Design. In other words, not only the Department as a whole, but every program group within it, has been ranked in the top three nationally.
November 1, 2006
Students and off-campus visitors who gathered for the third session of the Affordable Housing Forum heard that, despite the much-ballyhooed "slump" of the real estate market, the total value of housing stock in the United States is around $20 trillion.
Boston Globe, September 24, 2006
"The sagging market for new construction arose from a host of interrelated economic factors, not the least of which is Boston's slow growth in new jobs, said Tony Ciochetti, chairman of the Massachusetts Institute of Technology's Center for Real Estate and a former real estate developer. 'If you have more people leaving Boston than moving in, then that little guy out building subdivisions may be in trouble,' Ciochetti said. 'The question is are they going to stop building? That's really a function of the underlying economic picture of the Boston area, and each developer's perception of it.'"
September 30, 2006
Matthew Kelly, Vice President of Real Estate Strategy and Development for Walt Disney Imagineering, addressed the MIT Center for Real Estate's graduating class. Kelly shared his experience guiding the development of Celebration, an award-winning large-scale master-planned community near Orlando.
September 29, 2006
Professor Phillip Thompson, MIT Associate Professor of Urban Politics, discussed the MIT community's efforts to help rebuild New Orleans after Hurricane Katrina. Highlighting the disaster's profound effects on real estate, Professor Thompson spoke as a part of MIT/CRE's commencement weekend.
September 29, 2006
Professor Richard de Neufville, MIT Professor of Civil and Environmental Engineering and Engineering Systems, shared his research on the value of incorporating flexibility into real estate development. Speaking at the MIT Center for Real Estate's graduation weekend, he showed how a simple spreadsheet model of future uncertainty can dramatically increase development value.
The MIT Center for Real Estate is pleased to welcome its incoming Class of 2007 — a cohort of 37 students (drawn from a pool of 90 applicants) admitted to MIT/CRE's flagship program, the Master of Science in Real Estate Development (MSRED).
New for the summer of 2006, the MIT Center for Real Estate introduced three professional development courses — Advanced Real Estate Development, Brownfields Redevelopment, and Entrepreneurship in the Real Estate Industry — to complement the suite of courses we offer to industry.
What do Dracut, Waltham, and Norwood have in common? They are among the most affordable towns in the Boston area, according to MIT research announced at the 2nd Annual Housing Affordability Conference.
February 22, 2006
Annual investment returns for U.S. holdings in commercial real estate — a sector favored by big pension funds — hit an unprecedented high of 34 percent in 2005. These results were announced with the launch of MIT/CRE's Transactions-Based Index (TBI).
February 16, 2006
A symposium co-produced by the Alumni Association of MIT’s Center for Real Estate (AACRE) and New England Women in Real Estate (NEWIRE) addressed a critical question — if developing real estate is far riskier than purchasing stable real estate, how much greater should be the returns for development?
January 31, 2006
New single-family home construction in the greater Boston area is consuming about twice as much land as existing single-family housing, and half of the region’s 30,387 recent new single-family homes were built on lots of nearly an acre or larger, according to a new study by the Massachusetts Housing Partnership (MHP) and the MIT Center for Real Estate (MIT/CRE).
December 2, 2005
Richard Dansereau, President and Chief Operating Officer of CDP Capital Real Estate Advisory, and Andre Collin, First Vice President of Real Estate Investments of Canada’s Public Sector Pension Investment Board (PSP), spoke at the MIT Center for Real Estate's Learning from Leaders program, the first in a planned series of visits by the Center’s sustaining partners.
CRE Students Benefit from Unique Opportunity to Learn from Leaders
December 2, 2005
Michael Falcone, Chief Executive Officer of MuniMae (Municipal Mortgage & Equity, LLC) kicks off the MIT Center for Real Estate's "Learning from Leaders" program, a series of talks by senior executives who lead the Center's sustaining partner companies. Download article. (pdf, 84K)
Center for Real Estate graduate student Luis Canizo won an award in MIT's 50K Entrepreneurship Competition for his invention of durable housing designed for disaster areas, which can be built quickly using local materials and unskilled labor.
A class of 15 graduate students from MIT’s Center for Real Estate (MIT/CRE) received a firsthand view of European real estate finance and development when they visited England and France in January of 2006. The group is the second led abroad by Professor Tony Ciochetti, chairman of MIT/CRE, and it represents the Center's growing focus on the globalization of real estate.
September 29 - October 1, 2005
The MIT Center for Real Estate hosted its Alumni/ae Reunion Weekend 2005 from September 29 through October 1. The theme for the weekend was real estate theory versus practice.
As part of MIT/CRE’s global initiative, several Forums on Issues and Innovations in Real Estate (FIRE) have been held in China. These events are designed to engage and communicate with members of the real estate industry, and to provide a forum for MIT/CRE partners to focus on topics of particular local interest.
AACRE & NEWIRE Symposium — Big Dig Impact on Prices
Park Effect and Transportion effect impact real estate prices of properties adjoining the Big Dig. Download article. (pdf, 28K)
Professor William Wheaton covers the Denver Market
Prof. Wheaton gives introductory talk at Colorado University's annual Real Estate Conference. Download presentation. (pdf, 336K)
At the MIT Center for Real Estate, Acquiring Minds Want to Know
A good gut. A quick trigger-finger. And the ability to dance.
Those are among the characteristics that make a good real estate acquisitions professional, according to two Boston-based pros in the field: M. Wister Wood, VP of Acquisitions at Beacon Capital Partners, and Ken McCall, President and CEO of Paradigm Properties. Download full article. (pdf, 24K)
Real Estate and the Political Process
On September 30, MIT's Center for Real Estate hosted a special program called "Real Estate and the Political Process." It might just as aptly have been called "All Real Estate is Local," because that was one of the most consistent messages to emerge from the day's discussions with the distinguished participants. Download full article. (pdf, 28K)
2 Bedrooms, Fewer Kids; 2 Cars but Just 1 Garage
A New Jersey town that until recently had a distinctly rural character and proved, as a result, attractive for new residential development has decided to try to limit the number of kids coming to the town. Download full article. (pdf, 20K)
The recent business-led recession has led to a sharp contraction in demand for office and industrial space nationwide, but according to MIT economist William Wheaton, California shows bright spots.
Introducing MIT/CRE's twentieth class of MSRED students, who are planning to enroll in August 2003.
Although the team did not win the ULI-Hines Competition, they still believe strongly in the effectiveness of process they conceived.
Fisher, who will be Assistant Professor of Real Estate in the Department of Urban Studies and Planning, has broad interests in finance and economics.
Housing economist Henry Pollakowski's findings show that the only benefits from New York City rent regulation go to wealthier parts of the city.
The final winner will be chosen April 24 from semi-finalist teams from MIT, Harvard, USC and the University of Pennsylvania.
Economist William Wheaton described real estate markets as weak but not dangerously so when he spoke to the Real Estate Roundtable in January.
Finance Professor David Geltner will take the reins of MIT|CRE in July. He will also assume some additional administrative functions since the office of Chairman will disappear.
Patrick Campbell was honored for his role in creating Thornburgh Station, a Gateway to the New Ohio Canalway Recreational Area outside Cleveland, Ohio. Phase 1 of the mixed-use project was completed in the summer of 2002.
Speakers at the Fall symposium — House Poor: The High Cost of Housing — agreed that regulatory barriers make it difficult to meet housing demand. The solution was less clear.