Public Real Estate Markets and Investments

Real estate is typically classified as an alternative to more traditional investments such as stocks and bonds. Real estate investing involves the purchase, ownership, management, rental, or sale of real estate for profit. Real estate investments can be both income producing and non-income producing. Although real estate can produce income like a bond and appreciate like a stock, this tangible asset has several unique characteristics as well as advantages and disadvantages relative to other investment alternatives. Benefits of including real estate in a portfolio include diversification, yield enhancement, risk reduction, tax management, and inflation hedging. Unlike traditional investments, investors in real estate have the ability to influence performance. Real estate has drawbacks in that it requires management, is costly and difficult to buy, sell, and operate, and sometimes has lower liquidity. Additionally, measuring the relative performance of real estate can be challenging. The purpose of this 14-chapter book is to provide an overview and synthesis of public real estate markets and investments in a global context. The book discusses the major types and the latest trends within public real estate markets and presents the results of research studies in a straightforward manner. It has three sections: (1) foundations of public real estate, (2) public debt markets and investments, and (3) public equity markets and investments. The book should be interest to various groups including academics, practitioners, investors, and students. Readers should gain a greater appreciation of what is needed for success when investing in public real estate markets. For more information about private real estate, read Private Real Estate Markets and Investments.Acknowledgments ; About the Editors ; About the Contributors ; PART 1 FOUNDATIONS OF PUBLIC REAL ESTATE ; 1. Public Real Estate Markets and Investments: An Overview ; H. Kent Baker and Peter Chinloy ; 2. Diversification Benefits of Real Estate ; Brad Case ; 3. International Real Estate Markets ; K. W. Chau, S. K. Wong, and C. Y. Yiu ; 4. Strategy: Seeking Alpha Opportunities and Managing Risks in Global Markets ; Stephen E. Roulac ; PART 2 PUBLIC DEBT MARKETS AND INVESTMENTS ; 5. Mortgage Markets: The United States ; Eric S. Belsky ; 6. Mortgage Markets: International ; Kyung-Hwan Kim and Man Cho ; 7. Development of the Market for Mortgage-Backed Securities ; Stephen A. Buser and John J. McConnell ; 8. Prepayment and Default Risk ; Stephen L. Buschbom, James B. Kau, and Donald C. Keenan ; 9. Commercial Mortgages and Commercial Mortgage-Backed Securities ; Xudong An and Kerry D. Vandell ; 10. The Subprime Mortgage Crisis ; Anthony B. Sanders ; PART 3 PUBLIC EQUITY MARKETS AND INVESTMENTS ; 11. REITs: Structure and Performance ; Walter I. Boudry and Jarl G. Kallberg ; 12. REITs: International Dimensions ; Ehsan Nikbakht, Garrett Smith, and Andrew Spieler ; 13. REITs: Capital Structure ; Zhonghua Wu ; 14. Real Estate Operating Companies ; Peter Zabierek ; Answers to Discussion Questions ; Index