Real Estate Development Economics

Catalog description

This course introduces financial and economic concepts that confront construction managers, engineers, and other construction design professionals. The student is taught their role in pre-development analysis along with the basic principles of real estate investment. Students gain insight into the economic factors that motivate the client to build. Topics include financing the construction project, interest rates, economic decision making, life cycle costs, rate of return analysis, depreciation, income taxes, budgeting, financial statement evaluations, professional liability, investment analysis, value engineering and sustainable design calculations, cash flow analysis, engineering economics, appreciation, tax shelter, development history, zoning, tax laws, equity investments, LEED/sustainable development, and appraisal techniques. The instructor may arrange guest lectures and tours throughout the term.