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Course Descriptions

Currently accepting applications Apply now >> Next program starts: Autumn 2008 Program location: UW campus, Seattle Sign up to receive e-mail updates >> Contact a program representative >>

Autumn Course

Introduction and Static Analysis of Commercial Real Estate

Schedule: (20 sessions) Tuesdays and Thursdays, 6:00-8:50p.m., Sept. 30-Dec. 11, 2008 (no class Nov. 11 and 27); $1,155 (6.0 CEUs).

Instructors: Almo, Bauman, DeLisle, Downing, Gibbons, Kinzer, Koelher, Kuhrau, Lorig, Makar (with lender panel), Muhlebach, Olsen, Reinhardsen, Royer, Warshak and Lewontin.

Examines the nature of commercial real estate as an interdisciplinary field. Reviews trends in commercial development, commercial property vocabulary, static analysis skills for the four principal property types, and develops principles of leasing and income maximization. Explores specific property management techniques by property type and studies permanent loan underwriting and financing/refinancing techniques. Reviews the marketing and sales of existing properties with the help of active market participants and guests. Topics:

• A historical review of U.S. urban/suburban commercial real estate; trends and patterns are examined with the help of guest industry experts. Students review commercial property vocabulary in the context of development history, and as preparation for commercial real estate analysis of the four principal property types.
• Static analysis skills are explored with a financial calculator (HP12C required) as a foundation for understanding principles of real estate economics, capitalization and value creation.
• Property management, operations and leasing practices are studied as they apply to the property groups.
• Financing and refinancing options for improved properties are considered in light of prevailing underwriting standards and market conditions. A lender panel illustrates different institutional approaches to the same properties.
• Marketing and sales of improved properties are discussed from a static analysis point of view, and prevailing industry standard units of comparison are explored, with class participation by recognized industry practitioners active in commercial property markets.
• Special use properties are addressed, including affordable and senior housing, condominiums, hotels and mixed-use properties, public-use buildings and public/private partnerships.

Winter Course

Development Process and Project Sensitivity Analysis

Schedule: (19 sessions) Tuesdays and Thursdays, 6:00-8:50pm, Jan. 6-Mar. 10, 2009; $795 (5.7 CEUs).

Instructors: Beaulieu, Godwin-Austen, Johnson, Jones, Laird, Libby, Reinhardsen, Remmers, Savo and Thorpe

A rigorous review of the development process – market review, site and entitlement issues, and creation of a project pro forma culminates in creation of a commercial project. Issues covered include the role of equity and requirements of construction lending, adoption and execution of a marketing plan, and the use of sources and uses of funds. Financing will concentrate on construction loan underwriting, credit criteria and progress funding mechanics. Students form teams to identify, analyze and present a project to be developed on actual sites. Topics:

• The role of the pro forma in the management of the development process.
• Market analysis for major property types.
• A general approach to estimating direct construction costs.
• Designing to the market, functional and quality issues.
• Development of a project budget and discussion of sensitivity tools.
• Entitlement, permitting and the public approval process.
• Defining market rents and managing lease-up to stabilization.

Spring Course

Legal and Taxation Issues and Interdisciplinary Decision-Making in Real Estate

Schedule: (14 sessions) Tuesdays, 6:00-8:50pm, Mar. 31-Apr. 21, 2009; Tuesdays and Thursdays, 6:00-8:50pm, Apr. 28-May 28, 2009; $715 (4.2 CEUs).

Instructors: Brain, Kuhrau, Reinhardsen, Robinson, Scaramastra, Spitzer, Stephens and Underhill

Extension of second-term development concepts to a discounted cash flow (DCF) model and investment analysis. Students discuss the often complex legal issues surrounding title, ownership, construction, financing, purchase contracts, environmental law, and leases. Legal relationships of parties are explored under a variety of commercial real estate transactions. The taxation segment introduces tax treatments, including depreciation, capital gains, calculation of basis, and measurement of after-tax returns. Pulling it all together, students examine the overlay and subtleties of these legal and tax aspects of commercial real estate, then apply the entire coursework to the practicalities of commercial real estate decision-making. Topics:

• Complexities and subtleties in operating forecasts; models for investment pre- and after-tax analysis.
• Legal issues, including title, easements, covenants, contracts, purchase agreements, liens, leasehold requirements, financial and construction documentation, and environmental law.
• Taxation issues in real property, covering acquisition, development, operations and disposition of property.
• Guest lecturers illustrate the interrelationships of markets and disciplines, business philosophies, and current and future commercial property strategies; focus on multidisciplinary decision-making.