The study of real estate and real estate development at the graduate school level has taken many forms, giving rise to various educational models in the United States and abroad. The decision for individuals pursing higher education in this field often comes down to choosing between a traditional degree with a specialization in real estate or an interdisciplinary degree focused wholly on real estate studies.
Historically, real estate studies were limited to major or minor in business, such as an MBA, or training in architecture and urban planning schools. Business school programs usually emphasize the business side of real estate; financing, marketing or company management and students lack adequate understanding of real estate principles and processes. Architecture and urban planning degrees typically lack adequate training in finance. As education needs have changed, business schools such as the University of Wisconsin, University of Pennsylvania, and University of California, Berkeley continue to cater to students interested in the flexibility of an MBA. Wharton's real estate program, for example, takes advantage of being housed in one of the top business schools in the United States and having some of the top real estate professionals in the world as advisers.[1]
In the mid-1980s real estate academic programs flourished as the industry matured to one with great complexity and an increasingly institutional ownership structure. The increased complexity of the industry created a demand for practitioners who possessed a comprehensive real estate education. One and two-year graduate level real estate degree programs originated with the founding of the MIT Center for Real Estate in 1983. Columbia University (1985), Texas A&M University (1985) and University of Southern California (1986) soon offered graduate level educations. When these real estate programs were starting around the United States, it was clear that professionals must learn real estate finance and development in the classroom.
During the mid-1990s strong academic interest in real estate development "was never greater, whether it's for repositioning products, redeveloping inner cities, or developing more affordable housing. Students seemed to be acting on the notion that it's a temporary downturn and graduate school is a good place for the moment."[2] During this period, one out of two real estate programs were adding new courses as a result of increased enrollment.
In the early 2000s, prior to the Great Recession, the industry again acknowledged increasing need for graduates with superior qualifications — providing the research-based expertise necessary to solve complex problems in contemporary real estate development. Programs such as the University of Maryland (2006) and Johns Hopkins University were benefactors of developer donations that raised the bar for real estate education nationally.[3]
The late 2000s saw significant expansion of real estate programs to second and third tier universities, as well as additional coursework added by MBA programs that commonly did not have an emphasis on real estate. To deal with the complexity of the field and its far-reaching effects, today's industry professionals require advanced training to prepare them to operate in increasingly technical and interrelated areas.
Today it is a general acceptance that a good education in real estate is needed to succeed in the industry. [4]Real estate programs continue in the future to provide an excellent training ground for professionals. Graduate education is commonly a prerequisite to advancing in many aspects of real estate. Real estate programs have reflected a commitment to creating a conceptual framework for dealing with real estate development issues in a professional forum.
All students considering a career in real estate and development are advised to talk with developers, real estate lawyers, architects, asset managers, corporate real estate directors and city planners to gain a full picture of the career options open to them and all of the educational requirements for those careers.[5] Typically, real estate professionals in the fields of appraisal, residential or commercial sales, property management or leasing do not require graduate education. Real estate is an increasingly complex, highly competitive, fast-paced industry, and its practitioners are often finding that they need to further their knowledge and skills to advance. A graduate degree can open doors to greater job and career opportunities and command a higher salary in the marketplace.
The study of real estate can be categorized by programs offering an interdisciplinary approach, the Master of Real Estate Development programs or universities that offer a traditional degree Master of Science in Real Estate. Programs may award a Master of Science, Master, or Master of Arts, however, the key indicator is to review each degree curriculum requirements.
The Master of Real Estate Development (MRED) programs generally focus on the three main elements of real estate development: design, finance, and policy. Students are generally exposed to the full range of development functions - design, construction management, market analysis, finance, site planning, and project management and operations, in addition to all real estate product types - residential, retail, office, hospitality, and industrial. Whether in the context of urban redevelopment, historic preservation, or suburban growth, MRED students learn from the developer's perspective the importance of relevant issues in law, economics, finance, market analysis, negotiation, architecture, urban history, planning, and construction project management.[6]
The programs are a full-immersion focusing on the entire real estate and development process-from dirt-to-deal, finance to façade-and include industry topics presented by leading local and national developers. The typical MRED student is a highly motivated individual who seeks to radically alter or enhance their career paths and join the real estate development industry. Students who graduate from the programs are committed to a career in real estate development with skills to also enter asset management, institutional investment or property management. They enter the real estate development industry with a keen awareness of developing projects that are financially viable, economically desirable, politically acceptable, environmentally respectful, socially responsible, and contextually and artfully designed.
The curriculum of a Master of Real Estate Development program varies slightly between universities, but is generally consistent. Many programs utilize actual case studies and complex projects to heighten the student's knowledge and strategic decision-making skills. Credit hours are typically between 30 and 40 hours. Programs that have more than 33 hours typically include additional study in business or finance. A core curriculum of 5 to 7 classes is typical[7] at Arizona State University:
In addition to the core curriculum, Master of Real Estate Development programs typically offer electives in the following areas, such as those offered at University of Southern California[8] and University of Maryland[9]:
In the final semester a candidate may have to pass a final comprehensive examination, complete a thesis for publication, or a prepare development project. A final project is most common at programs like Auburn University, and emphasizes the analysis and solution of a real-world development case. Based upon information provided about a particular development site, students prepare a market analysis, a financial feasibility study, and a site plan. The student submits a written development proposal which is graded by his or her peers, the faculty, and more often industry professionals.
| University | Degree granted | Since | Credits | Location |
|---|---|---|---|---|
| Arizona State University | Master of Real Estate Development[10] | 2006 | 33 | Tempe, AZ |
| Auburn University | Executive Master of Real Estate Development[11] | 2012 | 40 | Auburn, AL |
| Clemson University | Master of Real Estate Development[12] | 2004 | 54 | Clemson, SC |
| Columbia University | Master of Science in Real Estate Development[13] | 1985 | 45 | New York City, NY |
| George Mason University | Master of Science in Real Estate Development[14] | 2010 | 36 | Fairfax, VA |
| Massachusetts Institute of Technology | Master of Science in Real Estate Development[15] | 1983 | 27 | Cambridge, MA |
| New York University | Master of Science in Real Estate Development[16] | 2010 | 42 | New York City, NY |
| Nova Southeastern University | Master of Science in Real Estate Development[17] | 40 | Fort Lauderdale, FL | |
| Portland State University | Master of Real Estate Development | 2012 | Portland, OR | |
| Texas A&M University | Master of Science in Land Development [18] | 1985 | 45 | College Station, TX |
| University of Maryland | Master of Real Estate Development [19] | 2006 | 33 | College Park, MD |
| University of Miami | Master of Real Estate Development and Urbanism [20] | 2009 | 36 | Coral Gables, FL |
| University of Southern California | Master of Real Estate Development [21] | 1986 | 44 | Los Angeles, CA |
| University of Utah | Master of Real Estate Development [22] | 2010 | 39 | Salt Lake City, UT |
Graduate programs that award a degree of a Master of Real Estate or Master of Science in Real Estate is typically the expansion of real estate courses in a MBA program or Business school into a separate degree. Master of Science in Real Estate programs focus on topics of real estate finance, development and planning, management, investment, economics, and accounting. Some universities offer a variation on this degree, with special focus in finance, valuation or analysis.
| University | Degree granted | Since | Credits | Location |
|---|---|---|---|---|
| American University | Master of Science in Real Estate [23] | Washington, D.C. | ||
| Baruch College | Master of Professional Studies in Real Estate [24] | New York City, NY | ||
| Cornell University | Master of Professional Studies in Real Estate [25] | Ithaca, NY | ||
| DePaul University | Master of Science in Real Estate [26] | Chicago, IL | ||
| Florida International University | Master of Science in International Real Estate [27] | Miami, FL | ||
| Georgetown University | Master of Professional Studies in Real Estate [28] | 2010 | 30 | Washington, D.C. |
| Georgia State University | Master of Science in Real Estate [29] | Atlanta, GA | ||
| Harvard University | Master of Design Studies in Real Estate [30] | Cambridge, MA | ||
| Johns Hopkins University | Master of Science in Real Estate [31] | 1989 | 36 | Washington, DC |
| New York University | Master of Science in Real Estate [32] | 42 | New York City, NY | |
| Roosevelt University | Master of Science in Real Estate [33] | 2002 | Chicago, IL | |
| Texas A&M University | Master of Real Estate [34] | College Station, TX | ||
| Tulane University | Master of Sustainable Real Estate Development [35] | 2010 | 43 | New Orleans, LA |
| University of Central Florida | Master of Science in Real Estate [36] | 2011 | Orlando, FL | |
| University of Denver | Master of Real Estate and Construction Management [37] | 1938 | Denver, CO | |
| University of Florida | Master of Science in Real Estate [38] | Gainesville, FL | ||
| University of Illinois at Chicago | Master of Arts in Real Estate [39] | Chicago, IL | ||
| UNC Charlotte | Master of Science in Real Estate | 2012 | Charlotte, NC | |
| University of North Texas | Master of Science in Real Estate Analysis [40] | Denton, TX | ||
| University of Saint Thomas | Master of Science in Real Estate [41] | St. Paul, MO | ||
| University of San Diego | Master of Science in Real Estate [42] | 2003 | 32 | San Diego, CA |
| University of South Florida | Master of Science in Real Estate [43] | 2010 | Tampa, FL | |
| University of Texas at Arlington | Master of Science in Real Estate [44] | Arlington, TX | ||
| University of Washington | Master of Science in Real Estate [45] | 2010 | Seattle, WA | |
| University of Wisconsin-Madison | Global Real Estate Masters [46] | 2010 | Madison, WI | |
| Virginia Commonwealth University | Master of Science in Real Estate Valuation[47] | 0 | 0 | Richmond, VA |
Real estate programs and alumni donors sponsor research by real estate faculty in numerous areas of real estate including the economics of property markets, the impacts of regulation, and the sources of equity and debt financing. Additional research, in the form of faculty-supervised student thesis work, contributes to a growing inventory of new information. The research program is essential to promoting new knowledge, advancing teaching techniques, and bridging the gap between theory and practice. Not all graduate real estate programs conduct research.
| Name | University |
|---|---|
| The Richard H. Pennell Center for Real Estate[48] | Clemson University |
| MIT Center for Real Estate [49] | MIT |
| The Graaskamp Center for Real Estate[50] | University of Wisconsin-Madison |
| Lusk Center for Real Estate [51] | University of Southern California |
| Colvin Institute of Real Estate Development [52] | University of Maryland |
| Bergstrom Center for Real Estate Studies [53] | University of Florida |
Rankings for graduate level education are not specifically formal as other professional disciplines. MBA programs with concentrations in real estate may be ranked according to organizations such as U.S. News & World Report or Business Week, but are not relative to the depth of the real estate industry studied in a MBA concentration compared with a specialized master's degree in real estate development. Real estate education has increased in recent years to fill the demand for well-educated practitioners in the industry. However, there has been a great deal of debate on what elements should be an essential part of a graduate program in order to help students succeed in the industry. Rankings have been conducted by editorial board representation of faculty members at university real estate departments,[54] however, these results prove to be ineffective in judging the program as a whole. Many graduate programs utilize adjunct professors or guest speakers from the industry, which do not sit on editorial boards of scholarly real estate journals.
Currently there are no rankings of masters degree programs in real estate. The best method to evaluate the various degree programs is through due diligence by individual applicants, including a review of each program's curriculum and how it applies to the students academic and career goals. While there are no formal rankings for graduate real estate education, and programs are subject to greater locational impact factors than are MBA programs (due to regional and local policy influence).
A separate metric to evaluate the success of graduate real estate programs is the review of past winner's in the Urban Land Institute Gerald D. Hines Student Competition. Each year graduate-level students form their own multidisciplinary teams (from real estate, urban planning and business schools) and have two weeks to devise a comprehensive design and development program for a real, large-scale site full of challenges and opportunities. Submissions will consist of boards that include drawings, site plans, tables, and market-feasible financial data. [55]
| Year | Winner | First Runner-up | Second Runner-up |
|---|---|---|---|
| 2011 | University of Michigan | University of Oklahoma | University of Maryland |
| 2010 | University of North Carolina | Harvard University | University of Maryland |
| 2009 | MIT | Columbia University | Kansas State University |
Professionals in real estate often hold degrees in related fields such as city planning, construction management, accounting, property management, architecture or law. One of the most common programs continues to be a Master of City Planning, regional planning, or urban planning degree with a real estate emphasis. Planning programs tend to emphasize land use planning, transportation or infrastructure development, land use law and policy and other planning topics; students who take a concentration in real estate development will learn how it relates to planning.
Business degrees with real estate concentrations generally provide students with the opportunity to pursue a general management degree, but to specialize in real estate development or some segment of the real estate industry through a sequence or group of electives. For a long time, those wishing to study real estate had to content themselves with primarily pursuing a Master of Business Administration degree, perhaps with the option of concentration in real estate, and usually with a focus in finance. These MBA programs typically only include one or two courses focused in real estate. Many MBA programs do not specialize in real estate.
For those considering an MBA, there are some issues to consider:
| MBA | MSc Real Estate Development | |
|---|---|---|
| Timeframe | 2 years full-time | 1 year |
| Curriculum | 1st year - Business Basics; 2nd year - Specialization largely focused on finance-related areas | Real estate focus and specialization throughout |
| Specialization | Real Estate in MBA programs is very rare. Specialization tends to be finance focused | Broad-based real estate education in design, management, law, development, economics and signficant focus on finance, e.g., real estate finance, capital markets |
| Program size | Typically, the programs are large with real estate students representing a relatively small (2% - 3%) percentage | Small groups, with commonly 25 to 50 students |
| Industry Commitment | Students pursuing a MBA may not be committed to a real estate career; therefore they are seeking a broader base | All students are committed to the real estate industry and many have real-estate related experience prior to coming to the program. An important part of the programs are the learning between students. |
| Career opportunities | Varied but with a heavy concentration in finance-related areas of the real estate industry | Significant representation in project management, development, finance-related areas, acquisitions, entrepreneurship and government |
| Thesis | Generally, not required | Typically required, usually as a professional publication or a real-life capstone competition |
| Alumni network | Usually extensive, but predominantly outside of the real estate industry | Alumni are involved in all facets of the industry and located throughout the world |
| Recruitment | Limited recruitment by real estate companies | Many students seeking employment find opportunities through peers, professors or on-site recruitment |
A limited number of MBA programs provide courses in real estate as part of the typical study in business.
| University | Degree granted | Location |
|---|---|---|
| George Washington University | MBA with Real Estate Concentration Valuation[56] | Washington, D.C. |
| Hofstra University | MBA with Real Estate Concentration [57] | Hempstead, NY |
| Pacific States University | MBA with Concentration in Real Estate Management [58] | Los Angeles, CA |
| Roosevelt University | MBA with Real Estate Concentration [59] | Chicago, IL |
| University of Georgia | MBA with Real Estate Concentration [60] | Athens, GA |
| University of North Carolina at Chapel Hill | MBA with Real Estate Concentration [61] | Chapel Hill, NC |
| University of Pennsylvania | MBA with Real Estate Concentration [62] | Philadelphia, PA |
| University of Wisconsin | MBA with Real Estate Concentration [63] | Madison, WI |
The Certificate in Property Repositioning and Turnaround Strategies [64] is a unique program offered by the University of Texas at Arlington School of Architecture, with participation by the university's College of Business. It features strategic solution techniques and best practices for resolving issues in the current troubled property environment. Participants in this graduate-level certification course learn how to reposition distressed properties and participate in workout teams in four months of concentrated sessions and is structured to require minimal time away from the office. The program features thirteen credit hours offered in intensive one-and-a-half day weekly sessions.
The Certificate in Real Estate Design & Development [65] is a certificate offered by the University of Pennsylvania School of Design, with participation by the Wharton School of the University of Pennsylvania.
The Certificate in Real Estate Development [66] is a certificate offered by The Catholic University of America.
The Graduate Certificate in Real Estate Development [67] is a certificate offered by the Taubman College of Architecture and Urban Planning at the University of Michigan.
The Certificates in Commercial Real Estate and Real Estate and Finance [68] are two certificates offered by the Boston University.
As with many MBA programs, undergraduate real estate education is commonly offered as a concentration, or focused area of study. Very few universities with varying academic reputation offer a bachelor degree with a concentration in real estate (typically two courses during the senior year).
A sample of careers include large public real estate companies; small private entrepreneurial organizations; regional investors; companies that specialize in a single product (e.g. office/retail/multi-family); non-profits involved in areas such as affordable housing; corporations that own real estate; companies that finance real estate; and companies that provide services such as design and architecture firms, brokerage companies, investment banks, REITs, and various consultancies. Careers in the public sector at the city, county, state, federal or military level offer interesting and rewarding career opportunities related to real estate.[69] The skill sets are also transferable to other industries and sectors of the economy.
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