The Promise of ARES: A Past AREUEA President's Perspective

The promise of ARES is that it provides a forum in its annual sessions and publications for research and teaching materials on managerial decisionmaking aspects of real estate. It offers an environment at annual meetings for the active participation of all members, and a way of networking on all sorts of issues real estate faculty may be faced with at their own colleges or universities.

A Note on the Origin of Real Estate in Collegiate Schools of Business Administration

In recent years real estate faculty in collegiate schools of business administration have raised the question of the purpose and direction of their courses, often seeking the underlying theoretical discipline that would make the study of real estate respectable (Diaz, 1993). The purpose of this paper is to review the origins of collegiate courses in real estate so that we can better understand why they are as they are. Perhaps by doing this, we can more clearly see how to improve them in order to provide the best collegiate real estate education for the next generation.

The Impact of FHA Insurance Practices on Urban Housing Markets in Transition—The St. Louis Case

In this Article we suggest hypotheses about housing markets in transition from higher to lower income levels and from one race to another. We indicate the expected impact of the change in Federal Housing Administration insurance practices on prices, income and racial transition. We then develop actual price and income data for St. Louis housing markets in transition, describe changes in housing markets in transition, and evaluate the impact of the shift in Federal Housing Administration policy

Survey of Approaches to Disposing of Surplus Corporate Real Estate

The purpose of this research was to test two hypotheses: 1. firms ignore profitable opportunities in disposing of surplus property because they do not believe they are in the real estate business; 2. Firms treat surplus property as they would any new product and develop a marketing strategy to yield the greatest return. Half of the corporate real estate executives surveyed responded in a manner consistent with hypothesis 1; half responded in a manner consistent with hypothesis 2. The biases in the survey favor hypothesis 2, implying that a majority of corporations behave consistently with hypothesis 1.

Testing the Conventional Representation Model for Residential Real Estate Brokerage

The purpose of this study is to determine whether the conventional model that the real estate agent is the exclusive agent or subagent of the seller best fits the understanding of all parties during the critical stages of contract negotiations. A survey of Georgia licensees indicates practitioners' attitudes and behaviors are at variance with the conventional model.

The Impact of Corporate Real Estate Unit Formation on the Parent Firm's Value

This research investigates the valuation impact of the formation of a Corporate Real Estate Unit (CREU) on the stock price of the parent organization. Using standard event study methodology, the empirical tests show that the formation of a CREU, in general, is associated with positive gains to shareholders. The largest gains are associated with the publicly traded subsidiaries. The next largest gains are associated with the Master Limited Partnerships and the wholly owned subsidiaries.

Measuring Business Real Property Performance

A cross-case comparison of eleven firms was undertaken to learn how real estate property performance is measured and monitored for managerial feedback to make real estate decisions that will cause property performance to support overall corporate strategic goals. Firms with tight links between real estate operations and corporate strategy usually have a facility committee of operating, finance, and real estate managers measuring and monitoring performance, using different measures for different types of buildings and uses. Property performance is more regularly monitored by firms leasing property than by those owning property.

Selecting Administrative Office Space

This paper is a cross-case analysis of thirteen corporations to see how administrative office space is searched and selected. Although previous studies have found that the influence of real estate expertise on these decisions is restricted to site evaluation, the condition of the site and structures, the ability to option sites for a designated period, at a particular cost, this study found that such expertise is also important in molding size and design decisions. The real estate manager is a negotiator conducting linked bargains within and outside the company to create transactions that enhance company strategy.

Factors Related to the Selection of a Real Estate Agency or Agent

Real estate firms attempting to maintain or increase their market share want to know the characteristics of the firm or individual agents that are important to market participants. A survey of homeowners conducted during August 1987 found the following: 1) the individual agent is more important than the firm itself in the selection of a real estate firm; 2) knowing an agent of the firm was the primary factor considered in the selection of a real estate firm; and 3) agent characteristics of selling ability, competence, integrity, knowledge of the market, and understanding the client's needs and concerns were most important.

Estimating Sales for Retail Centers: An Application of the Poisson Gravity Model

The projection of total retail sales for a shopping center development is of critical importance in its valuation, in the making of investment decisions by investors, and to the retail merchants who must make location decisions. In this study, we apply the Poisson Gravity Model to forecast the number of shopping trips attracted to each of the major retail centers in the Atlanta metropolitan area. In the second stage, the estimated total retail sales for all the shopping centers covered in the study, are allocated to the individual centers, based on their estimated shopping trip shares.