Making History: An Insider's View of the Founding and First-Ten-Year Accomplishments of the American Real Estate Society

This article presents an overview of the numerous innovations of the American Real Estate Society during its first ten years. Many of its accomplishments are unique for an academically based organization. Because of this, the definition of an academic/professional organization has been changed forever due to the synergistic effects of mixing practicing professionals and applied academicians.

Microvariability in BL Lacertae : "zooming'' into the innermost blazar regions

In this work, we present the results of our multi-band microvariability study of the famous blazar BL Lac. We performed microvariablity observations of the source in the optical VRI bands for four nights in 2016. We studied the intranight flux and spectral variability of the source in detail with an objective to characterize microvariability in the blazars, a frequently observed phenomenon in blazars. The results show that the source often displays a fast flux variability with an amplitude as large as ~0.2 magnitude within a few hours, and that the color variability in the similar time scales can be characterized as “bluer-when-brighter” trend. We also observed markedly curved optical spectrum during one of the nights. Furthermore, the correlation between multi-band emission shows that in general the emission in all the bands are highly correlated; and in one of the nights V band emission was found to lead the I band emission by ~13 min. The search for characteristic timescale using z-transformed auto-correlation function and the structure function analyses reveals characteristic timescale of ~50 min in one of the R band observations. We try to explain the observed results in the context of the passage of shock waves through the relativistic outflows in blazars

Pricing Interest-Rate Risk for Mortgage REITs

Using tax-qualified mortgage REITs over three periods (1976-79, 1980-82, and 1983-90), this paper investigates the pricing of interest-rate risk for mortgage REITs at equilibrium. A system of nonlinear equations is estimated to determine the monthly interest-rate risk premium over each of the three time intervals. There is evidence to support the hypothesis that interest-rate risk is not diversifiable and hence commands a risk premium.

Assessing Risk for International Real Estate Investments

Overseas real estate investment has increased considerably in recent years. The assessment of risk for these investments, especially for real estate, has thus become very important. This study assesses the performance of real estate, stocks and bonds in the U.S., Canada, the United Kingdom, Australia, and New Zealand over the period 1985-93. The results indicate that the degree of appraisal-smoothing and intertemporal correlation in each of the five international real estate series is significant, resulting in the need to increase the real estate risk estimates by 34% to 47%. To account for currency risk over this nine-year period, currency-adjusted returns and risk were also estimated for investors from each of these five countries. All risk profiles increased significantly for international investors when adjusting for currency risk. However, additional portfolio diversification was achieved using real estate for international investors.

The Education of Real Estate Salespeople and the Value of the Firm

In order to protect the public, most states require salespeople and brokers to meet specific licensing requirements, typically in the form of classroom instruction and/or successful completion of an examination. Frequently, however, many real estate brokers require their sales staff to undertake education that exceeds these minimum requirements. In this study, we derive a theoretical model that shows how optimally-timed, firm provided education that exceeds legal minimums can increase staff productivity, reduce litigation risks and perhaps raise and/or maximize the expected value of the firm.

Evaluating the Real Estate Journals: The Mainstream Finance Perspective

This study examines the real estate journals and discipline from the unique perspective of mainstream finance faculty. The entire academic membership of the Financial Management Association (FMA) is surveyed resulting in a 29.6% response rate. They were queried on their personal characteristics (enrollment, number of tenure track faculty, department, rank, area of expertise, number of articles published, and real estate courses offered). But more importantly, they were asked to rank real estate journals by perceived quality and to compare the quality of the real estate journals to five mainstream finance journals. Lastly, they were asked about the support for including real estate courses in the curriculum of the finance department.

On Setting Apartment Rental Rates: A Regression-Based Approach

This study presents a regression-based analysis of apartment rents for a cross-section of properties located in an "edge city" submarket. It attempts to provide a solution for owners and managers of apartments to the thorny problem of setting a property's rental rate. The approach used in this analysis differs from previous studies in at least three important respects: (1) vacancy is treated as part of the dependent variable, (2) the property-specific rental rate generated by the regression analysis is compared to the property's actual effective rent, and (3) each property in the submarket is ranked by the difference between its actual effective rent and its characteristic-adjusted effective rent. This is then followed by several observations concerning the advantages and disadvantages of such an analysis in a practical setting.

Past and Future Sources of Real Estate Returns in Hong Kong

Historical commercial real estate returns are attributed to three fundamental factors: initial current yield, growth in net operating income, and changes in going-in versus going-out capitalization rates (i.e., pricing movements). Separating returns into these three factors appears to provide more insightful information than the traditionally reported income and appreciation returns. Using this three-factor model, historical real returns and inflation pass-through rates are estimated for each major type of real estate (residential A/B/C, residential D/E, office, retail, industrial).