Career Focus

This course is designed for students interested in managing, developing, advising on, or investing in commercial real estate. Real estate—when including single-family housing—is the largest asset class in the world. The global real estate industry ranges from small homes and local shops to multi-billion-dollar institutional portfolios. At every stage of the real estate lifecycle—conception, financing, development, operations, and sale—there are opportunities to create value and build wealth.

Educational Objectives

The course prepares students to:

• Analyze different asset classes and phases of the property cycle
• Evaluate uncertainty across people, projects, capital structure, and the macro environment
• Manage real estate projects and portfolios effectively
• Think critically about real estate deals
• Lead in a dynamic and evolving global industry

While rigorous in financial content, the course is suitable both for students pursuing full-time careers in real estate and for those interested in understanding their own homes and personal investments through direct ownership, partnerships, or securities. It is also an excellent precursor for related Spring electives including Real Estate Private Equity and Real Estate Investing.

Course Content and Structure

The course is organized into four modules:

Module 1: Foundations
Introduces the analytical framework for real estate investing and development. Topics include market analysis, key players, terminology, and basic financial tools.

Module 2: Asset Classes
Provides a deep dive into both traditional and emerging real estate sectors. Students study the major commercial property types—office, hotel, industrial, retail, and multifamily—with an emphasis on their defining characteristics, market dynamics, operating models, and performance metrics. The module also examines newer and rapidly evolving sectors such as senior living, single-family rentals, data centers, and select public infrastructure (e.g., power, water, and transit), highlighting how they compare with core Real Estate asset classes in terms of risk, opportunity, and investor interest.

Module 3: Capital Markets
Focuses on sources of real estate capital, including public and private debt and equity. Case studies cover private equity syndications, mortgages, REITs, and private credit. These examples also reinforce development processes, deal structures, and capital strategies.

Module 4: Trends and Innovation
Explores transformative trends reshaping the industry. Topics include PropTech, ConstrucTech, FinTech, globalization, sustainability, adaptation to climate change, and several of the newer investment classes introduced in Module 2.

Course Requirements and Grading

• Participation: 50%
• Final Exam: 35%
• Polls and Homework: 15% (primarily group work)

Polls are used frequently and are considered an integral part of class participation. The workload and preparation level are above average for an HBS EC course.

The course includes technical notes, mini-lectures, and a comprehensive toolkit for future use. Optional activities may include building site visits, career events, and industry networking opportunities.

Cross-Registration: Allowed by petition and subject to instructor approval.
Prerequisites: HBS Finance 1, GSD SES 5304 Real Estate Finance, Development, and Management, KSG API-141 Finance, or an equivalent course in financial analysis.
Auditing: Not permitted.

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