http://hdl.handle.net/1721.1/54824 Sat, 08 Jun 2013 13:52:29 GMT 2013-06-08T13:52:29Z http://hdl.handle.net/1721.1/78241 Application of the Design Structure Matrix (DSM) to the real estate development process using modular construction methods Bonelli, Steven V. (Steven Vincent); González Guerra, Adrián M Real estate development (RED) has traditionally been a very dynamic business, where real estate developers strive to turn an idea into a real asset, by delivering a quality project on time and on budget. In recent years, Modular Construction Methods (MCM) has arisen as an innovative solution to commercial RED projects that require higher levels of the three aforementioned factors, with a special emphasis placed on time. The purpose of our thesis is to explain MCM and its impact on RED by analyzing the interdependent relationships between the different tasks performed during the course of a development. We have accomplished this by using the Design Structure Matrix (DSM), a systems engineering tool, to map out the dependencies between development tasks in a graphical manner. To develop our DSM model for an RED process that uses MCM we conducted interviews with the senior management at RJ Finlay, a New Hampshire based full service real estate firm and Keiser Industries, a modular manufacturing company that operates in Maine and is owned by RJ Finlay. To fully understand the real application of the MCM process to RED, we met with the general contractor, lead architect and project management team for 30 Haven, a commercial RED that uses MCM. 30 Haven is located in Reading, Massachusetts and has been co-developed through an integrated project delivery (IPD) process by RJ Finlay and Oaktree development, using an in-house general contractor and Keiser Industries as its modular manufacturer. Our interviews occurred weeks before the project was completed in the summer of 2012. This allowed us to interview the involved parties about the whole process from inception to construction completion. This helped us further understand the actual problems a RED process using MCM can face throughout the preconstruction and construction processes. We then developed a DSM that showcases the different stages that a RED process using MCM have to go through and the planned and unplanned iterative processes for each stage. Planned iterations are feedback loops between tasks that are meant to rework tasks that forcibly need it, while unplanned iterations reflect feedback loops that occur because of unexpected events. Our thesis has focused on proposing proactive solutions to the unexpected events (referred to as "failure modes") a RED process using MCM can face, by either eliminating them or minimizing their likelihood and impact. The DSM helped facilitate the development of both a normative model and an optimal one, where our solutions for the unplanned iterations were applied. We complemented our findings with a hypothetical financial model that uses the normative and optimal DSM models to show the difference between both in terms of the returns, time and cost for a generic multifamily RED that uses MCM. Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012.; This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections.; Cataloged from student-submitted PDF version of thesis.; Includes bibliographical references (p. 111-112). Sun, 01 Jan 2012 00:00:00 GMT http://hdl.handle.net/1721.1/78241 2012-01-01T00:00:00Z http://hdl.handle.net/1721.1/77138 Back to the city : differences in economic and investment performances between downtowns and suburbs Hwang, Inae Recently, we have observed significant changes in which corporate offices and residential buildings have been relocated from the suburbs back into the city. Does the observation mean that there is a real economic movement back into the cities by firms or households? If there is any movement, how does this trend drive any changes in the commercial real estate properties? Does it significantly affect the performance of properties in the cities as opposed to the other areas? Does the performance of the properties in the city exert any influence on the investors who prefer commercial real estates in the US metropolitan areas? This thesis aims to provide answers to the major question on the "back to the city" movement and its influence on real estate markets. The answers are summarized as five major conclusions. First, the result of this study clearly points out that there is the "back to the city" movement although the change has happened only in the Urban Cores (UC) not the entire Metropolitan Statistical Area (MSA). Second, the economic performances between UC and MSA maintain a close link with each other. However, the volatility of the office net rental rate is much less in UC while the change in gross rental growth is almost same between UC and MSA. The UC rental growth of the multifamily is a little less volatile than the MSA growth. Third, the investment performances in MSA closely relates with the capitalization rate of UC. While the level of cap rates of UC offices is more volatile, the UC cap rate of apartments is more stable than the MSA rate. Fourth, the effects of population and employment on the real estate market enable the research to understand the current pricing behaviors. The difference in population and employment between UC and MSA explains the disparity in investment performances of the two areas. However, while the MSA rental growth explains the movements in the cap rate of MSA in accordance with the "rational" pricing, the effect of UC rental growth rates on the cap rate doesn't match with the pricing model, indicating that the rental growth rate of UC empirically leads to increases in the cap rate of the area. The nature of these outcomes offers that the UC market is not explicable by the "rational" pricing model. The result also indicates that the difference in rental growth rates reveals the positive relation with the gap in cap rates, which is complete opposite to the "rational" investors' behavior. Lastly, finding the differences in economic and investment performances between UC and MSA motivates to explore the determinants of the relationship. Although the study experiments the effects of manifold market characteristics, the explanatory variables used in the model do not fully explain the inequality between two specific markets. Thus, it is required to study further the determinants. Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012.; Cataloged from department-submitted PDF version of thesis. This electronic version was submitted and approved by the author's academic department as part of an electronic thesis pilot project. The certified thesis is available in the Institute Archives and Special Collections.; Includes bibliographical references (p. 101-102). Sun, 01 Jan 2012 00:00:00 GMT http://hdl.handle.net/1721.1/77138 2012-01-01T00:00:00Z http://hdl.handle.net/1721.1/77135 Recognition of business opportunities for Chinese private investors in U.S. real estate market Wang, Ya, S.M. Massachusetts Institute of Technology Real estate investment is becoming increasingly international. As China's economy rises as a major force in the world, its continuous growth in fiscal surpluses and accumulation of wealth are making up an expanding segment of the capital market. Traditionally, state-owned enterprises (SOE) and banks were important sources of international real estate investment from China; more recently, increasing high-net-worth individuals and private real estate equity funds have merged and are seeking opportunities around the world. This paper identifies the important policy indicators that are pertinent to Chinese private investors' activities in the U.S. real estate market, examines the investment landscape in both countries, gives particular attention to associated challenges, barriers and risks, and finally explores the potential business opportunities that can be recognized and turned into meaningful strategies. Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012.; Cataloged from department-submitted PDF version of thesis. This electronic version was submitted and approved by the author's academic department as part of an electronic thesis pilot project. The certified thesis is available in the Institute Archives and Special Collections.; Includes bibliographical references (p. 83-87). Sun, 01 Jan 2012 00:00:00 GMT http://hdl.handle.net/1721.1/77135 2012-01-01T00:00:00Z http://hdl.handle.net/1721.1/77134 Not just about the money : managing beyond extrinsic rewards to thrive in the real estate industry Liang, Edwin En-Wei Companies in the 21st century are increasingly relying on knowledge workers -- people who put to work what they have learned from systematic education as opposed to manual skills -- for value creation. Knowledge workers are the link to all of the company's other investments, managing and processing them to achieve company objectives. But because people, rather than things, are the means of value creation, they are mobile and must exercise choice to join, stay, and work hard for a particular company above all others. A company's survival in the knowledge-based economy is therefore contingent upon its comparative advantage to attract, retain, and make productive its people. This thesis seeks to develop an understanding of the motivational systems and strategies available to companies for sustained value-creation, and the extent to which they can be applied to the real estate industry. To accomplish the latter, the thesis conducts a case study on a leading real estate development and investment company. Through interviewing senior managers and high-performing employees, the thesis explores the specific systems and strategies implemented, and their implications for motivating attraction, retention, and superior value creation. After surveying the relevant literature and analyzing the theory in practice, the thesis concludes that extrinsic rewards and intrinsic motivation are complementary features of high-performing organizations. The case study further suggests that real estate companies need to thoroughly understand their working culture and business model in order to craft tailored motivational strategies that support their high performers and the way they work. Only then can companies move away from merely managing the work of its people to successfully managing for lasting performance. Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012.; Cataloged from department-submitted PDF version of thesis. This electronic version was submitted and approved by the author's academic department as part of an electronic thesis pilot project. The certified thesis is available in the Institute Archives and Special Collections.; Includes bibliographical references (p. 69-70). Sun, 01 Jan 2012 00:00:00 GMT http://hdl.handle.net/1721.1/77134 2012-01-01T00:00:00Z