Program Review for Centers and Institutes

PROGRAM REVIEW FOR CENTERS AND INSTITUTES

Center/Institute: Real Estate and Land Use Institute

Director/Administrator: Michael LaCour-Little, Co-Director, Donald J. Valachi, Co-Director

College/Academic unit: Finance Department, Mihaylo College of Business and Economics

Contact Information: 5163 Mihaylo Hall 657 278-4014

Date: July 23, 2009

Name of primary authors if different From Director/Administrator:

Self-Study

1. Mission The mission of Real Estate and Land Use Institute (RELUI) is to promote and advance real estate education at CSU-F including research, curriculum, program reputation, student placement and outreach to the local business community. The CSU-F institute, established in 1996, is a part of the CSU system Real Estate and Land Use Institute which is an applied research and professional education center for real estate and urban land use.

2. Goals and Activities RELUI has identified five major goals (focus areas): Research, Curriculum, Reputation, Placement and Outreach. Another goal is to disseminate information about the institute activities by using web. And also, another goal under consideration is to develop research products relevant to the business community. In the focus area of research the institute has developed a data base on Orange County housing and mortgage transactions that is used for research topics of interest in the local community. Enrollment data indicates that between 600-700 students have enrolled in real estate classes over the last three years. The institute awards scholarships to students and 1-2 students per semester are given internships with Marcus & Millichap on of the largest real estate investment firms in the nation. Other activities include the building of strategic alliances with real estate organizations in southern California including the Real Estate Research Council of Southern California and the Society of Industrial and Office Realtors. 3. Resources and Sustainability RELUI receives approximately 10K annual from a Program Improvement Grant from the sponsoring organization based in Sacramento. The grant is based on enrollment levels. The institute also administers scholarships funded by the parent organization.

4. Organizational Structure and Governance The institute has two co-directors. There is an Advisory Board that provides advice and guidance to the institute’s leadership and meets semi annually. The Advisory Board also provides guest speakers for classes, real estate association meetings and other events.

5. Highlights and Accomplishments The self-study cites as an accomplishment the acquisition of the ARGUS software and the hosting of the first student certification training session. No details were provided explaining the significance of obtaining the ARGUS software. It should be also noted that the level of publications by the faculty places the University among the top schools in real estate research.

6. Planning and Strategic Outlook The institute has developed a strategic planning process with the Advisory Board playing a major role. The economic crisis is having an impact on RELUI, in the form of reduced levels of resources available (20% reduction in funding for 2009-10; 20-50% increase in faculty teaching loads). New initiatives like the additions to the curriculum have been put on hold pending economic recovery.

7. Viability It appears that the institute is trying to maintain its viability in light of economic downturn. For example, the hosting of academic real estate journals is being phased out and this will produce a reduction in grad student employment by fall 2009. The loss of Professor Wang means the real estate faculty has been reduced by one-third. The institute recommends the recruitment of full time tenure-track faculty member in real estate. Due to “budgetary pressures” planning for new programs has been curtailed.

8. Appendices Advisory Board Members Graph: Enrollment Trend over time Faculty Publications Strategic Planning Process ASC Financials

Summary and Recommendation(s) The Real Estate and Land Use Institute (RELUI) was established in 1996 as part of the CSU system Real Estate Institute an applied research and professional education center for real estate and urban development. Its mission is to promote and advance real estate education, including research, curriculum, program reputation, student placement and outreach to the local business community. An Advisory Board composed mainly of individuals from the real estate establishment, works with two co-directors on planning and other initiatives. The institute receives much of its funding from a Program Improvement Grant from the sponsoring organization headquartered in Sacramento. Enrollment data indicates that some 600-700 students have enrolled in real estate classes over the last three years. The level of faculty publications places the University among the top schools in real estate research. RELIU has built strong alliances with real estate organizations in southern California. Despite the apparent success of fulfilling its mission and goals the institute is, because of the economic downturn, facing challenges. The loss of one professor reduces the real estate faculty by one third and there is reduction in funding and an increase in teaching loads. Planning for new programs and curriculum development has been curtailed.

Reviewed by Council of Deans September 2, 2009

Action taken: Continuation

Gerald W. Patton, Director of Assessment and Educational Effectiveness