DOCSLIB.ORG

Prices of Housing in Prague: a Bubble Or Natural Progress?

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Prices of Housing in Prague: a Bubble Or Natural Progress? Prices of Housing in Prague: A Bubble or Natural Progress? Thesis By David Štrouf Submitted in Partial fulfillment Of the Requirements for the degree of Bachelor of Science In Business Administration State University of New York Empire State College 2018 Reader: David Starr-Glass Statutory Declaration / Čestné prohlášení I, David Štrouf, declare that the paper entitled: Prices of Housing in Prague: A Bubble or Natural Progression? was written by myself independently, using the sources and information listed in the list of references. I am aware that my work will be published in accordance with § 47b of Act No. 111/1998 Coll., On Higher Education Institutions, as amended, and in accordance with the valid publication guidelines for university graduate theses. Prohlašuji, že jsem tuto práci vypracoval/a samostatně s použitím uvedené literatury a zdrojů informací. Jsem vědom/a, že moje práce bude zveřejněna v souladu s § 47b zákona č. 111/1998 Sb., o vysokých školách ve znění pozdějších předpisů, a v souladu s platnou Směrnicí o zveřejňování vysokoškolských závěrečných prací. In Prague, 26.04.2018 David Štrouf Acknowledgement I would like to thank the faculty of the Empire State College and the University of New York in Prague for guiding me through the four years of my bachelor’s studies. I would also like to thank my mentor, professor David Starr-Glass, for his valuable insights he provided with during the writing process, and professor Tanweer Ali for consultations. Most importantly, I would like to thank my mother for her unwavering support and insight. Table of Contents 1 Introduction .............................................................................................................. 9 2 Real estate and its function in the economy ......................................................... 12 2.1 Definition of Real Estate ......................................................................................... 12 2.1.1 Zoning plan. .................................................................................................................. 13 2.1.2 Infrastructure. ................................................................................................................ 14 2.1.3 Location. ....................................................................................................................... 14 2.2 Specifics of the Housing Market ............................................................................. 16 2.3 Housing as an Investment Decision ........................................................................ 17 2.3.1 Appreciation. ................................................................................................................. 18 2.3.2 Returns from cash flow. ................................................................................................ 18 2.4 Overview ................................................................................................................... 19 3 Supply and Demand Perspective ........................................................................... 21 3.1 Demand ..................................................................................................................... 21 3.1.1 Demand determinants in real estate. .............................................................................. 21 3.2 Supply ....................................................................................................................... 22 3.2.1 Supply determinants in real estate. ................................................................................ 23 3.3 Implications .............................................................................................................. 24 4 Past Real Estate Crises and their Connection to Current Situation .................... 25 4.1 Japanese Asset Price Bubble 1986-1991 ................................................................ 27 4.1.1 Changes in financing. .................................................................................................... 28 4.1.2 Land ownership. ............................................................................................................ 28 4.1.3 Macroeconomic policies. .............................................................................................. 29 4.1.4 Assessment. ................................................................................................................... 31 4.2 Subprime Mortgage Crisis ...................................................................................... 32 4.2.1 Changes in the economic environment in early 2000s. ................................................. 33 4.2.2 Securitization of subprime mortgages. .......................................................................... 36 4.2.3 Assessment. ................................................................................................................... 38 4.3 Chinese Real Estate Bubble .................................................................................... 39 4.3.1 Investment availability and viability. ............................................................................ 39 4.3.2 Money supply and large growth. ................................................................................... 40 4.3.3 Access to land and vacancy rates. ................................................................................. 40 4.3.4 Credit and collateral. ..................................................................................................... 41 4.3.5 Assessment. ................................................................................................................... 42 4.4 Importance of Historical Context ........................................................................... 42 5 Historical Context of Prague’s Housing Market .................................................. 45 5.1 Current Situation ..................................................................................................... 45 5.2 Historical Context .................................................................................................... 46 5.2.1 Housing and development under the Communist regime.............................................. 46 5.2.2 Restitution and privatization in the early 1990s. ........................................................... 47 5.2.3 Real estate market through the new millennia............................................................... 49 6 Current Market Situation in Prague ..................................................................... 51 6.1 Increase in Prices ..................................................................................................... 52 6.2 Decreased Supply of Apartment Units .................................................................. 53 6.2.1 Land scarcity and increasing prices. .............................................................................. 55 6.2.2 Long project approval process. ..................................................................................... 55 6.2.3 Increased construction costs. ......................................................................................... 56 6.3 Increased Demand for Housing .............................................................................. 57 6.3.1 Good economic environment. ....................................................................................... 58 6.3.2 Low interest rates. ......................................................................................................... 58 6.4 Final Assessment ...................................................................................................... 59 7 Conclusion .............................................................................................................. 61 8 References .............................................................................................................. 64 Abstract The real estate market in Prague has experienced a considerable increase of average prices of new apartment units. This increase started a discussion of whether a real estate bubble is inflating and waiting to burst. The goal of this work was to explore the causes behind the increase and look at the determinants of the trend. The problem was approached from the perspective of theory of supply and demand. A considerable part of the text is given to past real estate crises in the global economy. In order to analyze the current situation, it is important to collect information from the past and compare it to current events. The research indicates that the increase of prices is largely driven by the limitations that face real estate development companies. Lengthy approval process, scarcity of land, its high acquisition costs, and increasing construction costs are all significant factors affecting the industry. The findings imply that the situation is a result of natural progression of events in the market. The result confirms the opinion of most industry professionals who demand a more efficient approach from the governmental offices. 1 Introduction Real estate is closely connected to everyday life of most of the living population. Whether we look at home ownership only from the perspective of shelter, or as fulfilling a deeper role in our lives by providing individuals and families a sanctuary of safety, it can be safely assumed that owning a home is essential for each individual. Real estate ownership is closely associated with
Load more

Recommended publications
  • Leadership Principles for Today's Residential Real Estate Brokers1
    HR029 Leadership Principles for Today’s Residential Real Estate Brokers1 Derek Farnsworth, Jennifer L. Clark, Aarambh Shah, and Allen F. Wysocki2 Introduction The US residential real estate industry can be a tumultuous market. It is not always possible to list properties on the multiple listing service (MLS) and have multiple bids above the full listing price. Brokers may face challenges making their customary listing commission from the sales price of a home. Properties can lose their equity or go “upside down” (i.e., the mortgage balance is greater than the market value of the home). Thus, with no equity, homes cannot sell and brokers cannot make commissions. Despite these potential issues, there are opportunities for real estate brokers willing to implement the leadership principles based on the residential real estate brokerage Credits: Creatas/Thinkstock.com business model discussed herein. This includes implement- ing the vision-influence-passion (VIP) framework, creating Real Estate Industry a niche-based business focused on listing and selling REO According to the dictionary of real estate terms, a real estate properties (real estate owned by a bank or lender), creat- brokerage is defined as “the business of being a broker, ing a large value network, and implementing leadership which is a state-licensed agent who, for a fee, acts for principles to empower listing agents. property owners in real estate transactions within the scope of the law” (Friedman, Harris, and Linderman 2008). In ad- dition, according to the IBIS World Industry Report (2009), the business of residential real estate sales and brokerage is classified in the United States under NAICS Code 53121, which consists of operators acting as agents or brokers who sell, purchase, and lease real estate for others.
    [Show full text]
  • REAL ESTATE DEVELOPMENT and ENTREPRENEURSHIP
    STERN SCHOOL OF BUSINESS NEW YORK UNIVERSITY COURSE SYLLABUS OPMG.GB.2360.10 REAL ESTATE DEVELOPMENT and ENTREPRENEURSHIP Fall semester September 21 – December 14, 2021 Tuesday evenings COURSE OVERVIEW: This course will introduce students to the broad aspects of real estate development from an entrepreneurial perspective. It is directed to students interested in real estate development from the point of view of three classes of investors: o an entrepreneurial investor, looking to buy a coop, condo or small property for individual use or rental o a working general partner of a small group of investors, who will actually manage &/or be responsible for overseeing the property after purchase o a passive outside investor, who may be searching for an investment that is limited in liability to the original investment Operations involves the decisions made at the operating level of a business or project to assure the attainment of higher level goals and strategies. In real estate development, these operating decisions will determine whether or not a deal will be successful and meet overall financial goals. Many students may choose to pursue investments in real estate, and often to actually operate and manage the properties. Although some students will not work full-time in the real estate industry, property investments will arise as opportunities to increase passive income and wealth. Understanding how these deals are created and managed will allow investors to choose deals with the highest probability of success. The real estate topics discussed in the course will include all types of development: residential, hotel, office, retail, land and industrial properties.
    [Show full text]
  • How to Be a Real Estate Investor
    How to be a Real Estate Investor Discover how you can make fast cash and build wealth investing in real estate By Phil Pustejovsky Copyright © MMXVI Phil Pustejovsky All rights reserved. Without limiting the rights under copy- right reserved above, no part of this publication may be re- produced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, me- chanical, photocopying, recording, or otherwise), without the prior written permission of both the copyright owner and the publisher of this publication. Any unauthorized transfer of license, use, photocopying, or distribution of these materials to anyone else other than the licensed client/purchaser is prohibited and will be prosecuted to the full extent of the law. ISBN-13: 978-1475235210 ISBN-10: 1475235216 DISCLAIMER: This publication is for informational pur- poses only. Please consult qualified attorneys, accountants and other professionals regarding business and investment decisions. This book is dedicated to anyone who has ever dreamed big. You are capable of far more than you could ever imagine. Contents Introduction ........................................................................................ 7 Part 1: Why Be a Real Estate Investor? ............................................ 25 Part 2: How to Think Like an Investor ............................................. 35 Your Why ...................................................................................... 35 Pain and Pleasure ........................................................................
    [Show full text]
  • Essex Property Trust, Inc. 837.92 800 700 600 500 NAREIT 400 387.21 All Equity REIT Index 300 200 238.35 S&P 500* 100
    SUPPLY CONSTRAINED MARKETS ECONOMIC 2005 ANNUAL REPORT RESEARCH STRATEGY EXPERIENCED MANAGEMENT TEAM CONSISTENT DIVIDEND INCREASES Creating the communities people call home.™ DIVERSIFIED CAPITAL RESOURCES acquisitions development redevelopment acquisitions development essex 2005 annual report ESSEX PROPERTY TRUST, INC ESSEX’S BEGINNINGS GO BACK TO 1971, WHEN REAL ESTATE ENTREPRENEUR, GEORGE M. MARCUS FORMED ESSEX PROPERTY SUPPLY CORPORATION. IN 1994, WITH A PORTFOLIO OF 16 MULTIFAMILY COMMUNITIES, THE COMPANY MADE ITS PUBLIC DEBUT AS CONSTRAINED MARKETS ESSEX PROPERTY TRUST, INC. (NYSE:ESS) - A FULLY INTEGRATED REAL ESTATE INVESTMENT TRUST (REIT) THAT ACQUIRES, DEVELOPS, REDEVELOPS, AND MANAGES MULTIFAMILY APARTMENT COMMUNITIES LOCATED IN SUPPLY CONSTRAINED MARKETS. TODAY, ESSEX’S PORTFOLIO HAS GROWN TO 126 APARTMENT COMMUNITIES, COMPRISED OF APPROXIMATELY 27,000 UNITS, WITH 505 UNITS IN VARIOUS STAGES OF DEVELOPMENT. THE PORTFOLIO IS CURRENTLY CONCENTRATED ALONG THE WEST COAST – SEATTLE METROPOLITAN AREA, THE SAN FRANCISCO BAY AREA, AND SOUTHERN CALIFORNIA. ECONOMIC RESEARCH STRATEGY EXPERIENCED MANAGEMENT TEAM CONSISTENT DIVIDEND INCREASES “We anticipate that positive market trends, combined with the intrinsic attributes of our supply-constrained markets, will allow the Company to deliver significant growth.” DIVERSIFIED CAPITAL Keith R. Guericke RESOURCES President and CEO Essex Property Trust, Inc. 1 acquisitions development redevelopment acquisitions development essex 2005 annual report 4.6% SAME-PROPERTY NOI GROWTH 25% TEN YEAR
    [Show full text]
  • The No-Nonsense Real Estate Investor's
    luci_a01ffirs.qxd 2/24/06 10:11 AM Page iii THE NO-NONSENSE REAL ESTATE INVESTOR’S KIT How You Can Double Your Income by Investing in Real Estate on a Part-Time Basis THOMAS J. LUCIER John Wiley & Sons, Inc. luci_a01ffirs.qxd 2/24/06 10:11 AM Page vi luci_a01ffirs.qxd 2/24/06 10:11 AM Page i The No-Nonsense Real Estate Investor’s Kit luci_a01ffirs.qxd 2/24/06 10:11 AM Page ii luci_a01ffirs.qxd 2/24/06 10:11 AM Page iii THE NO-NONSENSE REAL ESTATE INVESTOR’S KIT How You Can Double Your Income by Investing in Real Estate on a Part-Time Basis THOMAS J. LUCIER John Wiley & Sons, Inc. luci_a01ffirs.qxd 2/24/06 10:11 AM Page iv This book is printed on acid-free paper. ➇ Copyright © 2006 by Thomas J. Lucier. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.
    [Show full text]
  • REAL ESTATE DEVELOPMENT and ENTREPRENEURSHIP
    STERN SCHOOL OF BUSINESS NEW YORK UNIVERSITY COURSE SYLLABUS OPMG.GB.2360.10 REAL ESTATE DEVELOPMENT and ENTREPRENEURSHIP Fall semester September 22 – December 8, 2020 Tuesday evenings COURSE OVERVIEW: • This course will introduce students to the broad aspects of real estate development from an entrepreneurial perspective. It is directed to students interested in real estate development from the point of view of three classes of investors: o an entrepreneurial investor, looking to buy a coop, condo or small property for individual use or rental o a working general partner of a small group of investors, who will actually manage &/or be responsible for overseeing the property after purchase o a passive outside investor, who may be searching for an investment that is limited in liability to the original investment • Operations involves the decisions made at the operating level of a business or project to assure the attainment of higher level goals and strategies. In real estate development, these operating decisions will determine whether or not a deal will be successful and meet overall financial goals. Many students may choose to pursue investments in real estate, and often to actually operate and manage the properties. Although some students will not work full-time in the real estate industry, property investments will arise as opportunities to increase passive income and wealth. Understanding how these deals are created and managed will allow investors to choose deals with the highest probability of success. The real estate topics discussed in the course will include all types of development: residential, hotel, office, retail, land and industrial properties.
    [Show full text]
  • Technology in the Real Estate Sector
    Technology in the real estate sector PropTech reduces risks and increases value ING Economics Department • June 2018 << Contents Conclusion: PropTech reduces risks and increases value Restrictions for innovation in real estate New technologies increase innovation in the real Opportunity for higher value through PropTech The real estate sector is not known as an estate market... PropTech can ultimately increase the value of real estate innovative sector. The growth in labour productivity in the New technologies (such as sensors, big data and data through: sector has stagnated for a long time and, in comparison analytics) enable the real estate market to innovate more. • Higher rental returns because the tenant is prepared to to other sectors, there is hardly any investment in R&D. Under the name PropTech, there are new technological pay a higher price per m2. Efficient occupancy means that Important explanations are: applications to improve the use, sale and hire of buildings fewer m2s are needed, the quality improves and Smart • Long operating life of real estate: and make this more efficient. That’s why investments in Buildings result in lower energy costs. which means that new technologies are slow to replace PropTech companies increased considerably in recent years • Lower risk for real estate investors. Big data improves real the old. and the expectation is that these will further increase in the estate valuation. What’s more, the liquidity of real estate • Capital intensive: coming years. increases through the further development of platforms. This makes entry difficult for starting entrepreneurs with Finally, Smart Buildings reduce the risk of vacancies, as good ideas.
    [Show full text]
  • B8426 REAL ESTATE ENTREPRENEURSHIP Fall 2019
    B8426 REAL ESTATE ENTREPRENEURSHIP Fall 2019 Professor: Zach Aarons Professor: Brian P. Lancaster E-mail: [email protected] E-mail: [email protected] Phone: 917-297-7751 (cell) Phone: 860-898-0436 (cell) Office Hours: By Appointment Office Hours: By appointment Teaching Assistant: Shrey Gupta E-mail: [email protected] Phone: 917-900-5159 (cell) Office Hours: By Appointment ------------------------------------------------------------------------------------------------------------------------------- Schedule and Location Mondays, 5:45 pm - 9:00 pm Classroom: Uris 141 Course Description: Real estate has historically been an entrepreneurial industry. Great fortunes and enterprises have been created by real estate entrepreneurs who started as investors, brokers, property managers, contractors, inventors, and even programmers. While investment management has become more institutionalized, there remain strong opportunities for individual investors to find deals and projects that fly below the radar screen of larger institutions. At the same time, real estate technology companies are threatening traditional business models in real estate services (brokerage and modeling), property management (energy efficiency and tenant services), capital markets (crowdfunding and financing), and, of course, ownership and leasing (AirBNB and WeWork). Some real estate owners and managers have responded to technological innovations not just by becoming early adopters, but also by creating their own venture capital arms to invest in the firms
    [Show full text]
  • The Securitization of Debt and Equity in Real Estate: Prospects for Law in the Twenty-First Century
    University of Chicago Law School Chicago Unbound Journal Articles Faculty Scholarship 1999 The Securitization of Debt and Equity in Real Estate: Prospects for Law in the Twenty-First Century Michael H. Schill Follow this and additional works at: https://chicagounbound.uchicago.edu/journal_articles Part of the Law Commons Recommended Citation Michael H. Schill, "The Securitization of Debt and Equity in Real Estate: Prospects for Law in the Twenty- First Century," 32 John Marshall Law Review 269 (1999). This Article is brought to you for free and open access by the Faculty Scholarship at Chicago Unbound. It has been accepted for inclusion in Journal Articles by an authorized administrator of Chicago Unbound. For more information, please contact [email protected]. THE IMPACT OF THE CAPITAL MARKETS ON REAL ESTATE LAW AND PRACTICE MICHAEL H. SCHILL* Over the past twenty years, the real estate markets of the United States have been swept by enormous change. A sector of the economy that had long been resistant to change, real estate has been and is continuing to be transformed by the process of securi- tization on both the debt and equity side. Just twenty years ago, the vast majority of single family residential mortgage loans were provided by local banks or savings and loan associations that held the debt in their portfolios until maturity or prepayment. Today, most single family mortgage debt is sold into the secondary mort- gage market and converted into securities. Ten years ago, mort- gage loans for commercial properties were largely originated and held by commercial banks, pension funds or insurance companies.
    [Show full text]
  • Kardan N.V. 2010 Barnea Report Dated 31-12-2010
    Chapter A: Description of the General Development of Kardan NV’s Business 1. Kardan NV’s activities and a description of the development of its business 1.1 General 1.1.1 Kardan N.V. (“Kardan NV”) was incorporated in the Netherlands in 2003 as a wholly owned subsidiary of Kardan Israel Ltd. (“Kardan Israel”), which, at that time, was a public company whose shares were traded on the Tel Aviv Stock Exchange Ltd. (“The Tel Aviv Stock Exchange”). In July 2003, Kardan NV completed an alternative tender offer, under which it purchased the entire holdings of Kardan Israel from the shareholders of Kardan Israel, in consideration of an allocation of Kardan NV shares. The shares of Kardan NV were listed for trading on both the Tel Aviv Stock Exchange and the Pan-European Securities Exchange in Amsterdam – NYSE Euronext Amsterdam. Following the aforementioned process, Kardan Israel became a wholly owned subsidiary of Kardan NV; in June 2005, the shares of Kardan Israel were listed for trading on the Tel Aviv Stock Exchange and it again became a public company. 1.1.2 Since Kardan NV is a Dutch company, whose shares are traded on the Amsterdam Stock Exchange, it is subject to Dutch law, including corporate law in the Netherlands and securities law in the Netherlands, and it is not subject to the Companies Law, 1999 or the regulations enacted by virtue thereof. In addition, because Kardan NV securities were also issued to the public in Israel, Kardan NV is subject to the Securities Law, 1968 and to the regulations enacted by virtue thereof.
    [Show full text]
  • Essex Property Trust, Inc. 2004 ANNUAL REPORT on FORM 10-K
    2004 annual report 2004 annual 1994 the proven leader in west coast apartments 1995 1996 1997 essexpropertytrust.com 1998 1999 2000 2001 2004 ANNUAL REPORT serving essex’s shareholders 1994 to 2004 2002 2003 2004 essex 2004 annual report financial highlights property revenues ffo per diluted share(2) essex Years Ended December 31 Years Ended December 31 ($ in millions) 4.39 4.38 4.49 $300 283.5 $4.50 4.09 3.90 251.6 4.00 250 3.50 ESSEX’S BEGINNINGS GO BACK TO 1971, WHEN REAL ESTATE ENTREPRENEUR, GEORGE M. MARCUS 211.1 200 181.4 3.00 FORMED ESSEX PROPERTY CORPORATION. IN 1994, WITH A PORTFOLIO OF 16 MULTIFAMILY 165.9 2.50 150 COMMUNITIES, THE COMPANY MADE ITS PUBLIC DEBUT AS ESSEX PROPERTY TRUST, INC. (NYSE: 2.00 1.83 100 1.50 ESS)-A FULLY INTEGRATED REAL ESTATE INVESTMENT TRUST (REIT) THAT ACQUIRES, DEVELOPS, 1.00 $ 50 39.0 .50 REDEVELOPS, AND MANAGES MULTIFAMILY APARTMENT COMMUNITIES FOCUSED ON SUPPLY $ 94 00 01 02 03 04 94 00 01 02 03 04 CONSTRAINED MARKETS ALONG THE WEST COAST – THE SAN FRANCISCO BAY AREA, SOUTHERN common stock ffo payout ratio dividends per share Years Ended December 31 CALIFORNIA, AND THE SEATTLE METROPOLITAN AREA. TODAY, ESSEX HAS OWNERSHIP INTERESTS Years Ended December 31 100% $4.00 IN OVER 120 MULTIFAMILY PROPERTIES, AGGREGATING APPROXIMATELY 26,000 APARTMENT 91 90 3.16 HOMES, WITH 777 UNITS IN VARIOUS STAGES OF DEVELOPMENT. 80 76 3.08 3.12 70 70 3.00 2.80 70 64 61 60 2.38 50 2.00 40 1.67 30 20 $1.00 10% 94 00 01 02 03 04 94 00 01 02 03 04 1994 results are annualized for comparative purposes As of December 31
    [Show full text]
  • Real Estate Equity Investments and the Institutional Lender: Nothing Ventured, Nothing Gained
    Fordham Law Review Volume 39 Issue 4 Article 1 1971 Real Estate Equity Investments and the Institutional Lender: Nothing Ventured, Nothing Gained Frank E. Roegge Gerard J. Talbot Robert M. Zinman Follow this and additional works at: https://ir.lawnet.fordham.edu/flr Part of the Law Commons Recommended Citation Frank E. Roegge, Gerard J. Talbot, and Robert M. Zinman, Real Estate Equity Investments and the Institutional Lender: Nothing Ventured, Nothing Gained, 39 Fordham L. Rev. 579 (1971). Available at: https://ir.lawnet.fordham.edu/flr/vol39/iss4/1 This Article is brought to you for free and open access by FLASH: The Fordham Law Archive of Scholarship and History. It has been accepted for inclusion in Fordham Law Review by an authorized editor of FLASH: The Fordham Law Archive of Scholarship and History. For more information, please contact [email protected]. REAL ESTATE EQUITY INVESTMENTS AND THE INSTITUTIONAL LENDER: NOTHING VENTURED, NOTHING GAINED FRANK E. ROEGGE, GERARD J. TALBOT, AND ROBERT 2f. ZINMAN* I. THE INSTITUTIONAL LENDER AS A REAL ESTATE ENTREPRENEUR IN recent years there has been much talk about the activity of institu- tional investors in what are loosely called "joint ventures" in real estate. These investments may include single buildings or large developments located throughout the country. While in the past institutional investors traditionally restricted their real estate investments to fixed return mort- gages and sale leasebacks, with changing economic conditions their philos- ophy also changed, resulting in the joint venture phenomenon. Some of the problems accompanying this change are the subject of this article.
    [Show full text]