MIT Classroom: Real Estate Capital Market

“One of the remarkable changes of the huge real estate capital market, is the shifting from equity market to debt market”, Dr. Tony Ciochetti, Chairman of MIT Center for Real Estate, commented during his presentation, titled as “Development of Real Estate Capital Markets: US & China” and given to the students of the School of Economics and Management (SEM) at Tsinghua Univ on May 18.

After a brief overview of MIT Center for Real Estate, Dr. Tony shed light on the histories in both US and China capital markets, and also predicted the trends in the coming years based on in-depth study and analysis from MIT Center of Real Estate (CRE).

Looking into the development of real estate capital market from US perspective, Dr. Tony turned to four quadrants of US commercial real estate market, a 2 by 2 matrix with Equity and Debt in the row and Private and public in the column, and elaborated some issues in adopting US capital market products into markets.

“In the past decade, new capital market products help to produce more efficient segmentation of real estate capital markets.” Dr. Tony said.