Real Estate

"In real estate, if you keep yourself in front of long-term demographic trends, you will prosper," observes Christopher Cole, founder and chief executive of the Cole Companies, who received the Distinguished Achievement Award at the W. P. Carey undergraduate convocation recently. A survivor of Phoenix's boom-and-bust real estate markets for more than 28 years, Cole maintains real estate as an investment class is in its baby years. The biggest inflows of capital, he says, have yet to happen.

CEOs' home purchases, stock sales and subsequent company performance management

Phoenix, now the fifth largest city in the United States, could be the poster child for metropolitan areas where a bursting residential housing bubble has created economic discord. After parsing data from both the commercial and residential sectors, however, the Phoenix real estate market appears much stronger than the national press paints it, according to Larry Seay, chief financial officer of Phoenix-based Meritage Corp., and Crocker Liu, McCord Chair in Real Estate at the W. P. Carey School of Business. Seay and Liu spoke at an April 5 seminar in Phoenix entitled "Frontiers in Real Estate: Hedging Your Bets," presented by the W. P. Carey School's Center for Real Estate Theory and Practice.

Since the turn of the millennium, real estate has become one of the fastest growing investment sectors, not just in the United States but globally as well. But as much as we would like to think otherwise, there's considerable risk involved in real estate investing. One way to ameliorate that risk is through hedging practices, according to Robert Edelstein, a real estate professor at the Haas School of Business at the University of California, Berkeley, and Anthony Sanders, the Bob Herberger Arizona Heritage Chair in Real Estate and Finance at the W. P. Carey School of Business.