A few weeks ago, I wrote a post about GMU Masters in Real Estate Development Program competing in the 2013 NAIOP Capital Challenge.  After weeks of hard work, one very long written report and two presentations later, the winner of this year’s competition was unveiled.  And the winner is….(drum roll)… George Mason University!

This experience is the best part of my education in the GMU Real Estate Development program so far.  First, I simply don’t get to do this in my day job.  Being a small time real estate investor, I do not get to work on any project of this scale and complexity.  Second, we always say that real estate is an interdisciplinary sport, no one can be an expert in all things real estate.  This competition allowed all of us to work collaboratively and play to our individual strengths and learn from each other.  Third, we worked with world class consultants who generously gave us crash courses on a variety of subjects.  For me personally, I learned more than I ever imagined knowing about market analyses of hotels and integrated amenity retail.  Finally, the level of support and guidance from our faculty advisors Bob Wulff and Mark Hassinger was simply invaluable.  Their commitment to the team carried us through those late night meetings.

All of that would have been enough for me.  The Mason Team (we called ourselves Patriot Consulting) competed against three of the best graduate real estate programs in the region, Johns Hopkins University, University of Maryland and Georgetown University.  The award celebration was the first time all the teams were allowed to get a glimpse of the development plans the other teams came up with.  When we heard the presentations from the other teams, we knew that the competition was fierce and every team had creative and well-thought-out plans.  When George Mason was announced as the winner of the Competition, the Mason table just erupted!

If you are looking to enter a customizable degree program involving a range of subjects, an interdisciplinary studies degree program is a great option. It will allow you to choose courses from multiple departments, forming a program of study that most effectively supports your desired goals. Real estate course work offered at George Mason University draws upon several fields, including but not limited to, investment, finance, architecture, civil engineering, project management, land use, policy, and marketing.  George Mason University has a 36 course credit program and is structured to draw from these interrelated disciplines, also offering concentrations in real estate development and real estate finance.

According to The New York Times, “the number of students earning master’s degrees has nearly doubled since 1980.”  A master’s degree can lead to a greater range of career opportunities, as well as provide a means of self-advancement.  An increasing number of professions recommend and even require a master’s degree, due to the wide range of experience a master’s degree offers.

While students attend interdisciplinary degree programs such as, George Mason University’s Masters in Real Estate Development, students learn from industry experts who have already studied and achieved revered careers in the real estate industry.  Learning from the experiences of industry professionals is instrumental in a student’s development and their future in the real estate industry.  Masters students are constantly networking with their fellow classmates who have established connections with many of their peers.  Mutually beneficial relationships can lead to future employment and business opportunities. Networking with alumni is another great advantage.  It allows students to grow relationships and use alumni as professional mentors.  Many times, if an alumna cannot directly assist a student, the alumna will send the student in the direction of another industry professional that can help.  This help from the alumni can guide students in the direction of their desired careers, helping them with their early professional life, which can greatly and positively affect their future career paths.

If smart growth is the solution to land use and real estate development in urban areas, what is the solution for rural and outer suburban communities?  Conservation Development may be one of the solutions that show some promise.

Conventional Subdivisions

Since the construction of Levittown in New York in the 1950s, America has been on a suburban building binge; according to David Rusk’s Inside Game/Outside Game, urban footprint in the United States expanded from 208,000 square miles to 585,000 square miles from 1950 to 1990.  While urban population grew 128 percent during that period these communities ate up land at an even faster pace.  Some of these suburbs eventually transformed from bedroom communities into “Edge Cities” that had its own business, shopping and entertainment districts that rival the city centers.  Tysons Corner is a prime example of such an Edge City.

Levittown NY.  Image from www.nytimes.com

Tysons Corner, VA.  Image from www.city-data.com

Going a few more miles out from these closer-in suburbs are the “Exurbs” or “commuter towns” which mainly function as bedroom communities for the various regional economic centers.  Over the last few decades, many of these towns experienced rapid population growth employing conventional subdivision.  Residential land development in northern Virginia is the perfect example of this.  All over Loudoun and Prince William counties, large tracts of land consisting of very large newly constructed housing subdivisions line the landscape.  In many communities, low density zoning also play a role.  In districts that only permit one residence per acre or more, you see large swaths of land cut up into over-sized lots with single family homes on them.  Each of the homes is surrounded by large lawns of no practical purpose.

There are many problems with this type of development pattern.  First, it is extremely wasteful.  Land is a finite resource, having a large lawn is probably the least practical of all uses.  Second, forests or farmland had to be cleared for this type of development.  The result is loss of trees, natural habitats and valuable farmland.  Third, developments like this require the home owners to perpetually waste water and fertilizer on lawns.  While the grass remains unnaturally green, enormous amounts of pollutants are released into important bodies of water like the Chesapeake Bay.

Conservation Development

An Example of a Conservation Development.  Image from http://www.dem.ri.gov/programs/bpoladm/suswshed/condev2.htm

Conservation development is an approach to land development that first, accepts the premise that development will continue to occur.  It then takes measures to protect an area’s natural environment by preserving open space landscape, vista, farm land and natural habitats for wildlife and maintaining the community’s rural character.  The approach promises to create communities while protecting species and ecosystems against further habitat fragmentation and loss.  A 2008 study of 10 conservation development projects in the eastern United States showed that these developments greatly outperform conventional subdivisions in protection of biodiversity and ecosystems[1].

Economically, homes in these developments command higher prices.  Colorado State University observed 20-29 percent higher sale prices for homes in conservation developments than homes in conventional subdivisions.  Home value also tends to appreciate faster in these developments than conventional subdivisions.

We know from George Mason University’s Center for Regional Analysis that population growth and housing needs will continue to put pressure on all the 21 local jurisdictions in the region.  As we embrace growth, we need to be mindful of the impact on the natural environment.  By using conservation development as one of the approaches to land development, we build higher value communities while preserving the fragile ecosystem around us.

Next time, we will talk about how zoning ordinances have evolved to encourage conservation development.

Mason Master’s in Real Estate Development (MRED) students who’ve taken classes with Mark Hassinger have undoubtedly heard him tout the myriad benefits of  membership in NAIOP, the commercial real estate development association. To paraphrase Mark, shame on you if you haven’t become a member. Membership dues are extremely modest for Mason grad students and the value of membership is immeasurable.

In fact, that value was on full display last Thursday, May 10, when I, and at least seven of my fellow MRED classmates, joined hundreds of NoVA commercial real estate industry professionals (including Mark) to participate in the association’s annual Bus Tour.

The tour provided a unique, “out of the classroom and into the world” opportunity to witness the real estate development life cycle – the vision, the raw ground, the construction and the assets – and to further reinforce how much I’ve learned about real estate development in my first academic year at Mason. Incidentally, the networking opportunity was unrivaled.

I certainly share Mark’s sentiment with regard to the benefits of NAIOP NoVA membership. However, I’ll leave the shaming of my fellow MRED classmates who’ve not yet become members of the association to him.

Photo courtesy of NAIOP NoVA

As a recent graduate of the MS in Real Estate Development program at George Mason, I wanted to share several reasons why Mason’s program is a top choice compared to other competitive national programs. There are several strengths that make it stand out.

In real estate, location is usually very important. George Mason University is located in what is arguably one of the most lucrative markets in the United States. The Washington D.C. area has weathered the recent economic downturn better than any other market, with real estate conditions remaining relatively insulated from negative market forces—and ready for new growth.

In addition to its relevant location, the Mason program was created by real estate developers, so real estate development is embedded in its DNA. Some of the biggest names in the regional industry are connected to the program and often serve as guest lecturers, adjunct faculty and student mentors.

Also counted among the strengths of the program are the quality of its professors and the breadth of courses offered. The professors are veterans of the industry, with ample experience and strong industry connections. The value of the experience they bring to the classroom is evident from day one. The Mason real estate program is connected to several schools within the university, including the Schools of Management, Engineering and Public Policy. The variety of classes offered and the quality of the professors are integral features of this well-rounded degree program.

If you are looking for a world-class real estate development program, you will find the Master of Science in Real Estate Development at George Mason to be a great choice. From the variety of classes offered, to the student body and professors, your knowledge and career will be enriched from day one.

Good luck!