1. Real Estate Principles, 11th Edition
By Charles F. Floyd
and Marcus T. Allen

2. Chapter 1
Why Study Real Estate? 2

3. The Role of Real Estate Studies in Business Education
People need places to live and businesses need places for their activities
Effective real estate decision making requires specialized knowledge of real estate assets and the markets in which they are traded
A specialty area under business 3

4. Personal Real Estate Decisions
Should I buy or lease?
What neighborhood should I invest?
What type of financing should I use?
Should I use a broker?
How should I structure the contract for the best deal?
How do I decide in which property I should invest? 4

5. Business-Related Real Estate Decisions
Should the company buy or lease?
Should the company expand the current building or buy a new one?
What type of financing should be used?
Should the company acquire a larger building than needed and rent out the rest?
Should the company consider relocation?

6. Organization of This Book
Part One
Real Estate Legal Analysis Chapters 2-7
Part Two
Real Estate Service Industries Chapters 8-10
Part Three
Real Estate Market Analysis Chapters 11-15
Part Four
Real Estate Finance and Investment Analysis Chapters 16-19

7. What Is Real Estate?
Land and buildings (or land and things attached to it)
Owner-occupied residential
Tenant-occupied residential
Commercial
Industrial
Farm and open land

8. Special Characteristics of Real Estate
Fixed location
Uniqueness
Interdependence of land uses
Long life
Long-term commitments
Large transactions
Long gestation period

9. The Economic Importance of Real Estate
A vital part of the economy
21% of total household assets in real estate
33% of total business assets in real estate
5% of national gross domestic product
36% of gross private investment annually
$13.3 trillion in outstanding mortgage debt

10. U.S. Economy Is Very Sensitive to Housing Values
Declining housing values beginning in mid-2006 was first major event marking the greatest recession in the U.S. since 1930s
Sub-prime lending partially to blame
Housing values rose 47% 2000 to mid-2006
Housing values fell 32% mid-2006 to 2009

11. The Real Estate Industry: Career Opportunities
Real estate brokerage
Property management
Real estate finance

12. The Real Estate Industry: Career Opportunities, cont.
Appraisal
Consulting
Development and construction
Corporate asset management
Legal experts
Land planners