- March 1, 2009: Volume 21, Number 3

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The Bright Idea: Identifying the Opportunity Is Key to Creating Value in Real Estate Investing

by Stephen Roulac

Value, in real estate investing, is one of the most talked about concepts. It is what investors strive for, what managers hope to deliver and what developers aim to produce. But for all the talk and interest in the subject, for all the attention directed to measuring it and assessing it, there is relatively little understanding about how value is actually created.

Six years ago, a research team set out to discover how value is created in real estate investment and development, and alternatively how it is destroyed if certain elements aren’t in place. Surveying more than 100 savvy real estate market participants in North America and Europe, the team dissected various tasks in the real estate investment process, and asked the investors, investment managers, bankers and brokers, professional service providers, and real estate developers to rank their significance and allocate their relative contribution to value creation. The results were recently published in a scholarly repo

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