A Message From Divisional Dean D. Kenneth Patton

These are times that will test the mettle of every person and every institution in the world, especially those in real estate. The NYU Schack Institute of Real Estate is at the very center of this storm. Fortunately, we are blessed with faculty, alumni, and students who have earned leading roles in the profession of real estate. Every deal, rent, loan, or valuation has changed and will have to be recalculated in the months and years ahead. Certain tenants’ decisions to pay owners discounted rents without notice are a sign of these new times. The inevitable and—we hope—timely restructuring of our industry will require a vast amount of personnel and expertise. Working out these complicated problems will be no assembly-line procedure; this talent-intensive effort will require many highly trained professionals. An area of particular concern is securitization, whose run-ups were a leading cause of the crisis.

The Schack Institute has prepared our students and graduates well for these challenges. Repositioning assets demands a sophisticated understanding of finance, a core component of our curriculum. In addition, we have always stressed the fundamentals of real estate in parity with finance. The economics of location, market analysis, feasibility, and valuation are cornerstones of our program. These will grow in importance as the economic cycle’s law of gravity exerts its force on our properties. The Institute could not have revamped our strategic real estate management concentration at a better moment.

While concentrating on the enduring fundamentals of economics and real estate, we have been alert to the latest trends in real estate finance and have panels, seminars, and events to keep students and faculty up-to-date on fast-moving events. All of this will stand our community in good stead as we emerge from the current predicament.

I am confident that we are close to the point where transactions and restructuring will accelerate. I am equally confident that the NYU Schack Institute community will have a major role to play in the recovery process.

Regards,
D. Kenneth Patton
Divisional Dean
NYU Schack Institute of Real Estate