New Academic Program - Imp Request

DEGREES, DEPARTMENT, AND COLLEGE AND CIP CODE Program: Executive Masters in Real Estate Development Degree: Masters in Real Estate Development MRED Department: School of Landscape Archi

NEW ACADEMIC PROGRAM – IMPLEMENTATION REQUEST

I PROGRAM NAME, DESCRIPTION AND CIP CODE

A DEGREE(S), DEPARTMENT, AND COLLEGE AND CIP CODE

Program: Executive Masters in Real Estate Development

Degree: Masters in Real Estate Development (MRED)

Department: School of Landscape Architecture & Planning

College: College of Architecture, Planning & Landscape Architecture (CAPLA)

Cip Code: 04.1001 – Real Estate Development

This new academic program received Arizona Board of Regents approval to plan and approval of the

program fee of $41,000 in April 2009

II.PURPOSE AND NATURE OF PROGRAM

The state of Arizona is forecasted to almost double in population, from 6+ million to 11 million by 2042 The

recent Great Recession has seen a great loss of workforce in the design, planning, and construction

professions With the recovery has come a demand throughout the region for well-trained professionals who understand the economic and environmental demands of sustainable development Accordingly, CAPLA’s strategic vision focuses on filling such shortages and expanding workforce development

The purpose of the Master of Real Estate Development (MRED) is to prepare post-baccalaureate

students with 3 – 5 years of work experience from diverse areas within the real estate industry and

related industries to explore and value the regenerative development of cities By providing a blended education in business, sustainable design, economics and legal issues, we empower our graduates to

become effective and influential participants and contributors in the fields of real estate, finance,

development, and design The program aspires to place 100% of its graduates in real estate

development and related fields, and will work proactively to identify and build opportunities for

graduates to work in for-profit and non-profit business settings that produce innovative strategies for sustainable change in communities The program supports and encourages nationally significant

research utilizing lessons from the Sun Corridor as a laboratory of larger implications for other

communities; and draws from case study examples across the United States exploring the power of

public-private partnerships, innovative financing strategies and the integrated design process offering

global strategies for lasting sustainability

The College of Architecture, Planning and Landscape Architecture will be the academic home for the

Real Estate Development degree Within the College of Architecture, Planning and Landscape

Architecture reside three academic programs: Architecture, Planning, and Landscape Architecture along with the nationally renowned research and outreach center, the Drachman Institute CAPLA has a

history of cooperation with other units on campus that includes dual degrees and joint research

Our mission is to develop qualified and socially responsible leaders of the real estate industry We will highlight the critical role real estate professionals play in building our communities, regardless of the

career path they choose We are committed to providing our students with the knowledge and skills

necessary to become socially responsible leaders in the multidisciplinary world of real estate

III PROGRAM REQUIREMENTS - List the program requirements including minimum number of credit

hours, required courses, and any special requirements including theses, internships, etc

The Executive MRED program is a twelve (12) month course of study The EMRED combines coursework from architecture, landscape architecture, and urban planning with finance, marketing, and law to enable students to advance their education and enter the profession of real estate development The first cohort of students will begin study in Fall 2013 and graduate in August 2014 It is anticipated that students will either be in transition or will be sponsored by their companies to enroll in the program Degree requirements – The MRED degree requires the completion of 37 units over three semesters Fall, Spring & Summer, with 10 – 13 units per semester The degree consists of a total of 16 courses 13 core classes, 2 concentration classes (electives) and an internship Two concentrations will be offered with two classes per concentration Six of the courses are existing and 12 new courses will be added Four of the new courses will support the two concentrations The internship will afford students the opportunity to engage with professionals in the area of their interest in real estate development A new course prefix will be requested – RED – Real Estate Development The following is a list of the

coursework for the degree

Core Curriculum

2 RED 6XX Case Studies in Sustainable Real Estate* 2 units

3 RED 6XX Entitlements & Permitting in a Growth-Managed Environment* 2 units

8 PLG 597S Sustainable Development and New Urbanism 3 units

11 PLG 597Q Public Participation and dispute resolution or 3 units

11 PA 507 Collaboration and Conflict Resolution

12 FIN 560 Real Estate Finance & Capital Markets 3 units

Concentration Electives

* new course

MRED Students will choose from one of two concentration areas: Public/Private Partnerships or Health and Wellbeing and will take two courses within their concentration area as follows:

Concentration Option 1: Public-Private Partnerships

Concentration Option 2: Health and Wellness

Health facilities & therapeutic environments 2 units

To support the Health and Wellbeing concentration, CAPLA is currently working with the College of Medicine and the Arizona Center for Integrative Medicine toward the establishment of The Institute for Place and Wellbeing The Center is envisioned as a research, teaching, and outreach partnership

bringing together disciplines from the health, design, and urban planning professions The Center will focus on the discovery and application of evidence, both quantitative and qualitative, in support of the design and planning of both healthy and healing environments, addressing body, mind, and spirit The Center will also focus on best practices for the design and planning of hospitals, clinics, healing gardens, medical center complexes, and healthy cities The work of the Center will be supported by a joint interdisciplinary graduate program in Health Care Design, including an executive certificate, masters, and potential Ph.D to be administered by CAPLA The Health Focus Area will be supported in 2012-13 with: 1) recruitment of Dr Esther Sternberg of the National Institute of Health jointly to the College of Medicine and CAPLA to head the Institute for Place and Wellbeing, and 2) search for tenure-track faculty line to conduct research in the Institute for Place and Wellbeing and to develop and teach in the Health Care Design Graduate Program

To support the Public/Private Partnerships concentration and as part of its new UA Downtown location, CAPLA is launching the Sustainable City Project As part think tank/part project center, SCP will work to develop community-based design solutions (regarding energy, water, climate change, transportation, land use, housing, etc.) to address the complex urban challenges facing Tucson and Southern Arizona Among the sustainability subjects to be addressed will be transit-oriented and infill development

involving the integration of movement systems for people and goods that enriches communities and reduces driving and dependency on fossil fuels Research will focus on strategies for the creation of dense, walkable communities comprised of mixed-use development and multimodal transit systems Research will be undertaken in partnership with the School of Geography and Development, Master of Public Administration Program, and the Institute of the Environment

A CURRENT COURSES AND EXISTING PROGRAMS – List current courses and existing university

programs which will give strength to the proposed program

The proposed Executive Masters in Real Estate Development program draws upon the strengths in the School of Architecture, the School of Landscape Architecture and Planning, and the Drachman

Institute—all within the College of Architecture, Planning and Landscape Architecture The Master in Real Estate Development is a natural fit at the University of Arizona Through its academic units, institutes, and centers, the University of Arizona has extraordinary strengths in global climate change, sustainable ecosystems, natural resource planning, urban planning, sustainable tourism, and sustainable rural committees including work with underserved populations such Native American tribes

The MRED program will include the following six required core courses which are currently being

offered:

PLG 597Q Public Participation and dispute resolution or 3 units

PA 507 Collaboration and Conflict Resolution

B NEW COURSES NEEDED - List any new courses which must be added to initiate the program; include a

catalog description for each of these courses

There are twelve new courses required to support the MRED graduate program, four of which support the two concentrations They are as follows:

RED 6XX - Urban Geography and Economics (2 unit required course)

This course focuses on urban economic theories and models of urban spatial form, underlying structures and processes, socio-spatial dimensions of modern urbanism and differentiation and locational conflict

in residential, commercial, and industrial space

RED 6XX - Entitlements and Permitting in a Growth-Managed Environment (2 unit required course)

This course discusses the legal and regulatory requirements of the entitlement and development

approval or permitting process This includes discussion of laws pertaining to wetlands, endangered species, historical and archaeological sites, air and water quality, hazardous wastes and toxic

substances, as well as the purpose, content, and use of environmental impact statements Issues of Smart Growth and sustainable development are covered Also covered is the impact on private property rights of land use regulation and growth management through developments of regional impact,

comprehensive planning laws, adequate public facilities requirements, concurrency requirements, zoning, and impact fees and other exactions The course emphasizes strategic thinking and creative approaches to navigating the labyrinth of federal, state, and local laws, rules, and regulations

RED 6XX - Real Estate Market Analysis (2 unit required course)

This course focuses on market analysis and market data gathering methods, means and techniques necessary in identifying market opportunities and developing specific market strategies for successful real estate development Special attention will be placed on the art and science of market segmentation and the resultant strategies for market positioning, competition, imitation and innovation Students learn how market analysis applies to evaluation of opportunities, determining market demand and supply balance and predicting market movements as part of risk analysis

RED 6XX - Case Studies in Sustainable Real Estate (2 unit required course)

Students will study technical, design and economic aspects of sustainable development and

refurbishment projects at the building, neighborhood and community scale Emphasis on topics such as water and energy conservation, renewable energy, biodiversity, land conservation, brownfields and infill, transit oriented development, cultural and historic resources, handicapped access and responsible

contracting Consideration of the true costs and benefits of socially and environmentally responsible development, both pro and con

RED 6XX - Site Planning/Urban Design (2 unit required course)

This course will cover best practice design principles for parking, landscaping, building placement, access, bulk and scale, and neighborhood fit and orientation Hands-on design exercises demystify the site design process and address project types such as shopping centers, office buildings, low- and high-density residential buildings and in-fill

RED 6XX - Certification Systems (1 unit required course)

Students will conduct a comparative review of certification systems and triple bottom line project assessment for green and sustainable building in the US and other countries Students will understand how these systems operate and how they relate to underlying sustainability issues

RED 6XX - Development Studio (2 unit required course)

Hands on project experience producing a real estate development proposal for one or more sites Integration and application of tools and principles learned in other real estate and planning courses including those related to physical planning, market research, financial analysis, permitting and

communications

RED 6XX - Internship (2 unit required course)

Students will participate in an internship that focuses on their chosen career path They may choose an approved internship with a non-governmental agency/non-profit organization or professional firm or consultancy that is consistent with their declared concentration The internship partner must agree to engage the student in activities consistent with 2 credit units Biweekly work plans and activity reports are expected from the partner and a formal student journal is required

RED 6XX - Low Income Housing Development (2 unit concentration course)

As part of the Public-Private Partnerships track, students learn that the development of affordable housing requires a combination of real estate development skill, policy expertise, and political acumen This course highlights how the successful affordable housing developer integrates these three attributes

to produce high quality housing that helps ease the housing crisis that many communities face Among many topics, the course reviews key policy instruments that facilitate affordable housing development, such as the low income housing tax credit, and considers how developers overcome perceptions of affordable housing shaped by the history of public housing in the United States Throughout, the course highlights examples of relevant experiences regarding affordable housing development, with a focus on the challenges and opportunities that such development affords The course also draws on the

experience of affordable housing practitioners, who offer their insights into the process and its

challenges

RED 6XX - Transit Oriented Development (2 unit concentration course)

As part of the Public-Private Partnerships track, Transit-Oriented Development (TOD) is defined as compact, mixed-use development near transit that creates sustainable communities where people of all ages and incomes have transportation and housing choices where people can walk, bike, and take transit The goal of this course is to help transportation and land use professionals effectively participate

in the planning, funding, and implementation of transit-oriented projects that improve the environment, create a sense of community, and boost transit ridership Upon completion of the course, participants will be able to:

 Express how transportation and land use planning must be linked to support successful TOD initiatives

 Recognize the factors that are converging to make TOD particularly attractive now and in the future

 Relate the importance of customer-oriented transit to cultivating successful TOD projects

 Describe TOD planning approaches and principles at the regional, station area, and site level

 Apply TOD planning principles to develop a station area plan

 Review TOD implementation strategies and tools

RED 6XX - Healthy Cities (2 unit concentration course)

As part of the Health and Wellbeing Concentration, students will learn the principles involved in the creation of healthier cities including buildings and urban spaces that promote physical activity, reduce exposure to natural hazards, reduce traffic related injuries, avoid exposure to toxics in the air, water and soil, and create living and working environments that induce well-being, productivity, and the formation

of healthy social interactions

RED 6XX - Health facilities & therapeutic environments (2 unit concentration course)

As part of the Health and Wellbeing Concentration, this course will focus on the development of medical and clinical health facilities development that are designed to incorporate state-of-the-art knowledge about how physical design affects health and Wellbeing

C REQUIREMENTS FOR ACCREDITATION – Not applicable

D DISTANCE LEARNING – Indicate whether this program will be offered via distance learning and which courses are available via distance learning Not applicable

IV STUDENT LEARNING OUTCOMES AND ASSESSMENT

A STUDENT OUTCOMES – describe what students should know, understand, and/or be able to do at the conclusion of this program of study

The goal of the MRED program is to graduate students who:

 Possess foundational knowledge of real estate development;

 Have mastered the skills needed for applied professional practice; specifically:

o Conduct site evaluation and financial analysis property acquisition

o Conduct market analysis

o Negotiation and collaboration skills

o Understanding of LEED accredited building and process that leads to accreditation

o Social, environmental and financial sustainable development

o TOD development - use of multi-modal systems including light rail, bus, pedestrian and bicycle routes

o Understanding of affordable housing public policy

o Understanding of various municipal and state incentive programs for infill development

o Understanding of land use planning and policies at local and state level

 Possess the leadership and management skills needed to become effective leaders in the property development industry

 Develop the critical thinking and evaluation skills needed to foster life-long learning

 Develop a sense of philanthropy

It is intended that the graduates of the Masters in Real Estate Development program will be able to obtain mid-career level positions at real estate development companies The work of real estate

developers requires strong skills not only in terms of real estate matters, but also in such areas as financial management, securing financing for developments, marketing and contracting with such subcontractors as architects and construction companies The role of real estate developer has

considerable value within the context of commercial property development, and as such leads to lucrative salaries for experienced, successful developers

The Master in Real Estate Development is intended to prepare students for the world of work

Graduates of the program will be employable with skills in sustainable real estate development,

planning and design decision-making as it relates holistic and reductionist thinking from large to site-scale geographic areas of the globe By exposing and encouraging alternate scenarios through vigorous use of case-based and problem-based pedagogies, graduates will have both a broad-based

interdisciplinary master of real estate development degree and an area of particular emphasis through close academic advisement in selection of concentration courses and technical electives, and

participation in the internship

B STUDENT ASSESSMENT – provide a plan for assessing student outcomes while the students are in the

program and after they have completed the degree

Assessment of student outcomes will consist of the following:

 Passing grades in core and concentration courses

 Mid-term and exit surveys of Internship partners

 Successful matriculation and attainment of job commensurate with degree and interests

 Critical assessment by faculty and external reviewers of development studio projects

 Student exit assessment

 Survey of employers (public and private)

V STATE'S NEED FOR THE PROGRAM

A - HOW DOES THIS PROGRAM FULFILL THE NEEDS OF THE STATE OF ARIZONA AND THE REGION?

The state of Arizona is forecasted to almost double in population, from 6+ million to 11 million by 2042

The Southwest region of the U.S is the second fastest growing region in the country Over the same period, population growth in the U S is predicted to translate into 464 billion square feet of new construction for a total investment of $60 trillion

Arizona is faced with the challenge of accommodating such growth economically, environmentally, and socially As one of the state’s greatest assets, Arizona’s real estate requires the protection of proper planning and financial development, especially during periods of tremendous growth At the same time, complex design and planning tools and sophisticated financial modeling and management for

responsible property investing are increasingly driving the nature of the real estate industry

The recent Great Recession has seen a significant loss of highly trained individuals in the real estate development industry With the economic recovery, the industry has already seen a significant increase

in demand throughout the region for well-trained professionals who understand the economic and environmental demands of sustainable real estate development

The EMRED program is informed by many important disciplines at The University of Arizona including environmental studies, sustainable design and planning, and entrepreneurship and social responsibility The degree will be distinguished by tracks in health care and urban infill and transit oriented

development The degree will advance the university’s land grant mission of teaching, research, and economic development

B - IS THERE SUFFICIENT STUDENT DEMAND FOR THE PROGRAM? Explain and please answer the

following questions

1.What is the anticipated student enrollment for this program? (Please utilize the following tabular format)

5-YEAR PROJECTED ANNUAL ENROLLMENT

1st Year 2nd Year 3rd Year 4th Year 5th Year Number

When fully populated, it is anticipated that the MRED program will admit 15 to 20 students per year Greater student numbers are very likely when the real estate industry has fully recovered Currently, ASU’s MRED program admits approximately 45 students per year Their program was established in

2006, shortly prior to the market downturn With the emphasis on sustainable real estate development, which differentiates the UA MRED program from the ASU MRED program, it is anticipated that we will

be drawing students from the greater Phoenix area as well as other parts of the world where they are facing similar development issues

Given that there has never been a master’s level real estate development program offered at the University of Arizona, it is believed that there is significant pent up demand for such a program In fact, initial discussions with industry leadership to determine the potential reception and viability for the MRED program have been met with significant interest

There are several bachelors’ degrees offered at the University of Arizona that are potential feeders for the MRED program including the Eller undergraduate business degree, the BS in Urban and Regional Development, the BSSBE degree and the Master’s in Planning

2 - What is the local, regional and national need for this program? Provide market analysis data or similar evidence of the need for this program Include an assessment of the employment

opportunities for graduates of the program during the next three years

The evidence for the need for MRED graduates is straight-forward based on the following three issues:

Population Growth - As stated previously, tremendous growth is projected for the Sun Corridor

megapolitan area in the coming decades in the form of in-migration and a growing resident population

According to Marshall Vest of Eller’s Economic and Business Research Center, “In the annual update of our 30-year projections, we show Arizona’s population topping 10.2 million in the year 2042 That will easily put Arizona among the top-ten ranked states for the most residents By 2042, nearly four million

more people than live here today will call Arizona home.” This population growth translates to need for

housing and jobs, which translates to the sustainable development and re-development of our

communities to appropriately accommodate this growth

Significant industry layoffs – The Great Recession forced the real estate industry to severely contract

and employees were laid off in large numbers from 2006 – 2010 as both the private and the public sectors right-sized their operations For example, homebuilders in Arizona laid off as much as 95% of their employees during the recession The industry suffered a severe drain of talent as employees either left the industry or left the region in search of employment According to Marshall Vest, from the peak

to the trough, there was a loss of 47.5% of construction jobs in Tucson and 54.8% in Arizona as a whole Vest is projecting an increase of 25% in the construction industry over the next three years

Sophistication of Industry - In the mid-1980s the real estate industry matured to one with great

complexity and an increasingly institutional ownership structure The increased complexity of the industry created a demand for practitioners who possessed a comprehensive real estate education To deal with the complexity of the field and its far-reaching effects, today's industry professionals require advanced training to prepare them to operate in increasingly technical and interrelated areas and to address the growth-related issues in the Sun Corridor Today it is a general acceptance that a good education in real estate is needed to succeed in the industry Real estate programs provide an excellent training ground for professionals Graduate education is commonly a prerequisite to advancing in many aspects of real estate Real estate programs have reflected a commitment to creating a conceptual framework for dealing with real estate development issues in a professional forum As an increasingly complex, highly competitive, fast-paced industry, its practitioners are often finding that they need to further their knowledge and skills to advance A graduate degree can open doors to greater job and

career opportunities and command a higher salary in the marketplace

Employment opportunities for MRED graduates include Property, Real estate and community

association managers, Urban and regional Planners, Construction Managers and Architectural and Engineering Managers A sample of careers include large public real estate companies; small private entrepreneurial organizations; regional investors; companies that specialize in a single product (e.g office/retail/multi-family); non-profits involved in areas such as affordable housing; corporations that own real estate; companies that finance real estate; and companies that provide services such as design and architecture firms, brokerage companies, investment banks, REITs, and various consultancies Careers in the public sector at the city, county, state, federal or military level offer interesting and rewarding career opportunities related to real estate The skill sets are also transferable to other industries and sectors of the economy In his recent update, Vest projects that employment sectors that will gain the largest shares are professional and business services (from 14.4% to 16.8%), health care & social assistance (from 14.9% to 18.2%), and financial services (from 6.9% to 7.4%)

3 - Beginning with the first year in which degrees will be awarded, what is the anticipated number of degrees that will be awarded each year for the first five years? (Please utilize the following tabular format)

PROJECTED DEGREES AWARDED ANNUALLY

1st Year 2nd Year 3rd Year 4th Year 5th Year Number

of Degrees

VI APPROPRIATENESS FOR THE UNIVERSITY Explain how the proposed program is consistent

with the University mission and strategic direction statements of the university and why the university is the most appropriate location within the Arizona University System for the program

The MRED degree aligns with ABOR’s 2020 Vision as well as The University of Arizona’s 2013-2017 Strategic Plan, specifically in the following areas:

 Educational Excellence and Access—quality degree production aimed at increasing the

educational attainment of Arizonans

The MRED program will expand access and enhance educational excellence in the area of real estate development by attracting, retaining and graduating qualified students

 Research Excellence—national research prominence for Arizona University System with peer

rankings of top American research universities

MRED students will be involved in research activities through the Drachman Institute in the form of internships or graduate research assistantships The program has already re-established a research based relationship with the Pima County Real Estate Research Council, which will fund ongoing research activities with the MRED program Students will have the opportunity to engage in real estate research with the City of Tucson, Pima and County and private development companies

 Community Engagement and Workforce Development—research, economic development, and

community engagement used to strengthen the economy and improve quality of life in Arizona The MRED program will expand workforce impact by increasing the number of citizens with the skills and understanding to fill shortages in emerging sustainable design and building markets and to

stimulate Arizona’s future economic opportunities in these same areas To help Arizona compete in the 21st century’s globalizing economy, the MRED degree will provide an educated workforce to potential employers and contribute toward increasing the state’s number of degree holders at the Master’s levels The MRED degree program will be based on a rich and varied set of existing CAPLA partnerships with public, business, and non-profit agencies related to sustainable design, planning, and construction The MRED program will expand community engagement and serve as a laboratory for addressing Arizona’s complex and interrelated environmental, social, and economic needs The MRED will serve to enrich individual lives and advance the collective well-being of our society