JOE PAGLIARI Ph.D

Joseph L. Pagliari Jr., Ph.D., CFA and CPA focuses his research and teaching efforts – based on over 40 years of industry experience – on issues broadly surrounding institutional real estate investment, attempting to answer important questions from a rigorous theoretical and empirical perspective. These issues include:

                                                         *  the risk-adjusted performance of core and non-core funds,

                                                    *  principal/agent issues in incentive fees,

                                                    *  a comparison of REITs and private real estate,

                                                    *  real estate’s pricing and return-generating process,

                                                    *  real estate’s role in a mixed-asset portfolio,

                                                    *  analysis of high-yield (or mezzanine) financing,

                                                    *  the strategic uses of leverage, etc.

And, accordingly, he has authored (or co-authored) numerous papers on a variety of these topics. He has also co- authored several chapters in the Handbook of Real Estate Portfolio Management; of which, he is also the editor. He has presented these papers and thoughts on other topics at a variety of industry events (including ARES, AREUEA, NCREIF, NAREIM, PREA and ULI) as well as the Federal Reserve Bank of Atlanta and testimony before a subcommittee of the House of Representatives. His views on these and other topics have also been published in the popular press, including Barron’s and The Wall Street Journal.

Pagliari is board member of the Real Estate Research Institute (RERI) and a former board member of the Real Estate Information Standards (REIS). He is also a member of numerous academic and professional associations including the American Real Estate Society (ARES), the American Real Estate and Urban Economics Association (AREUEA), the Homer Hoyt Institute (where he is a Hoyt Fellow), the National Association of Real Estate Trusts (NAREIT), the National Council of Real Estate Investment Fiduciaries (NCREIF), the Pension Real Estate Association (PREA) and the Urban Land Institute (ULI). Pagliari was also the 2015 winner of PREA’s James A Graaskamp Award (which recognizes those who have, through significant research, contributed practical insights to the common body of knowledge).

Pagliari earned a bachelor's degree in finance from the University of Illinois-Urbana in 1979. He earned an MBA from DePaul University-Chicago in 1982 and a PhD in finance from the University of Illinois-Urbana in 2002.

Education

  • Ph.D. in Finance (May, 2002) University of Illinois–Urban–UrbanUrban
  • Masters in Business Administration(May,1982) DePaul University – ChicagoAdministration(May,1982) DePaul University – Chicago(May,1982) DePaul University – Chicago
  • BachelorofScience,Finance(May,1979) University of Illinois - Urbana

Professional Designations

  • Certified Public Accountant(CPA), and

  • Chartered Financial Analyst (CFA).

Editorial and Other Boards

  • Occasional referee for Real Estate Economics, Journal of Real Estate Research and Journal of Real Estate Portfolio Management – approximately 1-2 papers reviewed per year per journal
  • National  Council of Real Estate Investment Fiduciaries (NCREIF) board – occasional academic advisor to eleven-member board of directors.
  • National Association of Real Estate Investment Trusts (NAREIT): Real Estate Investment Advisory Council.
  • Real Estate Research Institute (RERI)–board member

Academic/Professional Affiliations

  • American Real Estate Society (ARES),
  • American Real Estate and Urban Economics Association (AREUEA),
  • European Association of Investors in Non-Listed Real Estate Vehicles (INREV),
  • Homer Hoyt Fellow,
  • Institute of Chartered Financial Analysts (ICFA),
  • Investment Analysts Society of Chicago (IASC),
  • National Council of Real Estate Investment Fiduciaries (NCREIF),
  • National Association of Real Estate Investment Trusts (NAREIT),
  • Pension Real Estate Association (PREA), and
  • Real Estate Research Institute (RERI).

Teaching Appointments

Current Appointment

  • Clinical Professor, University of Chicago, Booth School of Business, 2007/08 – present. Courses taught: Real Estate Investment I, Real Estate Investments II and Real Estate Lab (as well as Real Estate Investments in the Executive MBA program).

Previous Appointments

  • Clinical Assistant Professor and Assistant Director of the Real Estate Program, Northwestern University, Kellogg School of Management, 2002/03 – 2006/07. Courses taught: Real Estate Development (with Michael Pepper), Real Estate Investment I and Real Estate Investments II
  • Adjunct Professor,Northwestern University,Kellogg Schoolof Management,1996/97– 2001/02. Courses taught: Real Estate Finance (with Thomas Lys), Real Estate Investment I and Real Estate Investments II.
  • Adjunct Professor, DePaul University, Kellstadt Graduate School of Management, 1992/93
    –1994/95.Course taught:Real EstateInvestments I: Analysis.University of Chicago, Booth School of Business, 2007/08 – present. Courses taught: Real Estate Investment I, Real Estate Investments II and Real Estate Lab (as well as Real Estate Investments in the Executive MBA program).

Awards

PREA James A.Graaskamp Award PREA, 2015.

Peer-Reviewed Publications

  • " Real Estate Returns by Strategy: Have Value-Added and Opportunistic Funds Pulled Their Weight?,” forthcoming Real Estate Economics, 2019.
  • “Another Take on Real Estate’s Role in Mixed-Asset Portfolio Allocations,” Real Estate Economics, Real Estate Economics, Spring, 2017
  • “High-Yield Lending: It’s Good Until It’s Not,” Journal of Portfolio Management, Special Real Estate Issue, 2017.
  • “Some Thoughts on Real Estate Pricing,” Journal of Portfolio Management, Special Real Estate Issue, 2017.
  • “Principal/Agent Issues in Incentive Fees,” The Journal of Portfolio Management, Special Real Estate Issue, 2015.
  • “An Overview of Fee Structures in Real Estate Funds and Their Implications for Investors” Pension Real Estate Association, Fall, 2013.
  • “The Pricing of Non-Core Real Estate Ventures,”Journal of Portfolio Management, September 2007.
  • Public versus Private Real Estate Equities: A More Refined, Long-Term Comparison (with Kevin Scherer and Richard Monopoli), Real Estate Economics, March 2005.
  • Public versus Private Real Estate Equities: A More Refined, Long-Term Comparison (with Kevin Scherer and Richard Monopoli), Journal of Portfolio Management, September 2003.
  • “Twenty Years of the NCREIF Property Index” (with Frederich Lieblich, Mark Schanerand James R.Webb), Real Estate Economics, Spring2001.
  • “A Fundamental Comparison of International Real Estate Returns” (with Todd Canter, Frederich Lieblich and James R. Webb), The Journal of Real Estate Research, Fall 1997.
  • “OnSettingApartment RentalRates:ARegression-Based Approach”(with JamesR. Webb), Journal of Real Estate Research, Winter, 1996.
  • “Applying MPT to Real Estate:The Good, The Bad and the Uncertain” (with Joseph Del Casino and James R. Webb), Journal of Real Estate Portfolio Management, Fall, 1995.
  • “A Fundamental Comparison of Securitized and Unsecuritized Real Estate,” Journal of Real Estate Research", Fall,1995 published in a special (two-part)issue devoted to REITs.
  • “Housing Appreciation, Income Taxes and Mortgage Alternatives” (with Richard T. Garrigan), Real Estate Review, Summer 1995 was subsequently discussed in a Wall Street Journal article (September 12, 1995) and then in several large, metropolitan newspapers.
  • “Past and Future Sources of Commercial Real Estate Returns” (with James R. Webb), The Journal of Real Estate Research, Fall 1992.
  • “The Impact of Supply-Side Changes on Real Net Operating Income: The Multi-family Perspective,”(with RichardT. Garrigan),Real Estate Issues, Spring/Summer 1992.
  • “Inside the Real Estate Yield,” Real Estate Review, Fall 1991.
  • “Real Estate in 3-D: See It Now!”Real Estate Issues, Fall/Winter 1990.

Books

  • “The Historical Behavior of REIT Returns:A Real Estate Perspective”(co-authored with F. Lieblich and J. Webb)published in Real Estate Investment Trusts (Mc-Graw-Hill,1997) edited by R. Garrigan and J. Parsons.
  • “Real Estate Investments” (co-authored with F. Lieblich) published in Pension Fund Investing,(Panel 1996).Ibbotson Associates originated this project primarily as a service to their institutional clientele and designated Scott Lummer, Ph.D. and Mark Riepe to act as editors for this project.An update has also been prepared.
  • “Retail Real Estate: A Fundamental Comparison of Malls and Shopping Centers” (co-authored with J. Webb) published in Megatrends in Retail Real Estate (Kluwer, 1996) edited by J. Benjamin and co-sponsored by the American Real Estate Society and the International Council of Shopping Centers. 
  • Editor, Handbook of Real Estate Portfolio Management published by Irwin Professional Publishing, 1995.

  • Co-authored chapters in Handbook of Real Estate Portfolio Management:

    • “Portfolio Management Concepts and Their Application to Real Estate” (with Anthony B.Sanders and James R. Webb),
    • “Real Estate Characteristics and Measurements”(with James R. Webb), 
    • “The Impact of Leveraged Real Estate Investments for Tax-Exempt Investors: The Financial Perspective” (with Richard T. Garrigan), 
    • “Real Estate's Role in a Mixed-Asset, Tactical Asset Allocation Portfolio” (with James R. Webb).    

Chartered Financial Analysts - Selected Readings

  • From The Handbook of Real Estate Portfolio Management (Irwin,1995), the following chapters were selected as part of the real estate readings for the CFA examination:
    • “Appraisal Practicesand Issues”by F.Liantonio andR. Gorden,
    • “Real EstateInvestment Trusts”byD.DownsandD.Hartzell, and
    • “Portfolio ManagementConcepts andTheir Applicationto RealEstate”byA.Sanders, J. Pagliari, and J. Webb.
  • “Past and Future Sources of Commercial Real Estate Returns” (co-authored with J. Webb) which was previously published (Fall, 1992) in the Journal of Real Estate Research was also selected as part of the real estate readings for the CFA examination.

Current Working Papers

  • “Levered Equity Returns in the Presence of Risky Debt: An Application to Private Real Estate.”

  • “Another Lookat PrivateReal EstateReturns byStrategy”(withMitchell Bollinger).

Selected Academic / Professional Presentations & Conferences

  • Twelfth Annual Booth Real Estate Conference (11/13/18)– presentation:“High-Yield Lending: It’s Good, Until It’s Not.
  • UrbanLand Institute(11/8/18) –moderator and presenter: “Real Estate Forecast 2019.”
  • BMO Harris Real Estate Conference (9/21/18) – presentation: “High-Yield Lending: It’s Good, Until It’s Not.”
  • SNL“REIT School”(6/26/18) –presentation: “Some Thoughts on the Fundamentals of Real Estate Investing.”
  • Real Estate Research Institute (5/9/19)– discussant:“The Cases and Consequences of Cross- Market Differences in the Liquidity of Commercial Real Estate.”
  • Sovereign Wealth Fund Institute (2/21/18)– panel discussion: “How Can Institutional Investors Truly Take Advantage of Private Markets?”
  • Eleventh Annual Booth Real Estate Conference (10/31/17)– presentation:“Some Thoughts on Real Estate Pricing.”
  • University of North Carolina |Institute for Private Capital(10/21/17) –presentation: “Some Initial Thoughts on the Risk/Return Continuum with Endogenous Leverage Costs.”
  • Pension Real Estate Association (PREA) | Fall Investor Conference | Research Infinity Group (10/18/17) – presentation: “Some Thoughts on Real Estate Pricing” and “High-Yield Lending: It’s Good Until It’s Not.”
  • BMO Harris Real Estate Conference (9/26/17) – presentation: “Assessing Real Estate Returns by Strategy: Core v. Value-Added v. Opportunistic.”
  • UrbanLand Institute| Chicago Chapter (9/21/17)– presentation:“A Few Thoughts on Asset Bubbles, Interest Rates and Other Institutional Investor Concerns.”
  • SNL“REIT School”(6/27/17) –presentation: “Some Thoughts on the Fundamentals of Real Estate Investing.”Chicago Booth Finance Roundtable (6/6/17) – presentation: “Assessing Real Estate Returns by Strategy: Core v. Value-Added v. Opportunistic.”
  • Appraisal Institute | Chicago Chapter (5/17/17) – presentation: “A Few Thoughts on Asset Bubbles and Interest Rates.”
  • University of North Carolina, 2016 Real Estate Research Conference (11/20/16) – presentation: “Long-Run Investment Horizons and Mixed-Asset Portfolio Allocations.”
  • Tenth Annual Booth Real Estate Conference (11/6/16) – presentation: “Some Thoughts on Greatest Hits (and Misses).”
  • Pension Real Estate Association (PREA) | Fall Investor Conference | Alternative Investments Affinity Group (9/29/16) – presentation: “A Few Thoughts on Asset Bubbles and Interest Rates.”
  • SNL“REIT School”(6/28/16) –presentation: “Some Thoughts on the Fundamentals of Real Estate Investing.”
  • NCREIF Fall 2015Conference (11/12/15)– presentation:“Assessing Real Estate Returns by Strategy: Core v. Value-Added v. Opportunistic.”
  • Ninth Annual Booth Real Estate Conference (11/5/15)– presentation:“A Few Thoughts on Asset Bubbles and Interest Rates.”
  • PREA 25thAnnual Institutional Investor Real Estate Conference (10/1/15) – presentation: “Assessing Real Estate Returns by Strategy: Core v. Value-Added v. Opportunistic.”
  • SNL“REIT School”(6/23/15) –presentation: “Some Thoughts on the Fundamentals of Real Estate Investing.”
  • Eighth Annual Booth Real Estate Conference (10/29/14)– presentation:“Some Thoughts on Leverage, Fees and Net Returns.”
  • PREA Institute (6/25/14)– presentation:“Assessing Real Estate Returns by Strategy:Core v. Value-Added v. Opportunistic Investing.”
  • SNL “REIT School” (6/24/14) – presentation: “Some Thoughts on Past and Future Real Estate Returns.”
  • NAREIM Council Meeting (4/8/14) – presentation: “Assessing Real Estate Returns by Strategy: Core v. Value-Added v. Opportunistic Investing.”
  • CFA Society of Toronto (4/24/14)– presentation:“Long-Run Investment Horizons and Implications for Mixed-Asset Portfolio Allocations.”
  • Urban Land Institute (11/6/13) – presentation: “Monetary Policy & Its Potential Impact on Real Estate.”
  • Seventh Annual Booth Real Estate Conference (10/25/13) – presentation: “Assessing Real Estate Returns by Strategy: Core v. Value-Added v. Opportunistic.”
  • NCREIF Research Summit(9-19-13) –presentation: “Some Thoughts on Hot Topics: Something Familiar, Something Uncomfortable & Something Controversial.”
  • Real Estate Finance Forum (8/8/13)– presentation:“Monetary Policy& Its Potential Impact on Real Estate.”
  • NCREIF Summer Research Conference (7/11/13) – presentation: “An Overview of Joint Ventures & Incentive Fees.”
  • SNL “REIT School” (6/24/13) – presentation: “Some Thoughts on Past and Future Real Estate Returns.”
  • NAREIT Real Estate Research Conference(6/4/13) –discussant: “Can Securitization Work? Lessons from the U.S. REIT Market.”
  • Real Estate Research Institute (5/2/13) – discussant: “Finding Cap Rates: A Property-Level Analysis of Commercial Real Estate Pricing.”
  • NAIOP Conference (4/17/13) – presentation: “Some Thoughts on Past and Future Real Estate Returns.”
  • NAREIM Conference [Capital Raising & Investor Relations Council Meeting] (12/4/12) – presentation: “Some Thoughts on Past and Future Real Estate Returns.”
  • Sixth Annual Booth Real Estate Conference (11/6/12) – presentation: “Some Thoughts on Past and Future Real Estate Returns.”
  • United States House of Representatives before the House Financial Services Committee’s Sub committeeon Insurance,Housing and Community Opportunity(6/7/12) re:Oversight of the Federal Housing Administration’s Multifamily Insurance Program – testimony on FHA/HUD lending practices.
  • National Multi-Housing Council(3/28/12) –provided the opening remarks to their Research Forum: “Commercial Real Estate: Smooth Sailing or Rough Waters Ahead?”
  • Fifth Annual Booth Real Estate Conference (11/10/11) – moderator of a capital-markets panel.
  • 59th Annual Booth Management Conference (5/20/11) – presentation on commercial real estate performance.
  • Fourth Annual Booth Real Estate Conference (11/11/10) – moderator of a capital-markets panel.
  • Chicago Booth: Inaugural Emerging Markets Conference (11/7/10) – moderated the panel: Real Estate – Manageable Risk?
  • CB Richard Ellis Client Conference | Chicago (10/27/10)– presented“A Few Thoughts on Joint Ventures.”
  • Federal Reserve Bank of Atlanta | Conference: The Crisis in Real Estate and Its Impact on Public Finance (9/24/10) – Presented “Real Estate’s Impact on State & Local Pension Funds.”
  • 58thAnnualBooth Management Conference (4/29/10)– panel discussion on commercial real estate performance.
  • Third Annual Booth Real Estate Conference (11/5/09) – moderator of a capital-markets panel.
  • PREA Institute | All-Star Symposium (6/24/09) – presented joint ventures for commercial real estate investors.
  • 57thAnnualBooth Management Conference (5/29/09)– presented an overview of direct(or private) commercial real estate performance.
  • NAIOP – Chicago (3/23/09) – presented an overview of direct (or private) commercial real estate performance.
  • Chicago Real Estate Council (1/15/09) – gave a 90-minute private presentation overviewing the commercial real estate market to approximately 200 senior real estate executives.
  • Second Annual Booth Real Estate Conference (11/5/08) – moderator of a capital-markets panel
  • Harvard Graduate School of Design: Continuing Education (10/16/08 & 10/17/08) – gave two (different) 90-minute presentations to approximately 50 real estate practitioners (mostly HBS alums) as part of Advanced Real Estate Finance program.
  • Executive Education –opportunity to address investors and financial advisors:
    • Morgan Stanley-sponsored seminar at Chicago Booth (6/5/08)
    • Merrill Lynch-sponsored seminar at Chicago Booth (6/30/08)
  • 56thAnnual Booth Management Conference (5/16/08) – moderated a panel discussion on domestic and international (commercial) real estate.
  • First Annual Booth Real Estate Conference (11/16/07)– keynote speaker.
  • Acted as moderator/discussant for “Alternative Benchmarks for Evaluating REIT Mutual Funds” presented at the (RERI) Real Estate Research Institute in April, 2007.
  • Presented“Measuring &Pricing Risk:An Application to Core and Non-Core Real Estate”at the NAREIM(National Association of Real Estate Investment Managers) conference in May, 2007.
  • Acted as discussant for “New Era: Real Estate Industry in the S&P Indices” at the ASSA (Allied Social Science Association) meetings, in January, 2007.
  • Presented “Core v. Non-Core Funds…” at the NCREIF (National Council of Real Estate Investment Fiduciaries), February 2006.
  • Presented “Core v. Non-Core Funds…” – as the featured speaker – at the Institutional Real Estate Investing Forum, January 2006.
  • Presented“Determining True Fund Value”at the Institute for International Research’s Non- Core Real Estate Funds Forum, July 2005.
  • Presented “Public v. Private Real Estate Equities…” – as the key-note address – at the Real Estate Institute’s Premier Investment Forum, February 2004.
  • Acted as discussant for paper presented at AREUEA meetings,held in conjunction withASSA (Allied Social Sciences Association) meetings, January 2004.
  • Presented “Public v. Private Real Estate Equities…” at the NCREIF Annual Conference, October 2003.
  • Presented “Public v. Private Real Estate Equities…” at the NAREIT Institutional Investor Forum, June 2003.
  • Participated in panel presentation (Academic v. Practitioner Research) at the American Real Estate Society – Annual Conference (Coeur d’Alene, Idaho), April 2001.
  • Guest Speaker: Third Annual New York University Conference on Pension Fund Investment in Real Estate, Spring 1992.
  •  Moderator: Investing in Real Estate: Products, Management, Asset Allocation and Performance Measurement, The Investment Analysts Society of Chicago, January 1989.

  • CFA Review Classes (Levels II and III - sessions on real estate and portfolio management) held by the Investment Analysts Society of Chicago in conjunction with DePaul University, Spring of 1988 through 1995.

Guest Lecturer

Y§  Guest Lecturer:

·  Universityof Illinois-Urbana:

-  Investments,Fall 1996.

·  Universityof Chicago:

-  RealEstate Finance,Fall, 1994, and

-  RealEstate Finance,Spring 1992.

·  DePaul University

-  RealEstate Seminar,Spring 1992, and

-  RealEstate Seminar,Spring 1990.