There is no education like adversity

Iam writing this just as we start the new academic term at the end of September and a new cohort of intelligent, enthusiastic and engaged students have joined us to gain a deeper understanding of theories, techniques and analytical tools relevant for looking at real estate markets.

I am hoping they are not going to face too much adversity but as we think about some of the implications of what we have been through over the last few years it is a reminder that challenges can be helpful for learning and improving what we do.

Research, real estate cycles and structural change

Nick Mansley Executive Director , Real Estate Research Centre Co-Course Director, Masters in Real Estate

From a research point of view, adversity is thoroughly normal! If it is an easy to answer question it will probably already have been answered. More usual is that the question itself is hard to define, articulate or imagine and that in itself is part of the challenge. Then there are the challenges of designing a method or approach that will actually address the question and then the challenges of how to gather data and information and finally the challenge of how to analyse that data and information. However, it is through this struggle that interesting and insightful research is produced.

Both cycles and structural shifts in real estate markets bring adversity for some. One of the research projects we’ve been revisiting and which formed the basis of the IPF report on long-term value methodologies is to look for indicators of when markets are out of line with fundamentals to help regulators, lenders and investors be more cautious and aware when downside risks are elevated. However, as we indicated in the IPF report, those fundamentals are not fixed and a greater awareness of some of the underlying factors and uncertainties around these would help in understanding risk. This has been brought to life with the dramatic movement in bond yields and interest rate expectations over the last few months. In addition, the relationships between fundamentals and the real estate market have probably changed with economic growth not feeding through to o ce demand as strongly as in the past and the growth of internet sales changing the dynamics of the retail sector. In addition, to these challenges is the need to improve energy e ciency of the real estate stock. The need to upgrade/refurbish, change use/repurpose and/or remove space to make places attractive is probably as great as it has been at any time in the last seventy years. So, whilst some of this transition will be di cult in terms of investment performance, it is also a fantastic opportunity for those with imagination, superior technical skills and the ability to bring a range of stakeholders together for a common goal. It will be a great time to learn from where things are going well and from others’ mistakes.

Teaching and adversity

When the pandemic broke in 2020, we were faced with the challenge of how to technically deliver online teaching and how to make the content work for an online format. There was very rapid “learning by doing” in how to set things up and how to record and edit videos. The second element of how to make online or hybrid teaching work well remains a challenge. It is very hard to read and engage an online class compared to an in-person class and it feels to me that online delivery of teaching material in a traditional lecture style doesn’t usually work well for students or teachers alike.

When a course is made specifically for online teaching, however, it can work very well and has many benefits, enabling students anywhere in the world to participate and learn. This is the approach taken with the real estate financial modelling certificate developed together with Bayfield Training https://www.bayfieldtraining. com/certificate/ The course is specifically designed for online delivery – with lots of exercises, the material is better suited to being looked at on a screen and it allows students to go through at their own pace is particularly important. These are all important elements for making online teaching more appropriate than inperson teaching.

Online delivery also allows us to access guest speakers from around the world for our MPhil and MSt programmes.

However, it has been an absolute joy to get back to in person teaching. The fun, energy and engagement of everyone being in the same room has been brilliant. Our 2022 part-time masters in real estate cohort made some significant sacrifices and paid some ridiculous airfares to make the first residential session in September but all said how valuable it had been to be there in person to learn from each other, be involved in group exercises and discussions and to be fully engaged with the course. It is also very hard to do karaoke remotely…

So, the adversity of the last couple of years has brought innovation into how we use online resources to support learning and it has also led me to think again about how to make the most of when students are together in Cambridge.

Triathlons and adversity

I have now completed around 25 long distance triathlons and unlike a standard distance race, inevitably something always goes wrong. Sometimes these are things I might have been able to do a bit about through more careful planning and checking but usually there is nothing I could have done. I went to the Austrian Alps for a race a few years ago and the temperature reached 37 degrees C for the 44 km run. Other races have also been much hotter than expected (Norway), wetter than expected (Switzerland) or stormy as expected (Scotland) and I have also had crashes, hit potholes and got a buckled wheel and even had a race where I was knocked o my bike and completed the race with one pedal. What I have learned through all the adversity is to focus on the enjoyment of being there to take part – it is amazing how the mind can control the body and by relaxing and focusing on positive thoughts the body does stu it otherwise couldn’t do - one can persuade oneself that it really is fun! There are a couple of key learnings from the tough times in races. Firstly, that preparation and training really makes a massive di erence - that inspires me to train consistently. Secondly, now I have been through so many tough times in races I know not to stress overly when the next one happens - you know you can get through it!

Adversity can make us more resilient and creative. Adversity also helps us learn more about risk, the need to prepare and have the right tools, skills and mindset for challenges ahead.