Faculty & Research

Joseph Pagliari

Joseph L. Pagliari

Clinical Professor of Real Estate

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.

His interests include sports of most every kind - some of which he still plays.


2020 - 2021 Course Schedule

Number Title Quarter
33450 Real Estate Investments I 2021  (Winter)
33451 Real Estate Investments II 2021  (Spring)
34704 Real Estate Lab: Real Estate Challenge 2020  (Autumn)

Other Interests

Sports of most every kind (still playing some).


Research Activities

Asset pricing; strategic use of leverage; portfolio allocation; joint ventures; hedonic pricing; option-pricing theory.

"The Pricing of Non-Core Real Estate Ventures," Journal of Portfolio Management (2007).

With Kevin Scherer and Richard Monopoli, "Public versus Private Real Estate Equities: A More Refined, Long-Term Comparison," Real Estate Economics (2005).

With Kevin Scherer and Richard Monopoli, "Public versus Private Real Estate Equities," Journal of Portfolio Management (2003).

With Frederich Lieblich, Mark Schaner and James Webb, "Twenty Years of the NCREIF Property Index," Real Estate Economics (2001).

With James Webb, "On Setting Apartment Rental Rates: A Regression-Based Approach," Journal of Real Estate Research (1996).

New: Thoughts on the Looming Pension Problems Facing Chicago, Cook County and Illinois
Date Posted: Apr  24, 2020
Recent increases in Cook County’s property taxes have reignited longstanding political controversies about public-sector expenditures of the City of Chicago, Cook County and the State of Illinois. These fiscal problems leave Illinois with among the worst fiscal health of any of the fifty states. Much of the state’s poor fiscal condition is attributable to the unfunded pension liabilities of its various governmental entities. These liabilities have an adverse impact on property values (due to increased property taxes, uncertainty about how these unfunded pension liabilities are to be ultimately resolved, and the crowding out of public-sector services). Partly as a result of these harmful forces, the Chicago area has seen the lowest home appreciation rate of any major metropolitan area in the country. Importantly, these fiscal problems are expected to worsen, as the gap between the pension plans’ assets and liabilities is expected to widen considerably over the coming decades. ...

New: Long-Run Investment Horizons and Implications for Mixed-Asset Portfolio Allocations
Date Posted: Sep  04, 2011
When different asset classes display varying degrees of serial correlation, the investment horizon may substantially alter optimized mixed-asset portfolio allocations. Private-market assets (such as commercial real estate and private equity) often display much higher levels of autocorrelation than their public-market counterparts. Consequently, the one-year returns typically used in mixed-asset portfolio optimization procedures often generate excessive allocations to private-market asset ...

Twenty Years of the NCREIF Property Index
Date Posted: Sep  08, 1998
This study overviews the performance of the NCREIF Property Index, by property type, over its initial twenty-year period. As a precursor to more exact analytical methods, the study displays the path of earnings, cash flow and property values over this twenty-year period. More exactly, the performance is analyzed from the perspective of the "fundamental" sources of return: initial earnings yield, "dividend" pay-out ratios, earnings growth, shifts in capitalization rates and other (less ...

On Setting Apartment Rental Rates: A Regression-Based Approach
Date Posted: Nov  26, 1997
This study presents a regression-based analysis of apartment rents for a crosssection of properties located in an "edge city" submarket. It attempts to provide a solution for owners and managers of apartments to the thorny problem of setting a property's rental rate. The approach used in this analysis differs from previous studies in at least three important respects: (1) vacancy is treated as part of the dependent variable, (2) the property-specific rental rate generated by the regression ...