Wisconsin School of Business

Timothy Riddiough

Director of the Applied Real Estate Investment Track (AREIT)

Professor - James A. Graaskamp Center for Real Estate, Real Estate & Urban Land Economics
E.J. Plesko Chair

Timothy (Tim) Riddiough holds the E.J. Plesko Chair and is a professor in the Department of Real Estate and Urban Land Economics at the Wisconsin School of Business. Riddiough served as the director of the Graaskamp Center for Real Estate from 2004-2009.

From 1994 to 2001 Riddiough was at MIT as an assistant and associate tenured professor, and from 1991 to 1994 he was an assistant professor at the University of Cincinnati.

Riddiough was the 2012 president of the American Real Estate and Urban Economics Association (AREUEA). He has been active in AREUEA for many years, serving on the board of directors several times.

He is on the editorial board of Real Estate Economics, and I for several years served as editor of Real Estate Finance. He currently serves on the editorial boards of five other real estate-related journals.

His honors and awards include winning the best dissertation and best paper awards from AREUEA, being named a founding fellow at the Real Estate Research Institute, and a fellow at the Homer Hoyt Institute for Advanced Studies.

Riddiough is best known for his work on credit risk in mortgage lending, mortgage securitization, real options, REIT investment and corporate finance, and land use regulation.

He has published in Real Estate Economics, Journal of Urban Economics, Journal of Real Estate Finance and Economics, Review of Financial Studies, Journal of Quantitative Financial Analysis, and the Journal of Financial Intermediation. His current research interests are focused on the financial crisis of 2007-08, economic development of debt markets, and optimal contract design.

Riddoiugh is an active participant in the commercial real estate industry, speaking often on the financial crisis, and was recently named to NAREIT’s investment advisory council. He is also active with the Pension Real Estate Association and the Commercial Mortgage Securities Association. He advises several real estate organizations on investment and risk management issues, and has served as an expert economic consultant on numerous legal matters involving real estate finance and investment issues.

He received his Ph.D. from the University of Wisconsin–Madison.
 

Selected Accepted Journal Articles


Riddiough, T. (2013). A Global Tour of Commercial Property and REIT Markets. International Real Estate Review
Riddiough, T. (2013). Percentage Rents and Stand-Alone Property: Share Contracting as a Barrier to Entry. Journal of Real Estate Research
Riddiough, T. (2012). The First Foreclosure Crisis: Wisconsin Farmers, Western Railroads and Eastern Money. Wisconsin Magazine of History

Selected Published Journal Articles


Riddiough, T. (2013). Can Securitization Work: Evidence from the U.S. REIT Market.
Article AbstractIn light of recent experience we ask whether there are any measurable economic “goods” associated with real estate securitization. To this end, we analyze securitized equity interests in commercial property (the so-called listed REIT market), with a particular focus on the U.S. experience. A comparison of the recent U.S. housing and commercial property market cycles reveals some similarities but more importantly some stark differences. Differential performance is largely attributable to excess housing supply relative to balanced supply realized on the commercial property side of the market. We conjecture that an important contributing factor to the muted commercial property supply response was the “civilizing influence” of the REIT sector. A formal test of the conjecture is applied, with results that suggest the REIT market indeed moderated supply outcomes in the U.S. Relationships between the REIT market and new construction are generally weaker in other analyzed countries, where we attribute this finding to structural differences. We conclude that securitization can work, but that attention to structural detail is essential in order to maximize the benefits associated with creating a transparent and liquid market for securitized investment interests.
Journal of Portfolio Management
Riddiough, T. (2013). Securitization and the Supply Cycle: Evidence from the REIT Market. Journal of Portfolio Management (39), 134-143.
Riddiough, T., , & Ciochetti, B. (2006). Theory and Evidence on the Resolution of Financial Distress. Review of Financial Studies (19), 1357-1397. doi:10.1093/rfs/hhj031.

Practitioner-Oriented Publications


Riddiough, T. (2012). Securitization and the Commercial Property Cycle.

Presentations


AREUEA ( 2013 ) Governance and Design of Structured Securities

AREUEA ( 2013 ) Securitization and the Commercial Property Cycle

Georgia State University ( 2013 ) Collateral and the Limits of Debt Capacity

University of Southern California ( 2013 ) Collateral and the Limits of Debt Capacity

City University of Hong Kong ( 2012 ) Collateral and the Limits of Debt Capacity

International AREUEA ( 2012 ) Collateral and the Limits of Debt Capacity

International AREUEA ( 2012 ) Deja vu All Over Again: Agency, Uncertainty, Leverage and the Panic of 1857

Syracuse University ( 2012 ) Collateral and the Limits of Debt Capacity

AREUEA Meetings ( 2011 ) "Collateral and Debt Capacity in the Optimal Capital Structure"

FMA Asia-Pacific Meetings ( 2011 ) "Collateral an dDebt Capacity in the Optimal Capital Structure"

National University of Singapore Conference on Real Estate ( 2011 ) "Collateral an dDebt Capacity in the Optimal Capital Structure"

UC-Irvine ( 2011 ) "Collateral an dDebt Capacity in the Optimal Capital Structure"

University of Miami ( 2011 ) "Collateral an dDebt Capacity in the Optimal Capital Structure"

Numerous ( 2010 ) Can Securitization Work?

Numerous ( 2010 ) Collateral and Debt Capacity in the Optimal Capital Structure

AREUEA Presidential Address ( 1 ) 19th Century Sub-Prime Mortgage Securitization, Appraisal Error, and the First Foreclosure Crisis


Undergraduate Courses


Real Estate Finance
Course DescriptionEvaluating the role of financing and leverage in real estate investment analysis; identifying alternative types of financing; valuation of financial structure; sources of equity financing for real estate; mortgage securitization and the operaion of secondary mortgage markets.
(RES 410), Spring 2002.

Real Estate Finance
Course DescriptionEvaluating the role of financing and leverage in real estate investment analysis; identifying alternative types of financing; valuation of financial structure; sources of equity financing for real estate; mortgage securitization and the operaion of secondary mortgage markets.
(RES 410), Spring 2004.



Graduate Courses


Readng&Rsch-Real Estate PhD
Course DescriptionIndividual work suited to the needs of Ph.D. students may be arranged both during regular sessions and during the intersession periods.
(RES 999 Section 142), Fall 2008.

Smr-Urban Land Econ PhD
Course DescriptionContinuation of Urb R Pl/Real Est 977.
(RES 978 Section 1), Fall 2008.

Sem- Urban Land Econ PhD (RES 977 Section 1), Spring 2011.

Ph.D. course in real estate finance (RES 899), Fall 2008.

Adv Real Est Finance Theory
Course DescriptionTheory of real estate financial markets as applied to the pricing of residential and commercial mortgages. Intensive analysis of the real estate securitization process. A critical examination of REITs and equity interests in commercial real estate.
(RES 870 Section 1), Spring 2009.

Advanced Real Estate Finance Theory
Course DescriptionTheory of real estate financial markets as applied to the pricing of residential and commercial mortgages. Intensive analysis of the real estate securitization process. A critical examination of REITs and equity interests in commercial real estate.
(RES 870 Section 1), Spring 2007.

Adv Real Est Finance Theory
Course DescriptionTheory of real estate financial markets as applied to the pricing of residential and commercial mortgages. Intensive analysis of the real estate securitization process. A critical examination of REITs and equity interests in commercial real estate.
(RES 870 Section 1), Spring 2008.

Commercial Real Estate Finance
Course DescriptionTheory of real estate financial markets as applied to the pricing of residential and commercial mortgages. Intensive analysis of the real estate securitization process. A critical examination of REITs and equity interests in commercial real estate.
(RES 770 Section 1), Fall 2010.

Commercial Real Estate Finance
Course DescriptionThis is a capstone course focused on advanced topics in commercial real estate finance. The course is broken into three parts: 1) Financial Derivatives, 2) Risk Management, and 3) Structured Finance. Lectures will address relevant topic areas and develop
(RES 770 Section 1), Fall 2011.

Contemporary Topics (RES 765), Fall 2003.

Contemporary Topics (RES 765), Fall 2004.

Contemporary Topics (RES 765), Fall 2005.

Real Estate Equity Investment
Course DescriptionFitting investment strategy to context of physical property, leverage, form of ownership, income tax and management alternatives. Emphasis is on analysis of limited partnerships, trusts, corporate real estate enterprises, and securitization to fund real estate.
(RES 740), Spring 2002.

International Real Estate (RES/INT 730 Section 1), Fall 2008.

Real Estate Finance
Course DescriptionEvaluating the role of financing and leverage in real estate investment analysis; identifying alternative types of financing; valuation of financial structure; sources of equity financing for real estate; mortgage securitization and the operaion of secondary mortgage markets.
(RES 710), Fall 2001.

Real Estate Finance
Course DescriptionEvaluating the role of financing and leverage in real estate investment analysis; identifying alternative types of financing; valuation of financial structure; sources of equity financing for real estate; mortgage securitization and the operaion of secondary mortgage markets.
(RES 710), Fall 2003.

Real Estate Finance
Course DescriptionEvaluating the role of financing and leverage in real estate investment analysis; identifying alternative types of financing; valuation of financial structure; sources of equity financing for real estate; mortgage securitization and the operaion of secondary mortgage markets.
(RES 710), Fall 2004.

Real Estate Finance
Course DescriptionEvaluating the role of financing and leverage in real estate investment analysis; identifying alternative types of financing; valuation of financial structure; sources of equity financing for real estate; mortgage securitization and the operaion of secondary mortgage markets.
(RES 710), Fall 2006.

Real Estate Finance
Course DescriptionEvaluating the role of financing and leverage in real estate investment analysis; identifying alternative types of financing; valuation of financial structure; sources of equity financing for real estate; mortgage securitization and the operaion of secondary mortgage markets.
(RES 710 Section 1), Fall 2007.



Learning/Teaching Oriented Publications


Riddiough, T. (2012). The First Sub-Prime Mortgage Crisis and Its Aftermath. BIS Papers: Property Markets and Financial Stability (64), 7-18.
Riddiough, T. (2011). " Can Securitization Work: Economic, Structural, and Policy Considerations". Journal of Portfolio Management (35), 24-38. doi: 10.3905/jpm.2011.37.5.024.

Professional Organizations


American Real Estate and Urban Economics Association


Photograph of Timothy Riddiough

Timothy Riddiough

Director of the Applied Real Estate Investment Track (AREIT)
 
Professor | James A. Graaskamp Center for Real Estate, Real Estate & Urban Land Economics
E.J. Plesko Chair
(608) 262-3531
5262D Grainger Hall