Profile

Sam Chandan

Lives
New York City and Montréal

Interests
My free time is mostly spent researching development economics, comparative economic systems, and education policy. To unwind, I’ve been playing rugby since my teens, although these days I don’t move as fast.

What is your current job?

I am president and chief economist at Real Estate Economics LLC, an economic reporting and risk advisory firm servicing the multifamily and commercial real estate investment sectors. Previously, I was chief economist and senior vice president at Reis, Inc., a leading US provider of data relating to real estate fundamentals.

What does your job involve?

From my official biography at Real Estate Economics: Dr. Chandan is responsible for the firm’s research and risk advising services, as well its macroeconomic, fiscal policy, and monetary policy surveillance and forecasting products. With an emphasis on risk management and information-intensive decision-making under conditions of market failure, Dr. Chandan directs REEcon’s intellectual resources to address the unique challenges and opportunities facing commercial real estate lenders, investors, and policy makers amidst unprecedented disruptions to the normal functioning of credit markets and the global economy.

What does your typical working day involve?

My days are tougher to forecast than the economy. I generally have a plan, which involves responding to emails and telephone calls, chatting with the press and with colleagues in the market, and then turning to research in the evenings, when I can work largely undisturbed. In practice, there is no typical day.

What is the most interesting aspect of your job?

As compared to previous cycles, today’s multifamily and commercial real estate markets are relatively information-rich. That being said, information alone does not drive better decision-making. This much is clear from an examination of the current downturn’s causal drivers. Rather, information must be allowed to feed the decision-making process, efficiently and consistently. Having the ability to analyse data, to uncover patterns and relationships that improve clients’ decision-making and risk management, is enormously gratifying. To the extent that the gap between information and decision-making closes for an increasing number of market participants, the robustness of our industry and its contribution to the economy all benefit.

And the most challenging?

In some respects, our industry remains somewhat fragmented. Information gathering and dissemination remain challenging activities. 

Why did you decide to pursue a career in property?

My interest in real estate economics and finance was piqued while I was an undergraduate student at Wharton. The faculty – including luminaries such as Janet Pack and Robert Inman – was engaged in pioneering research in urban economics and the management of public fiscal crises. These individuals nurtured my interest and later mentored me as a doctoral fellow. I ultimately pursued specific research questions relating to asset pricing theory and the potential for market failure, all in the context of real estate. No doubt, the real estate market is fraught with inefficiencies and violations of the usual market assumptions. Our understanding of issues relating to valuation cycles will be much stronger once the current period of property price deflation has run its course. It behooves us to translate this understanding into mechanisms for ensuring better-functioning markets than what we had in place over the last decade.

How did you get to this point in your career?

Prior to forming REEcon in December 2008, I was chief economist and senior vice president at Reis, Inc. (NASDAQ: REIS), a leading provider of multifamily and commercial real estate data and Internet-based information tools. While at Reis, I was responsible for the firm’s market forecasting; the development of its valuation, risk, and quantitative models; CMBS and securitized loan analysis; and, real estate portfolio analytics service. I’ve taught microeconomic theory at the Wharton School and was a visiting professor on the faculty of the Economics Department at Dartmouth College.

What is your greatest professional achievement to date?

In 2006, I was named one of the industry’s ten most influential people by Multi Housing News Magazine, one of the leading sector publications in the United States. I was honoured by the recognition and the support for my long-held views that outcomes in our industry can be improved through enhanced transparency, information dissemination, and risk management practices that account for market participants’ underlying incentives.

What project has given you the greatest satisfaction to date?

I have had the opportunity to present to staff at the Federal Deposit Insurance Corporation (FDIC) and the Federal Financial Institutions Examination Council (FFIEC) on several occasions over the last year. As a researcher, I have been grateful for the chance to communicate advancements in our understanding of commercial real estate market conditions to an audience that has a direct role in making policy at a critical juncture.

What are your views on RICS?

I was honoured by the invitation to Fellowship by the Eminent route. In the United States, I believe that RICS is viewed as a very dynamic organisation, with a rich history and a degree of flexibility and energy that is uncommon for an already well-established group. I have had the good fortune of working with the Chairman of RICS Americas, Tom Justin, the Managing Director, Matt Bruck, and the staff at the New York office.

What are your plans and ambitions for the future?

There are enormous challenges facing our industry over the next few years, in the United States and in the other economics. I hope that I can contribute to our shared understanding of how to manage the risks with which we must contend and the opportunities which will present themselves during this uncertain period. In parallel with our work to address to the immediate crisis, I hope to play a meaningful role in shaping the institutions and practices that will govern the real estate market as it ultimately emerges in a stronger, more resilient form.

What’s your favorite building?

New York has a number of buildings that qualify for a favourites list, including iconic properties like the Chrysler Building. From an architectural perspective, Gaudi’s Temple Expiatori Sagrada Familia in Barcelona is amongst the world’s most exceptional structures. The experience of Gaudi’s masterpiece transcends differences of faith.