Few academic studies have exerted such a powerful influence on peoples' daily lives as modern finance. Financial innovations have revolutionized the way we invest our savings. The Modern Portfolio Theory has created a $2 trillion mutual fund industry. The Black-Scholes option pricing model has helped to create thousands of derivative products, making it possible for risk hedging. Recent developments in present value studies have also greatly improved our understanding of security valuation and market volatility. While this financial revolution has greatly changed many sectors of the financial industry, it has made little impact on real estate development and investment practice. Despite its huge share in world wealth, real estate investment is still a poorly researched subject. As a result, the industry remains dominated by traditional property analysts with little understanding of capital markets.