Optimal Timing and Optimal Intensity of Real Estate Development Abstract The traditional real option approach treat firms as price taker and at the same time the firm is assumed to have monopoly power because no competition or future competitive entry is not considered in most of the real option literature. In this article we assume the real estate developer has monopoly power in a real estate submarket, given the nature of real estate market. The developer makes the timing decision as well as the intensity decision at the same time. We model the developer decision in the framework of the real option and derived the optimal timing and optimal intensity of real estate development of a certain real estate project. Our Result shows that not only the uncertainty but also the low rent sensitivity of housing demand will lead to defer of real estate development. And both the timing decision and intensity decision are sensitive to the demand factors besides the uncertainty effect.