Overview · What & why
A decision, before a calculation.
A design change can affect construction cost, rentable area, tenant utility and future operations at the same time. Compare whole-project outcomes rather than declaring every cost reduction a success. A feature is valuable only if users or operations benefit enough to justify it. Keep the assumed income consequence visible so it can be challenged.
A concrete example
Concept A costs $13.5M and produces $900K NOI, worth $15M at 6%. Concept B saves $400K but loses $60K annual NOI. Its value is $14M against $13.1M cost. The value-above-cost margin falls from $1.5M to $900K.
What to remember
Optimize the relationship between cost and useful performance.
Before using this in a project: Comparable scope, user feedback, rentable-area effects, cost estimates and operating impacts.