It was this developer’s goal to build the most sustainable office building ever, and have it also be a profitable real estate investment project. His goal was to achieve the living building challenge of a zero-carbon footprint. The design and construction team easily accomplished LEED platinum certification. The five-story spec office building over two stories of underground parking garage cost $1,200 per square foot. It won several local and national architectural and sustainability awards. The project was a huge success, and the developer felt he had set the standard for others to follow and was proud of the investment and legacy he had established for his children. Three years later, the building is still 75% vacant. The rent the developer needs to cover his financial pro forma is so high that although potential tenants appreciate his sustainability accomplishments, they cannot afford the price tag. The potential tenants also have strict sustainability maintenance rules and practices they must adhere to. Was this a successful real estate development project? Starting all over, how could all of the developer’s goals be accomplished? What would you recommend he do now?
It was this developer’s goal to build the most sustainable office building ever, and have it also be a profitable real estate investment project. His goal was to achieve the living building challenge of a zero-carbon footprint. The design and construction team easily accomplished LEED platinum certification. The five-story spec office building over two stories of underground parking garage cost $1,200 per square foot. It won several local and national architectural and sustainability awards. The project was a huge success, and the developer felt he had set the standard for others to follow and was proud of the investment and legacy he had established for his children. Three years later, the building is still 75% vacant. The rent the developer needs to cover his financial pro forma is so high that although potential tenants appreciate his sustainability accomplishments, they cannot afford the price tag. The potential tenants also have strict sustainability maintenance rules and practices they must adhere to. Was this a successful real estate development project? Starting all over, how could all of the developer’s goals be accomplished? What would you recommend he do now?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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It was this developer’s goal to build the most sustainable office building ever, and
have it also be a profitable real estate investment project. His goal was to achieve
the living building challenge of a zero-carbon footprint. The design and
construction team easily accomplished LEED platinum certification. The five-story
spec office building over two stories of underground parking garage cost $1,200
per square foot. It won several local and national architectural and sustainability
awards. The project was a huge success, and the developer felt he had set the
standard for others to follow and was proud of the investment and legacy he had
established for his children. Three years later, the building is still 75% vacant. The
rent the developer needs to cover his financial pro forma is so high that although
potential tenants appreciate his sustainability accomplishments, they cannot afford
the price tag. The potential tenants also have strict sustainability maintenance rules
and practices they must adhere to. Was this a successful real estate development
project? Starting all over, how could all of the developer’s goals be accomplished?
What would you recommend he do now?
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