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I am curious.
At C$278 million to build, how does this compare to the cost of conventional construction methods for a building the same size?

I am asking because nowhere in the available information on it is there a mention of an ROI payback period from the C$500,000 saved per year. It seems like that would be a bragging point they would want to get out front.

Even if the cost of the building was 5 percent over normal costs you would be looking at an ROI of no more than 28 years. Realistically it would probably closer to 20 years or less with the expected inflation of utility expenses. If the building expected life span is 50 years the extra upfront cost was worth it.

If there was no construction cost inflation over conventional designs this would be a world class home run.
Posted by Hates Idiots
1st Jun 2012
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Operating expenses vs value
A 500,000 CAD savings in annual operating expenses will bring about 7.7 million CAD greater value on the investment market. That's about 11 CAD PSF for this 700,000 sq.ft. building. Architectural amenities usually cost and can translate to higher rents & occupancy. In other words, people don't want to locate in the "ugliest" building, all things being equal. Developers will generally exaggerate the cost of a building to the news media for marketing reasons. A company may value savings in energy costs more if they intend to own a building for a relatively long time & they expect energy costs to increase faster than other operating expenses.
Posted by theotherwill
1st Jun 2012
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