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Real Estate, Business & Investing · Decision-Making

Seek Their Advice. Keep the Decision.

A shopping-center redesign, a $600,000 decision, and why expert advice should inform—not replace—the owner’s judgment.

Experts can solve the part of a problem they were hired to solve. They cannot own the decision that balances budget, value, risk, and mission.

We were visually repositioning a shopping center. It needed to catch the eye and match our intent. That required bringing in experts.

We contacted an architect and began the design phase. The design was going to be far too expensive. After a structural engineer examined the building, we confirmed that the plan was going to be wildly over budget.

I am not an architect. I am not an engineer. I still had to reconcile the budget and expense with the value and return we wanted.

What the local site could actually attract with a better design was an unknown, ambiguous assumption. Each design element did not necessarily provide a clear dollar-for-dollar return. The relationship between appearance, demand, and value was nebulous and difficult to understand.

The advice was good. It was not the decision.

The architect and engineer were doing what they were there to do. Nobody in that room owned the cost-versus-return call. That decision was entirely up to us, and it felt more like an act of faith than a calculation.

I reconciled their opinions and proposed a simpler plan. Simpler meant less work. Less work meant lower fees and a shorter project for the architect and engineer. That did not make their advice wrong. It meant their incentives and responsibilities were not identical to ours.

We were the client. They were the experts. We generated the idea, and they proved that it would work.

The simpler plan saved us about $600,000 compared with the other path.

I believe the value would have been about the same either way. Maybe the expensive design would have created additional demand, and the result I consider unprovable simply went our way. That uncertainty is part of the decision.

You cannot get back the dollars you spend unless they turn into value.

Every expert sees the project through a particular lens.

I do not know whether our answer was objectively right. Nobody in that room could know with certainty.

My read of that room was that the engineer was there to turn the architectural concept into a structurally sound solution without accepting unnecessary liability. The architect was there to create something functional and beautiful. We were there to decide where the cost of additional beauty began to exceed its likely return.

In my experience with shopping centers, paint and color changes often produce an unusually strong return on cost and effort. Massive structural changes tend to move in the opposite direction when remodeling an existing property: the cost rises quickly while the additional return becomes harder to prove.

That is the law of diminishing returns applied to design.

Seek their advice. Keep the decision.

I would not let other people tell you what to do. I would seek their advice, understand what each expert is actually there to accomplish, recognize the incentives and risks shaping their recommendation, and then decide the direction you need to go.

Experts should improve your judgment. They should not replace it.

Advice is not the decision.

This is work I actually do.

Related: Contemporaneous local coverage of the renovation, August 2020 ↗.

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