Publications
Publications
- January 2023
- HBS Case Collection
Crow Holdings Development: Mass Timber Construction
By: John D. Macomber, Robert Hernandez and Kyle MertensMeyer
Abstract
Jim McCaffery and Cody Armbrister of Crow Holdings Development evaluate the pros and cons of committing to mass timber construction instead of conventional concrete or steel for a new 260,000 SF multi-story office building in Texas. Benefits include substantially reduced embodied carbon, improved operational efficiencies, attractive interior design possibilities, and quantifiable benefits to productivity due to biophilic influences in health. These could lead to higher rents, lower vacancy, and lower cost of capital. On the other hand there are first cost considerations, design flexibility tradeoffs, and questions about whether either the tenants or the investors understand and value the claimed benefits. Crow Holdings Development could become a first mover in this growing construction technology and perhaps gain economies of scale and learning for future projects. Or, mass timber construction might be commoditized; or it might be a flash in the pan where appeal fades. Students assess the pros and cons including performing what if pro forma analysis of several scenarios.
Keywords
Real Estate Development; Architecture; Air Quality; Health ＆ Wellness; Office Property; Sustainability; Carbon Abatement; Natural Environment; Environmental Accounting; Green Buildings; Design; Construction; Cost vs Benefits; Environmental Sustainability; Construction Industry; Real Estate Industry; Texas
Citation
Macomber, John D., Robert Hernandez, and Kyle MertensMeyer. "Crow Holdings Development: Mass Timber Construction." Harvard Business School Case 223-058, January 2023.