Opportunity Costs

Life would be easier if we could make correct decisions with a bias. Unfortunately, being inclined to approve or decline choices can lead to wasting resources and missing opportunities.

In corporate real estate, these biases are often the result of a larger or more reliable data set on one side of the decision ledger.

For companies evaluating whether to acquire a space for their business, there is usually more reliable information on the costs of the decision than the benefits. This can lead to a bias towards inaction or reducing costs, especially when the benefits are uncertain.

Therefore, making the right decision often requires greater awareness regarding the benefits of the choice. Understanding the opportunity cost of not acquiring a space can be just as important as the costs to acquire it.