The value of the built environment
By: J. David Chapman/April 25, 2019
I frequently use the term built environment in this column and in the classroom. It refers to the human-made surroundings that provide the setting for human activity, ranging in scale from buildings to parks.
It has been defined as the human-made space in which people live, work, and play on a day-to-day basis. It includes some of the most iconic religious buildings and museums, housing some of the most valuable treasures to mankind.
One of those iconic buildings was heavily damaged and nearly destroyed recently. The 850-year-old Notre Dame Cathedral in Paris was one of the most revered and visited houses of worship in the world.
Now that the first responders have retreated from the site, architects, engineers, and construction workers are stabilizing the remaining structure in an effort to save as much as possible. This historic structure was constructed of a network of enormous century-old oak beams supporting the monument’s vaulted stone ceiling. Once the stabilizing effort is complete, French and Catholic officials have promised the Cathedral will be rebuilt.
The rebuilding of iconic structures brings with it many controversial decisions. In real estate, we often debate replacement cost vs. reproduction cost. While replacement cost details the cost to replace the existing structure with a substitute of “like kind” or “equal utility” using current standards of materials and design, reproduction cost is the cost to construct an exact replica in all salient characteristics of the subject property.
In the case of the Notre Dame Cathedral, I am anxious to see if wood beams will be used to support the substantial stone ceiling or if more current designs using steel and concrete will be employed. I am also curious to see what impact cost will have in the rebuilding of one of the most iconic buildings in the world.
While the role of the built environment to society should not be compared to that of human life, we should also not ignore the value and impact these structures have on our society. I can tell you that as I watched the Notre Dame Cathedral burn, I was thankful no human life was taken, and prayed for the protection of those fighting the fire, but I was devastated for the loss to society’s built environment.
J. David Chapman is an associate professor of finance and real estate at the University of Central Oklahoma (jchapman7@uco.edu).