This paper examines whether, and under what conditions, commissioning signature (starchitect) designs yields measurable economic value in corporate office towers. Building on signaling theory and stakeholder value perspectives, we integrate the revealed-preference literature with a mixed-methods empirical strategy that combines discounted cash flow modeling (net present value, internal rate of return, and equity multiple), peer benchmarking, and a 500-m ring buffer analysis of neighborhood spillovers. Two contemporary cases, One Vanderbilt (New York) and Shanghai Tower (Shanghai, China), anchor the study. At One Vanderbilt, first-year outcomes included 95% stabilization, a 27% rent premium over Midtown Class A averages, a 25% reduction in energy use intensity consistent with Leadership in Energy and Environmental Design (LEED) and WELL Building Standard (WELL) certifications, and a 9% increase in adjacent retail rents. Shanghai Tower demonstrates premium submarket pricing, high occupancy, and large reported energy savings, although with less transparent asset-level data. Base case modeling suggests a 5.0% yield on cost and a 1.8 × equity multiple over 20 years at One Vanderbilt, sensitive to occupancy and discount rate shocks. Overall, findings indicate that when high-performance interiors are combined with iconic exteriors, signature architecture can deliver financial returns, brand enhancement, and localized regeneration, provided capital costs and cycle risks are explicitly managed.
Hu et al. (Mon,) studied this question.