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Both are used. Hence, any good design should explicitly state what the goals are (ie. what we are optimizing for) before embarking on the design process.

Commercial real estate generally optimizes for profit, which means, floor space, however this may be subject to regulation and particularly significant cost constraints (eg. maximum height before alternate structural features required, maximum height of available raw materials, HVAC/insulation, site aspect, site topography).

High end residential real estate is perhaps the most interesting, because good residential architecture facilitates aesthetic concern and draws from the full palette of commercial architecture in addition to traditional methods while not being constrained by finance. Hence, very interesting results can sometimes be obtained from good architects who will consider factors such as foliage, natural audio, etc. which are often ~ignored or afterthoughts in commercial/industrial.

IMHO good and original design in adequately resourced contexts tends to be iterative and to consider all paths toward a solution, not only a preconceived approach and a waterfall solution.




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