Largest Architecture Firms

Health Care, Education, Multifamily Markets Remain Robust for Designers

The post-Sept. 11 downturn was an uneven recession. While a number of sectors such as hospitality and manufacturing suffered, mandated projects in health care and education have kept work flowing for some architecture firms.

By Jeff Hirsh

It's not too difficult to paint an excessively rosy or dim picture for California architects.

Principals from a number of firms involved in sectors such as health care and education said they have plenty of work in the pipeline. There has been strong demand from the justice system, although there has been a slight dip in new projects for correctional facilities.

"There hasn't really been much of a dip for our firm," said Ralph Vitiello, principal at Sacramento-based DLR Group Vitiello. "Some of our colleagues, particularly along the coast, have experienced pain from serious contraction in the dot.com sector."

SMWM has experienced both ups and downs since Sept. 11. Don Cheetham, a principal in the San Francisco-based architecture firm, said that SMWM's hospitality and airline practice stopped cold after Sept. 11.

"Where we've done well is in our urban, civic and corporate practice," he added.

advertisement

"There's a great deal of need and demand. Proposition 14 has provided dollars for library funding. And companies are reassessing their real estate portfolios and coming up with more efficient strategies."

Cheetham said that while there are financial problems in the public sector, public/private partnerships are helping to make many projects possible. SMWM is currently working on a pair of side-by-side jobs in San Francisco-Pier One and the Ferry Building. Both are public/private partnerships, each with a different developer.

"SMWM had 90-plus people prior to Sept. 11," said Cheetham said. "Today we're at 70 and plan on adding 12 people in 2005. The outlook is bright and a number of projects are coming to life."

Vitiello said that his firm has recently hired a number of architects with five or more years of experience. "We're still looking for additional people with strong backgrounds," he added. "If you have a license and have demonstrated competence, you're in the driver's seat."

Vitiello said that recent architecture-school graduates are finding it challenging to land their first jobs.

"We have no difficulty attracting interns," he said. "With the volume of applicants out there, we have the luxury of picking and choosing the most promising individuals who show positive signs of being long-term keepers."

Los Angeles-based RBB Architects specializes in the hot health-care industry-with about 70 percent of its business in this sector.

"We have three major hospitals on the boards right now," said Art Border, RBB's senior vice president and principal. "On the university side of our practice, there is continuing demand for more classrooms and the need to upgrade [outdated] facilities."

Border said state financial strains are a problem, but there is still a widely recognized need to stem the shortage of university classrooms. On the hospital side, he said the dramatic growth spurt is due to the need to meet state-mandated seismic standards and modernize by incorporating new imaging technologies and other advances.

Another area of strength for many of the state's architecture firms has been in the retail market, mainly driven by the surge in residential construction.

"Low interest rates have created a boom in housing," said Michael Collier, vice president of marketing at San Diego-based SGPA Architecture and Planning. "Retailers are chasing the new residents, and we're seeing solid interest in adding new locations in the north end of the state; a bit less in the south. Costco, Target, Home Depot, Lowe's and other anchor stores are all aggressive players in this market."

Some of the larger retail projects under way in the state include the $410 million San Francisco Centre; Eastridge mall renovation in San Jose; renovation of the Del Almo Mall in Torrance, conversion of the Huntington Beach Center to Bella Terra, an outdoor shopping village; the $175 million Victoria Gardens retail, entertainment and civic district in Rancho Cucamonga; and the Crossings, a mammoth big-box/restaurant center in Corona.

Collier added that there is a growing interest in mixed-use, multifamily residential/retail projects.

"They are viewed as 'smart growth,' in part because they reduce auto use," he said. "Many communities welcome them and it's easier to get the needed entitlements. Mixed-use projects provide opportunities for architects, developers and municipalities to exercise creativity in design and planning. They could contribute to increasing workload in the immediate future."

Collier said SGPA is recruiting in San Diego and San Francisco for senior project managers and designers. "Recently we've made two new hires in each location," he added. "We hire summer interns and are often fortunate to take on the kind of person we want to stay with us after graduation."

Click here to view the Largest Architecture Firms list