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Business & Labor

Gensler Tops Annual Top Architecture Firm Rankings
Firms say they're bullish on 2006, thanks to lifestyle centers and residential projects
(california.construction.com, October 2006 issue)

By Joe Florkowski

More than 100 firms responded to California Construction's annual survey, published every October. Using information provided by architecture firms this summer, we ranked firms by their 2005 revenue figures and asked them what they expected to earn in 2006.

Click here for the 2006 Top Architecture Firms list >>

As in previous years, Gensler was the No. 1 firm on the list, earning $435 million in 2005. Wimberly Allison Tong & Goo ($66 million); KTGY Group Inc. ($65.7 million); HMC Architects ($65.2 million); and Anshen + Allen ($62.1 million) rounded out the top five.

A survey of some of the architecture firms on our list found that most firms expect to do better in 2006 than 2005 and expect the future to look bright - especially in the field of designing planned lifestyle centers.

For example, Architects Orange is designing Piemonte at Ontario Center, a $100 million mixed-use plan in San Bernardino County. Piemonte is the firm's largest mixed-use plan.

Many cities are creating similar plans, mixing retail with residential, to create a downtown, said Jack Selman, senior partner with Architects Orange, founded in 1974.

Jack Selman

2005 was the best year yet for Architects Orange and 2006 is expected to improve upon that, Selman said.

Besides working on mixed use plans, Architects Orange also works on apartments, industrial and retail projects, such as Downey Landing, a retail power center, Selman said.

Firms which focus on commercial and apartment design are growing right now, he said.

"Firms doing similar work as ours are very busy," Selman said.

Long Beach-based Perkowitz and Ruth is also designing a handful of lifestyle center projects.

"Those are the kind of projects we'd like to do more of in the coming year," said Simon Perkowitz, president/CEO of the firm. "These types of projects are becoming the darlings of urban planners. They are positive projects for communities."

Simon Perkowitz

Many architectural firms are being hired to design lifestyle mall/centers, which combine retail often with civic and residential components in a public atmosphere. Gone are the days of the mall and its enclosed spaces, Perkowitz said.

"The mall doesn't relate to the community," Perkowitz said. "It's like a fortress."

Perkowitz's firm has had tremendous growth in recent years, but is now taking two steps back and looking at the financial impact of growth.

"This year, we've settled in," Perkowitz said. "We're trying to get back to quality control."

Controlled growth is also the focus of San Francisco-based MBH Architects, which has added a lot of staff this year, said Andres Grechi, design director for MBH.

Retail, multi-family and restaurant design are areas where MBH is experiencing strong growth while the hospitality sector is slowing down, he said.

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Next year and in the future, MBH wants to expand its presence across the nation especially in housing design, Grechi said. Most of the firm's housing projects are centered around the Bay Area, he added.

Like the other architecture firms, Grechi also sees more firms designing the lifestyle mall/centers.

Many of these centers are designed after communities in Europe where people have congregated in main shopping/civic areas for hundreds of years. Because of that, architecture firms could continue to design lifestyle centers for several years, he said.

"It's hard to say how long it's going to last," Grechi said.

Gordon Chong

San Francisco-based Chong and Partners does not focus on retail, but instead steers toward academic and healthcare architecture.

But like lifestyle centers, Chong and Partners does try to design for the larger community, said Gordon Chong, president.

While hospitals need to be built, there is just as much demand for buildings that play a supporting role, such as medical offices, Chong said.

"They are demanding it and that's what we're focusing on," Chong said.

Like other architecture firms, Chong Partners is challenged by costs when designing, Chong said of his firm's progress this year.

"We're all facing the same issues as far as cost and lack of resources," he said.

Those challenges have made Chong Partners adapt a different practice model when working with clients, he said.

"We need to help our clients make good design decisions," Chong said.

Click here for the 2006 Top Architecture Firms list >>





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