COVER STORY, JULY 2008

WHERE DOES DESIGN END AND BUILD BEGIN?
Architects’ role in the design/build process is evolving.
Kevin Jeselnik

Heartland Real Estate Business recently spoke with a collection of Midwest architects and designers regarding the current state of the commercial design industry. Included in the discussion are Scott Hoffland, CEO of MCG Architecture, based in the firm’s Cleveland office; Kevin Zak, partner with Cleveland-based Dorsky Hodgson Parrish Yue; Peter McIntosh, marketing director for Worthington, Ohio-based Cowan + Associates; Robert Bajko, partner with HSB Architects + Engineers; and Keith Campbell, a vice president in the Chicago office of RTKL Associates.

HREB: What architectural design trends are currently spreading through the Midwest?

Scott Hoffland: We are seeing big box tenants make more modifications and concessions to their standard prototypes, so that they are able to go into non-traditional centers or sites that they would not have typically considered in the past.

We are also seeing a revitalization of existing centers in both urban and suburban locations. Though similar to the early 1990s, where the trend was to break up larger box conversions, it appears now that existing centers of all types are being fully revitalized to keep existing major anchor tenants happy and in place.

We are also hearing rumblings of redevelopment of outlet centers or even the construction of new outlet centers; it has now been 10 to 15 years since the majority of these centers opened.

Kevin Zak: Commercial real estate development in the Midwest continues to gravitate towards the mixed-use genre. Developments with office, residential and retail engaged together create an opportunity to evolve the mixed-use environment into a social magnet that creates community. However, there is still significant interest in improving existing retail projects to better position them in the ever changing retail market considering today’s economy.

Peter McIntosh: A trend toward development of downtown districts to attract or re-create urban live/work/play lifestyles and contained walking communities is breathing life into downtown revitalization projects. In order to locate in urban and downtown residential areas, the retail sector is examining smaller store footprints, focusing planning and design on local community characteristics and specific market segments, and implementing these concepts into non-traditional retail real estate.

Keith Campbell: Larger Midwestern cities are seeing a lot of urban infill projects on vacant or underdeveloped land as the trend toward increasing downtown residential populations continues. Public officials understand that a larger downtown residential population is key to the economic health of a city, now more than ever. This means that not only will residential projects continue, but the accompanying commercial services that residents need will follow in the form of retail, office and hospitality projects.

Robert Bajko: Architects are paying much closer attention to gaining efficiencies in buildings whenever and wherever possible. That entails everything from how the structure is positioned on the site to designing innovative stormwater retention and reuse strategies. Today’s architect needs to be much more than just a designer of buildings. He or she really must take responsibility for total project management.

HREB: Do you predict any new trends will take hold in the coming years?

Zak: Related to mixed use, there continues to be a willingness to consider a non-traditional mix of uses as traffic generators within a development. Whether that new or unique element is senior living, civic-based, arts-based or something else, local demographics will drive it and its addition to a development adds to the sustainability of the center.

McIntosh: The obvious trend is sustainable/green design. However, creative and new uses of vacant commercial and retail space will continue to emerge as a trend. In order to compete with newer, more efficient buildings, rising operational costs and location issues, creative A-E design for the marketing of older facilities will become increasingly important.

Campbell: For cities that are fortunate enough to have existing waterfronts, the redevelopment of formerly unused or industrial waterfront property into mixed-use environments will be on the rise. The costs are high, but the returns justify the outlay. For cities without waterfronts, I expect an increase in layered mixed-use environments anchored by an entertainment function, such as a minor league ballpark.

HREB: Is the movement to develop sustainable, green buildings a truly viable option now in most cases, or still on the periphery when it comes to designing and physically developing a new project?

Campbell: Sustainable design should be central to all new projects. Like all movements, it started on the periphery, but now even our largest and most commercially driven clients understand that sustainable design has long lasting benefits even beyond those specific to the project.

Bajko: It’s real, and it’s only going to grow. Currently, green hasn’t permeated the Midwest to the extent that it has in other parts of the country, and the world for that matter. The challenge here has been economic — there’s generally not as much money being spent on most Midwest structures as there is in other areas. We’re also stubborn people here –— we can be stuck in our ways — but it’s coming. And the numbers on green buildings are staggering: There was 117 million total square feet of LEED-certified green buildings in the United States as of 2006. During that same time, there was 3.8 billion square feet of registered projects on record with the United States Green Building Council.

McIntosh: Green design and building is here to stay, and we feel everyone believes this is a good thing. Bringing sustainable commercial design to the mainstream is a tremendous goal that faces challenges. Until both developers/landlords and tenants fully adopt sustainable design and green operational initiatives as standard, the entire facility will not be totally green.

To truly go green, it is a change in process where all parties involved from owners and tenants to design and A-E professionals to the vendors and contractors, as well as the day-to-day operations managers, have roles to play on various levels. Adopting the green certification ultimately means organizational change for all involved parties.

Hoffland: In the retail segment we are seeing more and more developers and retailers striving to achieve or incorporate as much sustainable or green design as possible. Sustainable design will at some point become the norm.

Zak: We currently have a number of new developments on the boards where sustainability is a major concern in the planning and design of the project, and it’s a point of discussion in every project. Our clients appreciate the importance of the movement towards sustainability and green building to their customer base and the public as a whole. However, we recognize that developers need to weigh the capital costs of a new development against long-term return on their investment during the decision making process.

HREB: Are any new technologies affecting the design process?

Bajko: Building Informational Modeling (BIM) significantly changes the way that architects design and draw. It gives us the ability to integrate all disciplines in the design process electronically, which makes the process much more dynamic. The mass market for it is relatively new, most large firms are already using it, and it will continue to become more prominent in the design process. That’s a good thing for everyone, and it should lead to some exciting architecture here in the Midwest.

As computer-modeling technology continues to make its way into a greater number of architectural firms, you’ll begin to see more sculptural, international-influenced architecture appear in the Midwest. It’s occurring now on the coasts, and the Midwest traditionally has harsher weather, which often makes it difficult to propose similar types of designs here. But great designs are starting to appear, and they’re notable by any standard: The Akron Museum of Art and The Chicago Spire are two such examples.

Zak: We’re implementing the use of BIM with Revit-based software. In addition, we continue to expand our use of 3-D modeling to provide our clients with the most comprehensive understanding of our design proposals as early on in the development process as is possible. The use of computer imaging continues to accelerate the communication process and that’s an advantage to our clients.

Campbell: Unlike traditional CAD programs, BIM is 3-D based, and it requires that the design team is actually modeling masses and volumes, and drawing three-dimensional walls rather than representing walls with two lines on a page. This has profound implications for the design process, and allows the design team to quickly and easily track quantities of materials among other things. One result is that some aspects of the design process that used to be in the hands of the contractor are now controlled by the architect and shared by all parties.

McIntosh: Computer/web-based conferencing for design/planning review, with the ability for real-time manipulation of drawings, is impacting the visual communication process for the better.

HREB: What are architects experiencing when designing projects in areas suffering from a lack of available, developable land?

Zak: The lack of developable land is a constraint, which leads to looking at alternative sites. As a result, we’re involved in a number of brownfield developments and adaptive reuse projects. Today, more so than in the past, there is a willingness to explore options that weren’t previously considered viable. The lack of available land drives the creative process, and we find it leads to very creative solutions.

Campbell: The inevitable result from a commercial perspective is that larger commercial tenants that were once used to getting exactly what they wanted in terms of space and configuration now understand the need to be flexible. If they want to be in some of the lucrative high-density markets, they need to adapt their prototype to the area. Some examples are two and three-level Target stores, Whole Foods markets with structured parking above or adjacent, and, in Chicago, a Best Buy store with residential above.

Hoffland: From the retail end we see developers trying to capitalize on increasing the value of their existing developments by increasing density and by adding possible mixed use elements that were previously not in the project. On new projects we are seeing more vertical integration in projects with tenants becoming more willing to bend the rules.

HREB: Are client demands shifting? How are firms coping with the ever-more prominent fast-track schedule?

Zak: Client’s demands have evolved, the bottom line was always “on time and on the dime,” but today you can add, “and well designed.” Fast tracking a project is an everyday expectation. There is a growing reliance on the consultant to fill their role beyond the architecture of the building. In response, we’ve realigned our service to include taking responsibility for understanding the client’s business model.

Bajko: We do a lot of retail. In retail, fast-track is almost always prevalent, so our firm’s operational style and internal management processes are built around delivering a comprehensive array of planning, design and project management services to help our client’s streamline the schedule and get open. Sometimes, the up-front processes take longer than anticipated, yet opening schedules are not extended.

Involving all parties as early as possible in the process and fostering an understanding of collaboration in working towards the same goal is always the key. It sounds cliché, but especially for fast-track schedules, teamwork and communication make all the difference. Owners should be prepared to take on more of the liability risk associated with fast tracking if this is the chosen, or as is more often the case, default process, and most understand this.

HREB: What is your biggest challenge as a commercial architect?

Bajko: As always, it’s a challenge to merge budgets and time seamlessly, and still create great architecture that works well for the client functionally and economically. But that’s our charge every day.

Hoffland: With the lack of commercial sites, getting entitlements and approvals through municipalities still is one of the biggest challenges for both architects and the development community. The process and timing has become a challenge.

Zak: The ongoing challenge is to create an innovative design while maximizing the client’s investment. This is even more complicated and challenging now, as the cost of materials continues to rise driven in part by substantial increases in fuel costs.

HREB: How is the business of architecture changing?

Campbell: The biggest and most profound change is the speed of the entire design and construction process. Due to rapidly progressing technology, clients expect and demand that the design process will be shortened, that construction durations condense, and that the entire time span from the project’s conception to its completion is minimized.

Zak: As architects our role continues to evolve. In addition to being focused on the planning and design of a development, our expanding role includes assisting the developer by providing comprehensive leadership for the project. We are increasingly being called upon to be a key team member, and advocate for the developer and the project.

McIntosh: Our role entails satisfying the wants and needs of multiple parties from owners and were viewed tenants to planning committees, review boards, agencies, zoning officials and code officials. Having the appropriate information to work with in order to provide solutions that satisfy all the involved parties is often a tremendous challenge. It is important that the project schedule and soft costs address thorough due diligence.

Bajko: Architects are increasingly compelled to be business-oriented professionals. Traditionally, we

strictly as designers, but now our responsibility often entails maintaining a greater awareness for all facets of a project. Projects today are one unified piece, rather than separate scopes.

Flats East Bank Cleveland The Flats East Bank in Cleveland illustrates the way in which multiple design firms must be engaged in the development process from start to finish in order to complete a project in the most efficient manner. Description: A 25-acre mixed-use development featuring residential, retail, office and hotel components. Developer: Wolstein Group; Fairmount Properties What is unique about this project architecturally? The Flats East Bank, located on a well known but blighted site at the intersection of the Cuyahoga River and Lake Erie, has several unique qualities. It combines four different uses and a major riverfront public space adjacent to Cleveland’s gentrifying warehouse district. Apartments and condos will take advantage of river and lake views, while entertainment-based retail and restaurants will catalyze the plaza and the streetscape. Two major office buildings are planned, as well as one new hotel. Several design firms are involved, including RTKL, Eppstein Uhen, NBBJ, Forum Architects and Dimit Associates.

Giant Eagle Grocery Stores Giant Eagle Brunswick Description: Giant Eagle is unveiling a new protoype grocery store of approximately 85,000 to 110,000 square feet. Owner: Giant Eagle How does this project demonstrate that the business of architecture is changing? Giant Eagle was the first food store to receive a LEED rating, and is currently in the process of moving towards all new projects achieving LEED-certified status. The food retailer has found this to be a viable benefit for both its business and the communities in which it operates.

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