Diversity Times

Judith Davidsen and Sheila Kim-Jamet -- Interior Design, 11/1/2008 12:00:00 AM

We know the prescription for weathering a bear market: a diversified investment portfolio. Have some of the big design firms anticipated the current economic downturn and adopted a similar strategy of diversification in choosing the types of projects they work on? According to surveys conducted by Interior Design, 80 of our Giants—the Top 100, Second 100, Hospitality, and Health Care—have branched out from the specialties for which they are best known. The reason cited most often—by 81 percent of participants—was the chance to work on new and interesting projects. They spoke of considering staff interests and the urge to stretch themselves creatively. But to us it looks like a savvy game plan in an uncertain business environment.

Fortunately for design professionals, looking for something on the side isn't considered cheating. In fact, it's smart business. Giants who diversified into new project areas averaged 72 percent more in fees in 2007 than those who didn't. Asa group, they installed product worth more than twice as much in more than twice as much space.

Apparently risk reaps rewards: Several firms entered design competitions in unfamiliar specialties with nothing to lose—and won. Others garnered awards—and LEED certifications—in spheres in which they'd never been active. "The opportunity to design interiors for a yacht is rare," says one diversifier, yet three firms did just that, with one of them winning the 2008 Showboats International Sailing Yacht of the Year Award in its category. According to those surveyed, one unfamiliar project led to another and another and another. One Giant went from zero to six projects per year in a new specialty. At least two firms found the novice outings so successful the designs have become prototypes.

Some firms parlayed a given area of expertise into a related field. For example, restaurant work lead to corporate food service, which lead to work with universities. One firm found its proficiency in resort design came in handy for designing senior living facilities. Less predictably, another firm put its experience designing circulation and interaction in corporate and retail venues to use in science labs, where the client wanted to maximize unplanned communication between scientists with varied specialties. The firm has since designed close to 750,000 square feet of life-science facilities for the original and new clients.

Forging into new territory, however, is not always the result of professional pluck. In some cases, diversification was driven by the needs of existing clients. One firm renowned for its law, finance, and corporate projects wound up doing one company's executives' residential work, which now accounts for approximately 40 percent of its revenues. In other cases, firms diversified by expanding from one small part of a project into handling the whole thing.

As we said, the Giants seem to have been slightly clairvoyant in choosing diversification goals. None of the firms made the mistake of venturing into culture—museums, concert halls—an arena that relies heavily on corporate donations. Restaurants, on the other hand, were popular not only among the diversifiers, but also among planning professionals and developers, who weighed in well after our survey deadline.

Certainly, the economic forecast for the coming months predicts a tough landscape, indeed. For designers, it would seem that when the going gets tough, the tough don't go shopping. They get together over dinner.

Little

known for: Retail.

diversified to: Sustainable design.

shown: Supermarket chain Food Lion's customer support center covers 125,000 square feet in a former warehouse that was transformed into a sustainable workplace. Located in Salisbury, North Carolina, the light and airy structure awaits LEED certification.

"In addition to more than 75 percent of the construction waste being either recycled or donated, all products sent to the site were wrapped in reusable packing blankets instead of shrink-wrap and pallets."

Davis, Carter, Scott

known for: Office.

diversified to: Education.

shown: The British School of Washington doubled in size when it moved to a new location in Washington, D.C. Admitting students from age 3 to 18, it's defined by color palettes that enhance learning and morale. Color was also used for plan navigation.

"We spent weeks of intensely researching the U.K.'s standard educational curriculum, the latest design trends for European schools, and proven learning attributes associated with design and color."

DES Architects + Engineers

known for: Traditional architecture.

diversified to: Sustainable design.

shown: Scheduled for completion in 2009, the Summit at Rancho Bernardo in California is a LEED-NC Silver–certified office campus. Green measures include on-site storm water detention and filtration, a recycling program for the demolished buildings that existed on the 100-acre site, and reuse of some of those materials.

"Our work has evolved from traditional architecture and design to work with a major sustainable focus. To date, we've designed more than 6 million square feet of LEED-certified construction."

LPA

known for: K through 12 education design.

diversified to: University and higher education.

shown: The health-care specializing American Career College in Ontario, California, is a two-story facility comprising an open, lofty quad area for relaxation and socializing, transparency via glass-partitioned classrooms, and sustainable materials.

"The American Career College presented an exceptional opportunity to create a new paradigm in vocational institutions."

Gensler

known for: What started out as an architecture practice transformed into the number one ranking Interior Design Top 100 Giant.

diversified to: Branding and signage, international retail, and project management.

shown: Gensler not only provided architecture and interiors for the JetBlue Terminal 5 at JFK International Airport in New York, bu talso created graphics, signage,and way-finding.

Core

known for: Hospitality and commercial.

diversified to: Institutional and government.

shown: The Atlas Performing Arts Center was a community-oriented renovation project involving a historic movie house in Washington, D.C. The project includes state-of-the-art and black-box theaters, dance studios, a production shop, and administrative space.

"It was a chance to step out of the box, to use our experience in restaurants, hotels, and commercial interiors to create a functional and attractive performing arts center."

Gerner Kronick + Valcarcel Architects

known for: Commercial.

diversified to: Mixed use.

shown: The private screening facility for Paramount includes are furbished screening area, lobby, bathrooms, and a bar zone.

"These changes resulted in a high-tech ode to cinema worthy of Paramount screenings and events."

Elkus Manfredi Architects

known for: Retail.

diversified to: Education and institutional.

shown: The Eli and Edythe L. Broad Institute in Cambridge, Massachusetts, is a collaboration between Massachusetts Institute of Technology, Harvard University and its affiliated hospitals, and the Whitehead Institute . The open design incorporates a genomic research museum, laboratories, and offices.

"A previous life-sciences client selected us because we didn't have any experience and wouldn't have preconceived notions. But we did have experience with designing for interaction."

Mojo Stumer Associates

known for: Residential and office.

diversified to: Yacht design.

shown: The firm contemplated the client's desire for a floating retreat to design the yet-to-be-realized M/Y Rapture, combining technology with streamlined furnishings.

"The success found in our involvement with M/Y Rapture generates from extending our own knowledge and pushing the limits of our expertise out to sea."

Ziegler Cooper

known for: Office.

diversified to: Institutional.

shown: Co-Cathedral of the Sacred Heart, in Houston, features a facade comprising 73,000 square feet of Indiana limestone, punched by stained-glass windows. Modern on the exterior, the interior features details reminiscent of Italian Romanesque architecture.

"We began the design process by traveling to Europe to visit scores of cathedrals, immersing ourselves in the rich history and architecture of these magnificent structures."

CBT Architects

known for: Office.

diversified to: Hospitality.

shown: A 1960's Holiday Inn in Newton, Massachusetts, was converted into a property for boutique chain Hotel Indigo through a combination of high-end finishes and custom furnishings.

"The furniture was custom by the project's designers to provide a unique look and feel as well as conform to extraordinarily tight spaces and circulation."

Zeff Design

known for: Residential.

diversified to: Hospitality.

shown: Part of a redesign of the Hard Rock Hotel & Casino Las Vegas, a poker room updates classic masculinity with distressed-leather seating, rich textures, and graphic patterns.

"This American classic will go from rock 'n roll house of memorabilia to rock 'n roll manor house of the future."

FRCH Design Worldwide

known for: Hospitality and retail.

diversified to: Office.

shown: The Crestview Hills, Kentucky, headquarters of Columbia Sussex Corporation evokes imagery of the sky using blue glass, white concrete, and yellow details to complement the surrounding greenery.

"The client was experiencing explosive growth in both the hotel and casino portions of their business and approached us—fluent in hospitality design—to create a new and distinctive corporate headquarters. New office projects continue to strengthen our growth portfolio."

Gary Lee Partners

known for: Office.

diversified to: Residential and hospitality.

shown: A former 1880's print shop features exposed brick, dining niches, antique mirrors, and four contemporary chandeliers for Sepia, a Chicago restaurant.

"We began working primarily for corporations, then transitioned into residential design with the homes of executives from those clients. In less than eight years, our residential work grew to account for 40 percent of our revenues. Today, we're experiencing a similar organic transition into hospitality."

Forrest Perkins

known for: Hospitality and residential.

diversified to: Multifamily residential.

shown: Bethesda Center North, a condominium in Maryland, considers every amenity, from a theater and library to a rooftop party zone, complete with pool and professional kitchen.

"This year we won a major design award in the multifamily market, yet we entered this arena only three years ago."