MARKETects, Inc.

architect++++

2005-12-08T15:23:00.000-08:00

CONCLUSION.

2005-12-08T14:55:00.000-08:00

_search for a model was unsuccessful in the field of architecture.
_the architectural profession- as it is today- is in a coma.

_"architecture"+development poses possibilities (Barbour&LaDoucer or Segal)
_"architecture"+graphic design+restaurant+industrial design poses possibilities(avroKO)
_"architecture+financial advisor poses possiblities(Fainstein article).
_"architecture+mediation poses possibilities (Isenberg Associates).

_conclusion
_architect++++++++++
_design thinking skills = architect of tomorrow

_change in education and implementation
_schools: realize and advertise this design thinking skill
_profession: redefine design thinkinging in the profession of architecture/architect+++
_AIA: monopolize a standard for the built environment and market design thinking skill to other professions

marketect?

2005-12-08T14:39:00.000-08:00

(excerpt from "The City Builders" by Susan Fainstein 2001)

"Real-estate developers and property investors need two types of information when contemplating an enterprise: First, what the overall market situation is when the development is completed; and second, what type of project on which site is most likely to produce the greatest return."

As in any other large industry, property-investment and development firms use both in-house staff and outside consultants for advice and research. The training of people who fill these roles differs between London and New York. Within the United Kingdom the profession of chartered surveyor encompasses a group of individuals who, through a combination of formal education and apprenticeship, study all aspects of property, from construction techniques to financing methods to valuation. A number of the officers of major development firms have such training, as do many planning officers of local authorities; in addition, firms of chartered surveyors offer consulting services to both the public and private sectors. In the US, no comparable professional category exists and its functions are divided among planners, lawyers, real-estate brokers, and business-school graduates. Consequently, in the US strategic analyses tend to be more fragmented and impressionistic."

Renaissance Men

2005-12-06T15:58:00.000-08:00

Renaissance Men
For Some Architects, Developing Is Second Career, Second Nature

By James Murdock, Contributing Editor

JANUARY 01, 2005 -- San Diego—When Jonathan Segal looks at a property, typically a vacant lot or disused warehouse in this city's Little Italy district, he views it through several lenses. An architect by training, one of Segal's primary concerns is envisioning how the site might lend itself to an exciting multi-housing design.

But Segal has more than just excellent architecture in mind. Since he opened his office in the late 1980s, he has been developing all of his own projects, and his portfolio now includes 150 loft-style apartments in 19 buildings throughout San Diego.

So when Segal evaluates a site, he wants to determine, first and foremost, if he can develop a profitable community there.

And Segal is not alone. While their numbers are small, other multifamily architects are taking the development plunge—and are finding that the rewards, both aesthetic and financial, are worth the risk.

A major motivation driving architects to take on the role of developer is the opportunity to gain complete creative control over a project.

"If I were working for someone, I'd be held hostage to their issues and ideas instead of pursuing my own," Segal explained. "My issues are about trying to create a greater urban experience, whereas I believe most developers are coming from a purely profit-driven perspective."

Some traditional developers might think putting an architect in charge is like leaving the car keys to the Porsche with a wild teenager: Surely these efforts result in architectural white elephants, budget-busting buildings adorned with unnecessary embellishments?

Actually, not only are these architect-developers extremely cost-conscious, they argue that they can use their design acumen to drive greater efficiency out of a building and overcome the limitations of a tight construction budget. Not only do their buildings look better than developer-built product, their argument goes, they also cost less.

Architects say a big reason why their projects are less expensive is that the entire development process can be streamlined. When the San Diego-based architecture firm MS-31 Inc. identifies a development site, for example, it begins brainstorming potential design solutions immediately. A conventional developer, by contrast, is slowed by the need to bring in, among others, an architect.

"Timing is critical," said Sebastian Mariscal, a principal of MS-31 and a former colleague of Segal's. "We have everything in-house, so as soon as we find a property we start designing. In a few days, we know what we can build and we start doing our pro forma to see if it will pencil out. That way we can achieve the due diligence [faster than others], and speed is important in a seller's market."

Architects can streamline the construction process, too. Mariscal is also a general contractor, and his projects, such as the 24-unit apartment building called The Billboard Lofts in San Diego, are designed to incorporate as many pre-fabricated and pre-cut elements as possible, which reduces labor costs. These savings allow him to buy better quality materials.

Cost savings also result from design efficiencies. One of Segal's recent projects, a 22-unit apartment called The Titan, cost 25 percent less to construct than the per-square-foot average in San Diego: a savings that resulted partly because Segal refuses to include elevators and double-loaded corridors in his projects. Segal believes that walk-up buildings make good financial sense.

"Why would I want to build an elevator tower when I can't rent it? An elevator takes up space, uses a lot of electricity and you need to pay someone to maintain it regularly," he observed. He contends that his tenants don't mind the stair climbing and offers as proof the fact that his apartments typically rent at rates above the market average.

Indeed, architects argue that above-average rents are the norm, not the exception, for the projects they develop because many will willingly pay more for the greater level of detail, the design flair and the cachet of living in a building that is anything but cookie-cutter.

Market Movers

Bob Koch, principal of Florida-based Fugleberg Koch Architects Inc., says that he develops not just for the creative and financial rewards, but also in order to push the overall market toward higher-quality buildings.

"The leading edge of design innovation is much more difficult to sell to a client than it is to sell to yourself," Koch said. "So as we look for development opportunities, we look for development evolution: the chance to create a product that has never existed before.

"Once it's done and we have a proven track record, we can take [this new concept] to clients," Koch continued. "We're using ourselves as a proving ground and it's allowed us, as architects, to be truly innovative."

Among the innovations that Koch says he introduced to the Central Florida apartment market in his own developments are solariums. Koch was also among the earliest to popularize mixed-use projects, and he is now a leader in an emerging type of multifamily unit that is a hybrid condominium/rental apartment.

Koch, who has been developing properties for nearly 40 years, started with single-family homes as a way to supplement his income, but expanded into office, retail and multifamily. Over the years, he has developed or had an equity stake in more than 2,000 multi-family units.

Although Koch has extensive development experience, he thinks of himself foremost as an architect. His development business is handled by a separate company called Group One Productions Inc., which has a separate CEO who handles day-to-day business matters. This allows Koch to focus on architecture.

Architects who develop on a smaller scale often follow a similar model and share some of the development responsibilities with a financial partner or family member. Michael Lehrer, president of Lehrer Architects LA, is developing small townhome complexes in West Hollywood, Calif. He describes himself as a "dyed-in-the-wool" architect, though, and his brother-in-law handles most of the financial details.

Lehrer and other architect-developers say that dealing with banks is not as difficult as one might imagine, but delegating day-to-day financial matters to a business partner does help them ease any lingering lender jitters.

Improved Partnerships

A common theme expressed by architects who have developed their own projects is that the experience helps them enormously in their business relationships with traditional developers.

Marvin Meltzer, a partner of Meltzer/Mandl Architects in New York City, used to develop his own projects, but stopped when Manhattan's real estate market cooled in the early 1990s. He said his developer background, however, still informs his dealings with clients and makes his advice much more insightful—which he believes gives him a competitive edge over other architects.

"Our development experience is incredibly valuable to our architectural clientele," agreed Mark Humphreys, CEO of Humphreys & Partners Architects LP, who has developed about a half-dozen projects. "I know what they know. I know what an IRR is, what a net operating income is, equity requirements and so on. So I don't look at a project just as an architectural [assignment]: I look at it as to what the profitability would be and what the difficulty getting it financed would be. A developer respects an architect a lot more if he is experienced in the risk, because development is all about risk."

Although architects can earn extra respect from their clients by being able to draw on their own development experience, it does pose the question: Will potential clients consider them as possible competitors?

"An architect is usually brought in before anyone else to look at the land and determine what's possible," said Chad Oppenheim, principal of Oppenheim Architecture + Design, who is currently developing a 200-unit condo tower in Miami called Ten Museum Park. "Some people might be afraid to bring me in because they think I might steal the land. But you have to be like a doctor: do no harm and respect confidentiality."

Architects on a Civic Mission

A main reason architects seek to develop is to gain creative control over a project, and their vision often extends beyond a single building. Architect-developer Jonathan Segal, for example, is widely credited with reviving San Diego's Little Italy district and creating a new design vernacular for apartment buildings in the city. He views himself as an artist, working with architecture as his medium and the city as his canvas.

Indeed, inventing new urban typologies is a common goal among developer-architects. Michael Lehrer, president of Lehrer Architects LA, worked closely with municipal officials in West Hollywood, Calif., to create a form of in-fill housing that would be suitable for narrow lots while maintaining the city's tradition of apartment complexes that share a common courtyard.

The result of Lehrer's efforts, Norton Towers-On-The-Court, was an award-winning design triumph. In a lot just 50 feet wide, Lehrer designed a six-unit townhome complex that is only 28 feet wide. Each unit receives ample light thanks to a shared 22-foot-wide courtyard.

Melvin Green, president of Melvin Green Architect Ltd., hopes to have a close relationship with municipal leaders in Las Vegas. With his wife, Tracie, who is president of Green Lockett Realty LLC, a residential real estate brokerage firm, Green hopes to break ground in 2006 on a mid-rise apartment tower tentatively called Green Corner. The pair have already purchased the land and are now identifying investors.

The project's name is not only a play on the Green's last name, but it also references the idea that the building will be designed with green architecture principles in mind—including plans for energy-generating wind turbines on its roof.

Although the Greens have not yet determined how many units their building will contain, they intend for some of the apartments to be affordable in order to receive a tax abatement from the city. "The mayor is really pushing for a live-work environment to bring people back to the downtown area," Melvin Green observes. "Hopefully, we will help with the revitalization."

Tracie Green added that Las Vegas has a dearth of affordable housing downtown. She hopes her project will be an affordable option for entertainers and artists who work in nearby casinos.

"This is a labor of love," she said. "We know there are going to be many pitfalls, but we're persistent and we're working from our hearts, and we want to be a part of the community downtown."

The Brave Few

While it's difficult to pinpoint precisely how many architects are developing their own product, it can be said with confidence that there aren't many (but their numbers may be growing).

Just 4.2 percent of architects said they design buildings that they intend to develop themselves, according to a member survey conducted by the American Institute of Architects conducted in 2002. (The institute does not track the type of properties these architects develop.)

While small, this number does represent something of an increase: 2.6 percent said they acted as developers when the same question was asked in 1996.

"Development is not an activity I would expect architects to get involved in," observed Kermit Baker, AIA's chief economist. "They're not generally enamored with the business side of any activity, and they're not big (financial) risk-takers."

AvroKO

2005-11-06T16:36:00.000-08:00

AvroKO is an idea driven, integrated design and concept group that creates high-style architecture, brands and environments. As a collective of artistic abilities and disciplines, AvroKO designs with a unique, “open-media” format. This has led them to projects as varied as curating art shows for Sony and Banana Republic, producing graphics and branding work for clients such as Adidas, Baby Phat, Jennifer Lopez and Rimmel, as well as award-winning, concept based architecture for multiple New York restaurants, including PUBLIC, Sapa and Odea.

AvroKo

New York Magazine Article

Lesson on Professionalism

2005-11-04T10:55:00.000-08:00

From the Oregon State Bar:

"Professionalism includes integrity, courtesy, honestly, and willing compliance with the highest ethical standard. Professionalism goes beyond observing the legal profession's ethical rules: professionalism sensitively and fairly serves the best interests of clients and the public. PROFESSIONALISM FOSTERS RESPECT AND TRUST AMONG LAWYERS and between lawyers and the public, promotes the efficient resolution of disputes, simplifies transactions, and makes the practice of law more enjoyable and satisfying..."

Tsk tsk Johnnyarchitect. We suggest you plug in the word “architect” wherever it reads “lawyer”…

"Ads and Architects: The Architect as a Marketing Tool"

2005-11-04T10:03:00.000-08:00

2005-03-08 until 2005-05-17
Netherlands Architecture Institute
Rotterdam, , NL Netherlands

The architect as a marketing tool is the central theme of Ads &Architects, the exhibition that will be on display from March 8 until May 15 in Gallery 3. In recent years, architects have been featured more and more prominently in advertising. Ads & Architects shows these developments, using enticing examples from glossy magazines and TV commercials, while at the same time presenting the opinions of experts in the profession about this phenomenon.

Bowtie

More and more the city is a set for seductive commercials in which the architect stars. Meanwhile, architects are often portrayed in commercials as a stereotype: a man dressed in black with spectacles, a bowtie and a bundle of drawings under the arm. He (rarely she) is innovative, creative, and tasteful, but a businessman nonetheless. The architect often collaborates in the creation of this image and plays his role to perfection. This tendency is dependent on fashion.

What is the future role of the architect in advertising? The role of the architect as marketing tool is examined in depth in the exhibition Ads & Architects. It includes seductive examples from glossy magazines and television commercials: Norman Fosters promotion of Rolex watches, Frank Gehrys association with Vitra furniture and OMAs alliance with Prada. Interviews with experts, including an advertising strategist, a location scout and an image maker, are shown on five different television screens. Ultimately, the question remains who or what determines the image of the architect, and whether that construction influences either how the architect makes or how we experience the city.

The exhibition has been realized with the cooperation of Arconiko in association with Gerd Streng.

Conflict of Interest

2005-11-04T09:00:00.000-08:00

def:
A conflict of interest is a situation in which someone in a position of trust, such as a lawyer, a politician, or an executive or director of a corporation, has competing professional and/or personal interests. Such competing interests can make it difficult to fulfill his or her duties fairly. Even if there is no evidence of improper actions, a conflict of interest can create an appearance of impropriety that can undermine confidence in the ability of that person to act properly.

ie:
If a dean of an architecture school agreed that getting a masters in architecture was a poor investment.

Lessons from the AIA Handbook...

2005-11-01T10:37:00.000-08:00

"Curiously, many design firms are themselves not designed." Ellen Flynn-Heapes, president of SPARKS: The Center for Strategic Planning.

Marketects has set aside the legal structure of a firm and focused solely on the issue of marketing. "Market" is both a verb and a noun, and both are inextricably linked: to market oneself effectively, one must know the market and the forces at work on it. Many architects fail in one or both of these areas. One common thread seems to run through all of the marketing advice for architects thus far --- KNOW YOUR VALUES.

~*~*~*~*~*~*~*~*~*~*

SPARKS has come up with some models and frameworks that are useful in helping architectural firms grow and transition. According to SPARKS, For example, Jung's six heroic archetypes have been adapted to correspond to six design profession archetypes:

The Einsteins. Einstein firms generate original ideas and new technologies.
The Niche Expert. Niche experts are specialists, dedicated to a specific type of project or service within a broader market.
The Market Partner. Market partners lead in one or a few major markets, such as health care, higher education, the food and beverage industry, or airports.
The Community Leaders. These firms will aim for a leadership role in their town.
The Orchestrator. Orchestrator firms focus on outstanding project management, bringing their skills to bear on large, complex projects, including the best design/build jobs.
The Efficiency Expert. These firms have the real cost advantage, focusing on prototypes, site adaptations, and multisite project rollouts for retail stores, HMOs, branch banks, etc.

The beauty of an identity according to SPARKS is that is acts like a magnet to attract clients seeking your kind of expertise. In this way, knowing your values is what enables the client to find you.

~*~*~*~*~*~*~*~*~*~*

The advice of James R. Franklin, FAIA is to think of image and marketing as so closely aligned that you should think of them as almost one thing.

Image: Since new firms rarely have an image that is readily recognized, image alone will not be enough to bring in work. Create an image at first that is realistic and attainable in the short term. The image will grow as the firm does. Small projects will most likely come, and the standards for them are easier to maintain than large projects. The resulting image can bring in more good clients, and so on.

Marketing: Active marketing is a much better approach to bringing in projects than letting good work speak for itself, however. A new firm should:

Identify the values of the firm: some salient points about the firm, where you want it to go, what are its likely strengths and weaknesses, and what type of projects you want it to get.
Research marketing data: can be developed within the firm, via consultation, or found in local or business publications.
Set realistic marketing plan: Be as specific as possible, including the number of calls made each day, meetings held. Make sure to budget time and money for the jobs you will go after and not win; typical design firms win only one out of every ten jobs.
Consider many types of marketing: Send simple letters to prospecetive clients, consultants, local business groups, friends, relatives, anyone who might have a lead. This letter should let people know about the firm and establish your identity. Check business directories and company and annual reports at the library. Talk with representatives of government agencies to find out about potential future projects.

~*~*~*~*~*~*~*~*~*~*

Roger L. Pickar, president of I3 Intelli-Sys Info Inc., concentrates on strategic market planning for design, contracting, and other professional service firms. He points out that whether firms consciously separate or intuitively blend the four interrelated marketing realms of marketing, public relations, sales, and project performance, they all use them.

Some advantages and disadvantages to Proactive Marketing:

Advantages: allow firm to take a longer-term view of market opportunities, to establish uniqueness, and to focus the selection of quality instead of price
Disadvantages: takes time and money to develop and implement, considerable amount of research, requires extra effort on the first projects in a new market as firm gains expertise, does not guarantee success

Some advantages and disadvantages to Reactive Marketing:

Advantages: requires little change or investment, keeps overhead down, allows maximum chargeable time to projects, works fast, feels comfortable, reduces risk of investing time and money in a project that doesn't go
Disadvantages: firm is not in touch with the long-term needs or problems of the market, places firm at the mercy of short and intermediate-term ups and down of market, may have to take every available project, less selectivity, clients and projects may end up being too small

Some marketing strategies:

Solidifying Your Existing Client Base
Introducing Add-on Services
Introducing Lead-in Services
Expanding Your Services Geographically
Expanding Your Offices Geographically
Adopting an Innovation
Acquiring New Project or Client Types

~*~*~*~*~*~*~*~*~*~*

Knowing the values of your firm is crucial to setting up any effective marketing strategy, but knowing your client is probably foremost. Design firm clients contacted by MRS/Pickar, Inc. of Longwood, Florida, revealed that trustworthiness is the most important criterion in their selection process. Other significant criteria are the ability to get the job done on time and the ability to get the job done within budget. If a firm takes the time to know their own values, and honestly represents itself, the basis is set for an effective marketing strategy, whatever that may entail.

Information taken from The Architect's Handbook of Professional Practice, Student Edition, 13th Edition, AIA, Joseph A. Demkin, AIA, Executive Editor, 2002.

TWO THUMBS WAY UP!

2005-10-19T08:58:00.000-07:00

As project delivery methods become more fluid, MARKETects is happy to have found a special one used by the local firm Barbour/LaDouceur. At a time when most young firms are waiting for work to walk in the door, Barbour/LaDouceur decided to demystify the process of land development by initiating their own. They asked themselves,

"How can we take a greater role in forming our world?"

Barbour and LaDouceur recognized that we as architects are not taught to take care of ourselves, and we are not taught to manifest our vision in the real world because the people with the money are paying us to design.

MARKETects asks: Conflict of interest, anyone? Architects have the professional obligation to practice ethically. Yet if they want to make a living, they are ultimately at the mercy of where and what the client wants to build.

Instead of the usual design-build project delivery model where the architect is just another sub-contract under the contractor, Barbour/Ladouceur envision a project delivery model similar to traditional design-bid-build, but where the architect is the owner.

Some things Barbour/LaDouceur learned as they helped to realize the fifth tallest building in Minneapolis:
--- First rule in development: Never spend your own money.
--- Lock up the land. You only need to come up with enough to get an option agreement, then you have one year to figure out how to develop it.
--- Get the banks to fund it. The project must demonstrate 20% profit for banks to fund it. They will also fund it if you can pre-lease 40% of the property.

Members of the architectural firm and the developer formed an LLC to ensure some degree of commitment between the two. Barbour/LaDouceur encourage firms to start small so that they can instead keep total control of the land under the architect. Each progressive project should then be able to get larger as the success of the first funds the second. They hope to design a battered woman's shelter using this model in the near future. MARKETects eagerly awaits the sequel!

Canon #6?

2005-10-14T14:32:00.000-07:00

MARKETects proposes an addition to the AIA Code of Ethics, which lacks any reference to an architect's Obligation to Self. Rule 6.201 would remind architects that they are entitled to compensation, and that business and ethics are not diametrically opposed:

"Rule 6.201 -- Members shall not, out of fear of violation of other rules of the AIA Code of Ethics, err on the extreme side of caution by making any professional decisions which are not in their financial best interest."

Some Ads Always Work

2005-10-13T12:33:00.000-07:00

Networking and Collaboration

2005-10-06T07:21:00.000-07:00

TECHNOLOGY / TECHNOLOGY SPECIAL | October 5, 2005
Collaboration: Networking: A Special Section
By STEVE LOHR
Networked computing is allowing workers to more efficiently nurture new ideas, new products and new ways to digitally automate all sorts of tasks.

MODEL SEARCH!

2005-09-30T10:58:00.000-07:00

One of the worst educational investments you can make is a Masters in Architecture. We are on the search for a business model that better serves the architectural profession.

Check out this website

Welcome

2005-09-22T14:07:00.000-07:00

Welcome to MARKETects, Inc.