LOS ANGELES—Construction costs and labor costs are continuing to rise, and this year, architects expect those inflated costs to play a big role in the design choices and decisions. We sat down with Glenn Rescalvo, a partner at Handel Architects, recently to talk about the design and architectural trends in 2017, and the economy was the first thought on his mind. We also discussed the focus on millennials and the evolution of design over this long cycle. Here, Rescalvo gives us a comprehensive look at what to expect this year in design.
GlobeSt.com: What architectural trends do you expect to dominate in 2017?
Glenn Rescalvo: The economy plays a significant role on how developments are envisioned and executed, particularly when construction and labor prices are higher than usual and the demand for housing is strong. I believe one of the most significant trends we will see in multi-family design for 2017 is that upcoming projects will need to be designed even more efficiently and with greater versatility. This may translate into designing buildings within tighter budgets, innovative use of materials, and more caution on the number and size of amenity spaces a project incorporates. As a result, we may see designs that are less elaborate and more modest in style, yet with a greater sense of versatility and adaptability to changing markets. From a constructability standpoint, we may see less use of glass curtainwall and more solid surfaces to reduce cost, as well as better-organized floorplans to increase net sellable and rentable areas. I also imagine that projects will start to limit which amenities will be provided to buyers as my sense is that the trend of overloading a project with amenities is over. Projects will need to be better crafted to sustain overwhelming construction costs and become more cost effective for buyer and renter consumption.
GlobeSt.com: How are these trends a departure from themes in 2016?
Rescalvo: Throughout the past ten or so years, projects were developed and designed by referencing a “development checklist.” Each development would rely on other competing developments to determine architectural features, unit size, appliance packages, services, and amenities. The danger with this approach is that not all projects are equal nor can all projects absorb the additional cost of including certain higher-end features or amenities. With the rise of construction and housing costs, new developments will have to change the perception of what makes a great project. It will be less about the list of amenities and more about the efficiency of the product and what defines a great unit. Buyers and renters have become very savvy about the housing market, especially here in the Bay Area, and with prices leveling out, there will be a need to be more competitive on price points.
GlobeSt.com: What do you see more and more developers asking for in 2017?
Rescalvo: Moving into 2017, we are seeing developers focusing on well-designed units within a specific square footage and less amenities overall. From a marketing and sales standpoint, over the past few years, developers have been continuously analyzing what is the ideal square footage required for each unit type that makes the most profit. In order for a project to be successful both as a rental or a for-sale unit, the determination of the unit size is very critical to the absorption rate. If a one bedroom unit is too big and as a result the rent or sales price is too high due to it being oversized, the unit and project is compromised and may take longer to rent or sellout.
Developers are being more analytical about what they build and where. Location is also becoming a very strategic aspect to a project's success, and moving forward, it will become as important as the product type and amenity package the development offers. Not all projects are equal and for a project to be successful it needs to be clearly defined; trying to satisfy every buyer profile usually does not make for a successful project. Crafting a project to a specific demographic and providing the right level of service and amenities is usually a great formula for success; however, the challenge is to be able to predict what those components are.
GlobeSt.com: Do you have any advice for developers for 2017 when starting the design process?
Rescalvo: Given the volatility of the market, I would advise developers to approach projects with a sense of openness and versatility. As architects, our objective is to help developers understand the potential of a project under numerous scenarios, and this should help in determining the best use and most cost effective approach to a project. Not all projects “pencil out” the first time around, but with a more open minded approach to design and programing, the dynamics of a project can change dramatically. For example, a developer may assume that their project should be entirely residential because that's what everyone else is building, but in fact due to the site conditions and market research, there may be a niche for a boutique office component that works perfectly on the lower non-view floors. Although there may be more programming to deal with, the project now has a better chance of success based on its versatility. In an unpredictable environment, which development often is, versatility can be a key component to the success of a development.
GlobeSt.com: Are millennials still the focus in 2017?
Rescalvo: I would imagine that the influence of millennials will continue to be on the rise as technology and innovation continue to rapidly move forward. Yet to say they are the only focus in developments is a dangerous assumption. Today, millennials are a strong consumer of housing and a very important factor to the success of many developments, yet we continue to see all age groups moving closer to major cities and hubs. Designing for multiple generational profiles within a project has become one of our biggest challenges and is an ongoing discussion among developers, realtors, and designers. We strive to create projects that are successful and memorable but at times we struggle with identifying or agreeing on who will be the most compelling end buyer or renter and what features and amenities are the most important to allure them to the project. I believe the focus in new developments will be versatility and balance to not only address the needs of the present consumer but to withstand future growth and change.
LOS ANGELES—Construction costs and labor costs are continuing to rise, and this year, architects expect those inflated costs to play a big role in the design choices and decisions. We sat down with Glenn Rescalvo, a partner at Handel Architects, recently to talk about the design and architectural trends in 2017, and the economy was the first thought on his mind. We also discussed the focus on millennials and the evolution of design over this long cycle. Here, Rescalvo gives us a comprehensive look at what to expect this year in design.
GlobeSt.com: What architectural trends do you expect to dominate in 2017?
Glenn Rescalvo: The economy plays a significant role on how developments are envisioned and executed, particularly when construction and labor prices are higher than usual and the demand for housing is strong. I believe one of the most significant trends we will see in multi-family design for 2017 is that upcoming projects will need to be designed even more efficiently and with greater versatility. This may translate into designing buildings within tighter budgets, innovative use of materials, and more caution on the number and size of amenity spaces a project incorporates. As a result, we may see designs that are less elaborate and more modest in style, yet with a greater sense of versatility and adaptability to changing markets. From a constructability standpoint, we may see less use of glass curtainwall and more solid surfaces to reduce cost, as well as better-organized floorplans to increase net sellable and rentable areas. I also imagine that projects will start to limit which amenities will be provided to buyers as my sense is that the trend of overloading a project with amenities is over. Projects will need to be better crafted to sustain overwhelming construction costs and become more cost effective for buyer and renter consumption.
GlobeSt.com: How are these trends a departure from themes in 2016?
Rescalvo: Throughout the past ten or so years, projects were developed and designed by referencing a “development checklist.” Each development would rely on other competing developments to determine architectural features, unit size, appliance packages, services, and amenities. The danger with this approach is that not all projects are equal nor can all projects absorb the additional cost of including certain higher-end features or amenities. With the rise of construction and housing costs, new developments will have to change the perception of what makes a great project. It will be less about the list of amenities and more about the efficiency of the product and what defines a great unit. Buyers and renters have become very savvy about the housing market, especially here in the Bay Area, and with prices leveling out, there will be a need to be more competitive on price points.
GlobeSt.com: What do you see more and more developers asking for in 2017?
Rescalvo: Moving into 2017, we are seeing developers focusing on well-designed units within a specific square footage and less amenities overall. From a marketing and sales standpoint, over the past few years, developers have been continuously analyzing what is the ideal square footage required for each unit type that makes the most profit. In order for a project to be successful both as a rental or a for-sale unit, the determination of the unit size is very critical to the absorption rate. If a one bedroom unit is too big and as a result the rent or sales price is too high due to it being oversized, the unit and project is compromised and may take longer to rent or sellout.
Developers are being more analytical about what they build and where. Location is also becoming a very strategic aspect to a project's success, and moving forward, it will become as important as the product type and amenity package the development offers. Not all projects are equal and for a project to be successful it needs to be clearly defined; trying to satisfy every buyer profile usually does not make for a successful project. Crafting a project to a specific demographic and providing the right level of service and amenities is usually a great formula for success; however, the challenge is to be able to predict what those components are.
GlobeSt.com: Do you have any advice for developers for 2017 when starting the design process?
Rescalvo: Given the volatility of the market, I would advise developers to approach projects with a sense of openness and versatility. As architects, our objective is to help developers understand the potential of a project under numerous scenarios, and this should help in determining the best use and most cost effective approach to a project. Not all projects “pencil out” the first time around, but with a more open minded approach to design and programing, the dynamics of a project can change dramatically. For example, a developer may assume that their project should be entirely residential because that's what everyone else is building, but in fact due to the site conditions and market research, there may be a niche for a boutique office component that works perfectly on the lower non-view floors. Although there may be more programming to deal with, the project now has a better chance of success based on its versatility. In an unpredictable environment, which development often is, versatility can be a key component to the success of a development.
GlobeSt.com: Are millennials still the focus in 2017?
Rescalvo: I would imagine that the influence of millennials will continue to be on the rise as technology and innovation continue to rapidly move forward. Yet to say they are the only focus in developments is a dangerous assumption. Today, millennials are a strong consumer of housing and a very important factor to the success of many developments, yet we continue to see all age groups moving closer to major cities and hubs. Designing for multiple generational profiles within a project has become one of our biggest challenges and is an ongoing discussion among developers, realtors, and designers. We strive to create projects that are successful and memorable but at times we struggle with identifying or agreeing on who will be the most compelling end buyer or renter and what features and amenities are the most important to allure them to the project. I believe the focus in new developments will be versatility and balance to not only address the needs of the present consumer but to withstand future growth and change.
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