Boston • Gund Partnership “We have seen a drop-off in some developer-based projects and some pullback from projects going ahead, especially housing,” says principal Laura Cabo. “We've seen our institutional and academic clients continue to be strong,” Cabo adds, noting that academic work is 80 percent of the firm's focus. “We view [the current economic climate] as temporary and [feel] things will continue to be good.”
Dallas • Beck Group “Everyone here is nervous. There's a lot of apprehension,” says principal Betsy del Monte. Much of the office's current work—the firm does a mix of architecture, development, and construction—is based on plans from a year or two ago, she says, and though architects are busy now, there's no guarantee their work will see completion. “Our construction folks are so busy they can't see straight. If a project is already financed, it's good to go—but if they don't have financing yet, it's very iffy.” On the whole, she says, “There isn't reason to panic right now, but we're wary of what we might be saying this time next year.”
Miami • Fullerton Diaz Architects “This is just part of a cycle we've been through many times before. I consider it nothing but a correction,” says co-founder John Fullerton. “The sales scene is bleak. The banks are reticent to lend money. But smart developers are rethinking their projects.” He points to one condo project that now will incorporate office and more retail space than originally planned. “Because there's been a concentration on condo development,” he notes, “other things weren't getting built. Now that condos are overbuilt, office space is needed.”
Los Angeles • Charles Dunn Co. “Residential development is slowing in all submarkets,” says Chris Runyen, senior managing director of the Office Services Group in the real estate company's primary office. But he isn't aware of significant projects being affected by the current economy: “As far as commercial projects, rental rates are still high and vacancies are still low [in the Los Angeles basin]. For Southern California, commercial seems to be steady. I haven't seen any noticeable spikes or declines.”
Seattle • Collinswoerman “Our economy is still very strong, and the market is even robust in certain areas,” says partner Mark Woerman. “A few months ago it was almost insane, and two years ago it was ridiculous. But tracking back to Thanksgiving, the financing environment has moved [cautiously]. It affects certain building projects—for-sale housing in particular—but there's still a very optimistic outlook, even for that product type.” Woerman credits business titans like Boeing and Microsoft for keeping the economy surging. “We were the last to go into the downturn of the millennium and the last to come out of it. I think most forecasters have predicted that Seattle will bounce lightly over this.”
