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A Charlotte architecture office is hoping to beat the downturn by tapping two distinct markets: overseas projects and firms wanting to downsize their offices.
Within the real estate industry, architects have been among the hardest hit during the recession. They are considered a leading indicator of construction activity - a sign of what's to come because they are among the first contacted when a developer is looking to build. Construction typically starts 9 to 12 months after architects are hired.
Gresham Smith and Partners first expanded overseas in 2006 when it won a competition to design the Jasper Tower in Shanghai's financial district.
A Nashville-based national planning, engineering, architecture, and interior design firm that employs eight people in Charlotte, the firm has secured additional work on health care and office projects in China. Gresham Smith's Charlotte office is making a more aggressive push in the country this year.
The firm is also working to expand contacts in the Republic of Georgia, an "emerging center of opportunity" where the firm is currently working on a mixed-use project - a 30-floor high-rise with residential, office and retail space in Tbilisi, said principal Barbara Briccotto.
Gresham Smith principal Scott Wilson is leading efforts in Georgia and is assisting with other international ventures.
Another hot spot eyed by the firm: Redesigning work sites for companies that want to cut costs, reduce square footage or update their space to fit the growing number of employees who work remotely.
For example, Briccotto said, the firm is seeing more companies shrink individual workstations while expanding communal space, such as meeting areas, to support a more collaborative approach favored by younger workers.
"Everyone is focused on the bottom line and we know a lot of the bottom line is personnel costs and real estate costs," she said. "As we see firms downsize, it's a great opportunity for them to rethink their workplace."
Gresham Smith's workload dropped last November, revenues have fallen around 30 percent, and the firm has laid off "a couple" of employees locally. Design for retail and multifamily projects was among the work most affected. Owners in the corporate and health care markets have also become slower to start projects, according to the company.
Briccotto said the firm has been able to keep costs down, and its staff lean, by sharing resources across its 17 U.S. offices.
Foreign projects, which currently account for 10 percent of the company's business, are expected to grow to make up as much as 30 percent of business in the near future, Briccotto said. Interior renovations, or redesigning workstations, which makes up about 10 percent of current work, is expected to see similar growth.
