It’s been a good year for architecture firms in Orange County, who have benefited from increased work as corporate clients look to reimagine their workspaces, as well as a continuing boom in residential development in the county.
The 40 companies ranked on this week’s Business Journal list of architecture firms reported their combined OC billings up by 5.3% to $513.1 million for the 12 months ended June 30.
It’s a big jump for the local industry; this time last year the firms reported a modest growth of 1.7% to $480.8 million.
However, companywide billings dipped an estimated 2.5% from $2.23 billion to $2.17 billion, based on numbers reported by the firms on this week’s list. A year ago, firmwide billings climbed 3.2% to $1.8 billion.
The list ranks the largest architecture firms with significant operations in OC by dollar value of local billings. It also includes companywide billings and the number of licensed and local employees; those figures don’t affect the rankings.
On this year’s list, 23 companies saw billings increase, nine reported declines, two remained flat and the remaining six were Business Journal estimates.
The list also saw one addition to the list—MG2 in Irvine, whose clients include Costco, Vans and Target.
The firms employed 503 architects in OC, down 6% year-over-year. Local overall staffing inched up 3% to 2,970 workers.
New No. 1
n Irvine-based LPA Inc. moved up one spot to No. 1 with double-digit growth for both OC and companywide billings. Local work jumped 20% to $58.9 million while firmwide billings rose 28.6% to $105.2 million.
It shed 33.8% architects to 51 but grew its total employee count by 13.5% to 294.
More growth is expected going forward for the firm.
Last month, it inked a new 55,450-square-foot lease at 5301 California, one of the buildings at UCI Research Park. It has been occupying less space at two nearby buildings at the same office park.
LPA plans to move into its open-office style space—which it designed— in March.
• Ware Malcomb, last year’s leader, dropped to No. 2 but reported a 3.8% increase to $53.3 million in OC billings. The Irvine-based firm posted an increase of 7.7% for companywide billings to $90.4 million.
It has 17 architects, down one from last year, and grew its total workforce by 3.6% to 145.
Chief Executive Lawrence Armstrong said he expects the momentum to continue as it sees “a lot of exciting new development and project opportunities across all of our markets.”
It recently wrapped up projects for clients such as Good Samaritan Hospital, TaylorMade, L’Oréal, Henkel and Automobile Club of Southern California.
It’s also riding the new wave of multilevel distribution centers popping up across the country.
“The firm has five multistory projects underway, and have planned over 25 sites in major markets across North America,” Armstrong said. “We are seeing a growing demand for this new commercial real estate asset class and are excited to be at the forefront of it.”
n Orange-based firm Architects Orange held the No. 3 spot with $50.6 million, up 22.4% from last year’s figure of $41.3 million. Its staff of architects grew from 50 to 55, and its overall employee count increased by five to 270.
Notables
• No.5, Gensler Newport Beach has seen growth across all its practice areas. Managing Director Chip Williams said there’s been a “particular focus for us on health and wellness, education, and hospitality.”
The firm reported a 5.9% increase in its local billings to $27 million. It declined to disclose companywide billings. It grew its roster of architects and overall employee count to 27 and 121, respectively.
Design Principal Jim Young adds that the growth of OC’s tech industry has also helped.
“We’re working with numerous tech companies helping them shape the experience and impact on their people, place and physical environments through design.”
• No. 16, H. Hendy Associates in Newport Beach saw a 25% increase, reporting $10 million in billings. Its overall workforce grew by nine employees to 48 while architects remained at three.
Managing Principal Heidi Hendy credits clients’ confidence in the economy and corporate tax advantages as drawing out pent-up demand.
“Organizations we’re working with knew they should be making changes but were reserved as far taking that step of investment,” she said. “Confidence has taken off and will likely continue this year. But I do believe we’ll see a little bit of the doldrums by second quarter next year because I’ve never seen so many clients saying they want to be completed by Dec. 31.”
• Newcomer MG2 in Irvine, No. 20, reported OC architectural billings of $7.2 million, down 1.6% from the previous year. However, companywide billings rose 9.2% to $57.8 million. It also added one architect, bringing its total to five, and now has a staff of 35, up from 32 last year.
The company welcomed Managing Principal Mark Griffith to its local office last year. The more than 20-year veteran’s background includes work for clients such as Disney, Universal Studios and Sony Entertainment.
