Orange County’s architecture firms combined for about $451.1 million in local billings in the past year, up about 4%. Firmwide billings dropped 11% based on numbers reported by half of the firms.
The activity reflects national trends in which California and other warm-weather states are seeing increases in architectural billings as declines occur in the Midwest and Northwest parts of the country, according to the American Institute of Architects.
This week’s Business Journal ranks the 39 largest architecture firms with significant operations in OC by the dollar value of billings in the 12 months ending June 30.
The list also includes companywide billings and the number of licensed architects and local employees, though those numbers don’t affect the rankings. The firms employed 505 architects in OC, up about 12%. Local overall staffing was flat at 2,723.
Six firms said their local billings dropped, 18 reported increases, and the Business Journal estimated billings for 15 firms.
• Irvine-based LPA Inc. retained the top spot with $50.6 million in local billings, up about 4%. Companywide billings were up about 24% to $70.6 million.
One of its notable projects is the 300,000-square-foot makeover of the former L.A. Times building in Costa Mesa into a three-story open-air office space.
“We’re fortunate to be in the middle of a good business cycle where there’s growth in all segments,” said LPA Chief Operating Officer John Mills, referring to office, hospital, retail and school clients.
“We’re usually helping clients reimagine or renovate existing (offices), facilities or creating a new entry space,” Principal Wendy Rogers said.
About 44% of LPA’s clients are in the education sector, and about 25% are corporations in need of office redesigns, while 72% are in OC.
“About 80% of clients are repeat business,” Mills said. Business clients usually need a new design every seven years, while public school buildings change every 40 years.
The firm hired 11 architects in OC for a total of 51, raising its local headcount 10% to 209.
• Architects Orange in the city of Orange held onto the No. 2 spot with about $44.7 million in local billings, up about 1.5%. All of its billings occurred in Orange County. The firm held steady with 45 architects and 235 total local employees. More than 90% of its work is for retailers and residential spaces.
• Ware Malcomb in Irvine rose one spot to No. 3 with a 20% increase in local billings to about $40.4 million. Its companywide billings were up 22% to about $67 million. The firm hired eight architects for a total of 22 locally, with an overall staff of 136. About 84% of its projects are for corporate office spaces.
• KTGY Group in Irvine ranks No. 4 with $30.6 million in local billings, up 44%. Companywide billings were about $76 million, up about 19%. It has 27 architects and employs a total of 156 locally, up 25%. About 83% of its work is for residential spaces.
Notables
A few companies outside of the top four experienced growth or faced challenges.
• Jeffery Rome & Associates, No. 12, reported a 35% drop in local billings to $12 million. The Irvine-based firm had two local architects and employed 50 in OC, down about 27%. About 70% of its projects are outside the county, and all of the major wireless phone service providers are among its clients.
• Architecture Design Collaborative in Costa Mesa is a newcomer at No. 35. The firm reported $3 million in local billings, up 62% and the largest overall increase represented on the list. It reported $3.4 million in companywide billings, has seven architects and employs 25 in OC. About 90% of billings are for retail or residential spaces.
The firm’s clients include retail mall owner-operator General Growth Properties in Chicago, real estate fund manager CIM Group in Los Angeles and multifamily developer Trammell Crow Residential in Dallas.
Principal Craig Chinn said the firm can cut about six months from the design process by drafting in front of clients.
“It can be intimidating for architects to sketch in front of clients,” he said, “but it’s easier to make changes if they can see the design as it leaves your hand.”
The typical design process can take up to a year because designers draft entire floorplans, present them to clients for critiquing, then return to the drafting table to incorporate the changes.
The traditional process is “exhausting” because revisions continue until the sketches exactly meet clients’ demands, Chinn said.
The firm is seeing an increase in business at its Denver office and in the Midwest, he said, and may break $4.2 million by year-end.
