| With offices in London, Shanghai, and NYC, Kohn Pedersen Fox chairman Gene Kohn has a worldly view on how the economic crisis affects architects. We dropped by his W. 57th St. office to get his take. |
| Gene tells us that the industry has been hit the hardest in NYC. There’s no tenant expansion or new development, and architects are vying for the same projects. If the downturn and recovery follow past patterns, he says the first step would be distressed property investment; architects would help renovate, reposition, or upgrade those buildings, and that would jumpstart development. However, lack of financing makes buying difficult; if it doesn’t ease up so buyers can jump in and set the bottom, the bottom could be deep. If we start investing now, he estimates we'll see potential new activity for architects within two to three years. |
| It certainly helps to have a sense of humor these days—Godzilla attacks KPF's JR Central Towers and Stationin Nagoya, Japan model. Gene says that many Asian and European developers believe that a low market is a great time for doing design, getting approvals, costing, and price committals so buildings can start construction when the economy and real estate turn around. A client for the KPF-designed 505 Fifth Ave. started during a downturn and was able to command top rents during the peak. |
| One key to survival is diversification, so KPF is focusing on the healthcare, government, and education sectors. Here, Gene goes over one of the firm's hospital projects with colleague Brian Girard. Even though New York is slow, there are commercial projects and corporate work opportunities that keep KPF busy; China is one of the better markets, with $600B in infrastructure investment. Gene’s also teaching a course on the value of design at Harvard Business School. He’s telling students to look beyond the potential profit margins in real estate. |
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories
