Designing out of recession

It almost seems like a dream to Tim Buckley, principal of Greenstone Architecture in Vancouver.

According to Buckley, it was only a few years ago when a number of architecture firms wanted to lobby trade schools to allow more graduates to feed the region's unprecedented development boom. At the real estate market's height, there were 13,000 construction workers at home, with Southwest Washington architects and contractors working on projects located as far away as Dubai. In the tough economic years since, unemployment among newly-graduated architects has quadrupled, Clark County has lost nearly 4,000 industry positions and the Dubai jobs "disappeared overnight," Buckley said.

Instead of retreating from the county's battered development scene, at least two architects contacted by the VBJ this month had to get creative about seeking new work, focusing on renewable energy projects, innovative reuses of existing commercial structures and residential jobs.

"My diversity of project types has kept me afloat. Whenever the residential market tanked, I had commercial projects. Now that commercial projects are going down, residential is picking up," Buckley said.

Part of this diversity is Buckley's focus on green projects, with an eye on attaining the increasingly-coveted Leadership in Energy and Environmental Design (LEED) certification. According to the Green Building Certificating Institute, Vancouver already has 10 LEED-certified structures – including the Firstenburg Community Center, the Hilton Vancouver Washington and Columbia Credit Union's Grand Central and Washougal branches – with more on the way.

"Mega-mansions have gone the way of the Hummer as a status symbol. Now when you see someone driving one you are like ‘what is he thinking?' It's a cultural paradigm shift," Buckley said.

The boom times were also a distant memory for Roch Manley, who founded Manley Architects in Vancouver in October 2007, right at the cusp of the market's fall.

As the recession began to take hold, Manley had a number of projects to propel him forward, including a Seventh Day Adventist School in Battle Ground and a child care center for Vancouver-based nonprofit Educational Opportunities for Children and Families.

"We had some good projects already lined up which lasted for about six months – then  everything just dropped off across the board," Manley said.

Buckley faced a similar dilemma, which he blamed on the extreme changes brought about by the real estate bust. "We went straight from a time of such massive demand to a time with none. It's not really good to be in either place," he said.

Buckley explained that a time of overwhelming opportunity will cause some to overreach, and be unable to adapt if the market slows down.

"Remaining flexible and getting into niche markets is the key," Buckley said.

Manley's first decisions in response to the downturn were practical. Although Manley continued with a relatively-heavy workload that he estimated could be spread over three or four employees, he took on only one associate. He also decided to work out of his home, rather than seeking an office location.

"There's so much uncertainty in the market, it's unwise to take on another $1,500 expense a month," he said.

And while many firms focused on residential or commercial construction exclusively before the bust, Manley and Buckley both decided to take work from wherever it came.

For instance, Manley took steps to focus on so-called "green" construction.

"Sustainability is a changing scene in my view," Manley said. "Clark County, like the rest of the country, is now building with the future in mind."

Manley noted a focus on innovative reuse of current buildings, rather than constructing an entire new building. For example, Manley recently converted a former Camas bar on Fourth Avenue and Birch Street into a new home for Journey Community Church. 

Buckley also noted the reuse trend, saying he believed that until what he called the "paradox" in lending was resolved, few new projects would actually break ground.

"The construction industry is stuck in a Catch-22," Buckley said. "My peers have projects which can't step forward until they get funding, but the banks say they won't release funding until demand picks up."

A number of legislative solutions have been proposed to clean out the toxic assets in banks in the hopes of freeing up capital for development projects, most recently by Sen. Patty Murray (D-Wash.), a sponsor of the Main Street Lending Restoration Act, which would divert $30 billion in TARP funds to local financial institutions.

"The state of construction is moribund," said Scott Bailey, regional economist for Southwest Washington. "I expect little improvement this year … and maybe next year as well."

Until the problem of development financing is resolved, according to Buckley, architecture firms will continue to find creative ways to succeed. And while things may look bleak for many architects looking for projects, both Manley and Buckley pointed out the crunch created opportunities as well – in their case, in the form of a buyers' market.

"The prices on projects right now are as low as people are ever likely to see," Buckley said.

Buckley has a number of projects coming down the pike – though since they are still in the bidding process, he was unable to comment on specifics.

Manley was in a similar position, though he did have one upcoming endeavor he could disclose:  an upcoming veteran's service/memorial called the Guardians of Freedom Project.

Despite the challenges facing most building projects, Manley is confident this harsh reality, regardless of how long it lasts, will serve as a teacher to all who weather it.

"I imagine that me and other business owners, if we make it through this downturn and learn the lessons it is teaching us, will be in a much better place when everything picks up," he said.

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