Real Estate Architects As Developers: The Pros & Cons
It’s well known that today many architects work solely in the development area of architecture. However, it’s also known that architecture is not a very big expense in terms of development expenses, so the architects are not coming very high on the totem pole of expenses put forth by developers.
Architects are receiving proportionally low sums of money in the development world, and it’s known that they are often found transitioning to real estate development or are transforming their studios into building environments, too. So, let’s look at some of the pros and cons of this happening in the world of architecture today. It looks as if architects are starting to take charge of their own industry, after all.
Pros
- Architects know how to build
Many architects do indeed know what it takes to build something. Many have worked on projects and have indeed managed them, and they are able to work at every level of the building process, from budgeting to analyzing the project. Many architects also become specialists in certain areas, so they are able to put forth energy into projects that they will definitely excel at.
- Excellent design makes market value go up
The market tends to like that which is “special” or “unique,” and architects have a knack for the beautiful and good. They’re also able to work on projects so as to increase the quality of life while also thinking about making a profit, something that creates a win-win situation for all involved.
- Architects “get” cities
Architects are good at figuring out how to make objects that sit in contexts, and if they’ve worked with developers for a while, they will be especially adept at this. They are also able to find opportunity in spaces that may not seem to offer much, so they have a real advantage here.
Cons:
- Lack of business expertise
Many architects are unable to understand projects from a business perspective, and concepts such as “cash flow” might not come into play enough when they’re in the atelier. Many need to learn how important cost is to their designs, and not having this acumen is definitely a con.
- Architects get caught up in their designs
Architects will probably be somewhat single-minded in pursuit of figuring out how to design something, to the detriment of other factors that should come into play, including costs and time to completion of projects. They need to learn how to spend more time thinking about the business end of things, as mentioned before.
- Not knowing market trends
You can learn more at https://mirvishandgehry.ca/projectcore-developers/. Architects are sometimes blissfully unaware of what’s going on in selected markets that they may be working in. One of the keys to deciding if something is worth building is checking on its market potential, and many architects may need a bit of education in figuring out market trends.
As you can see, there are both pros and cons to architects going out on their own in real estate development. Architects benefit from the patronage system that working with developers sets up, but they can also earn more if they work on their own. Can they rectify some of their failings? It remains to be seen. I bet many of them will be great once they figure out how to deal with the cons.
