COSTA MESA, CA—From construction and material costs to awareness of the market, architects and designers can do a lot to help developers beat the competition, Newman, Garrison + Partners' CEO Kevin Newman tells GlobeSt.com. We spoke exclusively with Newman about how architects and designers can help improve developers' ROI, what they should focus on and how developers can better work with architects and designers to achieve their ROI goals.

GlobeSt.com: In what ways can architects and designers help improve developers' ROI? 

Newman: There are a number of factors we take into consideration every time we begin the design process. There isn't a single item that we can point to that decisively provides instant ROIs. However, based on my years of experience, a few items come to mind.

First is construction and material costs. Understanding the costs associated with construction and materials in today's world is a large part of what services we provide our clients. The rising costs to build in today's market can severely hamper developers' ability to bring a competitive project into the marketplace. Architects and designers should invest heavily into  researching alternative materials that are more cost effective yet provide maximum architectural appeal. There are so many manufacturers today that provide creative, sustainable and alternative materials, it's imperative that we understand what is available and make the right choices that fit our clients' budgets.

Second is value engineering. The value an experienced designer who understands construction brings into the discussions at the earliest phases of design will ensure a project will be more likely to hit the initial pro forma established by the client. Too many times, we hear that projects, once they have been approved at the design-review process, must then go through a severe VE phase that makes it strenuous and costly for the developer. And ultimately, the originally approved design must make its way back through the design-review process with revisions, which costs considerable time and money. Heading off unnecessary and costly design features that don't necessarily add value or provide a ROI should be done early on in the design process. 

Third is marketing, marketing, marketing. As architects we need to be aware of the various markets in which we are engaged and for whom we are designing. Be knowledgeable of design trends and what renters—especially in urban areas—are attracted to, whether it's a floor-plan layout or designing common amenities. Always think creatively with budget in mind. This ensures hitting all of the “hot buttons” that cater to a specific renter demographic, which in turn puts you in a better position to beat your competition. Also, having intimate knowledge of market trends is essential to assisting your client in developing the best possible project.

GlobeSt.com: What should developers know about working with architects and designers to achieve their ROI goals?

Newman: Architects by nature want to be creative. It's in our blood; it's what defines who we are. Yet, channeling that creativity while trying to maintain a construction budget can create an imperfect balance. As I mentioned earlier, the architect/designer who really understands construction costs and the built product, yet is sensitive towards the design process, will understand how this works the best. 

Most of us don't live in a world where we have endless budgets with which to work. On the contrary, most designers/architects are handcuffed with budget constraints. I once worked for a well-known firm where the CEO said to me, “Every line you draw has a cost associated with it. Make sure the lines you draw are justified and will produce the most ROI for our clients.” That holds true today when I design a project. Unnecessary elements that won't have a “dramatic” effect are usually the items that will increase the developer's budget without much ROI. In other words, be selective as to where you want to place your “wow” factor; make sure it gets the attention it deserves while providing less emphasis on areas that no one will really notice. This philosophy has worked well for our firm as well as our clients who enjoy healthy ROIs on their projects.

GlobeSt.com: What else should our readers know about this subject? 

Newman: Regardless of your firm's practice—whether it's designing institutional, commercial, residential or retail—having a solid understanding of construction costs is really the main ingredient in assisting your clients with a better ROI. Each firm deploys its own philosophical approach to design; however, the one constant that will never go away is the challenge to be creative, yet disciplined in maintaining a budget. Never stop being creative or compromise good design for the sake of cutting design features that meet your client's budget. Just because you designed a cost-effective project that met or exceeded your client's budget constraints doesn't necessarily mean it will be successful. Remember: There is a delicate balance between being creative while meeting the marketing demands and getting the project in or under budget. A well-designed project that meets budgetary constraints will ensure your client will have a successful ROI.