Mike Zimmerman Archives - Interior Design https://interiordesign.net/tag/mike-zimmerman/ The leading authority for the Architecture & Design community Thu, 14 Dec 2023 22:03:13 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.2 https://interiordesign.net/wp-content/uploads/2021/08/ID_favicon.png Mike Zimmerman Archives - Interior Design https://interiordesign.net/tag/mike-zimmerman/ 32 32 Interior Design Unveils the 2023 Sustainability Giants https://interiordesign.net/research/sustainability-giants-2023/ Thu, 25 May 2023 13:06:54 +0000 https://interiordesign.net/?post_type=id_research&p=210759 Eco-conscious design is here. See the trends found among the top 100 environmentally focused firms in Interior Design's 2023 Sustainability Giants.

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inside the Seattle Convention Center by Sustainability Giant LMN Architects
LMN Architects designed the Seattle Convention Center. Photography by Adam Hunter/LMN Architects.

Interior Design Unveils the 2023 Sustainability Giants

Sustainability matters to design firms. It’s big business because it’s good business. Although we’ve gathered data on green practices in the past, last publishing the results in 2016, this year we’ve given the top 100 environmentally focused studios a list of their own—allowing us to better track trends in this all-important sector. The big news: In 2022, total fees for the Sustainability Giants were $1.8 billion. Gensler accounted for $563 million of that, making the firm easily the largest by fees.

Many firms integrate environmentalism into their plans; indeed, some 60 percent of projects completed by the Sustainability Giants have measurable environmental goals. Specific targets have a lower percentage of follow-through, however, either because clients don’t request it—or they balk at the cost. Indeed, only 37 percent of clients mention environmental, social, and corporate governance reporting as integral to their project goals.

In other cases, firms embrace some but not all sustainability practices. Roughly a third of respondents’ projects include green design elements but don’t go all the way to achieving certification, again because the client doesn’t want to foot the extra expense. Measurable sustainable initiatives include tracking embodied carbon as well as WELL, LEED, and Fitwel certifications, but most firms track these at low percentages. Where these firms do well is in specification. About half of FF&C products are chosen based on environmental factors, plus some 26 percent of designers are LEED AP or WELL AP accredited.

Given these considerations, we’ll continue to refine what we track and how we gather data. As for next year, the Sustainability Giants predict a comparable $1.8 billion in fees for 2023. We’ll enjoy seeing how this new group evolves.

Sustainability Giants Rankings 2023

wdt_ID 2023 Rank Firm HQ Location Sustainable Fees (in millions) FFC Value (in millions) Sq. Ft. (in millions) Design Staff
1 1 Gensler San Francisco 563.09 - - 3,599
2 2 Perkins&Will Chicago 199.00 6820 700
3 3 Page Southerland Page Washington 112.98 2297.46 8.3 120
4 4 AECOM Dallas 108.82 9793.98 - 472
5 5 HKS Dallas 77.19 - - 164
6 6 SmithGroup Detroit 54.74 - - 216
7 7 ZGF Portland, OR 47.63 - - 86
8 8 NBBJ Seattle 40.00 - - 260
9 9 Ted Moudis Associates New York 34.00 705 7.5 81
10 10 HMC Architects Ontario, CA 25.00 - - 111

Number of Projects Tracking Embodied Carbon


Top Firms Based on Fees from Projects With Measurable Sustainability Goals

wdt_ID Firm Design Fees % of Total Fees
1 Gensler 563,093,855 90
2 Perkins&Will 199,000,000 90
3 Page Southerland Page 112,983,421 50
4 AECOM 108,822,000 75
5 HKS 77,192,522 45
6 SmithGroup 54,735,271 61
7 ZGF 47,626,761 44
8 NBBJ 40,000,000 100
9 Ted Moudis Associates 34,000,000 100
10 HMC Architects 25,000,000 65

“Two decades ago, we focused heavily on energy and water consumption as the key metrics for sustainable design. Now equipped with better research on how the built environment impacts health and wellness, Flad is realigning its focus to make the sustainable design process holistic, quantifiable, equitable, and extensive. A project’s impact does not stop at the property line.”

—Kimberly Reddin, Flad Architects

“‘Wellness’ and ‘sustainability’ can be used as check-the-box buzzwords. We’re working with more and more clients who are prioritizing the evolved concept of regenerative design, which centers around leaving the natural environment better than we found it.”

—David Galullo, Rapt Studio

Sustainability Goals Achieved

wdt_ID Goals Percentage
1 Embodied carbon tracking 12
2 WELL certification 2
3 LEED certification 4
4 Other sustainability certification(s) 5
5 Followed the principles, but client unwilling to pay for certification 36

Number of Projects Achieving WELL

wdt_ID Firm Number of Projects
1 Gensler 25
2 IA Interior Architects 24
3 Partners by Design 24
4 M Moser Associates 14
5 AECOM 10

Number of Projects Achieving LEED

wdt_ID Firm Number of Projects
1 Gensler 501
2 IA Interior Architects 122
3 AECOM 50
4 DLR Group 37
5 Page Southerland Page 36
6 Sargenti 35
7 HBA International 30
8 Ted Moudis Associates 30
9 CID Design Group 24
10 M Moser Associates 24

Methodology

The Interior Design Giants annual business survey comprises the largest firms ranked by interior design fees for the 12-month period ending December 31, 2022. The listings are generated from only those surveyed. To be recognized as a top 100, Rising, Healthcare, or Hospitality Giant, you must meet the following criteria: Have at least one office location in North America, and generate at least 25% of your interior design fee income in North America. Firms that do not meet the criteria are ranked on our International Giants list. Interior design fees include those attributed to:

1. All aspects of a firm’s in­terior design practice, from strategic planning and programming to design and project management.

2. Fees paid to a firm for work performed by employees and independent contractors who are “full-time staff equivalent.”

Interior design fees do not include revenues paid to a firm and remitted to subcontractors who are not con­sid­ered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and re­tain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Ties are broken by rank from last year. Where applicable, all per­cent­ages are based on responding Giants, not their total number. 

All research conducted by ThinkLab, the research division of SANDOW Design Group.

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Interior Design Spotlights 2023 Healthcare Giants https://interiordesign.net/research/healthcare-giants-2023/ Mon, 15 May 2023 13:30:10 +0000 https://interiordesign.net/?post_type=id_research&p=210310 Three years after the start of the pandemic, the 2023 Interior Design Healthcare Giants give a pulse on the state of healthcare design today.

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The Guerin Children's pediatric medical-surgical inpatient unit at Cedars-Sinai Medical Center in Los Angeles
The Guerin Children’s pediatric medical-surgical inpatient unit at Cedars-Sinai Medical Center in Los Angeles is by HGA. Photography by Kim Rodgers.

Interior Design Spotlights 2023 Healthcare Giants

What’s most interesting about the Healthcare Giants isn’t the numbers so much as how the business has evolved during the pandemic—and in general. Consider colonoscopies, tonsillectomies, and other minor procedures that were always a little too major to happen outside a hospital setting. The rise of skilled-care facilities and those dedicated to a single function, such as outpatient procedures or diagnostic imaging, have resulted in lots of smaller design projects. In 2019 the Healthcare Giants worked on 3,200; in 2022 that number rose to 5,500—a 73 percent increase partially attributed to smaller COVID-related projects that may not have otherwise happened. But there’s no question that the design of the physical environment is changing.

And yet, hospital design work remains a stalwart: Acute-care hospitals accounted for half of 2022’s $698 million fees—a bit below the COVID-boosted $790 million in 2020, but handily beating the $607 million pre-pandemic dollars. (The most growth, however, is projected for behavioral health and walk-in/urgent-care clinics.) Furniture, fixtures, and construction products also now outstrip 2019 numbers—$17.8 billion versus $14.6 billion.

But there’s a catch: forecasts. The Healthcare Giants predict $562 million fee income and $14.9 billion FF&C income in 2023, both healthy drops. Whether this is something to fear or just the nature of a market over-boiled by a public health emergency and point-of-service changes remains to be seen. This odd combination of instability and prosperity might just stay with us a while longer.

Healthcare Giants Rankings 2023

wdt_ID 2023 Rank Firm Headquarters Design Fees (in millions) FFC Value (in millions) Sq. Ft. (in millions) 2022 Rank
1 1 CannonDesign New York 70 2
2 2 HDR Omaha, NE 67 214 1
3 3 Perkins&Will Chicago 66 1,586 3
4 4 SmithGroup Detroit 57 8
5 5 HKS Dallas 51 7
6 6 AECOM Dallas 46 2,742 6
7 7 Perkins Eastman New York 42 867 5
8 8 Page Southerland Page Washington 41 1,891 7 18
9 9 Stantec Edmonton, Canada 32 12
10 10 HOK St. Louis 30 2,814 32 9

Project Categories


Growth Potential Over Next Two Years

U.S.

wdt_ID Region Percentage
1 Southwest 57
2 Southeast 55
3 Northeast 53
4 Mid-Atlantic 43
5 Midwest 40
6 Midsouth 40
7 Northwest 28

International

wdt_ID Region Percentage
1 Canada 13
2 Europe 11
3 Middle East 11
4 Asia/Australia/New Zealand 9
5 China 9
6 Central/South America 6
7 Mexico 4
8 Caribbean 2
9 India 2
10 Africa 0
11 Other 2

Fees by Project Type

wdt_ID Project Type 2022 Actual 2023 Forecast
1 Acute-care Hospital 49 50
2 Outpatient Procedure/Surgery Center 16 13
3 Health Clinics 10 9
4 Mental-health Facility 5 6
5 Rehabilitation Facility 4 3
6 Other 4 6
7 Senior Living 3 2
8 Doctor/Dental Office 3 4
9 Health & Wellness/Fitness Center 3 3
10 Assisted Living 2 2
11 Skilled-nursing Facility/Hospice 1 2
12 Telehealth Facility 0 1

Editor’s Note: Take a look at recent coverage of our Healthcare Giants most admired firms of 2023 below. CannonDesign tops the list followed by Perkins&Will, and ZGF.


Read More About CannonDesign

Read More About Perkins&Will

Read More About ZGF


Firms with the Most Fee Growth

wdt_ID Firm 2021 2022
1 Page Southerland Page 11,746,560 40,961,000
2 SmithGroup 34,237,879 56,697,832
3 HKS 40,249,723 51,171,914
4 CannonDesign 60,000,000 70,000,000
5 Perkins&Will 56,400,000 66,300,000
6 Jacobs 3,180,325 11,763,190
7 Stantec 23,913,460 32,112,724
8 HDR 60,873,600 67,111,200
9 AECOM 40,526,200 45,705,240
10 ZGF 17,158,000 21,238,955

Forecasted Change by Segment Over Next Two Years

wdt_ID Segment More Projects No Change Fewer Projects
1 Hospital 54 26 4
2 Assisted/Senior Living 54 25 4
3 Rehabilitation Facility 35 35 7
4 Outpatient Procedure/Surgery Center 54 24 2
5 Mental-health Facility 76 4 0
6 Doctor/Dental Office 26 41 7
7 Health Clinics 67 17 0
8 Health & Wellness/Fitness Center 43 30 4
9 Skilled-nursing Facility/Hospice 20 41 4
10 Private Sector 28 35 4
11 Public Sector 22 40 2
12 Other 50 17 17

Methodology

The Interior Design Giants annual business survey comprises the largest firms ranked by interior design fees for the 12-month period ending December 31, 2022. The listings are generated from only those surveyed. To be recognized as a top 100, Rising, Healthcare, or Hospitality Giant, you must meet the following criteria: Have at least one office location in North America, and generate at least 25% of your interior design fee income in North America. Firms that do not meet the criteria are ranked on our International Giants list. Interior design fees include those attributed to:

1. All aspects of a firm’s in­terior design practice, from strategic planning and programming to design and project management.

2. Fees paid to a firm for work performed by employees and independent contractors who are “full-time staff equivalent.”

Interior design fees do not include revenues paid to a firm and remitted to subcontractors who are not con­sid­ered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and re­tain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Ties are broken by rank from last year. Where applicable, all per­cent­ages are based on responding Giants, not their total number. 

All research conducted by ThinkLab, the research division of SANDOW Design Group.

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Introducing Interior Design’s 2023 Hospitality Giants https://interiordesign.net/research/interior-design-hospitality-giants-2023/ Mon, 01 May 2023 13:09:54 +0000 https://interiordesign.net/?post_type=id_research&p=209692 Interior Design's 2023 Hospitality Giants demonstrate that the industry is bouncing back. Get the inside scoop on the sector's comeback story.

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a bar at Zou Zou's in New York
AvroKO designed Zou Zou’s in New York. Photography by Melissa Hom.

Introducing Interior Design’s 2023 Hospitality Giants

Ever since the pandemic devastated the hospitality industry, we’ve been waiting for the comeback—and 2022 might be it. Interior Design’s Hospitality Giants brought in $576 million total fees, up 36 percent from the previous year. It’s a welcome surge: When 2020 went viral, so to speak, fees dropped by more than half, to $423 million in 2021, after having enjoyed a decade-long ascent from $600 million to a record $1.1 billion in 2019.

Hospitality Giants Rankings 2023

wdt_ID 2023 Rank Firm HQ Location Design Fees (in millions) FFC Value (in millions) Sq. Ft. (in millions) 2022 Rank
1 1 HBA International Santa Monica, CA 109.50 6,569 2
2 2 Rockwell Group New York 32.20 4
3 3 Gensler San Francisco 24.90 6
4 4 Wimberly Interiors New York 20.80 11
5 5 ForrestPerkins/Perkins Eastman New York 20.30 5
6 6 Populous Kansas City, MO 19.90 0 7
7 7 AvroKO New York 18.90 1 0.8 8
8 8 JCJ Architecture Hartford, CT 17.60 12
9 9 Yabu Pushelberg New York 16.90 1.2 15
10 10 DLR Group Minneapolis 15.10 2 10

Hotels still make up the lion’s share of hospitality fees—about 49 percent—but that figure has been in gradual decline since peaking in 2013 at 59 percent. Everyone likes nice things, which helps explain why luxury properties account for two-thirds of hotel income overall ($212 million) with boutique and mid-economy income declining—though the $93 million they brought in is nothing to scoff at.

Restaurants ($80 million, 13 percent) and resorts ($67 million, 11 percent) are the next biggest seg­ments, with gaming and country clubs providing steady fees ($51 million combined). Multiuse remains a wildcard. That sector’s mix of hospitality, residential, and retail accounted for 5 percent of all fees ($34 million) last year but has spiked as high as 18 percent in 2019, and 14 percent in 2021. Who wants to bet big on 2023? Inside info: These Giants predict growth in the number of projects they’ll do—if not necessarily fees—in the boutique hotel, resort/spa/country club, restaurant/bar, and yes, multiuse categories.


Project Categories

wdt_ID Categories Percentage
1 New construction 48
2 Renovation/Retrofit 44
3 Refresh previously completed projects 8

Another plus is that Hospitality Giants logged a record 5,700 projects overall, 350 more than the previous high in 2018—and they forecast that an additional 2,000 (!) will be delivered in 2023. Furniture, fixtures, and construction products also staged a rebound, after having plummeted from a cool $19 billion in 2019 to $6.2 billion in 2021 (that tremor you felt was the sector hitting rock bottom). Climbing back to $14.7 billion in 2022, we’re firmly on the road to recovery—although this uptick might be attributed to post-COVID right-sizing rather than a sign of exponential growth.

That’s the story: a general trend upward from pandemic lows. How much and how quickly? Well, the group projects $602 million in fees in 2023, a return to where we started in 2013, beginning that long climb back to the billion-dollar mark. Here’s hoping it doesn’t take as long this time.


Firms with the Most Fee Growth

wdt_ID Firm 2021 Design Fees 2022 Design Fees
1 Rockwell Group 22,927,898 32,177,300
2 Wimberly Interiors 12,000,000 20,750,000
3 Yabu Pushelberg 9,000,000 16,850,000
4 JCJ Architecture 11,600,000 17,577,000
5 HBA International 103,512,000 109,483,000
6 HKS 9,324,462 14,725,437
7 Premier 1,850,000 7,100,000
8 AvroKO 13,728,837 18,893,558
9 Baskervill 8,981,627 14,123,069
10 PGAL 2,418,000 7,510,000

Fees by Project Type

wdt_ID Project Type Actual 2022 Forecast 2023
1 Total Hotel 40 41
2 Hotels (Luxury) 32 33
3 Hotels (Boutique) 9 9
4 Hotels (Mid/Economy) 5 5
5 Micro-hotels 0 0
6 Multiuse (Hospitality/Retail/ Residential) 2 2
7 Condo-hotels/Timeshares 5 5
8 Resorts 11 11
9 Spas 1 1
10 Country Clubs 3 3
11 Gaming 5 5
12 Restaurants 12 12
13 Bars/Lounges/Nightclubs 2 2
14 Cruise Ships 0 0
15 Other 6 6

Editor’s Note: Take a look at recent coverage of our Hospitality Giants most admired firms of 2023 below. AvroKO tops the list followed by Yabu Pushelberg, and Rockwell Group.

Read More About AvroKO

Read More About Yabu Pushelberg

Read More About Rockwell Group


Growth Potential Over Next 2 Years

U.S.

wdt_ID Region Percentage
1 Northeast 47
2 Midsouth 44
3 Southeast 71
4 Mid-Atlantic 41
5 Midwest 30
6 Northwest 22
7 Southwest 73

International

wdt_ID Region Percentage
1 Canada 10
2 Mexico 19
3 Central/South America 10
4 Caribbean 25
5 Europe 18
6 Middle East 26
7 Africa 3

Asia

wdt_ID Region Percentage
1 China 16
2 India 7
3 Asia/Australia/New Zealand 11
4 Other 4

Forecasted Change by Segment Over Next Two Years

wdt_ID Segment More Projects No Change Fewer Projects
1 Luxury Hotels 56 28 2
2 Boutique Hotels 63 21 5
3 Mid/Economy Hotels 41 35 2
4 Micro-hotels 16 3 2
5 Condo-hotels/Timeshare 22 35 2
6 Multiuse 62 16 1
7 Restaurants/Bars/Lounges/Nightclubs 58 21 5
8 Resorts/Spas/Country Clubs 62 21 4
9 Gaming 26 26 2
10 Cruise Ships 5 31 4

Methodology

The Interior Design Giants annual business survey comprises the largest firms ranked by interior design fees for the 12-month period ending December 31, 2022. The listings are generated from only those surveyed. To be recognized as a top 100, Rising, Healthcare, or Hospitality Giant, you must meet the following criteria: Have at least one office location in North America, and generate at least 25% of your interior design fee income in North America. Firms that do not meet the criteria are ranked on our International Giants list. Interior design fees include those attributed to:

1. All aspects of a firm’s in­terior design practice, from strategic planning and programming to design and project management.

2. Fees paid to a firm for work performed by employees and independent contractors who are “full-time staff equivalent.”

Interior design fees do not include revenues paid to a firm and remitted to subcontractors who are not con­sid­ered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and re­tain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Ties are broken by rank from last year. Where applicable, all per­cent­ages are based on responding Giants, not their total number. 

All research conducted by ThinkLab, the research division of SANDOW Design Group.

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Interior Design Reveals the 2023 Rising Giants https://interiordesign.net/research/interior-design-rising-giants-2023/ Mon, 24 Apr 2023 13:19:43 +0000 https://interiordesign.net/?post_type=id_research&p=209367 Hospitality projects drive much of the work of the 2023 Rising Giants. See what's on the horizon for this group of must-watch A&D firms.

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a bedroom connected to an outdoor patio
The Montage Healdsburg Residences’s Harvest Homes in Healdsburg, California, are by EDG Interior Architecture and Design. Photography by Roger Davies.

Interior Design Reveals the 2023 Rising Giants

There’s rising and then there’s Rising. Our list of the second 100 largest firms injected the moniker with helium in 2022. Total fees came in at $532 million, a 50 percent increase from 2021—well above the recent low of $314 million in 2020, and a hair above pre-pandemic numbers.

Rising Giants 2023

wdt_ID 2023 Rank Firm Headquarters Design Fees (in millions) FFC Value (in millions) Sq. Ft. (in millions) Design Staff 2022 Overall Rank
1 101 Wolcott Architecture Los Angeles 10.04 0.14 - 45 93A
2 102 Array Architects Conshohocken, PA 9.46 420.00 - 78 NEW
3 103 Chambers Baltimore 9.41 9.41 - 37 92
4 104 Aria Group Architects Oak Park, IL 9.35 13.30 1.17 67 95
5 105 tvsdesign Atlanta 9.17 0.10 - 63 78
6 106 Kasian Architecture, Interior Design and Planning Vancouver, Canada 9.14 0.00 - 157 100
7 107 CBRE Design Collective Dallas 9.10 364.44 - 67 NEW
8 108 KZF Design Cincinnati 9.03 706.00 6.12 77 88
9 109 EDG Interior Architecture and Design Novato, CA 9.00 115.00 0.55 53 120
10 110 Tricarico Architecture and Design Wayne, NJ 8.88 432.00 2.9 15 188

“-“ did not report data

As for the breakdown of business segments, hospitality is to the Rising Giants what corporate projects are to the top 100: the big money driver. But while that sector remained a solid number one last year, it’s down to 30 percent of overall fees ($162 million) compared to 38 percent two years ago. Corporate is second, at 25 percent ($131 million), followed by residential at 17 percent ($89 million), and healthcare at 9 percent ($46 million). The Rising Giants predict only gentle fluctuations in this breakdown for 2023, forecasting a slight drop in corporate and a rise in residential, with hospitality holding firm.

Meanwhile, furniture, fixtures, and construction products appear to be booming—more than doubling, to $35.8 billion—but that figure is driven by large totals from a single firm. Still, FF&C had already been rebounding well from a pandemic low of $10 billion in 2020, and the Rising Giants forecast $38 billion for next year.

Furnishings & Fixtures vs. Construction

As with the 100 Giants, the relationship between number of projects and total square footage is somewhat imbalanced. Projects truly popped, at almost 23,000—up from 15,000 in 2021 and nearly doubling the pre-pandemic figure of 12,000 in 2019. Square footage, at 188 million, doesn’t track with it, however. That’s a slight bump from 2021 but a pipe dream compared to 301 million in 2019, likely resulting from firms diversifying their services (more consulting and branding projects), plus hybrid work affecting client’s spatial allocations.

Risers, like the 100, have seen an influx of new talent to execute this work. Design staff members, which had hovered around 2,600 for the past three years, jumped 62 percent to nearly 4,200 in 2022. The all-employee total also increased 27 percent.

Recruiting and retaining qualified staff remains the biggest challenge, so salaries have also risen since 2019. Most employees have seen a 14 to 16 percent raise (project managers/directors excepted), and the average designer salary has climbed to $80,000—the highest since we’ve tracked this data.

Will all this good business hold? This group has offered a healthy 2023 forecast of $583 billion in total fees, a 10 percent increase. And while most are confident about this prediction, fewer are saying they’re “very” or “extremely” so. Semantics? Perhaps. But the Rising Giants are rising indeed.


See the 2023 Top 100 Giants here.


Firms with the Most Fee Growth

wdt_ID Firm 2021 2022
1 Tricarico Architecture and Design 1,300,000 8,880,000
2 Premier 2,000,000 7,100,000
3 Beasley & Henley Interior Design 5,144,000 8,713,480
4 EDG Interior Architecture and Design 5,595,000 9,000,000
5 Steelman Partners 6,178,375 8,718,000
6 Hendrick 4,000,000 6,500,000
7 KTGY Simeone Deary Design Group 4,400,000 6,800,000
8 Flick Mars 2,476,125 4,857,944
9 BKV Group 1,213,000 3,500,000
10 Bar Napkin Productions 4,000,000 6,000,000

Fees by Project Type

wdt_ID Project Type 2022 Actual 2023 Forecast
1 Hospitality 161,626,361 178,279,921
2 Corporate Offices 131,132,773 129,297,668
3 Residential 88,622,756 101,603,194
4 Healthcare 46,421,082 50,486,342
5 Education 21,683,950 22,979,378
6 Retail 18,469,636 19,585,483
7 Mixed-use (new) 13,502,611 16,291,824
8 Government 10,840,486 11,416,606
9 Cultural 3,094,278 3,829,466
10 Transportation* 3,711,495 2,083,466
11 Manufacturing/Warehouse/Data Centers (new) 2,670,883 2,434,869
12 Life Sciences (new) 2,130,859 2,280,060
13 Sports Centers (new) 1,179,911 1,263,705
14 Other* 20,409,666 21,709,883

Practice Issues

wdt_ID Practice Issues Percentage
1 Recruiting qualified staff 89
2 Training staff 43
3 Retaining staff 40
4 Creating new business/Diversifying into new segments 31
5 Recruiting diverse staff 28
6 Offering staff appropriate pay scale and benefits 28
7 Marketing firm’s capabilities 20
8 Keeping track of profits and expenses 4

Client Issues

wdt_ID Client Issues Percentage
1 Retaining current clients 4.30
2 New competing business entities entering the market (I.e., Co-working, CRE services, etc.) 12.80
3 Finding new clients 25.50
4 Client willingness to take design risks 29.80
5 Managing client expectations 40.40
6 Getting clients to understand design value 52.10
7 Client willingness to pay what it’s worth 66.00

Business Issues

wdt_ID Business Issues Percentage
1 Earning appropriate fees 66
2 Uncertain economy 62
3 Dealing with clients’ increasing demands 54
4 Increasing interference from clients’ consultants 21
5 Managing vendors 20
6 Managing the growing need for sustainable design 12
7 Creating cutting-edge design solutions 10

Most Admired Firms

Editor’s Note: Take a look at recent coverage of our Rising Giants most admired firms of 2023 below. Gensler tops the list followed by Rockwell Group and AvroKO.

Read More About Gensler

Read More About Rockwell Group

Read More About AvroKO


Project Categories

wdt_ID Project Categories Percentage
1 New Construction 46
2 Renovation/Retrofit 45
3 Refresh: Cosmetic Changes Only 9

Total Projects by Type

wdt_ID Project Type 2022 2023 Forecast
1 Office 371,462 408,254
2 Hospitality 2,659 3,033
3 Retail 1,350 1,724
4 Government 885 1,076
5 Healthcare/Assisted Living 16,661 3,154
6 Education 1,014 1,165
7 Residential 287,507 316,397
8 Transportation 103 103
9 Cultural 442 493
10 Life Sciences (new) 503 100,643

Project Locations

International Project Locations

wdt_ID Location Percentage
1 Canada 38
2 Mexico 23
3 Caribbean 26
4 Central/South America 3
5 Europe 21
6 Asia/Pacific Rim 31
7 Africa 13
8 Other 15

Total FFC Value

wdt_ID Year FFC Value
1 2022 Actual 2,147,483,647
2 2023 Forecast 2,147,483,647

Square Feet Installed

wdt_ID Year Square Feet Installed
1 2022 Actual Sq. Ft 188,289,490
2 2023 Forecast Sq. Ft 210,081,326

Salary

wdt_ID Job Title Median Annual Salary
1 Principals/Partners 182,885
2 Project Managers/Directors 105,000
3 Designers 80,000
4 Other Interior Design Staff 65,000

Hourly Rate

wdt_ID Job Title Median Hourly Rate
1 Principals/Partners 250
2 Project Managers/Directors 171
3 Designers 134
4 Other Interior Design Staff 100

Billable Time

wdt_ID Billable Time 2023 Giants
1 < 70% 17
2 70-79% 15
3 80-89% 38
4 90-99% 21
5 100% 8
6 Average 80

Methodology

The Interior Design Giants annual business survey comprises the largest firms ranked by interior design fees for the 12-month period ending December 31, 2022. The listings are generated from only those surveyed. To be recognized as a top 100, Rising, Healthcare, or Hospitality Giant, you must meet the following criteria: Have at least one office location in North America, and generate at least 25% of your interior design fee income in North America. Firms that do not meet the criteria are ranked on our International Giants list. Interior design fees include those attributed to:

1. All aspects of a firm’s in­terior design practice, from strategic planning and programming to design and project management.

2. Fees paid to a firm for work performed by employees and independent contractors who are “full-time staff equivalent.”

Interior design fees do not include revenues paid to a firm and remitted to subcontractors who are not con­sid­ered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and re­tain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Ties are broken by rank from last year. Where applicable, all per­cent­ages are based on responding Giants, not their total number. 

All research conducted by ThinkLab, the research division of SANDOW Design Group.

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Interior Design Unveils the 2023 Top 100 Giants https://interiordesign.net/research/interior-design-top-100-giants-2023/ Mon, 10 Apr 2023 13:31:19 +0000 https://interiordesign.net/?post_type=id_research&p=208581 Interior Design unveils the Top 100 Giants of 2023. Research suggests the A&D industry is bouncing back after a challenging few years. See the stats.

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an apartment lobby in New York
Fogarty Finger designed the Anagram Nomad apartments in New York. Photography by David Mitchell.

Interior Design Unveils the 2023 Top 100 Giants

It’s easy to get hung up on symbolic numbers. Like, say, $5 billion. Nice and round. What could it represent, besides a comfortable retirement? In our case, a growth threshold for the Interior Design 100 Giants. In 2022, fees for the biggest firms came in just shy of that, at $4.97 billion—pretty good when you consider the turmoil of the past few years. That figure also marks 12 percent growth over 2021, beating the group’s forecast by 16 percent.

Top 100 Giants 2023

wdt_ID 2023 Rank Firm HQ Location Design Fees (in millions) FFC Value (in millions) Sq. Ft. (in millions) Design Staff 2022 Rank
1 1 Gensler San Francisco 625.70 0 - 3,599 1
2 2 Jacobs Dallas 324.40 8,110 4.6 1,267 2
3 3 Perkins&Will Chicago 221.00 6,820 - 700 3
4 4 AECOM Dallas 217.60 9,793 - 472 4
5 5 HOK St. Louis 157.40 5,154 58.1 1,195 5
6 6 IA Interior Architects San Francisco 154.20 3,351 51.6 543 6
7 7 CannonDesign New York City 125.00 0 - 520 9
8 8 Page Southerland Page Washington 124.90 2,297 8.3 120 29
9 9 Stantec Edmonton, Canada 122.30 0 - 667 7
10 10 SmithGroup Detroit 121.00 0 - 216 13

And if you want more fuel for the victory lap, as well as some context for the entire industry, a decade ago total fees for the top Giants tallied $2.44 billion, meaning they doubled in the intervening years. As for how the 2022 fees shook out: At the almost-$5 billion level, there are no insignificant slices of the pie when talking dollar amounts. For example, mixed-use projects make up a mere 1.2 percent of total fees, but that amounts to about $61 million. Though corporate office work remains the biggest driver, at 31 percent of fees (or $1.53 billion), it fell below 35 percent for only the second time in the last decade (2017 being the other blip). That’s a $344 million drop from 2019, when it comprised nearly 40 percent of all fees. So, is this a trend? Well, the 100 Giants forecast $1.5 billion for 2023, or 32 percent of total fees. Time will tell if this is a new reality.

What’s risen to replace corporate? Since 2019, government work is up by $89 million, or 31 percent. Education and transportation projects rose some 20 percent, for a combined $72 million. And of course, the pandemic spiked healthcare by 23 percent, or $139 million—bumping down hospitality from second to third for total fees (more on this subject in their respective sections).

However, healthcare may have peaked as we shift from pandemic to endemic. Sector fees rose only 3 percent since 2021, while hospitality rebounded 21 percent, or $89 million, in that same period. The 100 Giants predict healthcare fees will drop 23 percent next year, which may signal a return to previous levels.

Furniture, fixtures, and construction products also showed health at $74 billion in 2022. Pre-pandemic totals occasionally topped $85 billion, so while the industry is not back to that high, we’ve now hovered in this $73-75 billion range for three years. The problem: a projected 12 percent drop to $65 billion next year. Of all the forecasts, that’s the most dire.


International Giants 2023

wdt_ID 2023 Rank Firm Headquarters Design Fees (in millions) 2022 FFC Value (in millions) 2022 Sq. Ft. (in millions) Design Staff 2022 Rank
1 1 Gold Mantis Construction Decoration Co. China 155.90 3,401.41 131.2700 1,770.00 1
2 2 Space Matrix Design Consultants Singapore 42.05 610.00 10.3900 251.00 2
3 3 Beijing Biad Decoration Engineering & Design Co. China 33.98 1,132.75 14.4200 418.00 new
4 4 YiTian Design group China 33.23 911.50 58.3400 326.00 3
5 5 DSP Design Associates India 25.58 495.87 8.0800 308.00 4
6 6 Envisione Studio Hong Kong 13.44 11.95 0.4700 22.00 new
7 7 MCX Interior Singapore 13.00 11.03 - 50.00 5
8 8 Studio DADO United States 5.39 1,500.00 - 19.00 6
9 9 Roar United Arab Emirates 4.00 75.00 - 23.00 8
10 10 BWM Architektur & Design Interdisziplinäre Austria 2.96 95.10 - 42.00 7

Note: Firms on this list do the majority of their work overseas and/or are headquartered outside the U.S.

“-“ did not report data


Total number of projects and square footage also tell a curious story, although the data is admittedly a bit skewed because few respondents reported this metric. From 2016 to 2019, the 100 Giants routinely logged 1 billion square feet from 60,000 to 66,000 projects annually. This year, 66,109 projects were built, but only encompassed 519 million square feet (compared to 65,000/589 million in 2021). Possible indications: Square footage is down as firms diversify into consulting and branding projects—and perhaps hybrid/remote work is allowing businesses to reallocate space.

Now for perhaps the most positive business indicator: Firms are hiring. Total design staff jumped from nearly 18,000 in 2021 to more than 23,000 in 2022—by far the most aggressive upward movement of any data we track. The overall number of employees also leaped from 98,000 to more than 155,000, although that’s still well below pre-pandemic head counts.

Billing rates have risen, too. Designers now bill at $156 per hour versus $133, a 17 percent increase since 2019. Average designer salary also jumped from $70,000 to $80,000 in that same time period, but remained flat in 2022. Other staff members have done particularly well, their salary rising 36 percent in three years.

As to when we’ll hit that big $5 billion mark, it’s unclear. The 100 Giants forecast $4.82 billion in fees for 2023, a slight drop. And a vast majority of respondents—90 percent—are confident in that prediction. That, if anything, might sum up what we’re seeing: Good results? Check. Reason to smile? Check. A lot of uncertainty to come? Check—and mate.

Editor’s Note: Take a look at recent coverage of our Top 100 Giants most admired firms of 2023 below. Gensler tops the list followed by Perkins&Will, Rockwell Group, and Yabu Pushelberg.


Firms with the Most Fee Growth

wdt_ID Firms 2021 Design Fees 2022 Design Fees
1 Page Southerland Page 41,952,000 124,878,244
2 Gensler 545,691,552 625,659,839
3 Corgan 75,000,000 118,541,449
4 AECOM 184,210,000 217,644,000
5 Perkins&Will 188,000,000 221,000,000
6 IA Interior Architects 128,800,000 154,176,000
7 SmithGroup 97,822,511 120,985,595
8 CBT 12,181,800 31,293,211
9 Jacobs 308,267,536 324,432,880
10 HKS 86,819,937 102,923,362

Top Ten Giants by Sector

Hospitality - Top 10

wdt_ID Firm Fees
1 HBA International 109,483,000
2 Rockwell Group 32,177,300
3 Gensler 24,931,181
4 Wimberly Interiors 20,750,000
5 Perkins Eastman 20,283,400
6 Populous 19,890,135
7 AvroKO 18,893,558
8 JCJ Architecture 17,577,000
9 Yabu Pushelberg 16,850,000
10 DLR Group 15,100,000

Corporate Office - Top 10

wdt_ID Firm Fees
1 Gensler 420,092,491
2 IA Interior Architects 77,935,967
3 M Moser Associates 72,148,000
4 AECOM 65,293,200
5 Perkins&Will 61,900,000
6 NBBJ 44,916,000
7 Jacobs 43,672,941
8 STUDIOS Architecture 41,833,187
9 HOK 37,560,000
10 Corgan 36,215,827

Retail - Top 10

wdt_ID Firm Fees
1 Gensler 37,783,698
2 RSP Architects 22,307,000
3 CRTKL 22,295,408
4 TPG Architecture 10,649,000
5 Little Diversified Architectural Consulting 10,610,086
6 IA Interior Architects 7,230,854
7 Chipman Design Architecture 7,200,000
8 Ware Malcomb 7,113,646
9 Sargenti 6,806,250
10 ASD|SKY 6,768,000

Government - Top 10

wdt_ID Firm Fees
1 Jacobs 120,615,791
2 AECOM 41,352,360
3 Gensler 29,140,091
4 Page Southerland Page 24,975,600
5 HOK 22,500,000
6 NBBJ 10,122,000
7 KCCT 10,039,000
8 Clark Nexsen 10,000,000
9 HGA 9,928,231
10 Stantec 9,191,559

Healthcare - Top 10

wdt_ID Firm Fees
1 CannonDesign 70,000,000
2 HDR 67,111,200
3 Perkins&Will 66,300,000
4 SmithGroup 56,697,832
5 HKS 51,171,914
6 AECOM 45,705,240
7 Perkins Eastman 41,580,970
8 Page Southerland Page 40,961,000
9 Stantec 32,112,724
10 HOK 30,230,000

Education - Top 10

wdt_ID Firm Fees
1 CannonDesign 30,000,000
2 Perkins&Will 28,600,000
3 Page Southerland Page 26,224,400
4 DLR Group 20,649,762
5 SmithGroup 18,564,885
6 Corgan 16,537,968
7 Stantec 16,281,553
8 AECOM 15,235,080
9 Perkins Eastman 13,184,210
10 HMC Architects 11,747,002

Residential - Top 10

wdt_ID Firm Fees
1 CDC Designs 28,500,000
2 Marc-Michaels Interior Design 27,200,000
3 TRIO 21,277,201
4 B2 Architecture + Design 14,000,000
5 NICOLEHOLLIS 13,940,641
6 CBT 12,952,661
7 Workshop/APD 10,660,000
8 Pembrooke and Ives 9,946,357
9 Stantec 9,259,454
10 Ryan Young Interiors 9,222,729

Cultural - Top 10

wdt_ID Firm Fees
1 Populous 24,310,165
2 AECOM 17,411,520
3 Perkins&Will 16,000,000
4 HOK 14,770,000
5 Gensler 14,457,286
6 Page Southerland Page 7,867,300
7 Stantec 7,867,248
8 EwingCole 7,000,000
9 HGA 6,922,673
10 Rockwell Group 6,246,300

Transportation - Top 10

wdt_ID Firm Fees
1 Jacobs 43,269,235
2 Corgan 35,011,320
3 HOK 19,820,000
4 AECOM 17,411,520
5 Gensler 14,388,440
6 PGAL 12,410,000
7 Stantec 7,614,640
8 ZGF 5,334,439
9 IA Interior Architects 3,715,642
10 HDR 3,355,560

Read More About Gensler

Client Issues

wdt_ID Client Issues Percentage
1 New competing business entities entering the market 18
2 Client's willingness to pay what it's worth 53
3 Finding new clients 19
4 Retaining current clients 6
5 Getting clients to understand design value 50
6 Client willingness to take design risks 28
7 Managing client expectations 41

Business Issues

wdt_ID Business Issues Percentage
1 Earning appropriate fees 59
2 Dealing with clients' increasing demands 49
3 Increasing interference from clients' consultants 13
4 Creating cutting-edge design solutions 4
5 Managing the growing need for sustainable design 14
6 Managing vendors 12
7 Uncertain economy 79

Practice Issues

wdt_ID Practice Issues Percentage
1 Recruiting qualified staff 92
2 Recruiting diverse staff 44
3 Retaining staff 34
4 Training staff 33
5 Creating new business/Diversifying into new services or segments 23
6 Marketing firm's capabilities 24
7 Keeping track of profits and expenses 6
8 Offering staff appropriate pay scale and benefits 23

Read More About Perkins&Will

Hourly Rate

wdt_ID Title Median Hourly Rate
1 Principals/Partners 300
2 Project Managers/Directors 206
3 Designers 156
4 Other Interior Design Staff 130

Salary

wdt_ID Title Median Annual Salary
1 Principals/Partners 200,000
2 Project Managers/Directors 129,086
3 Designers 80,000
4 Other Interior Design Staff 75,000

Billable Time

wdt_ID Billable Time 2022 Giants
1 < 70 11
2 70-79 23
3 80-89 41
4 90-99 21
5 100 4
6 Average 8

Projects by Type

wdt_ID Type 2022 2023 Forecast
1 Corporate Workplace 23,880 24,240
2 Hospitality 6,351 6,617
3 Retail 5,812 7,322
4 Government/Civic 3,196 2,849
5 Healthcare/Wellness/Assisted Living 9,312 6,701
6 Education 4,456 3,725
7 Residential 3,223 3,315
8 Transportation 804 530
9 Cultural/Museums/Performance and Entertainment Centers 970 897
10 Sports Centers (new) 793 508
11 Life Sciences (new) 2,546 2,571
12 Manufacturing/Warehouse/Data Centers (new) 2,455 2,246
13 Mixed-use (new) 1,178 1,065
14 Other 1,133 985

Read More About Rockwell Group

Total FFC Value

2022 Actual Value: $73,970,503,017

2023 Forecast: $64,967,795,010

Square Feet Installed

2022 Actual: 519,274,725

2023 Forecast: 556,336,471


Project Categories

Read More About Yabu Pushelberg


Fees by Project Type

wdt_ID Type 2022 Actual 2023 Forecast
1 Hospitality 510,061,009 491,159,462
2 Corporate Office 1,525,432,686 1,500,684,741
3 Retail 179,861,095 189,613,098
4 Government 373,907,271 318,420,913
5 Healthcare 752,608,144 567,211,488
6 Education 331,906,038 286,976,413
7 Residential 258,097,657 234,699,785
8 Transportation 167,623,778 159,726,309
9 Cultural 91,077,245 74,719,746
10 Sports Centers 72,284,829 39,705,025
11 Life Sciences 362,338,435 350,958,533
12 Manufacturing 121,039,980 105,661,902
13 Mixed-use 60,712,413 40,592,451
14 Other 173,483,282 324,879,386

Furnishing & Fixtures vs. Construction


International Project Locations

wdt_ID Location 2022 Giants
1 Canada 54
2 Mexico 25
3 Caribbean 32
4 Central/South America 30
5 Europe 65
6 Asia/Pacific Rim 62
7 Africa 30
8 Other 30

Project Locations


Methodology

The Interior Design Giants annual business survey comprises the largest firms ranked by interior design fees for the 12-month period ending December 31, 2022. The listings are generated from only those surveyed. To be recognized as a top 100, Rising, Healthcare, or Hospitality Giant, you must meet the following criteria: Have at least one office location in North America, and generate at least 25% of your interior design fee income in North America. Firms that do not meet the criteria are ranked on our International Giants list. Interior design fees include those attributed to:

1. All aspects of a firm’s in­terior design practice, from strategic planning and programming to design and project management.

2. Fees paid to a firm for work performed by employees and independent contractors who are “full-time staff equivalent.”

Interior design fees do not include revenues paid to a firm and remitted to subcontractors who are not con­sid­ered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and re­tain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Ties are broken by rank from last year. Where applicable, all per­cent­ages are based on responding Giants, not their total number. 

All research conducted by ThinkLab, the research division of SANDOW Design Group.

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Interior Design Unveils the 2022 Hospitality Giants https://interiordesign.net/research/interior-design-hospitality-design-giants-2022/ Tue, 08 Nov 2022 21:06:41 +0000 https://interiordesign.net/?post_type=id_research&p=202811 What does the future of hospitality design look like? Check out Interior Design's latest Hospitality Giants report.

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a black and white image of the bar in Khaluna in Minneapolis by Shea

Interior Design Unveils the 2022 Hospitality Giants

The results for the 2022 Interior Design Hospitality Giants, our survey of the top 75 firms working in the sector, are somewhat like taking a construction elevator in an unfinished hotel project: It may be uncomfortable, but it will still get you where you want to go. Predictions say we will, and results are better than expected, but there’s still post-pandemic corporate pain. Business has been down, but data points to a rebound. Let’s have a look.

Hospitality design bounces back

Hospitality Giants Rankings 2022

wdt_ID Rank 2022 Firm HQ Location Hospitality Fees (in millions) Value (in millions) Sq. Ft. (in millions) Design Staff Rank 2021
1 1 Cheng Chung Design Shenzhen, CN 109.60 new
2 2 HBA International Santa Monica, CA 103.50 6,210.70 1,355 1
3 3 Gold Mantis Construction Decoration Co. Suzhou, CN 56.90 2
4 4 Rockwell Group New York 22.90 11
5 5 ForrestPerkins/Perkins Eastman New York 20.30 295 5
6 6 Gensler San Francisco 19.90 3,073 4
7 7 Populous Kansas City, MO 19.80 20
8 8 AvroKO New York 13.70 0.60 1.2 81 13
9 9 Gettys Group Companies Chicago 13.30 200.00 55 9
10 10 DLR Group Minneapolis 12.10 49.50 110 8

Overall fees for the group fell from $576 million in 2020 to $423 million in 2021, a 27 percent drop. But the group forecasts a recovery in 2023 to $491 million. The latest Hot Market Growth Report from ThinkLab, the research division of Sandow Design Group, lists the usual pandemic suspects as reasons for the headwinds: lack of corporate travel, supply-chain issues, rising costs, employment challenges. The good news: Like the pandemic, these issues are predicted to gradually resolve soon.


Editor’s Note: Interior Design’s 2023 Top 100 Giants are in! See what experts are saying about the current state of the industry. Read more.


Most Admired Design Firms

Where did the hospitality firms take these hits? Right in the moneymaker: hotels. Always bringing in the lion’s share of fees, hotel work fell from 57 percent of fees to 47, coming in at $208 million. Furthermore, luxury hotel work, source of some of the biggest earnings, has been responsible for nearly a third of hotel fees the past two years; now it’s just 25 percent. But nearly every business segment was down in 2021. Hotels are just the most glaring and devastating to the overall bottom line. There are bright spots, however, such as resorts and restaurants now making up more than 22 percent of fees, from 17 percent. Growth is definitely happening.


Giants of Design

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Hospitality Firms with Largest Increase in Fees

wdt_ID Firm 2020 Design Fees 2021 Design Fees
1 Gold Mantis Construction Decoration Co. 37,425,000 56,940,000
2 Populous 7,666,072 19,815,523
3 Rockwell Group 11,960,000 22,927,898
4 JCJ Architecture 7,350,000 11,600,000
5 Aria Group Architects 5,250,000 8,500,000
6 Icrave 7,100,000 10,118,000
7 CHIL Interior Design 2,407,672 5,271,340
8 AvroKO 11,007,278 13,728,837
9 Studio Dado 3,000,000 4,398,255
10 IndiDesign 2,090,000 3,200,000

International projects are down with only 17 percent of firms doing that work, from 24 percent last year (in 2015, it was about a third of firms). But the Caribbean is clocking in with 60 percent of international firms taking projects—that’s up from 52 percent in 2020. This dovetails with what we’re seeing up and down the U.S. Eastern Seaboard, as approximately 20 percent more Hospitality Giants see the Southeast as a growth hotbed, and nearly half are looking toward the Northeast. But biggest growth region is the Southwest, where 73 percent of respondents see an uptick. ThinkLab’s report breaks regions down even further, highlighting Texas, Arkansas, Florida, and New York as states ready to grow.

Projects in the Middle East are picking up as well as those projects that may have gone on hold over the pandemic. Leisure is hot in Latin America and Mexico. Renovation is still strong. Globally, hospitality is driving city building. A hotel tower is often the anchor experience in a new mixed-use development. This has been driven by the need for new cities to market themselves as open and desirable tourism.”

—Tom Ito, Gensler

Global Growth Potential for Next 2 Years

U.S.

wdt_ID Region Percentage
1 Southwest 73
2 Southeast 71
3 Northeast 47
4 Midsouth 44
5 Mid-Atlantic 41
6 Midwest 30
7 Northwest 22

International

wdt_ID Region Percentage
1 Canada 10
2 Mexico 19
3 Central/South America 10
4 Caribbean 25
5 Europe 18
6 Middle East 26
7 Africa 3
8 China 16
9 India 7
10 Asia/Australia/New Zealand 11

And yes, let’s talk about optimism for a second. Because that’s the word here. Here’s some sunshine:

—When looking at the U.S regions primed for growth, the Hospitality Giants’s overall enthusiasm is much higher this year: Over a quarter are more bullish than a year ago.
—Firms are using their experience and skills to bring hospitality know-how to other segments. Example: “We’ve made a strong and concerted move into residential, parlaying our hospitality experience into shared spaces and amenities,” CHIL Interior Design senior principal Paul Morissette says.
—Hotel work, luxe and boutique in particular, is expected to rebound starting in 2023. Same for multiuse, as well as resorts, spas, and country clubs.
—Meanwhile, a report from Dodge Data & Analytics shows lodging construction to be one of the most robust growth areas not just next year, but through 2026.

In short: A solid business is still there, and it’s very possible the worst is over.

Fees by Project Segment

wdt_ID Segment 2020 2021
1 Hotels (Total) 47 48
2 Hotels (Luxury) 25 26
3 Hotels (Boutique) 13 13
4 Hotels (Mid/Economy) 9 9
5 Hotels (Micro) 0 1
6 Resorts 11 12
7 Spas 2 1
8 Country Clubs 4 4
9 Gaming 4 3
10 Restaurants 11 11

During the next 2 years, do firms expect to see more or fewer projects in these segments?

wdt_ID Segment More Projects No Change Fewer Projects
1 Hotels (Luxury) 56 28 2
2 Hotels (Boutique) 63 21 5
3 Hotels (Mid/Economy) 41 35 2
4 Micro Hotels 16 30 2
5 Condo-Hotels/Timeshare 22 35 2
6 Multiuse (Hospitality/Retail/Residential) 62 16 1
7 Restaurants/Bars/Lounges/Nightclubs 58 21 5
8 Resorts/Spas/Country Clubs 62 21 4
9 Gaming 26 26 2
10 Cruise Ships 5 31 4

“Our firm is growing exponentially—we just hired 14 new people. Year-over-year, we increased our revenue 30 percent and are looking to do four times the amount of business we engaged in pre-pandemic, which is a great sign for the hospitality and travel industry. As people rush back out into the world for personal and business travel, 2023 is projected to be a record-breaking year for us.”

—Kellie Sirna, Studio 11 Design

Hospitality Project Categories

wdt_ID Categories Percentage
1 New Construction 48
2 Refresh Previously Completed Projects 8
3 Renovation/Retrofit 44

Methodology

The annual business survey of Interior Design Hospitality Giants ranks the largest design firms by hospitality design fees for the 12-month period from January 1, 2021 through December 31, 2021. Hospitality design fees include those attributed to:

1. All hospitality interiors work.

2. All aspects of a firm’s hospitality design practice, from strategic planning and programming to design and project management.

3. Fees paid to a firm for work performed by employees and independent contractors who are full-time staff equivalent.

Hospitality design fees do not include revenues paid to a firm and remitted to subcontractors that are not considered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and retain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Additionally, where applicable, all percentages are based on responding hospitality Giants, not their total number. The data was compiled and analyzed by Interior Design and ThinkLab, the research division of Sandow Design Group.

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Interior Design Unveils the 2022 Rising Giants https://interiordesign.net/research/interior-design-unveils-the-2022-rising-giants/ Thu, 11 Aug 2022 16:05:39 +0000 https://interiordesign.net/?post_type=id_research&p=199626 Interior Design reveals the 2022 Rising Giants. Read the report.

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a man walks through the lobby inside Venture Global LNG in Houston

Interior Design Unveils the 2022 Rising Giants

If you think of the pandemic as a roller­coaster, then the 2022 business trend data for the Interior Design Rising Giants, the second 100 largest firms, would be a popular one. Like any good coaster, the initial drop was a doozy, with total fees heading down from $521 million in 2019 to $314 million in 2020 as COVID-19 hit the economy. Now, however, it looks like the rollercoaster has troughed and is heading up the next ramp. Total fees for 2021 came in at $354 million, a healthy 13 percent bump. And the Rising Giants forecast the coming year at $416 million, continuing the upward surge.

Rankings 2022

wdt_ID 2022 Rank Firm HQ Location Design Fees (in millions) Value (in millions) Sq. Ft. (in millions) ID staff 2021 Rank
1 1 Planning, Design, Research Corporation Houston 8.20 280.00 2.30 60 88
2 2 StudioSIX5 Austin 7.80 250.00 6.00 49 108
3 3 DiLeonardo International Warwick 7.80 0.00 0.00 65 new
4 4 DesignAgency Toronto 7.60 0.00 72 112
5 5 Dyer Brown Boston 7.20 250.00 3.20 28 104
6 6 Rule Joy Trammell Rubio Atlanta 7.10 50.00 58 new
7 7 Kenneth Park Architects New York 7.00 10.00 0.50 25 106
8 8 Architecture, Incorporated Reston 6.90 91.50 0.80 12 101
9 9 Alliance Architecture Durham 6.80 150.00 28 new
10 10 Smallwood Atlanta 6.70 0.00 39 83

What’s more notable than the forecast itself is the Rising Giants’s certainty in it. Just over half of the firms surveyed are “confident” in next year’s numbers, and three out of 10 are “very confident.” As far as those coming in as “not confident,” well, that number dropped from 31 percent to 14.

Let’s dig a little deeper into the 2021 results to see how much confidence is warranted. Hosp­itality remains the largest business sector for the Rising Giants, accounting for 34 percent of total fees ($121 million—about even with 2020). Corporate office work rose 26 percent to $88 million and accounts for a quarter of all work in this group. Residential is the third largest moneymaker and was up 22 percent from 2020 to $60 million. Healthcare now accounts for 10 percent of all fees and rose 19 percent to $36 million.


Giants of Design

Submit Now for Interior Design‘s Giants of Design

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Project Categories and Locations

wdt_ID Project Categories Percentage
1 New Construction 44.80
2 Renovations 46.60
3 Refresh Previously Completed Projects 8.60
wdt_ID Project Locations Percentage
1 Domestic 93
2 International 7

Again, the forecasts for business sectors are all positive, particularly retail (expected to grow 39 percent in 2022), hospitality (23 percent), residential (19 percent) as well as healthcare and corporate (15 percent each). Furniture and fixtures along with construction products also showed robust recovery, rising from 2020’s $10.2 billion to $15.7 billion. That’s not quite 2019’s $18.5 billion, but these Giants are forecasting $17.1 billion for 2022, so mo­men­tum is gaining.

Work volume metrics are up, too. Total square footage rose by 10 million, or 6 percent, to 180 million. The 2022 forecast is just over 200 mil­lion. As for cost per square foot, the roller­coaster rolls again with $109/foot in 2019, down to $77, and now back up to $118. Total number of jobs has also spiked: 12,039 in 2020 to 15,187, with a forecast of 16,653 in 2022.

Client Issues

Practice Issues

Business Issues

The retreat from work outside the U.S.—as seen in our other Giants groups, as well—continues here. In 2019, 16 percent of the Rising Giants did international work. Now that number is just 7 percent. For those who do this work, Canada and Asia/Pacific Rim saw steep declines in the number of firms working there, while the Caribbean warmed up. As a result, it’s no real surprise that these Giants see the most growth potential in the U.S. Southwest, Southeast, and Northwest. Only two firms said they planned on closing an office in 2022, yet a noteworthy 10 percent plan to expand.

Firms with Most Fee Growth

wdt_ID Firm 2021 2022
1 CetraRuddy Architecture 1,521,680 6,250,000
2 J. Banks Design Group 2,555,362 5,602,531
3 Figure3 3,748,948 6,220,000
4 DesignAgency 6,136,340 7,560,494
5 Studio Dado 3,000,000 4,398,255
6 Brereton 3,925,365 5,213,704
7 Kamus Keller 3,000,000 4,248,802
8 Arris, a Design Studio 4,600,000 5,600,000
9 Indidesign 2,200,000 3,200,000
10 StudioSIX5 6,860,000 7,800,000

Design staff numbers are the only ones not currently rising, and in fact have declined from 2,739 in 2019 to 2,593. Billing rates have remained steady ($130 an hour), while fees per employee have deflated, down 29 percent since 2019—$200,000 to $143,000 in real numbers. Staff salaries, however, have crept up, with designers going from $70,000 per year to $75,000. Project managers remained unchanged at $105,000 a per year, while principles/partners saw their comp jump from $155,000 pear year to $187,000.

most admired firms

Median Hourly Rate

wdt_ID Job Title Hourly Rate
1 Principal/Partner 250
2 Project Manager/Job Captain 180
3 Designer 130
4 Other Design Staff 100

Median Annual Salary

wdt_ID Job Title Salary
1 Principal/Partner 187,200
2 Project Manager/Job Captain 105,000
3 Designer 75,000
4 Other Interior Design Staff 60,000

Fees by Project Type

wdt_ID Project Type 2021 Fees 2022 Fees (Forecast)
1 Hospitality 121,542,243 149,574,694
2 Office 87,737,260 99,696,554
3 Residential 59,884,038 71,358,676
4 Healthcare 36,329,517 41,620,977
5 Retail 15,073,568 20,945,710
6 Government 6,249,941 6,868,958
7 Cultural 2,176,224 3,908,544
8 Educational 15,280,034 16,316,609
9 Transportation 322,312 440,656
10 Other 16,449,866 16,371,660

Project Numbers by Type

wdt_ID Project Category 2021 2022 (Forecast)
1 Office 4,793 5,160
2 Residential 2,044 2,056
3 Retail 1,902 2,256
4 Hospitality 1,758 2,171
5 Healthcare 1,704 1,603
6 Education 730 862
7 Government 575 650
8 Cultural 214 398
9 Transportation 202 351
10 Other 1,265 1,146

As far as the main challenges affecting business, the refrains are pretty much what you hear from businesses everywhere: Re­cruiting and retaining qualified staff. Design firms will always be concerned, too, with earning appropriate fees and dealing with demanding clients. But here’s one telling data point in the “business challenges” survey: Last year 87 percent of firms were worried about the uncertain economy; this year it’s only 55 percent.

And maybe that’s the watchword right now: optimism. The 2022 forecasts—and the Rising Giants’s growing confidence in their business prospects—show that while, sure, we may not be able to shake off this pandemic once and for all at the moment, firms are still doing great and in-demand work while we figure out all that other stuff.

Methodology

The second installment of the two-part annual business survey of Interior Design Giants comprises the second largest firms ranked by interior design fees for the 12-month period ending December 31, 2021. The first 100 Giants firm ranking was published in February. Interior design fees include those attributed to:

  1. All types of interiors work, including commercial and residential.
  2. All aspects of a firm’s interior design practice, from strategic planning and programming to design and project management.
  3. Fees paid to a firm for work performed by employees and independent contractors who are “full-time staff equivalent.”
    Interior design fees do not include revenues paid to a firm and remitted to subcontractors who are not considered full-time staff equivalent. For example, certain firms attract work that is sub­contracted to a local firm. The originating firm may collect all the fees and retain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Ties are broken by the dollar value of products installed. Where applicable, all percentages are based on responding Giants, not their total number. The data was compiled and analyzed by Interior Design and ThinkLab, the research division of Sandow Design Group.

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Interior Design Unveils the 2021 Hospitality Giants https://interiordesign.net/research/hospitality-giants-2021/ Wed, 17 Nov 2021 20:56:08 +0000 https://interiordesign.net/?post_type=id_research&p=190223 Interior Design announces top 75 hospitality giants of 2021.

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Hospitality Giants 2021

If we have one mission in our yearly report on the Interior Design Hospitality Giants—the top 75 firms specializing in the sector—it’s to get the bad news out of the way first. So let’s talk about what you already suspect. In the previous 12 months, the Hospitality Giants tallied $576 million in total fees, down from $1.16 billion the previous year. The number for next year is similar, with the 2022 forecast coming in at $572 million. This moderate drop mirrors the forecast from the Top 100 Giants earlier this year. What parts of the overall business took the biggest hits? Well, pretty much everything. The actual allocation of work across sectors didn’t fluctuate—but they all went down. Hotels remain the linchpin of the group’s business, bringing in 57 percent of all fees. Luxury hotels make up half of the hotel business ($174 million), with boutique, mid/economy, and micro hotels bringing in the rest. The other sectors are small yet significant by comparison. Resorts make up 10 percent of total fees ($56 million), while multiuse, restaurants, bars/lounges, gaming, condos, cruise ships, spas, and country clubs all bring in single-digit slices of income that adds up to roughly $190 million. Every dollar counts in a year like this.

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#52

CHIL Interior Design

Project: Vue

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#4

Gensler

Project: Hotel San Luis Obispo

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#50

Elkus Manfredi Architects

Project: White Elephant Palm Beach Hotel

Ranking

wdt_ID 2021 Rank Firm HQ Location Website Hospitality Fees (millions) Value Installed (millions) Sq. Ft. Installed (millions) Design staff 2020 rank
1 1 Hirsch Bedner Associates (HBA) Santa Monica, CA hba.com 111.00 6,975.00 1,480 2
2 2 Gold Mantis Suzhou City, China goldmantis.com 37.40 748.50 35.60 1,651
3 3 Wilson Associates Dallas, TX wilsonassociates.com 33.30 178 7
4 4 Gensler San Francisco, CA gensler.com 28.30 2,643 4
5 5 ForrestPerkins/Perkins Eastman New York, NY perkinseastman.com 25.40 291 9
6 6 Wimberly Interiors New York, NY wimberlyinteriors.com 16.90 86 19
7 7 Yabu Pushelberg New York, NY yabupushelberg.com 16.60 1.20 71 24
8 8 DLR Group Minneapolis, MN dlrgroup.com 12.60 43.20 110 23
9 9 The Gettys Group Chicago, IL gettys.com 12.20 175.00 50 16
10 10 HOK St. Louis, MO hok.com 12.00 783.00 8.80 296 10

The nature of the Hospitality Giants’ business is revealed in the numbers, as well. While fee totals dropped, total jobs also fell but not as much. These Giants worked 4,742 jobs in 2020, a drop of only 150 from 2019. They expect that number to fall a bit more in 2021. Also notable are the profit margins of certain categories. Hotels make up 39 percent of job volume and bring in 58 percent of fees, while restaurants make up 19 percent of jobs and 7 percent of fees. Square footage also shines a light on business. The Hospitality Giants worked on 149 million square feet, down from 263 million in 2019. That’s the second lowest total since we expanded to 75 firms on the list in 2007. (These numbers have not been seen in survey respondents since 2010, when a volcanic eruption in Iceland disrupted flights for many months and an earthquake devastated Haiti—events that impacted consumer air travel and subsequent use of business in the hospitality industry, just as the COVID-19 pandemic has.) The breakdown between new projects, renovations, and refreshes has also shifted to 47, 46, and 7 percent, respectively. On a positive note is the renovations figure, which, in 2019, accounted for only 42 percent of work. It’s an upside to the low consumer numbers: Clients were able to perform renovations that are difficult to accomplish without major disruption to day-to-day business.

One bit of bedrock in all this data is furniture & fixtures/construction products. The Hospitality Giants saw an 11 percent drop to $17.2 billion here, with a forecast of $17.6 billion in 2021. While this is technically the lowest total since 2012, this number has shown resilience over the years. Since 2013, it’s hovered between $18 and 20 billion annually, with the exception of an outlier $23.7 billion in 2018. To boot, the 62/38 construction products-to-F&F ratio hasn’t budged much in the past five years.

As for where all this work is happening, 2020 saw not so much a negative shift but more a return to normal. The percentage of Hospitality Giants who work outside the U.S. rose significantly from 15 percent in 2019 to 24 percent in 2020. That seems notable on the surface, however international work rates have traditionally hovered around that 25 percent park for the past decade. It seems likely that, rather than 2020 events having a marked effect on the number of overseas projects, 2019 simply saw an abnormally low percentage. About two-thirds of firms doing international work did it in Asia and the Pacific Rim, while half were in the Caribbean and Europe. About a third went to Canada and Mexico. A little more than half of these Giants think international work will grow in general, with the Middle East and Asia being the most likely hot spots.

“There are reasons to be optimistic”

But as usual, the U.S. is where they believe the real action will be, particularly the Northeast, Southeast, and Southwest. Particularly interesting perhaps is the Hospitality Giants seeing potential in U.S. regions that remain hardest hit by the pandemic.

The main question when news like this drops is: What will next year bring? Or as one rep from Looney & Associates comments, “Who has the crystal ball?” One thing that at least seems certain is the Hospitality Giants don’t see any one sector suddenly breaking out and riding to the economic rescue. They forecast no real change in the allocation of their business sectors. There’s also very little agreement between firms on what will happen with project counts across specific segments in the coming year, particularly with regard to hotels and restaurants/bars/lounges/nightclubs, which are almost evenly split between predictions of more, fewer, or no change in project numbers. Even the highest agreement—that resorts/spas/country clubs will see no change—is agreed on by fewer than half of firms. This paints a vivid picture of the way 2020 unsettled the hospitality industry’s assumptions and expectations.

But there is a bright spot: in the multiuse category. It more than doubled its 2019 predictions in 2020 and is predicted to rise by 10 percent in 2021. For more optimism, we look beyond the Hospitality Giants data. First, vaccines. As of this writing, 56 percent of the U.S. population is fully vaccinated. That’s not anywhere near herd immunity, but two of the biggest travel and hospitality hubs—California and New York—have vaccination rates of 59 and 64 percent, respectively. Even 58 percent of Florida’s population has been fully vaccinated, slightly higher than the national rate. And vaccine manufacturers are on the verge of seeking Emergency Use Authorization for children under age 12. We are slowly creeping toward more normal living.

Another good sign: Travel rates are climbing. HospitalityNet.org reports that U.S. hotels outside the largest 25 markets are approaching pre-pandemic occupancy levels, and small town and interstate hotels now have higher occupancy rates than 2019. Air travel has rebounded as well: The TSA states that the number of passengers passing through airport security now routinely hits over 2 million per day; that number never cracked 1.5 million between January and April 2021.

Hospitality Giants Graphic

As for future business, there are good signs there too. For the Hospitality Giants surveyed about “clients appetite for investment in design services,” when specifically asked about hospitality work, 36 percent said clients were eager. What post-COVID investment will come will most likely hinge on health and wellness design trends. “Designing for sustainability and wellness is not optional anymore,” Elkus Manfredi Architects principal Elizabeth Lowrey says. “We’ve been weaving it into every aspect, not only because our clients are asking for these features but also because it’s a moral imperative to create healthy and inclusive environments for our collective well-being.” A Wimberly Interiors rep adds, “The pandemic has provided society an opportunity to once again reprioritize balance in our lives. Likewise, this time of crisis has made us keenly aware of the need to do more with less and our responsibility for our solutions to be resilient for generations to come.”

If what we saw in 2020 is the worst of the COVID-related business downturn, we can consider ourselves lucky. Next year’s data will be critical in assessing longer-term business prospects. For now, there are reasons to be cautious but also reasons to be optimistic. Fortunately, few people go broke being cautiously optimistic.

Market Share by Project Category

“Sustainability will not just be a requirement. It will be a baseline.” — Staci Patton, DLR Group

Global Growth Potential for Next 2 Years: International

Global Growth Potential for Next 2 Years: U.S.

“We’ve been able to innovate out of this in ways we never thought possible. And our clients are more open to adopting ideas that push the limits stylistically.” — Lexie Aliotti, AvroKO

Firms With Largest Increase in Fees

“Beyond the narrative of reflecting locale, hotels can create a distinct regional experience that the community can participate in.” — Anna Kreyling, Baskervill

Fee by Project Segment

“Resort stays will become fully transformative experiences. The focus on seamlessly connecting outdoor/indoor spaces and customized activities will be further enhanced as guests utilize new technology to build virtual and real relationships with their destinations.” — Ryan Schommer, Gettys Group

During the next 2 years, does your firm expect to see more or fewer project activity in these hospitality segments?

wdt_ID Segment More Projects No Change Fewer Projects N/A
1 Hotels (luxury) 29 32 28 11
2 Hotels (boutique) 43 26 2 11
3 Hotels (mid/economy) 31 3 23 16
4 Micro hotels 12 24 2 43
5 Condo-hotels/Timeshare 19 27 15 39
6 Multi-use (hospitality/retail/residential) 43 27 11 19
7 Restaurants/Bars/Lounges/Night clubs 32 27 28 13
8 Resorts/Spas/Country Clubs 24 46 14 16
9 Gaming 23 25 15 37
10 Cruise ships 4 2 23 53
11 Other* 22 22 11 44

“To be on-site again is great—both revitalizing and challenging.” — Christy Coleman, Leo A Daly

Methodology

The annual business survey of Interior Design Hospitality Giants ranks the largest design firms by hospitality design fees for the 12-month period from January 1, 2020 through December 31, 2020. Hospitality design fees include those attributed to:

  1. All hospitality interiors work.
  2. All aspects of a firm’s hospitality design practice, from strategic planning and programming to design and project management.
  3. Fees paid to a firm for work performed by employees and independent contractors who are full-time staff equivalent.

Hospitality design fees do not include revenues paid to a firm and remitted to subcontractors that are not considered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and retain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. Additionally, where applicable, all percentages are based on responding hospitality Giants, not their total number. The data was compiled and analyzed by Interior Design and ThinkLab.

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