1

State of the Giants: Defining Opportunities Today

Mark Strauss President, Interior Design Media

2

5 Reasons To Be Cheerful...EconomyEducationEnergyHealthcareInnovation

3

So, How Are We?More Informed?More Confused?More Anxious?

4

Technology Has Changed... EvERyTHinG The 8000 lb. Silicon Chip in the Room!

5

Faster...RFIDCloud3D PrintingSocial MediaMiniaturizationInternet of ThingsHuman Augmentationetc, etc.

6

information Technology is Making Us Crazy!

SPEED DISTRACTIon TASk fREnzy

7

in Business Our ‘Covey Quadrants’ Are now Cloudy!

1

Important/Urgent

Urgent/ Not

Important

Important/Not

Urgent

Not Urgent/ Not

Important

3

2 4

Urgent not Urgentno

t im

port

ant

impo

rtan

t

8

A Personal Plan To Being Human in a Digital AgeTalk WalkListenBreatheRefocusSet RulesHug TreesExperiment

9

Where is the opportunity?

10

new Construction Forecast

2011 Actual +/- %

2012 Actual +/- %

2013 Forecast

+/- %

2014 Forecast

+/- %

2015 Forecast

+/- %

Office -8.2 6.7 -1.4 9.5 5.9

Healthcare +.20 4.0 1.7 7.7 11.7

Education -4.0 -0.4 -6.0 4.8 4.0

Source: RCD, AIA Consensus, Commerce

11

inventory (sf*) yTD Total net Absorption (sf*)

Houston 152.084 4.518

new york 444.228 4.279

Dallas 160.254 2.991

Seattle-Bellevue 88.460 2.586

Atlanta 133.567 1.904

Silicon valley 61.718 1.868

Sacramento 44.377 1.589

Denver 113.577 1.518

San Francisco 74.550 1.400

Charlotte 46.702 1.304

Philadelphia 142.536 1.101

Orange County 93.117 1.042

Phoenix 73.633 0.999

Portland 58.107 0.990

new Jersey 159.474 0.919

San Diego 77.973 0.822

Raleigh-Durham 42.457 0.816

Boston 159.581 0.759

Detroit 59.997 0.751

Chicago 235.143 0.741

Austin 46.011 0.702

Top 20 totals 2,421.534 32.898

United States totals 3,774.527 40.003

% of top 20 totals 64% 82%

U.S. Office inventory & AbsorptionMarket totals (CBD and Suburban)

* sf in millionsSource: Jones Lang LaSalle 2013 U.S. Office Statistics

12

U.S. new Office Construction/RenovationMarket totals (CBD and Suburban)

Under Constuction / Renovation (sf*)

Houston 6.779

new york 5.457

Washington, DC 4.474

Dallas 4.278

Boston 3.881

Silicon valley 2.830

San Francisco 2.422

Austin 1.522

Pittsburgh 1.466

new Jersey 1.380

Seattle-Bellevue 1.291

Denver 1.274

Orange County 1.259

Los Angeles 1.100

Philadelphia 1.077

Chicago 0.861

Baltimore 0.663

Cincinnati 0.636

Atlanta 0.612

Phoenix 0.566

Top 20 totals 43.829

United States totals 47.258

% of top 20 totals 93%

* sf in millionsSource: Jones Lang LaSalle 2013 U.S. Office Statistics

13

Top 10 White Collar Employment Growth %

1 Houston

2 Austin

3 new york

4 Washington metro

5 nashville-Davidson metro

6 Denver

7 San Antonio

8 Boston

9 San Fransisco

10 Dallas/Ft. Worth

14

2014 Hotel industry Growth

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

National

Economy

Midscale

Upper Midscale

Upscale

Upper Upscale

Luxury

Independent

Supply Demand Occupancy

15

2014 Room Construction Growth Top 10Austinnew yorkPittsburghDenverSan Jose, CAMiamiDCPhiladelphiaSeattleHouston

16

2014

14,000+ Design Professionals

+ / - 35% of Market

40,000+ Reported Projects

2014 Top 100 Design Giants2014 Top 100 Giants

17

2014 Top 100 Giants Analysis - Segments

Design Fees Breakdown by Market Segments

2013 Giants (2014 Forecast)

2013 Giants (2012 Actual)

2012 Giants (2011 Actual)

2011 Giants (2010 Actual)

Corporate office $921 $924 $890 $860

Hospitality $535 $474 $394 $375

Healthcare $379 $378 $351 $284

Government $201 $202 $246 $168

Retail $207 $185 $148 $154

18

Top 25 Firms by nominal Growth

Overall Rank

1 Gensler

2 Jacobs

4 HBA

6 Callison

7 iA interior Architects

9 Leo A Daly

11 Skidmore, Owings & Merrill

12 HKS

13 nelson

16 CCD/Cheng Chung Design (HK)

19 Perkins Eastman

20 M Moser Associates

26 TPG Architecture

Overall Rank

30 Flad Architects

31 ZGF Architects

32 Ted Moudis Associates

34 vocon

35 vOA Associates

38 FRCH Design Worldwide

41 Little

44 HMC Architects

46 CDC Designs

53 RSP Architects

54 PDR

69 Sargenti Architects

19

Top 25 Firms by % Growth

Overall Rank

54 PDR

66 LS3P Associates

68 Robert A.M. Stern Architects

69 Sargenti Architects

70 Wimberly interiors (a design studio of WATG)

71 Shlemmer Algaze Associates

76 Steelman Partners

81 ADD

89 Chute Gerdeman

90 BBG-BBGM

95 Anderson Mikos Architects

99 Margulies Perruzzi Architects

Overall Rank

6 Callison

7 iA interior Architects

11 Skidmore, Owings & Merrill

12 HKS

20 M Moser Associates

34 vocon

35 vOA Associates

38 FRCH Design Worldwide

41 Little

44 HMC Architects

46 CDC Designs

52 Ware Malcomb

53 RSP Architects

20

2014 Top 100 Giants HospitalityHBAGenslerWilson AssociatesCCD/Cheng Chung Design (Hk)Bilkey Llinas DesignLeo A DalyRockwell GroupCallisonDaroff Design/DDI Architectsyabu PushelbergDiLeonardo InternationalWimberly Interiors (a design studio of WATG)

Stonehill & Taylor ArchitectsGettysVoconSteelman PartnersRebel Design+GroupHkSVoA AssociatesBBG-BBGMfRCH Design WorldwideAvroko DesignPerkins+WillknA DesignSkidmore, owings & Merrill

21

Top Office GiantsGenslerJacobsIA Interior ArchitectsHoknelsonPerkins+WillM Moser AssociatesSkidmore, owings & MerrillTed Moudis AssociatesStantec ArchitectureHLW InternationalTPG ArchitectureCannon DesignSpace MatrixSTUDIoS ArchitectureVoconnBBJPDRASDCallisonLeo A DalyVoA AssociatesCorgan AssociateszGf ArchitectsRapt Studio

22

“Office Design Solutions”

Café/Lounge/Break Areas 74%

Space for Collaborating/impromptu interaction 72%

Access to Daylight and views 71%

Workplace Comfort 57%

Acoustic/Sound Proofing 59%

Easy Access to Communication Technology 54%

Space for Remote/visiting Staff 53%

Space for Undistracted or Quiet Work 52%

Private/Semi-Private Offices 49%

Sustainable Environment 41%

23

Perkins+WillHkSPerkins EastmannBBJAECoMCannon DesignStantec ArchitectureHDR ArchitectureLeo A DalySmithGroupJJRHokEwingColeHGA Architects and EngineersCallisonPageHMC Architectsflad ArchitectsfkP ArchitectsGenslerShepley BulfinchzGf ArchitectsAnderson Mikos ArchitectsArray ArchitectsGresham, Smith and PartnersSkidmore, owings & Merrill

Top Healthcare Giants

24

GenslerCannon DesignDLR GroupStantec ArchitecturePerkins+WillHokShepley BulfinchSmithGroupJJRflad ArchitectsHMC ArchitectsPerkins EastmanHLW InternationalHGA Architects and EngineersPageLeo A DalyHDR ArchitectureCorgan AssociatesSTUDIoS ArchitectureLS3P AssociateszGf ArchitectsLittleRobert A.M. Stern ArchitectsEwingColeHkSnBBJ

Top Education Giants

25

Hope you enjoyed this glimpse into what’s happening in our GiAnT world. We’re looking forward to feeling connected and inspired together in a few short weeks.

Mark StraussMStrauss@InteriorDesign.NetFollow me: @markastrauss