Metro Vancouver’s largest interior design firms are anticipating a new cycle of business growth over the next few years from several new office towers being built in the region.
Some of the most notable new office buildings redefining downtown Vancouver’s skyline include:
Telus Gardens: a $750 million development that includes a 22-storey office tower and 44-storey residential tower developed by Westbank Projects Corp.;
1021 West Hastings Street: Oxford Properties’ 35-storey office tower; and
745 Thurlow Street: Bentall Kennedy’s 25-storey office tower.
In November, Ivanhoe Cambridge also announced that it was resuming construction this month on Metrotower III, a 29-storey office tower in Burnaby’s Metrotown area. Construction had begun in late 2008, but was suspended a year later as city office vacancy rates rose following the global economic tailspin. The building is now scheduled for completion in April 2014.
The more than 1.5 million square feet of commercial space being added to the market by those four buildings alone will lead to significant office moves, which will in turn generate business for interior design firms.
Susi Krauss, principal at Ashley-Pryce Interior Designers Inc., said the interior design business is cyclical.
“We’re looking at 2013 to be quite the up-cycle with those new buildings coming on stream.”
As budgets for renovations or expansions have either been cut or eliminated over the past few years, the market for the Lower Mainland’s largest interior design firms has become increasingly competitive.
According to historical data from Business in Vancouver’s list of the biggest interior design firms in Metro Vancouver, staff numbers at the 25 largest firms have not recovered from their peak in 2006.
“Because everybody is pretty hungry, it’s a pretty aggressive marketplace,” said Janice Hicks, a senior associate at Stantec. “We’re busy. It just continues to be a very tight market. Everybody is still a bit cautious with things.”
Lori Billson, principal at Omicron, also noted that clients are taking more time to scrutinize proposals and looking for cost certainty earlier in the process than before.
“We think it’s driven by the economy and the new marketplace that’s out there.”
Krauss said budget cuts and scrutiny have also increased at all levels of government. That has resulted in fewer, smaller or internally funded projects.
While the market remains below peak levels, many in the industry agree that B.C.’s diversified economy has helped keep the region’s design industry relatively stable.
“We all read the doom and gloom, but I think we’ve managed in this city to broaden everything so we’re not relying strictly on the forest industry,” said Brian Carroll, principal at Counterpoint Interiors Inc. “We’ve been able to broaden out to the engineering, mining, high tech, all different areas, so that’s helped us out.”
Industry insiders expect the market to remain competitive in 2012 as economic uncertainty persists.
“We can only ever look out three months ahead in our business,” said Billson. “We have a number of irons in the fire, but it still seems to take a lot of work to get a job and a lot of work to do the job in this day and age.” •
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