Shaping A City: The Impact Of Commercial Architectural Design
Good architectural design is visually appealing, but its impact extends far beyond aesthetics. A thoughtfully designed building should also serve as a catalyst for economic growth and social transformation, said Mike Krentz, president of DAVIS, a Phoenix-based architecture, interior and urban design firm
“It’s a powerful force that can shape a city’s identity,” Krentz said. “A well-designed project is like a pebble dropped into a pond. It causes ripples radiating outward from the pebble’s impact.”
Think of the Eiffel Tower. A structure that has had immeasurable impact since it was erected in 1889, it is a major direct and indirect driver of tourism revenue. But it is also a global symbol of Paris, all of France and even Europe, inspiring artists, photographers, musicians and filmmakers across the decades, and instantly establishing a sense of place.
Not every building can be as iconic as the Eiffel Tower. Still, commercial architecture should aspire to deliver return on investment, or ROI, not just to its direct financial backers but to a multitude of other stakeholders, said Krentz, whose firm has been at the forefront of development in various Arizona municipalities for more than three decades.
The most direct impact of commercial architectural design is financial — the ROI for the developer that commissioned it, as well as their joint venture partners, investors and lenders.
“Making a design statement is great, but a commercial building must first deliver tangible financial returns,” Krentz said. “The building’s design must align with market demand, translating into high occupancy rates, rental income or a profitable exit for those who conceived it and financed it.”
That said, good design isn’t just a cost. It’s a sound investment in differentiation in a competitive marketplace. Ultimately, well-designed and functioning buildings increase their appeal, leading them to lease and sell for more money, he said.
An example Krentz gave is DAVIS’s Portland on the Park project, a luxury residential development in downtown Phoenix. Oriented to maximize views of the downtown skyline and neighboring Margaret T. Hance Park, the project delivers the experience of urban living in natural surroundings, he said. Developed by Phoenix-based Habitat Metro and Sunbelt Holdings, the project offers residents immediate access to downtown dining, arts, shopping and professional sports.
Beyond a project’s financial performance, good commercial architectural design can boost the values of surrounding buildings, among other benefits.
“If a building stands out and becomes a landmark, it increases the desirability of the entire neighborhood in which it is located,” Krentz said. “High-profile buildings tend to attract high-profile tenants, further boosting the prestige of the immediate vicinity.”
Marina Heights, a five-building mixed-use office and retail campus designed by DAVIS on Tempe Town Lake, in Tempe, Arizona, was built-to-suit for anchor tenant State Farm Insurance. With other DAVIS-designed projects along the lake, it created a cohesive, intentional design while also attracting more wealth to the city.
Community Gathering Spaces
“Great design creates spaces where people want to be, strengthening the social fabric,” Krentz said. “Both ground-up development and adaptive reuse can achieve this purpose.”
The Found:RE hotel in the Roosevelt District is a DAVIS-led adaptive reuse project that both stimulates the local economy and serves as a dynamic cultural center and thriving commercial hub. Old houses and defunct commercial buildings were transformed into offices, shops, bars and art studios in this walkable arts district in downtown Phoenix.
Every ground-up development creates something new, by definition. But good commercial architectural design achieves balance between original creation and continuity, he said.
“We've always prioritized preserving a community's cultural identity,” Krentz said. “As part of our design process, we familiarize ourselves with local heritage to ensure that our designs reflect an area’s character.”
Lessons For Other Firms
Projects that push the envelope of our design knowledge also benefit the architecture firms that take on these assignments. Successfully executed, ambitious projects enhance a firm’s reputation, lead to new business opportunities and allow it to charge higher fees, Krentz said.
“Our client partners look to us for designs that deliver financial returns, but also community impact, and formal recognition and accolades within the industry,” he said. “The most compelling designs — the ones that win awards — are often the result of a high level of trust between the architecture firm and the client.”
That trust leads to repeat business, creating a stable revenue stream for a firm, he said.
Krentz is also confident in the company’s ability to adapt to any challenging project, and said that type of work helps the company continue to evolve.
“The most challenging projects are also the ones that lead us to innovate,” he said. “They also tend to involve collaboration with many partners, consultants and technology providers working in multidisciplinary teams. They present us with the opportunity to grow our portfolio of work, which in turn leads to larger and more prestigious projects.”
The PURE Pickleball & Padel project in Scottsdale, Arizona, showcases the ability of DAVIS to work effectively in complex teams with multiple stakeholders, Krentz said.
Located on an 11-acre site, the project will be one of the largest pickleball facilities in the United States when it opens in 2026 and will collaborate with USA Pickleball to be a host site for the USA Pickleball National Championships.
Sustainability As A Necessity
Given buildings’ impact on the environment, Mother Nature is yet another stakeholder architecture firms must take into consideration when designing commercial projects.
“Sustainability is a necessity,” Krentz said. “Clients, end users, local, national and even international leaders and others in the community are looking for designs that further environmental goals. It’s also the right thing to do.”
DAVIS works with its clients to achieve their sustainability and ESG criteria through techniques such as passive solar orientation, natural ventilation and high-performance insulating materials.
“We design buildings that specify locally sourced, recycled and renewable materials in construction to reduce environmental impact and support local economies whenever possible,” Krentz said. “In the end, it’s all about creating lasting value for all stakeholders involved and demonstrating a commitment to broader societal values. Design matters.”
This article was produced in collaboration between Studio B and DAVIS. Bisnow news staff was not involved in the production of this content.
Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.
