Front exterior view of Portland on the Park
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 incr …
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