The value of good design:
This article draws insights from "The Routledge Companion to Real Estate Development", a comprehensive examination of contemporary real estate development edited by Graham Squires, Erwin Heurkens, and Richard Peiser. Specifically, the article builds upon chapters by Peter Hendee Brown on "Actor perceptions of good design for real estate development" and Bing Wang's framework for "The design of real estate."
The increasing standardization of our built environment presents both a challenge and an opportunity in real estate development. As cities around the world begin to look increasingly alike, with similar glass office towers and retail centers that could exist anywhere, forward-thinking developers are discovering that thoughtful, distinctive design can create substantial value while contributing meaningfully to the urban fabric.
Let's examine how innovative developers are using design to differentiate their projects and create lasting value, drawing insights from both historical successes and contemporary examples.
Real estate development has traditionally followed standardized formulas to minimize risk and maximize efficiency. However, as competition increases and consumers become more discerning, the ability to create unique, context-sensitive projects has become increasingly valuable. As architectural historian Peter Hendee Brown notes, "Good design increases the economic value of a real estate development project and its intrinsic value to the community." This dual benefit - enhancing both financial returns and public good - makes design an especially powerful tool for developers.
Consider the case of 1111 Lincoln Road in Miami Beach. When developer Robert Wennett approached this project, he could have built a conventional parking structure. Instead, by reimagining what a garage could be - incorporating retail spaces, a penthouse apartment, and dramatic event venues - he created what researcher Bing Wang calls a "design-driven, experience-based venue." The result was remarkable: retail spaces commanded rents triple the projected rates, even during an economic downturn. This success demonstrates how innovative design thinking can transform even the most utilitarian building types into valuable assets.
Creating a distinctive design approach requires careful consideration of several key elements:
Successful signature design begins with deep understanding of place. The Alexander Construction Company demonstrated this principle beautifully in their Palm Springs developments of the 1950s and 60s.
Rather than imposing a predetermined style, they studied the local climate, landscape, and lifestyle to create modernist homes that were both innovative and appropriate to their setting. Their success came from adapting high-design concepts to be both accessible and climatically responsive.
Distinguished developers look beyond conventional building programs to imagine new possibilities. Gerald Hines exemplified this approach when he insisted on including an ice skating rink in Houston's Galleria mall - a decision his own architect initially opposed.
This unexpected amenity became a powerful draw that increased visibility for lower-level retailers and dramatically improved the project's overall performance. Such programmatic creativity can transform standard building types into unique destinations.
The John Lewis department store development in Leicester, UK, designed by Farshid Moussavi exemplifies how material identity can create distinctive value. As Wang describes in her analysis, the building's facade uses four layers of glass panels with a decorative pattern that references the city's textile heritage.
This thoughtful approach created multiple benefits: the pattern provides visual interest from the exterior while allowing natural light and views from the interior, and it connects the building to local history while creating a contemporary aesthetic. The facade design became a signature element that transformed what could have been a typical department store into a memorable architectural landmark.
Carmel Place in New York City, by nARCHITECTS demonstrates how innovative implementation strategies can enable distinctive design. The project pioneered the use of modular construction for multi-unit housing in Manhattan, with 55 residential micro-units created from self-supporting steel-framed modules.
The design and production were highly coordinated around an 11-foot grid module that determined everything from furniture dimensions to window heights. This systematic approach allowed the entire above-ground structure to be assembled in just two weeks, proving that construction efficiency and architectural quality aren't mutually exclusive. Through careful planning and execution, the development team delivered innovative housing while managing costs and construction risks effectively.
While some view distinctive design as an unnecessary expense, evidence suggests thoughtful architecture creates substantial economic value through multiple channels:
Market Differentiation: In competitive markets, architectural character helps projects attract discerning tenants and buyers willing to pay premiums for unique spaces. As cities become increasingly standardized, the value of authenticity rises.
As cities grapple with questions of identity and placemaking, developers have an unprecedented opportunity to lead through design excellence. This requires moving beyond viewing architecture as mere packaging and instead embracing it as a core driver of both social and economic value.
The key is finding ways to make signature design commercially viable while avoiding superficial differentiation. As Wang notes, this means expanding "value creation through engagements with a larger scale of urban environments and a longer time frame beyond the mere time span of completion of a development."
By thoughtfully developing their own design approaches - rooted in context, innovative in program, and consistent in execution - developers can create places that both enrich our cities and deliver strong returns. In an era of increasing standardization, the ability to create authentic, differentiated environments through design may become one of the most valuable skills in real estate development.
The most successful developers of the future will likely be those who can balance distinctive design with market realities, creating signature projects that stand out not just for their appearance, but for their ability to create lasting value for both investors and communities. This requires moving beyond short-term thinking to consider how thoughtful design can create enduring assets that appreciate in both economic and social value over time.
