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BUILDING CHICAGOLAND

CREATING THE FUTURE OF THE CITY AND BEYOND As the COVID pandemic moved through America this year, demand for offices, malls and hotels slowed while housing demand surged. Surveys predict a continuing downturn in commercial and public building along with near-record levels of housing starts. Amidst this changing environment, three Chicago-area architecture, engineering and construction industry executives shared their insights with Crain’s Content Studio.

Please describe your organization’s role in building Chicagoland.

Morris Gershengorin: Real Restoration has the ability to take on any project, large or small, within various sectors including multifamily, residential, commercial, restoration, hospitality and beyond. We’ve worked on thousands of properties throughout Chicagoland. We’ve built new homes, restored homes—from fire, wind, mold and water damage— and otherwise remodeled homes all over the area. Likewise, we’ve built or rebuilt offices, restaurants, retail centers, nightclubs, industrial parks and countless other property types.

Our goal is to provide a level of unmatched service and quality.

Trina Sandschafer: Kahler Slater designs the places where people live, work, learn and play. As architects and designers, we collaborate with clients to achieve their strategic goals. We are committed to engaging conversation and reimaging what is possible in every project that we influence. Our team includes experts in residential, hospitality, corporate, health care, higher education, sports and wellness, and environmental branding. Leveraging our multidisciplinary expertise provides a meaningful advantage as we shape the future of our city.

Pierre Cowart: Leopardo has been headquartered and building here for more than 40 years, so our roots go deep. We’re proud to help shape the communities we live and work in— whether it be building new affordable housing, a corporate office, health care facility, school or municipal building. We’ve been partners in growth both locally and nationally with many great clients. We like to think we really help Chicagoland prosper through our projects.

What challenges have you faced this year, as result of the pandemic or other, and how did you deal with them?

Cowart: A different challenge for our industry, and one that I’m proud to say we mitigated early on, was the disruption to the supply chain that many are struggling with today. Our in-house director of procurement helped us navigate this proactively by reaching out to suppliers as soon as we were aware of the pandemic, to minimize disruptions.

Sandschafer: We launched our Chicago Studio in January of 2020.

We remain focused on our long-term goals and actively seek the opportunity this year has provided. The pandemic has proven that diverse teams can be assembled from multiple locations to deliver powerful results. Through our commitment to listening and open communication, we discovered new ways to leverage technology and support our clients. Early in the pandemic, we realized this year would bring a shift in every segment that we serve. Our clients require creative new solutions, which has allowed our thought leadership to blossom.

Gershengorin: Some of the biggest challenges we faced were keeping our supply lines open, preventing material delays and dealing with vendors that were temporarily closed.

This forced us to constantly shift our project timelines, making sure that our employees worked remotely while remaining safe. We instituted a new COVID-19 work schedule without disrupting existing projects.

It balanced increased family demands with e-learning while maintaining and leading the organization through these unprecedented times.

What strategies have you implemented as an organization to prepare for continued success during this time?

Sandschafer: We are exploring new ways of thinking for ourselves and our clients, who expect us to ask thought-provoking questions and provide innovative ideas. As a firm, we are doubling down on our

“WE’VE INVESTED IN MANY NEW SOFTWARE PLATFORMS TO MONITOR MATERIAL COSTS, PLAN PROJECTS, CONDUCT TRAINING AND REDUCE ATTRITION . . .”

— MORRIS GERSHENGORIN, REAL RESTORATION GROUP

PIERRE COWART

Executive Vice President Leopardo Companies pccowart@leopardo.com 847-783-3000

commitment to sustainability— we recognize that it is time to move boldly forward. We see the increased need for wellness across the places we design—all people interact with the built environment,

MORRIS GERSHENGORIN President Real Restoration Group morris@realrestore.com 847-338-5047

and that engagement should be positive. As we build our teams, we continue to seek ways to include diverse voices in the conversation, recognizing that a rich dialog supports better outcomes.

TRINA SANDSCHAFER

Design Principal, Vice President Kahler Slater tsandschafer@kahlerslater.com 312-789-4516

Gershengorin: Adapting our employees’ skills and roles to the postpandemic ways of working has been crucial to building operating-model resilience. We’ve crafted ongoing training that develops employees’

BUILDING CHICAGOLAND

CREATING THE FUTURE OF THE CITY AND BEYOND critical cognitive capabilities, their social and emotional skills, and their adaptability and resilience. We’ve doubled down on reinvesting in development and commitment to reskilling. We believe developing this muscle and acute awareness strengthens our company’s growth for future disruptions.

Cowart: Project diversity is one of our biggest strengths—our resume and expertise spans every major sector. We’re also expanding geographically, following our clients versus placing pins on a map and trying to break in. We’re focusing more in the federal, life sciences and senior living markets, and also leveraging our division that’s working with municipalities all over the Midwest to help upgrade their facilities to be energy efficient. The municipalities then use those savings to fund other projects without any capital investment.

How has technology helped you throughout the pandemic, and what role will it likely play in the future?

Gershengorin: We’ve invested in many new software platforms to monitor material costs, plan projects, conduct training and reduce attrition among our team. The increased efficiency has allowed us to invest more in our people, and will have a continuing role as we aim to continually improve our service and workforce.

Cowart: We’ve expanded the use of our communications and project management tools across the company and all its functions.

We’ve also been experimenting with virtual pull-planning, remote safety inspections and field verifications for estimates. Although they’re works in progress, there certainly are opportunities for these systems going

“. . . WE SEE THE NEED FOR HOUSING THAT CONCURRENTLY SUPPORTS LIVE, WORK, LEARN AND PLAY.” — TRINA SANDSCHAFER, KAHLER SLATER

forward, especially for out-of-town clients.

the very detailed and ever-changing health guidelines for our industry.

Sandschafer: Since much of our creative energy comes from conversation and interactions in the office, we continued team and firm meetings in a virtual format. Hosting digital roundtables has allowed for natural collaboration between our teams and has also benefitted our clients. We deliver projects in 3D and are now leveraging virtual reality, which allows our clients to see in real time what we see as designers.

This technology will reinvent the way our teams, clients, and industry collaborate moving forward.

Gershengorin: We’ve instituted work-from-home policies, and redesigned our office to accommodate social distancing with sanitization stations to maintain safety for all.

Staff, clients and management have adapted, and it’s allowed people to spend more time with their loved ones while maintaining a healthy work-life balance.

Has your work environment changed?

Cowart: The biggest changes have been in the field at our project locations, where sanitation, screening and cleaning have been put front and center. I have to say, our entire field team has truly gone above and beyond during this time. A lot of effort has also gone into training and communication so that the subcontractors we work with follow all the guidelines and procedures.

Having in-house expertise with our vice president of safety has been invaluable and allows us to follow

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Sandschafer: We have shifted to a remote or hybrid work environment and are actively supporting our team and clients in this model. As architects, we are thinking critically about the future of work, and expect that a hybrid work model will be here to stay. Like other forward-thinking companies, we are looking for ways to align our brand with our space.

Our offices and studios are places for collaboration and teamwork, with areas for focus and individual work, be it virtual or in-person. We are investing in our offices nationwide to support this new model.

Are there opportunities you’re currently seeing in Chicago and the metro area?

Cowart: Yes! The first is growth in life sciences. This isn’t related to the pandemic—it just appears to be growing in our backyard. With our amazing universities and hospitals, Chicago is a natural destination for this market. This is good for Leopardo in that we have a strong resume of lab, research and testing facilities. Our health care, corporate and industrial clients have all benefited from our specialized expertise in this area. The second is decommissioning, and this is a direct result of the pandemic.

As businesses downsize or even just rearrange spaces to better facilitate social distancing, furniture and office cubicles need to be removed. With our in-house tradespeople, we quickly disassemble and remove these items.

Instead of taking them to a landfill, we utilize an alliance partnership to donate the materials to nonprofits or other community groups to get repurposed.

Sandschafer: In Chicago and beyond, we see the need for housing that concurrently supports live, work, learn and play. This is a need in both the city and the suburbs, and across all price points. Where people live and where people work are closely related—this will continue as we see the shift to hybrid work.

People can choose their location and the municipalities that cater to this will prosper. We especially see opportunities in transit-oriented districts and downtowns of all scales.

A strength in this market will be adaptive reuse. There is considerable

building stock available. Those companies and communities that can breathe creative new life into their existing buildings will be wellpositioned.

Gershengorin: We see many opportunities, but each project we look at now has a good amount of commercial data to drive calculated objectives. There’s a great opportunity to help organizations and institutions alike create new jobs and develop stronger workforces from a talent pool that may have been previously furloughed or laid off due to the pandemic. There’s still much ahead, so check back with us.

What would you like to see the City of Chicago do to encourage construction and development?

Gershengorin: We’d like to see the city create more attractions for tourism and make a consolidated effort to restore commercial business to create good affordable housing and generate more construction and development projects.

Cowart: We’re always looking for ways to partner with the city and surrounding communities to make development and construction a more streamlined process for all participants. We’d like to see Chicago not only maintain its LEED leadership status, but also cast its net wider into the broader world of healthy and high-performance buildings, including encouraging netzero energy projects.

Sandschafer: We would like to see incentives for green space and sustainable features in each development. We need to understand that as a city, we must prioritize housing and incentivize housing that works for all. The pandemic has shown how closely tied housing is to childcare and education; we need a multi-disciplined approach to better serve Chicago.

Is your organization planning any post-pandemic pivots?

Gershengorin: At the current moment we’re focusing on organic growth and reinvestment in our staff. With the pandemic creating so many question marks, including not knowing when it will truly be over, it’s important for us as an organization to stay in the moment and pivot in real time.

Cowart: We expect to keep growing geographically, and are putting more energy into chasing work with existing clients that have a strong presence in other parts of the country.

We’re also exploring new markets, trying to build on some niche sectors

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ABOUT THE PANELISTS “EVERYONE EXPECTS TO WORK, EAT, SHOP, EXERCISE AND SOCIALIZE WITHOUT NEEDING TO LEAVE THE BUILDING THEY’RE IN.” — PIERRE COWART, LEOPARDO COMPANIES

like federal, job order contracting and life sciences, where we already have experience. Leopardo is also doubling down on health care and senior living.

We think of all this as more recession hedges versus specifically postpandemic plays, as we were already pursuing these initiatives.

Sandschafer: Rather than a pivot, we are editing—actively cutting out distractions to move boldly forward.

We are increasing our commitment to innovation, investigation and rigor. As critical thinkers, we are reimagining the paradigm shifts in the future of work and the future of housing.

Internally, we are supporting the growth and intellect of our team and investing in virtual tools. The health of our planet, the wellness of people and the diversity of our team are causes we champion.

How will residential and commercial amenities likely shift as we continue to build Chicago?

Sandschafer: Both residential and commercial projects will see demand for flexible spaces that can accommodate a variety of needs. Access to green space will be expanded as we push the connection to outdoors to support mental and physical health. Expect to see private, reservable rooms in both sectors that support virtual meetings. A renewed focus will be placed on improved acoustics and human-centered lighting. As we move to a hybrid work situation, our work environment will likely become more comfortable and our home environment will better support work. We will see hospitality features with concierge-level services at home and work. Both residential and commercial amenities must adapt to support users as they move between work and home.

Cowart: Everyone expects to work, eat, shop, exercise and socialize without needing to leave the building they’re in. This applies to both the buildings they live in and work in.

Similarly, there’s also a movement coming from an environmental or social direction that wants more shared amenity spaces. Residents/ tenants are increasingly willing to have their work or home footprint smaller as a result. There are also those who simply see the bottom line and realize they can have more small units in a building and therefore collect more rent, if they have

attractive shared amenity spaces as part of the package.

Gershengorin: Both residential and commercial amenities alike will need to be reexamined with new design standards in mind. For example, amenities will need to provide for proper social distancing and innovative construction materials, such as antimicrobial surfaces, will need to be considered.

Looking ahead to next year and beyond, how do you see your organization impacting the future of building Chicagoland?

Sandschafer: We are building a dream team of creative thinkers and problem solvers in Chicago and across the country. By having impactful conversations with our development, engineering and construction partners, we champion new ideas. Our design decisions are strengthened by data and deliver powerful results. This moment is our call to action—to boldly write a new post-COVID narrative.

Gershengorin: We’re planning now for low-probability but highimpact long-term trends. For starters, we’re rethinking the nature of our work to identify what should go on as before and what can be reimagined to achieve long-term sustainability for the community.

As always, discovering new creative ways to invest in our communities remains top-of-mind. We aim to make a difference in the community, both directly and indirectly, by supporting partners such as The Impact Project, a nonprofit that provides resources, mentorship and guidance to residents of underserved communities.

Cowart: Our backlog is as strong as it’s ever been and we’re laserfocused on growth. We review our business plan every year, but this year seems more critical as a few markets like retail, hospitality and spec office might take a few years to regain footing locally.

We’ve also conducted detailed scenario planning to pivot to a post-pandemic world. At the end of the day, we’re huge believers in the resiliency of the Chicagoland area. Besides, as one of our favorite adages go, the road to success is always under construction.

PIERRE COWART is executive vice president of Leopardo Companies, a 43-year-old construction company with offices in Hoffman Estates and Chicago. A 25-year Leopardo veteran, he manages more than 200 field and office professionals nationwide. Previously, he oversaw strategy and operations of the company’s corporate/community business unit, which included residential, office, retail, industrial and local public sector clientele. He holds a bachelor’s degree in architectural studies, and master’s degrees in architecture and civil engineering—all from the University of Illinois at Urbana-Champaign.

MORRIS GERSHENGORIN is president of Real Restoration Group, a full-service, Chicago-based firm with decades of experience in all aspects of construction and restoration. He has a track record of success for meeting and exceeding clients’ expectations, and has been recognized for his work developing multi-family buildings and restoring properties across a wide variety of asset classes. He has spearheaded numerous emergency-relief projects and supports various charities, including the Friends of Refugees of Eastern Europe (FREE), where he serves as a board member.

TRINA SANDSCHAFER, AIA, LEED AP, is vice president and design principal at Kahler Slater, an international architecture, interior design, environmental branding and strategic advisory services firm. From Chicago, she provides design leadership at a firm-wide level, and leads the national residential, hospitality and corporate practices. She holds a master’s degree in architecture from the University of Illinois at Urbana-Champaign and serves as a Distinguished Visiting Professor at the Illinois School of Architecture, where she also chairs its alumni board and leads its Chicago studio.

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