Onwards and upwards

Zbigniew Piekarski delves into the ups and downs of the architecture business

with Peter Wislocki, resident director of Aukett Polska

In 1940, Edward R. Dewey (1895-1978) formed the Foundation for the Study of Cycles. It is still active. The approach is multidisciplinary, ranging from sunspots to atomic particles, and encompasses the works of nature and those of men.

In his younger years, Dewey noticed that that the tallest buildings were constructed at the end of economic booms. He maintained that the desire to build, the planning and the financing occurred during the latter stages of a bull market, and by the time the monument appeared, the bear market had set in. This was the pattern in 1929 with the Empire State Building, in 1966 with the World Trade Center I and in 2001 with the Daewoo Tower in Warsaw.

Therefore, in order to get an idea of the appetite for new buildings here in the near future in light of the ongoing economic slump, I needed to speak with a well-educated professional from this sector. Now I am not implying that other professions in construction are not educated; after all, estate agents, for example, need to be "certified." However, I desired a profession that has the power and the responsibility to shape the environment, in which individuals are trained to look beyond immediate requirements and solve problems creatively, and where they are one of the most influential sets of professionals in society, particularly in Warsaw. In other words, an architect.

Peter Wislocki is a chartered architect and resident director of Aukett Polska, part of Aukett Europe, which consists of 500 dedicated architects, designers and engineers in 14 cities throughout the European continent, who form "a team that recognizes the creation of challenges and opportunities for living and working in the New Europe."

All architects are well educated. They have to study for six or seven years and practice under supervision for six or seven more before being let loose on the unsuspecting public. Wislocki was educated at Cambridge University. He completed a master's degree in construction economics and management and continues to contribute to the education of future generations by doing a seminar that is a part of a master's course at the University of London.

Wislocki is thoughtful, self-analytical and dressed all in black. A calm atmosphere pervades the uncluttered boardroom. So I ask, how is business?

"In reality, we only do well when investments are going forward and new projects are started," he says. "Aukett entered the Polish market three years ago. I was the one responsible for doing all the research on Poland from London using the limited sources that were available. When the board approved this office being formed three and a half years ago, the conditions appeared pretty good. A few months later, things didn't look that good. We have built up our business at one of the worst possible times. Although the market is still weak, we have managed to capture a good percentage of new projects, and I am cautiously optimistic about the future."

How many times have I heard this phrase? One can be "cautiously optimistic" about anything and everything without having any grounds for it. Upon what evidence is this opinion based?

"Well," Wislocki continues, "I vary between cautious optimism and wild euphoria. I am euphoric when we secure a new contract and then cautiously optimistic once I examine the details. Although last year was pretty dire and there were long faces on most members of our profession, this year things are beginning to look up. There are signs of life out there." He pauses.

"Something that I have spoken about in a number of forums is the fact that a clear pattern is emerging, which gives me grounds for optimism," he says. "A number of our clients are developing projects in Moscow (which we run from this office) while, at the same time, they are pursuing new projects over here.

"They commission us to do the approvals, to get the building permits and even do the preliminary negotiations with contractors - basically, to be ready to start construction on short notice. I am encouraged that the cycle is not that long and that there are projects already in the pipeline. Recently, we have seen more activity in developers acquiring sites and making preliminary feasibility studies and looking for the next upturn which, I believe, has already begun."

An immature market

The next upturn? Looking around Warsaw, I would have said that there was a definite oversupply. Rents are plunging, and new buildings are still being erected, adding to the oversupply.

"That's true," Wislocki confirms, "but you must understand that this is a relatively immature market; therefore, the booms and slumps are that much greater. And it doesn't take much to unbalance the market for a year or two. Nevertheless, I am encouraged to say that a number of our internationally funded developers are still going ahead with projects.

"You see, in terms of the business cycle that we are talking about, it doesn't really matter if you start in a boom or in a slump. By the time the project is finished and is ready to hit the market, then no one really knows what's going to be happening anyway. Remember that institutional investors are looking in terms of many years or decades."

Over the past few years, the skyline of Warsaw has changed dramatically. Each creation appears to be larger and more "artistic," attempting to awe visitors with its splendor and majesty. Are beauty and opulence the new defining characteristics?

"I would say that it's not about making 'beautiful' buildings," Wislocki says. "As one of our more outspoken clients once told us at a meeting, one has never made money from a beautiful building. Although I don't entirely agree with him on that, not every beautiful building has made money and quite a lot of ugly ones haven't done so badly.

"The fact that we endeavor to make our creations attractive is in a way irrelevant. What is relevant is the understanding of the discipline that governs commercial developments. Things that may appear quite banal like buildings being efficient and flexible and therefore capable of being let, re-let, sold off and refinanced - and it may come down to a simple thing like not having too many columns or for the floor space to be the right shape - those are the important factors." He pauses. "What amazes me is how even some of the most respected and talented and apparently cosmopolitan local design firms just don't get it.

"They will probably criticize us for being philistines, for selling out to the developers instead of promulgating a higher design culture. But I feel that it is not only about projects being commercial, it is also an ethical issue."

An ethical issue? What have ethics to do with some of the grandiose projects we see, which appear to be attempts at achieving the architect's immortality?

"At the end of the day, we are designing a building which is a property of a pension fund," Wislocki says, "and the least that I can do is to play my little part by making sure that the investment makes sense because I, too, have a pension, and I want my investment to do well." He pauses. "If it is an office building, then I want to make sure that it is a rational commercial proposition rather than whether is has a large canopy or a small canopy or whether the window is too large or too small.

"We, as a profession, need to grow up and need to accept that we are part of a larger picture and that we are dealing with real people's money, large or small, and we should understand that it is in our own interests to address these realities."

Commercial consideration

Oh, here we have it. Commercial considerations rule once again, and the individual's creative potential has to be sublimated by considerations of the mundane.

"We have all been through the stage when we aspire to be great designers and be individually creative," Wislocki replies with a grin. "However, eventually we have to mature.

"Good design is about solving problems, not about creating spontaneous and beautiful images. Good design is a decision-making, problem-solving process and the more so, the better."

So where does individual flair come into this equation? Where is the expression of identity and originality?

"There is an element of spontaneity and unpredictability about it as it is an evolutionary process," Wislocki says. "There is always the element of change. Nevertheless, the conscious process that guides this evolution or creation needs to be quite rigorous and specific."

Aha. Things like car-parking ratios, the number and speed of elevators installed in the building and whether the air-conditioning can be changed to suit the occupant of each room rather than being determined for the entire floor. Apparently mundane considerations that increase the salability of the building.

"That's right," Wislocki affirms. "Commercial considerations are of paramount importance. After all, our clients are putting up the money and taking the risk. Therefore, our responsibility is to them, to society and to ourselves to produce something that is commercially sound and aesthetically pleasing."

Vying for business

In the Business Journal's Book of Lists there are more than 40 architectural firms listed - all vying for business. What makes Aukett different, I wonder?

"I ask myself that question often," Wislocki says, adopting the pose made famous by Rodin's "The Thinker." "What we specifically offer in this market is a combination of technical and commercial experience which is of an international standard but which at the same time is allied with local conditions.

"Our international approach is guaranteed by the fact that we have at least three expats working in this office together with access to four or five hundred other professionals on a daily basis. We also have individuals who have Polish qualifications (and) experience, local contacts and an intimate knowledge of the Polish planning system, regulations and building codes. Therefore, from day one any project that we handle manages to integrate both local and global issues."

So what are the specific characteristics of the situation here, I ask.

"In Poland, everything is codified. It is written down and regulated, and therefore it is open to interpretation," Wislocki says. "Just possessing and reading the manual is insufficient. You need the experience of what has gone on before, who agreed to it and under what circumstances. You need to know the precedents and be aware of what can be done and what can't.

"Because Poland is an emerging market, the standards that apply are more fluid as they are influenced by all the countries in Europe that operate here. For example, in the U.K. there are accepted bodies that specialize in providing institutionalized guidelines, and if you do not follow convention, then you may have problems. Here, convention is less clear at this stage, and fewer precedents apply.

"In addition, the planning process is different. Although the objectives are the same in most urban planning, such as not having a factory development within a defined urban area, the stages are different and the processes are different; therefore, the whole risk-reduction process, when talking in investment terms, requires local knowledge."

So there we have it. A process of symbiosis once again, of two groups of individuals working together for the mutual benefit of all. International money prefers to deal with international organizations as they are assured that accepted standards will be maintained. Yet the local branch of the international firm requires local talent since it is familiar with the conditions in the market and has established contacts to facilitate the process.

So what of the future, I ask.

"People say that when Poland joins the EU, this will create a new flood of institutions which will be reflected in increased activity," Wislocki says. "There may be something in that, but I believe that this has already been factored in.

"However, there is clearly an earnings differential between Poland and the rest of Europe, and this will create accelerated growth relative to the rest of Europe. Because of this fact, I think that it is worth sticking it out here. Besides, of the five new projects being talked about in Warsaw, we are involved in one way or another with three." He smiles. "So now you know why I am cautiously optimistic."

There's the answer. As a guide for the future, Poland and the other "emerging economies" provide a better potential than the overbuilt cities and the declining economies of the established members of the European Union.

As you wander through the streets of Warsaw, remember that the box-like structures of the "Modern Movement" were shaped by the tools of the time - a ruler, graph paper and the occasional compass to form a circle.

Now we have the marvelous shapes of the "Corporate American Contemporary" style assisted by computer-aided design and modern materials. Regardless of shapes and sizes, regardless of whether the buildings possess fountains, forests or fish tanks, their key qualities are functionality and resale value. All else is secondary.