The branch features photovoltaic roof panels, specially glazed window glass that reflects solar heat, and an advanced heating and cooling system all expected to save the bank money.
And that’s after earning some dollars for the Southern California offices of Gensler architecture firm, which designed the Inland Empire structure.
The firm has designed about 150 Bank of America branches across Southern California in the past four years, taking advantage of the branch building boom.
“We’re seeing something we thought was a dying industry become a very good industry for us in the last couple of years,” said Chip Williams, a principal at Gensler, whose branch design business has grown tenfold over the past decade. “I thought everyone was going toward home banking or computer banking.”
The firm is far from the only beneficiary of this surprising growth, which since 2003 has ranged from about a 10 percent increase in Los Angeles branches to almost a 27 percent jump in the booming Inland Empire.
As scores of banks scout the region for the best locations, an entire cottage industry of brokers, interior designers, consultants and others has cropped up to serve them bolstered by the trend to open far more sophisticated branches than in the past, when long windows punctuated by teller stations sufficed as bank design.
“We’re seeing a lot of the banks going away from what they call the typical platform, with a teller line and desks for accounts. There is a trend for a lot of these banks in going for a more retail environment,” Williams said.
Individual look
Another firm that has benefited from the branch explosion has been Bena Design Partnership Inc., a small commercial interior design firm in Redondo Beach.
It has built a relationship with Los Angeles-based Nara Bancorp Inc. that has led to several design jobs. The firm has done work at three branches and designed the interiors of its Wilshire Boulevard headquarters.
The firm was founded in 1988 and has counted Nara as a client for the past four years. President Peter Bena said that since getting involved with the banking industry, his firm has seen business pick up dramatically. “We certainly are doing more work in retail banks.”
Inside Nara’s new headquarters, there’s a VIP area with a few tellers, rich wood trim and special lounges for customers, intended by Bena Design to project the upscale image desired by the bank.
Paul Choi, the bank’s planning officer, said Nara is pursuing more experimental designs for its branches. For example, it chose to go for a more upscale ambiance in its soon-to-be-completed downtown branch. That requires sophisticated design firms to carry out.
“It’s not a set formula now. The designers and architects do have a little more freedom to bring in their ideas,” said Choi. “What we are trying to do is create a more upscale, luxurious feel to our branches. We’re always looking for new ideas and to give a very innovative and progressive image.”
Also making money off of this proliferation of branches are brokers negotiating deals for the property.
Richard Rizika, executive vice president of retail services for Los Angeles-based CB Richard Ellis Group, has helped identify and secure roughly 40 branch locations in recent years for several major financial institutions. That has turned bank branches into a significant part of his work.
He’s also noticed that the increase in the number of bank branches has driven up certain land values, as institutions have begun seeking “high-identity” locations coveted by many retail interests. Consequently, brokering a branch location can be one of the toughest jobs as competitors make a play for the same vacant property.
“The last few years there’s certainly been a surge of activity in the banking sector to secure high-identity retail branch locations. Many locations are often highly desirable to convenient stores, drug stores, fast-food restaurants,” he said. “With the increased pressure of banks trying to gain the best locations, it’s putting a lot more competitive pressure than we’ve had in some time.”
