Michelle Allen, CEO, JLG Architects
In an interview with Invest:, Michelle Allen, CEO of JLG Architects, discussed how the firm makes sustainability tangible and actionable through its work, the challenges with rising construction costs and labor shortages, and why the future of cross-sector partnerships and innovation in sustainable, high-performance architecture is bright.
What have been the main highlights and key milestones for JLG Architects in the last 12 months?
As an architecture firm, our milestones and highlights revolve around delivering great work for great clients. On a national level, our sports studio has been particularly active, working on ice hockey and multi-use sports venues across the country, including projects in Florida, Illinois, Arizona, and California. Locally, in the Minneapolis area, several key projects stand out. We have been working with a major private industrial workplace client, helping them make significant transformational changes for their employees and customers. We recently opened a new mixed-use project in Jordan, just south of Minneapolis. Additionally, we are in the design and construction phases of several community centers in Maple Grove, Bloomington, and Edina. These projects represent strong partnerships and collaborations that will positively impact youth sports and community engagement in those areas.
What is your overview of the latest trends and overview of the architecture, design, and development market in the Minneapolis-St. Paul region?
I believe we are at a pivotal point in the market. Over the past few years, there has been some caution, but I see significant traction now, with clients excited to move forward. With our Twin Cities clients, we are seeing a lot of creative reimagining of existing buildings and facilities, with a focus on finding new uses for what already exists. Sustainable design has also become a major focus. It is no longer just a values-driven commitment; it is now a business case for a better bottom line, with enhanced occupant health and well-being at the center of strong recruitment. Clients are recognizing the value of thoughtful design and how it can generate long-term, positive business outcomes.
How is JLG Architects promoting environmentally friendly, sustainable, and cost-effective construction practices?
We have adopted an integrative design methodology for all our projects, which we have heavily invested in and innovated over three decades. Our approach to sustainable design is rooted in making it a business case. One of the challenges we face is that clients typically have separate capital expenditure – CAPEX – and operational expenditure – OPEX – budgets that do not always align. Sustainable design requires looking at both CAPEX and OPEX as partners in driving high-performance business outcomes. Over the past five years, we have positioned ourselves as national leaders in sustainable design. We are working on globally impactful projects like the Theodore Roosevelt Presidential Library in Western North Dakota, which is aiming to be one of the most sustainable buildings in the world, then we have more modest projects focused on making the best possible decisions within the context of our clients’ goals and budgets, moving the needle toward sustainable solutions.
How is JLG Architects leveraging new technologies and innovation to foster top quality design and construction services?
Speaking to this from a high level, we recognize the importance of leveraging innovative technologies to drive better outcomes for our clients. This includes using modeling to test ideas before making investments, allowing us to conduct cost-benefit assessments and explore generative solutions that allow for the buildings themselves to become smarter. For example, we are under construction on a new office in Fargo, North Dakota, and recently completed a Living Building Challenge office in Grand Forks, North Dakota. These buildings have advanced management systems that track live energy usage, energy production from photovoltaic systems, and energy contributions back to the grid. Importantly, these systems help the people working in these spaces understand how their behaviors impact the building’s performance, making sustainability tangible and actionable.
What are top industries and sectors, such as healthcare or sports, that are driving growth and demand for JLG Architects?
We serve five primary vertical markets, which are civic and commercial, healthcare, higher education, K-12 education, and sports. In the Twin Cities, we are seeing growth driven by both public and private developers who are now in a position to reinvest and think creatively about moving forward. Mixed-use and hospitality projects have been particularly strong areas of growth. Additionally, our sports studio continues to thrive, with projects ranging from private sector initiatives to public-private partnerships. Municipalities are increasingly recognizing the importance of creating great spaces for community gathering, which has also been a growth area for us.
Are there any specific changes in the regulatory or legal landscape that might affect the construction and commercial real estate industry in the Twin Cities?
We have had some obstacles with our state legislature, particularly in terms of funding and bonding bills. That aside, I think a specific area of impact could be federal incentives for sustainable design solutions. Moving forward, these incentives may be affected. However, our approach has been to focus on integrative design and the understanding that good, sustainable design makes good business sense. We are focused on ROI (return on investment) that is not 100% dependent upon subsidies or incentives. While those are helpful and allow us to move the needle, we have tried not to rely solely on them. I believe this shift will have an impact on our work.
What are the primary challenges facing the architecture, development, and construction sector in Minneapolis-St. Paul, and how is JLG Architects addressing them?
I would say the rising cost of construction and access to skilled labor are significant challenges, and they are directly connected to each other. Additionally, there is a broader sense of uncertainty in the financial landscape. While financial outcomes are never entirely predictable, we seem to be operating in a prolonged period of uncertainty. This requires us to adapt and function within that environment. For our developer clients, this means focusing on efficiency, flexibility, and options. The design, construction, and entitlement processes take time, and a lot can change during that period. Therefore, we need to be proactive in creating solutions that allow our clients to remain nimble and adaptable.
What is your outlook for the architecture, design, and development sector in the region over the next two to three years?
Looking to the future, I am optimistic. One of the great things about working in the upper Midwest is that Midwesterners are creative and optimistic people who are willing to make investments. Whether it is our company or our clients, we tend to operate with a more optimistic mindset, which is helpful as we move forward.
In terms of specific goals, I would like to continue facilitating unique partnerships. We are seeing trends where healthcare, higher education, and municipal clients are coming together to create community facilities that focus on public health, education, and financial sustainability. We are also seeing the public K-12 sector partnering with the business community and technical education programs to address skilled labor shortages. Additionally, developers and municipalities are collaborating on sports and entertainment districts that bring communities to life.
We work across all these sectors, which gives us a unique ability to bring people together and achieve common solutions. Within each of these vertical markets, we aim to advance our expertise to drive value for our clients locally while also growing our presence outside this market. We take pride in bringing the best of the Midwest to the rest of the world and, in turn, sharing national and global perspectives with our clients here.
