Landscape Architectural Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,900 landscape architectural services in the US plan and design the development of land areas related to private homes, businesses, recreational facilities, campuses, parks, recreational facilities, and other open spaces. Firms may also offer urban planning, residential landscaping, project site master planning, and other consulting services.
Dependence on Construction Market and Economy
Demand for landscape architectural services is dependent on construction activity, which is cyclical and influenced by economic conditions.
Mitigating Climate Change
Public and private sector clients are demanding landscape architecture solutions that address climate change.
Industry size & Structure
The average landscape architectural service provider operates out of a single location, employs about 7 workers, and generates about $1.2 million annually.
- The landscape architectural services industry consists of about 4,800 firms that employ 33,000 workers and generate $5.8 billion annually.
- The industry is fragmented; the top 50 companies account for 20% of industry revenue. More than half of firms generate less than $1 million annually.
- Stantec is one of the largest architectural firms in the US and offers landscape architectural services. The biggest landscape architectural services companies typically have offices in multiple major metropolitan areas in the US, but none are truly national in scope.
- The largest client groups are private homeowners, architects, and cities/municipalities, according to the American Society of Landscape Architects (ASLA). The largest client group for firms with four employees or fewer is private homeowners. Large firms typically serve commercial and government clients.
Industry Forecast
Landscape Architectural Services Industry Growth
Recent Developments
Jan 6, 2025 - Construction Spending Flat
- The total value of construction put in place was unchanged in November compared to October, according to the US Census Bureau. Spending on nonresidential projects decreased by 0.1%, and residential spending rose by 0.1%. Within the nonresidential building segment, pockets of spending growth included religious and healthcare, which saw increases of 1% and 0.1%, respectively. Commercial construction was flat in November and all other nonresidential building segments saw spending decline in November, led by public safety (down 1.3%) and followed by amusement and recreation (-0.7), lodging (-0.4%), educational (-0.3%), and office (-0.2%). Building construction activity is a demand driver for landscape architectural services.
- High office vacancies have pushed down property valuations, making office to residential conversions more economical, according to The Wall Street Journal. A housing shortage and a glut of office supply made conversions seem like an obvious solution to both problems. However, until recently, conversion project economics were challenging to pencil out, even for an aging office building. That is changing as plummeting values for older office buildings in second-tier locations are prompting owners to take what they can get, making conversions more economically viable. According to real estate firm CBRE, there have been 73 US conversion projects so far in 2024, up from 63 in all of 2023. There are about 309 office conversions in the planning stages, and about 75% of them are office to residential. In all, about 38,000 housing units are in the pipeline. Converting offices into residential space could boost demand for landscape architecture features, such as park space and playscapes.
- Demand for building design services dipped slightly in November from the prior month, but there are signs that the architectural services market is gradually improving, according to a December report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 49.6 in November from October’s reading of 50.3. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries was 54.1% in November, unchanged from the October reading, and the index for the value of new design contracts increased from 45.3 to 48.3. The steady rise of new project inquiries is a positive signal of future business opportunities. However, architecture firms are unlikely to see a significant uptick in design activity soon as new design contracts fell for the eighth consecutive month in November.
- Sales of existing US homes increased by 4.8% in November from October and were up 6.1% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Home sales momentum is building. More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%. Existing homeowners are capitalizing on the collective $15 trillion rise in housing equity over the past four years to look for homes better suited to their changing life circumstances.” Existing home sales are a demand driver for landscape architecture as homeowners often update their exterior spaces before putting homes on the market.
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