In recent months, I’ve spoken with dozens of directors across architecture, interior design, urban design, and landscape architecture. A common thread has emerged: the market is soft, and it’s prompting many to pause and reassess their business strategy.

According to ACA data and industry reports, anywhere from 25% to 40% of practices nationally are reporting reduced workloads and delays in confirmed projects. With cash flow under pressure and pipeline visibility reduced, more firms are quietly exploring options beyond recruitment.

The Association of Consulting Architects (ACA) Pulse Check 2025 survey, conducted earlier this year, reveals a profession under pressure. With a strong response rate of almost 300 practices Australia-wide, this survey provides valuable information on issues that are effecting the industry broadly. This years survey shows the industry is finding the economic landscape to be challenging, and are responding by looking to find efficiencies, and reviewing their business models to reduce costs and improve revenue streams.

The major challenges that the survey revealed were:

Revenue and Fee Structures: Practices are grappling with shrinking pipelines and fee erosion, leading to financial strain.
Project Delivery and Risk: Delays and cancellations are impacting project timelines and increasing uncertainty.
Operational Costs: Rising expenses, including salaries and materials, are not being matched by increased income.
Staffing Challenges: Difficulties in attracting and retaining staff, particularly in regional areas, are prevalent.

These findings underscore the need for strategic decisions to navigate the current landscape.

What I’m Seeing in the Market

There are three key trends gathering momentum—especially among small to mid-sized studios:

1. Rethinking the Long-Term Business Model

Some directors are wondering whether the time is right to consider selling their practice—not out of failure, but as a proactive step to ensure legacy, job security for their teams, or a personal change in direction. Others are actively looking for strategic acquisitions to:

Expand into new sectors or regions
Bring in fresh leadership
Access embedded client relationships
Merge complementary services (e.g. architecture with interiors or landscape)

This isn’t just happening at the top end of town. Quiet, off-market discussions are being had between firms of 5–25 staff looking for smart, sustainable growth.

2. Looking to Share or Sublease Studio Space

With many practices having downsized or operating under capacity, the idea of sharing a studio or subleasing part of an office is becoming more attractive. I’ve had a number of discussions over the past 3 months with practices looking to facilitate this sort of arrangement —typically looking at short to medium term leases that ease financial pressure without long-term commitment.

Some benefits firms are reporting:

Cost savings of up to 40% on rent and outgoings
Unexpected collaborations across disciplines
A more energised workplace atmosphere

If you’re sitting on unused desks or looking for a flexible setup, there may be options available.

3. Collaborative Partnerships and Project-Based Alliances

In a tighter market, many directors are exploring collaboration over competition. That might mean partnering with another firm to jointly deliver a major tender, outsourcing documentation to lighten internal overheads, or forming loose alliances to pitch for new types of work.

I’ve seen a noticeable uptick in practices looking to:

Build alliances for state or government panel submissions
Partner across disciplines
Loan Staff (usually Project based Staff) or Share Resources (typically Support Staff).

These arrangements help share the load, reduce risk, and open the door to new revenue opportunities—without needing to restructure or commit to formal mergers.

Let’s Talk – Quietly and Confidentially

If you or your practice is interested in exploring any of the above options, please feel free to reach out confidentially, and I will help facilitate these discussions.