We’ve all heard how different life is “inside the Beltway,” but compared with those of his colleagues in other parts of the country, Jim Gibson’s life really is different. In spite of the deepest recession in decades, the Washington, D.C., custom builder says, “We’re busier than ever.” And he’s not alone. Unlike local spec and production builders, he reports, “the higher-end guys are still quite busy.” One client, having bought land for “significant millions,” recently hired him to build a house costing “north of $5 million—and that’s probably being conservative. He’s actually buying a house to renovate so he can live in it while the big one gets done.”
Federal stimulus money and a strong tech sector have cushioned the local economy during the downturn, but Gibson credits the healthy activity in his upscale niche to savvy, moneyed clients responding to a buyer’s market. “Builders aren’t out there chasing land,” he says, “so buyers can find good lots for $750,000 or $800,000 instead of a million dollars.” Favorable subcontractor pricing sweetens the pot, he notes. “If there were ever a great time to build, it’s now, because I can build a lot less expensively than I used to.” Gibson’s territory and location also position him well to benefi t from the growing popularity of in-town living—a trend that predates the downturn. “People want to be able to walk into the urban center, and that’s our market.”
Not that the recession has been a cakewalk. “Our margins have come down,” Gibson says. “We used to send out for two subcontractor bids. Now we get three or four.” He’s seeing fewer $5 million jobs and more in the $2 million to $3 million range. “But there are still a lot of big ones out there,” he observes, “and our volume hasn’t decreased.” While some spec builders moved into the custom market early in the downturn, “they didn’t fare very well. The cream stayed at the top.” And in Gibson’s case, it didn’t just float there. He’s usually in his offi ce before the Starbucks downstairs opens, and the quality of his company’s work has earned the loyalty of some of the area’s top architects. He admits the location was partly just luck, but he’ll take it. “I guess I should be grateful for living in this area,” he says. “I’m 61, so I want to be doing this for another 15 or 20 years.”
Gibson Builders
Washington, D.C.
www.gibsonbuilders.com
Type of business: Custom builder
Years in business: 29
2009 volume: $22 million
2009 starts: 10
