The Role of Art in Modern Real Estate Development

The Intersection of Art and Real Estate Development

On Kilroy Realty’s website, the developer passionately asserts that it “has a love affair with great art.” This sentiment is increasingly echoed among many builders today. A notable example is the 36-story Indeed Tower located in downtown Austin, Texas, where a stunning suspended sculpture featuring neon lighting by the acclaimed Welsh artist Cerith Wyn Evans captivates visitors. Another impressive project is the $6 billion Miami Worldcenter, which stands as the second-largest urban mixed-use development in the United States, surpassed only by Hudson Square in New York. This expansive complex boasts a vibrant array of colorful artworks and sculptures that enrich the urban landscape.

At Industry City, a sprawling 16-building multipurpose campus nestled in Sunset Park, Brooklyn, art takes center stage with a rotating display showcasing the works of hundreds of talented creators. This includes contributions from the French designer Camille Walala and the innovative sculptor Dan Lam. Artist Emily Eisenhart, known for her murals across cities like San Francisco, Seattle, Nashville, New York, and her hometown of Austin, describes developers as her “patrons of the arts.” She notes, “The canvas just happens to be the side of a building.”

The burgeoning interest in integrating public art into private real estate projects is transforming city centers across the nation. Michael Phillips, president of Jamestown—an international real estate firm—emphasizes that the presence of art in these developments “drives traffic and engagement.” It not only provides a vital amenity for office employees but also boosts sales for retailers within the vicinity.

One striking example of this is Eisenhart’s mural at Symphony Square in downtown Austin, which serves as a heartfelt tribute to the city’s vibrant music scene and the nearby Waller Creek.

Historically, artwork has been woven into urban development for decades, often to stimulate economic recovery, as exemplified by the Depression-era pieces crafted by Works Progress Administration artists, many of which remain visible in buildings today. However, in more recent years, some builders—particularly in states like Florida and California—have expressed concern as local governments considered mandates requiring them to allocate a percentage of their development budgets for art projects. These landlords argue that such regulations could significantly inflate construction costs.