John Coe & David Orr
Bio
David Orr, founder and Chairman of Orr Partners, possesses 40 years of experience and has been involved in over 20 million square feet of construction projects. Mr. Orr began his career with one of the world’s largest construction companies, Morse Diesel, where he oversaw projects in New York City such as the Park Lane Hotel in Central Park South and 88 Pine Street.
After relocating back to the Washington, DC area, Mr. Orr was hired by Marriott International to supervise construction of Marriott Headquarters in Rockville, Maryland. Subsequently, Mr. Orr gained additional experience with Richmarr Construction and as Partner for Lee Sammis Associates, where he directed their Washington, DC offices and managed the development of 14 master planned office parks.
In 1988, Mr. Orr founded David Orr Associates, the predecessor to Orr Partners, which has grown to be one of the Washington metropolitan area’s top development and project management firms. In 2006, Orr Partners was named to the Washington Business Journal’s Top 10 commercial real estate developers in the Washington, DC metropolitan area.
Orr Partners has established a reputation for providing all of its clients with the highest quality of independent, impartial, and professional advice and project management expertise. David maintains oversight of the company’s upcoming projects and serves as Principal-in-Charge on key projects. He has been involved in over 35,000,000 SF of construction projects.
Mr. Orr leads Orr Partners development activities and also provides the firm’s clients with the highest quality of construction and project management services. He brings an extraordinary depth of expertise, creativity, and technical skills and is particularly strong in his knowledge of construction and in contract negotiation. He is recognized for a number of innovations in construction and program management including procedures with cost estimating and analysis, scheduling, contract management, and communications.
Show Notes
David Orr’s Role and Focus [00:05:00]
David Orr describes his role as founder and leader of Orr Partners, focusing on mentorship, strategic planning, and involvement in major transactions.
Real Estate Development and Economic Factors [00:05:30]
David Orr discusses how real estate development is influenced by macroeconomic conditions, interest rates, and customer needs.
Reducing Hard Costs in Projects [00:06:00]
David Orr talks about the challenges of handling hard costs in today’s market and shares strategies to reduce costs and gain a competitive advantage.
Origin Story [00:06:30]
David grew up in construction side of business. Grew up in Montclair, NJ. Dad worked for a general contractor in NYC. He was a laborer in NYC in high school.
Education [00:09:00]
Went to Syracuse and studied engineering and was in Air Force ROTC and did not serve. Discusses his passion for the US Navy and experiences on an aircraft carrier.
First Job [00:13:50]
Worked for Morse Diesel, a major contractor. Cited 200 Park Ave. project in NY.
Logistics of Building Large Projects [00:15:00]
Discussion on the importance of logistics in building large projects and the use of cranes.
Construction of the Empire State Building [00:16:00]
Talk about the construction of the Empire State Building in 1933 and the speed at which it was completed.
Working for Marriott and Building Headquarters [00:18:20]
Conversation about working for Marriott, developing their headquarters building, and the involvement of Jack Graves and Bill Marriott. Ed Davis, VIcki Davis’ father was his boss.
Joined Richmarr Construction [00:20:20]
Worked on several projects including Skyline project with the Charles E. Smith Company. Collapse of building there created “critical structures” programs
Joined Lee Sammis Company [00:23:30]
Worked with Joe Svatos and Mark Hassinger. Learned the development business there.
Communications, Mathematics, and Design [00:26:00]
The importance of understanding and mastering these three elements in commercial real estate.
Negotiation Skills in Real Estate Development [00:23:14]
The unique aspect of real estate development being that every aspect of it is negotiable, and the importance of becoming a skilled negotiator.
The Risk and Liquidity of Real Estate Development [00:25:12]
The risk involved in real estate development and the long time frames required for projects, as well as the illiquidity of real estate investments.
Pete Scamardo of Centennial Development approached him on a new company [00:30:50]
Pete was a mentor to him and helped him learn how to “make a living” as a developer. David bought Pete out of their business
The integrity and loan repayment [00:37:30]
David Orr discusses his integrity and commitment to repaying loans, highlighting it as a key attribute of his business.
The need for real estate projects [00:39:10]
After experiencing the collapse of the industry, David realizes the need for real estate projects and starts doing fee development and project management.
Developing a system for predictability of outcome [00:39:30]
David discusses how he developed a system that ensures predictability of outcome, on-time and on-budget, which became a pivot point for his project management business.
Teaching principles webinar [00:49:30]
David Orr discusses the upcoming webinar where they will teach proven principles and ask for payment in return.
Pivoting to project management [00:51:30]
David Orr explains how they pivoted to project management after the market meltdown in 1989 and 1990.
Leasing strategy during COVID-19 [00:55:00]
Ryan Orr’s research on advertising net effective rents and offering concessions to reinvigorate leasing during the COVID-19 pandemic.
The multifamily side of the business [01:00:00]
David Orr discusses how they got started in the multifamily side of the business with a 70 unit deal on Capitol Hill.
Steel and concrete construction vs. stick built construction [01:01:00]
David Orr explains the difference between steel and concrete construction and stick built construction, and why they chose stick built for a project in Arlington.
Cutting edge technology: Mass timber [01:03:45]
David Orr discusses their exploration of mass timber construction and the potential benefits of prefabrication and efficiency in building projects.
Smart Buildings [01:06:30]
Technology innovation for buildings
Programmatic Relationship with ELV [01:11:10]
ELV from Boston reached out to them to form relationship
The relationship with United Bank [01:12:10]
David Orr discusses the company’s relationship with United Bank and how they have been a reliable source of financing for their projects.
The development of the Gulfstream relationship [01:13:15]
David Orr explains how their relationship with Gulfstream began when they built General Dynamics headquarters and how it expanded to include various projects for Gulfstream.
Building facilities for Gulfstream [01:15:30]
David Orr talks about their long-standing relationship with Gulfstream, building manufacturing facilities, R&D centers, and service centers for their jets. Built 5 million s.f. of buildings for them.
Work for Electric Boat (General Dynamics subsidiary) work [01:19:45]
The most secretive part of the military…nuclear powered submarines.
Building projects in Arlington [01:22:50]
Discussion about the long history of building projects in Arlington, including the construction of the FDIC headquarters.
Expansion into property management and interiors [01:25:45]
Explanation of how the company has expanded into property management and interiors, including the hiring of experts in those areas.
The importance of construction background in project management [01:34:20]
Construction background is considered crucial for project managers due to the intricacies and risks involved in construction projects.
Challenges faced by developers in managing construction costs [01:36:45]
Developers who lack construction knowledge often struggle with managing construction costs, leading to project delays and budget overruns.
Opportunities in the housing and industrial sectors in the DC market [01:39:15]
The future of the DC market lies in housing, particularly multifamily and single-family housing, as well as the growing demand for data centers in Prince William County.
The need for human connection and collaboration [01:45:20]
David discusses how people still have a need for human connection and collaboration, and how many companies are struggling with remote work.
Prioritizing giving back [01:46:15]
The speaker talks about how giving back is a priority for him and his wife, and how they donate to charities and encourage their employees to do the same.
The importance of integrity [01:47:30]
The speaker emphasizes the importance of integrity in shaping their culture, business, and relationships, and shares a compliment he received about his own integrity. Don’t give up!
Billboard Answer [01:49:50]
“It’s All About Your Integrity”
