Dallas-based architecture powerhouse HKS is shedding staff and has shuttered one of its U.S. offices as the commercial real estate chill settles in. The cuts arrive at a moment when higher borrowing costs and tighter lending are choking off new projects and squeezing billings at the country’s biggest design firms.
According to CoStar News, HKS has eliminated “dozens” of positions and closed a domestic studio, moves the outlet links to a real estate lull tied to elevated interest rates and broader economic headwinds. The June 29, 2026 exclusive did not spell out which teams or cities were hit, and it did not include an office-by-office breakdown.
Headquartered in downtown Dallas, HKS is one of the country’s largest architecture firms, with about 1,800 architects, designers and advisors spread across 29 offices and global 2025 revenues of roughly $732.6 million, according to HKS. The firm’s portfolio stretches from sports venues to healthcare facilities and corporate campuses, making it a familiar name on both local and national projects.
Industry Pressure on Billings
The pain behind those pink slips is not unique to one firm. Financing has gotten tougher, deal flow has slowed and that combination is squeezing the design pipeline across commercial real estate.
The Federal Reserve noted in its June Supervision and Regulation Report that regulators are keeping a close eye on pockets of commercial real estate risk. At the same time, S&P Global has found that delinquencies remain above longer term averages. That is a tough mix for owners trying to refinance or launch ground up projects, and when deals stall or shrink, architecture firms feel it in the form of paused plans and delayed groundbreaking dates.
HKS’s Local Footprint
HKS’s work spans stadiums, hospitals and corporate campuses, and the firm lists multiple U.S. hubs on its office roster, according to HKS. That kind of national footprint provides scale, but it also means more exposure to the ups and downs of construction cycles in different regions.
When a firm of this size starts trimming staff, the impact can ripple out. Local clients and subcontractors may see project teams reshuffled and schedules adjusted as HKS reorganizes around a leaner headcount.
What to Watch Next
CoStar News did not identify which U.S. office HKS closed, and the firm had not issued a public statement at the time of that report. For now, the indicators to watch are client pause notices, revised project timelines and whether other large design firms start acknowledging similar staffing moves as lending conditions continue to evolve.
