In the ever-evolving world of architecture, few firms have carved such a distinctive niche as Three Squared, a pioneering company at the forefront of cargo architecture. I recently had the privilege of sitting down with Leslie Horn, founder and CEO, and Breck Crandell, director of design, to discuss their journey, challenges, and the future of sustainable modular design using shipping containers.
Their story offers valuable insights for any architect looking to specialize and innovate, regardless of their chosen niche. Here are the key takeaways from our conversation that can benefit architects and firm owners looking to build better businesses.
The Unexpected Path to Specialization
Leslie Horn’s journey into cargo architecture began not as an architect but as a real estate developer who moved from San Diego to Detroit in 2004. After completing around 30 property rehabilitations, the 2008 financial crisis forced her to reconsider her approach. When a contractor mentioned shipping container construction, Leslie initially dismissed the idea—a moment of candor she now laughs about.
“I’m like, dude, I don’t even know what the hell you’re talking about. Get back to work,'” she recalled. However, as the market continued to decline, she reconsidered this novel approach and secured approval for the first shipping container apartment complex in the United States in 2009.
Though that first project was never built—which Leslie now considers a blessing in disguise given their limited knowledge of building codes at the time—it set them on a path of discovery. By 2015, they had built a model center, and by 2017, they had pivoted to become an architecture firm specializing in cargo architecture with Breck Crandell joining the team.
The Power of Specialization and Expertise
What Three Squared demonstrates brilliantly is the power of becoming the recognized expert in a specialized field. By focusing intensely on cargo architecture, they’ve developed knowledge and processes that distinguish them in the marketplace.
Breck explained how their niche expertise streamlines their design process: “The more restrictions you have, the faster you can make progress… it actually kind of sets me free because it allows me with the rule sets that we understand in the office, we could design so much faster and weed out alternate examples very, very quickly.”
This expertise allows them to quickly determine whether containers are appropriate for a given project: “I can look at a project and tell you within minutes if containers even make sense,” he noted. This decisiveness is invaluable when working with developers who need quick assessments for their proformas.
Leslie added that their specialization has made them the go-to experts when problems arise: “We’ve had to go in behind another architect or another engineer to fix the problem. And that is not a cheap fix.”
Overcoming Industry Resistance and Education Challenges
Perhaps the most significant challenge for Three Squared has been navigating the resistance to new construction methods within the building industry. Breck identified regulations as the single biggest hurdle: “The single biggest hurdle to using something that wasn’t meant for buildings as buildings is going to be regulations… code and municipalities have something to say about it.”
It took years of collaborative effort with others in the field to get the International Building Code Council to respond, finally resulting in provisions for ISO shipping containers being added to the international building code in 2021. This regulatory recognition was crucial for gaining acceptance from municipalities that were previously hesitant or outright resistant.
Beyond regulatory challenges, the team faced resistance from contractors and subcontractors unfamiliar with the construction method. “It’s hard to find builders because they think it’s something totally wild and different,” Breck explained, noting that education is a constant necessity. “Every subcontractor who shows up on site is like, ‘I’m doing something different.’ And their eyes light up with dollar signs.”
This highlights an important lesson: when introducing innovation to the market, education becomes a critical component of your business strategy.
The Evolution of Their Approach
What began as a strict focus on repurposing shipping containers has evolved into a broader expertise in modular and prefabricated construction. This evolution demonstrates how specialization can lead to wider applications of core expertise.
Initially, the team worked with fully used containers that had circulated the globe, but they discovered these often required significant repairs and modifications. They shifted to using “one trippers”—containers that have made only a single journey—which arrive in nearly immaculate condition, significantly improving quality and reducing preparation time.
Eventually, they began exploring custom-fabricated modular steel units that utilize the principles of container construction but are purpose-built for architectural use. As Breck explained, “People are building containers from scratch that are better suited as construction elements.”
This evolution has expanded their toolkit beyond just shipping containers to include SIP panels, mass timber, and other prefabricated systems. Leslie noted, “We’ve been exploring and have had great success in types of SIP panels, mass timber, other things that have the prefabrication ideology that allows us to design a project where it goes up fast and you are weathered in.”
Finding the Sweet Spot: Site-Built vs. Modular Construction
One of the most fascinating insights from our conversation was how Three Squared found a “sweet spot” between fully modular and traditional site-built construction. Breck explained that while modular construction is regulated at the state level rather than locally, they discovered a middle ground:
“We drew a line in the sand and we figured out very quickly what can we do offsite that still allows us to be considered a site-constructed building… we use all of the lessons learned from modular construction, but we draw the line right before they say, ‘Hey, we need a third-party inspector to go look at this in a factory.'”
This approach allows them to modify containers offsite—cutting openings, adding structural reinforcement, framing interiors, adding insulation, and even painting—while still qualifying as site-built construction for regulatory purposes. The result is dramatically faster construction times without the additional regulatory burden of fully modular construction.
Leslie shared an impressive example: “Our building here, the first time, six hours and 15 minutes is how long it took for us to erect this building. Now, our last client’s down in Fort Wayne, Indiana… less than 60 minutes, less than an hour. Their building was done.”
The Value Proposition Beyond Cost Savings
While many initially assume that container architecture’s primary benefit is cost savings, Three Squared has discovered a more nuanced value proposition that focuses on durability, sustainability, and energy efficiency.
Leslie emphasized the structural advantages: “If you’re in the state of Florida and you have a hurricane, it’s the strength and durability. This is why you would want something that’s structured. Because when a tree or a car crashes on your home, your home will be dented. That’s it.”
Breck added that containers offer performance benefits: “They’re wind and water tight boxes, so they’re airtight… they’re actually really good at controlling sound… They also have the most substantial floors of any construction type ever.”
The team has found that container architecture resonates most with two demographic groups: retirees and empty nesters looking to downsize, and younger people attracted to the sustainability and uniqueness factor. The appeal isn’t just about saving money—it’s about creating resilient, sustainable, and distinctive spaces.
Cost Considerations and Economy of Scale
Three Squared is transparent about the economic realities of their approach. For one-off custom homes, container architecture typically won’t save money compared to traditional construction methods. As Breck candidly stated, “Nobody is going to follow through on a shipping container custom building because it’s going to save them oodles of money. We will match pretty closely what sticks and bricks can do.”
The cost advantages become apparent at scale. For developments with multiple units using the same design, the template approach allows for significant efficiencies: “If you’ve got an A unit and a B unit and they’re mirrored on each other, now it’s 50 of each, it’s an assembly line process,” Breck explained.
This scale enables controlled fabrication in a factory environment, resulting in less waste, higher quality, fewer on-site issues, and ultimately, cost savings for larger projects.
Embracing Innovation and Technology
Looking to the future, Three Squared is embracing technological innovation—particularly artificial intelligence—to further enhance their processes. Breck explained their current focus: “We’re taking a series of rule sets from specializing in this particular field, and we’re building on that with the tools that are available to us so that we’re able to maximize the yield and potential from everything to generating construction documents to the fabrication documents.”
This forward-thinking approach positions them to address housing crises on a larger scale through increased efficiency. They’re now in discussions not just with developers but with municipalities themselves about implementing these solutions more broadly.
Advice for Architects Building Better Businesses
When asked what advice they would give to small firm architects looking to build better businesses, Leslie and Breck offered these powerful insights:
Leslie emphasized team collaboration: “Listen to your team. They have great ideas… it’s got to be a team effort.”
Breck pushed for embracing discomfort: “Complacency is death. If you’re comfortable, you’re doing something wrong. You gotta stay uncomfortable at all times and that’s how progress gets made.”
Leslie also advised architects looking to innovate: “One of the greatest gifts that we’ve had is not thinking like an architect, like really go outside the norm and explore… don’t be afraid. Just don’t be afraid. Just go for it.”
Conclusion: Lessons in Specialization and Innovation
The story of Three Squared offers valuable lessons for architects at any stage of their career:
- Specialization creates expertise that differentiates you in the marketplace. By focusing deeply on cargo architecture, Leslie and Breck have become recognized experts whose knowledge is sought after.
- Innovation requires educating the market. When introducing new methods or technologies, education becomes as important as the innovation itself.
- Understanding regulatory frameworks is crucial. Finding creative ways to work within existing regulations can be more effective than fighting against them.
- Value propositions evolve with understanding. What began as a cost-saving initiative evolved into a focus on durability, sustainability, and efficiency.
- Embrace and adapt to new technologies. Three Squared’s willingness to incorporate AI and advanced manufacturing shows how traditional industries can evolve.
- Listen to your team and stay uncomfortable. Growth happens at the edge of comfort, and the best ideas often come from collaborative thinking.
Leslie Horn and Breck Crandell’s journey with Three Squared illustrates how specialization, when combined with continual innovation and adaptation, can lead to market leadership and open new possibilities for architecture and construction.
To hear the full conversation with Leslie Horn and Breck Crandell, listen to Episode 597 of the EntreArchitect Podcast at https://entrearchitect.com/597.
Leave a Reply