ABI October 2024: Business conditions at architecture firms begin to moderate / The clever reason new offices are using old furniture / London office market showing unmistakeable signs of life, especially for Grade A space / The Reality For Bad Offices Is So Much Worse Than Most Thought, Industry Leaders Say / I Built Two Thriving Coworking Spaces In London. Here's What I Wish I'd Known About Scaling Before I Started. / Why are we still talking about return to office? / ‘Dynamic’ Hotel Costs Force Work Trips to Be Shorter or Scrapped / How Are Educational Institutions Adapting To Prepare Students For The Future Of Work? / Older workers will be essential in a changing global economy / AI to Cut Your Workweek by 1.5 Days, Says JPMorgan’s Jamie Dimon / Experts Say CEOs Must Face The Facts About Flexibility / and much more…


The Working Space

Monday, December 2, 2024

Industry News

In October 2024, architecture firm billings stabilized after twenty months of decline, with an ABI score of 50.3. While inquiries for new projects increased, clients remained cautious due to the upcoming elections. Employment in architectural services continued to decline, but overall construction jobs grew. Looking ahead to 2025, 41% of firm leaders expect revenue growth, with optimism driven by improving economic conditions and project backlogs, though many firms anticipate challenges due to winding down projects and uncertain economic conditions.
Office values have significantly decreased, with estimates showing a drop of 25% to 30% since the pre-pandemic peak. Secondary offices, particularly outside London, are struggling with low demand and high costs for upgrades, leading to many being converted for alternative uses. Despite challenges, there are opportunities for investment in quality office spaces, with expectations of rent increases in prime locations. The market is seeing interest from private equity firms, but long-term core investors are needed for a robust recovery.
The London office market is recovering, with declining vacancy rates and strong demand for Grade A spaces. Vacancy rates in Central London fell to 6.9% in Q3 2024, with a significant increase in office take-up. Grade A space accounted for 70% of leasing activity, driven mainly by financial services. Investor confidence is improving, with notable investments from European and Asian buyers. Future supply constraints may lead to rental growth, suggesting a positive outlook for the market heading into 2025.emonstrating strong signs of recovery, with declining vacancy rates and robust demand for high-quality spaces
JLL's shares surged 8.4% following an upgrade from Wolfe Research, which cited factors such as improved disclosure practices and potential sector tailwinds like deregulation and tax reforms. The company's strong performance reflects its adaptability to evolving workplace needs amid hybrid work models, with a year-to-date stock increase of 52.6%. Despite high-interest-rate challenges, JLL has achieved broad growth across its operating segments and enhanced profitability through cost-reduction efforts.

Top Video Feature

Gensler Atlanta's Breezy Adiano and Mary Johnson take us on a tour of their redesigned office. With the unique mission of designing for designers, the goal was to create a space that "felt authentically us - more approachable and more human" while also celebrating the rich and vibrant culture.

Feature Stories

New office designs are increasingly incorporating reused furniture to reduce environmental impact and carbon emissions. Companies like Traverse32 and the U.S. Green Building Council are leading the way by repurposing existing furnishings, which not only cuts waste but also adds character to the spaces. This trend reflects a broader shift towards sustainability in architecture and design, as firms recognize the importance of circular design strategies and the lifecycle of materials in their projects.
The ongoing debate about returning to the office (RTO) stems from various factors, including a hybrid work model's perceived impact on innovation, managers' desire for control, and financial pressures related to commercial real estate. Research indicates that hybrid work can enhance employee engagement and productivity, contradicting some employers' claims. As companies grapple with RTO policies, it's crucial for decision-makers to align these policies with employee needs and preferences, while employees should present evidence of their productivity when advocating for remote work.
Vibushan Thirukumar, co-founder of Oru, shares key lessons from building and expanding two coworking spaces in London, emphasizing the importance of team culture and investing in people. He highlights the need for a holistic approach to operations, including employee handbooks and regular meetings, while balancing profitability with social impact. Thirukumar encourages new operators to embrace uncertainty and learn from challenges, noting that their organic growth strategy has led to significant community engagement and inclusivity in their spaces.

Workplace News

CEOs must adapt to the growing demand for flexibility in work arrangements, as resistance to hybrid and remote models risks talent loss and stifles innovation. Experts emphasize that flexibility is now an expectation, not a perk, and companies like Amazon face backlash for strict return-to-office mandates. The discussion highlights the importance of AI in transforming work processes and the need for leadership to embrace performance-focused strategies rather than traditional management methods. Ultimately, organizations that prioritize flexibility and adapt to the digital transformation will thrive in the evolving workplace landscape.
Educational institutions are adapting to the future workforce by reshaping curricula to include AI, automation, coding, and soft skills. Collaborations with industries provide hands-on experiences, while an emphasis on continuous learning prepares students for remote and hybrid work environments. Institutions are integrating coding into early education, promoting soft skills through specialized courses, and fostering partnerships for real-world experience, ensuring students are equipped for evolving job markets.
A report from Bain & Company highlights the increasing significance of older workers (aged 50+) in the workforce, driven by aging populations and talent shortages. It advocates for inclusive policies, flexible work arrangements, and training programs to leverage their experience and skills. Companies embracing multigenerational workforces report better performance and innovation, but face challenges like age discrimination. Retaining older workers can alleviate talent shortages and support economic growth while enhancing the quality of life for aging populations. The report calls for a cultural shift in perceptions of aging and employment.
The shift to dynamic hotel pricing is increasing costs for corporate travel, forcing companies to shorten trips or choose lower-priced accommodations. While this model can offer cheaper rates during low demand, prices have risen significantly, with weekday hotel rates up about 19% since 2019. Corporate travel managers are struggling to manage these costs, leading to potential cuts in non-essential travel. The trend towards dynamic pricing is expected to continue, as it benefits hotel revenue management despite its controversial nature.
JPMorgan CEO Jamie Dimon predicts that AI could reduce the workweek to three and a half days by automating up to 70% of tasks, potentially adding $2.6 to $4.4 trillion to the global economy annually. He cites a McKinsey report and a Cambridge study showing benefits like reduced sick days and burnout from a shorter workweek. While acknowledging job displacement, Dimon emphasizes redeployment strategies and the need for regulatory safeguards against AI misuse, expressing optimism about AI's impact on work-life balance and longevity.

Trends

JMI Equity, a growth equity firm, redesigned its Washington, D.C. office to attract top talent, addressing challenges in recruitment. The new 11,000 sq ft space features an open office layout with private offices, wellness rooms, and modern amenities. Collaborating with design firms and contractors, the project emphasized employee needs, resulting in improved morale and a competitive edge in hiring young finance professionals.

Design

Design and architecture are evolving to prioritize intentionality, with a focus on purpose, sustainability, and adaptability. Data is playing a pivotal role in driving meaningful change, as seen in examples like M Moser’s Amsterdam studio and the Circadian Building in Chicago, which exemplify sustainable practices and inclusivity. The emphasis is on creating livable cities through circular design, flexibility, and community integration, aiming for a future where the built environment supports both people and the planet.

Participatory design engages employees as co-collaborators in the design process, enhancing workplace culture and community by incorporating their insights and needs. This approach shifts the designer's role to that of a facilitator, fostering mutual respect and ownership among employees. The process emphasizes collaboration, empathy, and iterative feedback, ultimately creating a work environment that aligns with organizational values and attracts talent while addressing employee engagement and well-being.
The evolution of the cubicle emphasizes its enduring relevance in modern workplaces, balancing collaboration and focus spaces to enhance creativity, wellness, and productivity. Workstations provide essential acoustical privacy and flexibility, supporting individual work while accommodating the shift to hybrid work models. Effective design incorporates ergonomic features, technology integration, and customizable options to foster employee comfort and control. As companies anticipate a full return to the office, the importance of diverse work environments that cater to both social interaction and personal focus becomes increasingly critical.

Green / Sustainability

Allsteel Celebrates the Stanley Center for Peace and Security as the Workplace Winner at the 2024 Planet Positive Awards
Allsteel honors the Stanley Center for Peace and Security as the Workplace Winner at the 2024 Metropolis Planet Positive Awards for its commitment to sustainability, equity, and innovation. The center, located in Muscatine, Iowa, features environmentally conscious furnishings and meets the Living Building Challenge standards, promoting energy self-sufficiency and ecological harmony. The transformation from a historic library to a sustainable facility was completed in June 2023, showcasing Allsteel's philosophy of creating positive impacts through design.
Polyurethane foam, widely used in furniture manufacturing for its comfort and affordability, poses significant sustainability and health challenges. It is derived from fossil fuels, making it environmentally harmful and difficult to recycle. The material is also flammable and releases toxic smoke when burned, leading to health risks. Alternatives such as biofoams and natural materials are being explored, but they often come at a higher cost. The furniture industry faces a dilemma between maintaining low production costs and transitioning to sustainable materials, highlighting the need for consumer awareness and choice in material selection.

Latest Product News

OMT-Veyhl has launched a new collection of tube legs for the contract furniture industry, designed for office, education, and retail applications. The lineup includes minimalist post legs, versatile fixed height tube legs, robust double T legs, compact X bases, durable 4-post X bases, and innovative tube leg flip bases, all engineered for quality and ease of installation. More details can be found on their website.
BuzziSpace introduces the BuzziShroom lamp, designed by Cory Grosser, which combines acoustic solutions with lighting to reduce noise in public spaces. Its mushroom-inspired design features a thick foam body that absorbs sound and is available in various colors. Unlike traditional acoustic lighting, it can be easily plugged in and positioned anywhere, creating a calming ambiance. The lamp is suitable for residential, hospitality, and work environments, emphasizing both functionality and aesthetic appeal.
Catifa Carta, a reinterpretation of the Catifa 53 chair by Arper, embodies a sustainable approach to design by using PaperShell, an innovative material derived from wood waste that reduces environmental impact. The chair is fully disassemblable and configurable, and Arper is the first company in the industry to use monetary impact assessment to measure the value of its actions in relation to society and the environment. Catifa Carta is available on a dedicated digital platform for discovery and purchase.

Industrial Design

The Lawn Chariot is a collapsible rolling cart that transforms into shaded seating with storage, designed for comfort and convenience. It reflects American design trends, emphasizing mobile relaxation and a preference for short-lived products. While it features thoughtful design elements like an adjustable canopy and easy maneuverability, concerns about build quality remain. The product has been successfully funded on Kickstarter, with pledges starting at $279.

Trends in Commercial Projects from Around the Globe

Jefferson Bank in San Antonio, TX, redesigned its headquarters with a hybrid open plan to foster collaboration and connection among employees. Designed by Gensler, the new space includes various meeting and amenity areas, emphasizing health and wellness through natural light and flexible environments. The project aims to consolidate employees from multiple locations, creating a welcoming atmosphere that reflects the bank's identity while accommodating future growth. Jefferson Bank was recognized as a People's Choice Finalist in the 2024 Next Work Environment Office Design competition.
Loom Club, a new co-working and social space in North London, aims to combat isolation by fostering community interactions. Designed by Kasawoo, the venue features adaptable zones for socializing and working, utilizing sustainable materials and a playful aesthetic. The layout encourages casual conversations and includes a communal kitchen, quiet areas for focused work, and multipurpose spaces for various activities. The design emphasizes natural, low-carbon materials, celebrating the building's history while creating a welcoming environment for its members.
Gensler's renovation of Celonis's Munich headquarters transformed the century-old building into a modern workspace that reflects the company's values of transparency and collaboration. The design process involved minimal demolition and extensive reuse of existing materials, leading to a sustainable project that achieved LEED Gold status. The renovated space, dubbed the "Celonisphere," fosters creativity and innovation while embodying Celonis's identity, ultimately enhancing employee satisfaction and adaptability in their work environment.
MillerKnoll has opened a new flagship showroom in Clerkenwell, London, showcasing its blend of commercial and retail spaces. The 1,700 square meter showroom features Knoll classics and emphasizes customer experience with adaptable areas for collaboration and private work. It serves as a hub for London-based employees and aims to enhance MillerKnoll's presence in the U.K. and Europe, reflecting the design capital's influence on global space design.

Latest In Real Life WFH

Güney Kayım, a Backend Engineer at WhatsApp with over 15 years of experience, shares insights about his workspace and work habits. He uses a variety of tools and equipment, including a MacBook Pro and a Herman Miller Aeron chair. His typical workday starts at 9:00 AM and includes breaks for coffee and lunch. Güney emphasizes the importance of motivation and creativity in his work, and he appreciates the flexibility of remote work.

Project Leads

Biotech startup Vaxcyte has signed a 10-year lease to expand its headquarters at the Alexandria Center for Life Science in San Carlos, increasing its space from 113K SF to nearly 259K SF. This expansion follows positive news regarding its pneumococcal vaccine trials and comes amid a challenging market for Bay Area life science campuses, which are experiencing high vacancy rates. Despite these challenges, access to capital for biotech companies is improving, with projections for increased venture capital and NIH funding in 2024.

Upcoming Industry Events

NeoCon 2025 / DesignDays 2025
June 9-11, 2025 | Chicago, IL
 
NeoCon has served as the world’s leading platform and most important event of the year for the commercial design industry since 1969. A launch pad for innovation—NeoCon offers ideas and introductions that shape the built environment today and into the future.  Joining at the same time, in Fulton Market is DesignDays, a compatible show that now hosts more than half of the largest office furniture manufacturers. Hint: See both.

Industry Briefing

Landscape Forms Appoints Sarah Stangel as Business Development Representative for Massachusetts and Rhode Island
Landscape Forms has appointed Sarah Stangel as the Business Development Representative for Massachusetts and Rhode Island. With over a decade of experience in landscape architecture, Stangel is passionate about placemaking and enhancing outdoor spaces. She holds a degree from Rutgers University and was recognized as an Olmsted Scholar nominee. Residing in Malden, MA, she draws inspiration from her community and enjoys hiking and family time in her free time.

Omni Workspace is pleased to announce Lori Murray as General Manager of Atmosphere Commercial Interiors’ New Mexico location
Omni Workspace has appointed Lori Murray as General Manager of Atmosphere Commercial Interiors' Albuquerque location. With over eleven years at the company, Lori will lead the region's vision, team performance, and business planning. Her promotion is supported by Chief Sales Officer Jeff Anderson, who praises her operational expertise and leadership qualities. Lori expresses her commitment to supporting her team and enhancing the workplace culture, emphasizing collaboration for success within the organization.

Arcadis Welcomes Heena P. Santry, MD MS FACS, as Healthcare Market Leader to Support Strategic Expansion of US Healthcare Practice
Arcadis has appointed Dr. Heena P. Santry as the Healthcare Market Leader to enhance its US Healthcare Practice. With her extensive background in healthcare strategy and commitment to improving health outcomes, Dr. Santry aims to drive patient-centered innovations and address health disparities. Her appointment emphasizes Arcadis' strategy of fostering diverse teams and leveraging global expertise to create transformative healthcare designs that prioritize patient outcomes and systemic health equity.

Association of Fundraising Professionals Names Haworth Outstanding Corporation
Haworth has been awarded Outstanding Corporation by the West Michigan Chapter of the Association of Fundraising Professionals in recognition of its commitment to philanthropy and community engagement. The company supports various organizations through its corporate giving program, Haworth Helps, which offers financial contributions and volunteer hours. The award will be presented during the National Philanthropy Day event, celebrating significant contributions from individuals and organizations in the philanthropic sector.
Find the best Contract Furniture Industry jobs and hire the best talent.

Partner with Fluidconcepts to Inspire Workspaces Across these Regions:

North Texas I Oklahoma I Arkansas I Missouri I Iowa I Nebraska I Kansas I Minnesota I Wisconsin

If you’re experienced in building relationships with designers and dealers and have a passion for innovative furniture, we’d love to hear from you. Email us at sales@fluidgroup.com.

This is a full-time remote role for a Sales Specialist.
Nightingale Corporation, a leading chair manufacturing company located in Mississauga, Ontario, is seeking a dedicated and enthusiastic individual to join our Corporate Sales Team.
Goldsit Office Furniture is a leading manufacturer based in Turkey, known for its high-quality, ergonomic, and innovative office furniture solutions. With a strong reputation across Europe, we are now expanding into the U.S. market, and we are seeking Independent Sales Rep Groups to help us build our presence and grow our customer base in this exciting new territory.
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