NeoCon 2023 is in the Books - Half of the World’s Largest Companies Plan To Slash Office Space / Houston Fumbles Its Early Return-To-Office Lead / NYC Comptroller: No "Doomsday" Scenario From Vacant Offices / Silicon Valley escalates the battle over returning to the office / Mid-century modern is the style that won’t die / Hybrid Is Here to Stay. So Is the Office. / Is lunch hour the new happy hour? / Hybrid Work Leads to Mid-Week Crowding and Need to Retain Space / How the Hospitality Sector is Influencing Office Design/ and much much more…


The Working Space
Monday, June 19, 2023

Industry News

NeoCon 2023 focuses on hybrid work

The 54th annual NeoCon convention in Chicago was once again a success, drawing tens of thousands of attendees from the commercial interior design industry. With over 500 exhibits, the event demonstrated how businesses are changing the way they interact with their office furniture and physical workspace. The designs on display featured cutting-edge technology like motion-sensing video software and electronically adjustable desks. As remote work continues to shape the way we approach office spaces, furniture manufacturers are stepping up to the challenge of making the transition back to the office as seamless and inviting as possible for hybrid workers.

One key takeaway from the convention was the importance of integrating technology into office design, with a focus on creating flexible and adaptable spaces that can change with the needs of the workers. Another crucial element is privacy within communal spaces, which can be achieved through thoughtful design choices. Designers are also exploring the concept of space within a space, emphasizing the need for defined areas for different types of work and collaboration.

Collaborative workspaces were once again a highlight of this year's NeoCon convention, with a trend towards unassigned work areas or gathering spots that allow employees to come together and work in a more relaxed setting. By creating a more open and inviting environment, businesses are hoping to foster more creativity and collaboration among their workers, ultimately leading to better results and greater job satisfaction. Overall, NeoCon and the Fulton Market Design Days were a clear indication of the exciting changes happening in the commercial interior design industry and the bright future ahead for businesses looking to create more innovative and effective office spaces.

According to a survey by Knight Frank, half of the world's largest corporate employers plan to reduce their office space in the next few years, with most looking to downsize between 10% and 20%. However, smaller companies plan to grow their office footprint. The ongoing impacts of remote work on the office sector have contributed to this trend, but it is also a broader reflection of corporate real estate strategy. This news is bad for office space owners, and sublease space has shot up in cities like Austin as companies put office space on the market.
Tech companies are facing pushback from employees as they try to bring them back to the office, with Google enforcing a policy requiring workers to be in-office at least three days a week and Amazon mandating a three-day return-to-office policy. Employees are frustrated with the tracking of office badge attendance and the disregard for their various life circumstances. Other tech companies are also grappling with how to compel workers to come into the office after they've grown accustomed to greater flexibility, and the tug-of-war is compounded by the fact that tech companies have laid off tens of thousands of employees over the past year, leveling a major blow to employee morale.
A recent paper by three NYC academics predicted a 44% drop in the value of NYC office buildings by 2029 due to remote work. However, NYC Comptroller Brad Lander's report stated that a 40% drop in office valuations would not have a significant economic impact on the city. Despite a surge in occupancy rates, Manhattan's office vacancy rate remains at a record 22.7%, with more than half of the inventory underperforming. Other CRE sectors in NYC are faring better, including the apartment, industrial, and hospitality and entertainment sectors.
Houston's early lead in returning to the office during the pandemic has stagnated, with 44.5% fewer average monthly office visits per working day than in 2019, according to foot traffic data from Placer.ai. Companies are being more conservative about space they lease, contributing to a 28.7% fall in Houston office leasing activity in Q1 2023 compared to Q4 2022. The plateauing of the office recovery is likely due to hybrid work, which has enabled fundamental life improvements and is arguably the most significant real estate outcome of the pandemic.
According to an analysis by CBRE Econometric Advisors, office owners in the US face a financing gap of $72.7 billion between 2023 and 2025 due to lower loan-to-value ratios and substantial value erosion, with the funding gap being significantly worse for office properties than for any other sector. Borrowers may have to inject more cash into their properties or seek additional equity or mezzanine financing to pay off the existing loan, or reach an agreement with the lender to agree to a discounted payoff or loan extension. The report predicts values in Manhattan, Houston, Philadelphia and Milwaukee could plunge by 40% or more by 2024, with San Francisco, Chicago, Denver and Las Vegas seeing falls of approximately 30%.

NeoCon and Fulton Market

Fellowes Debuts New Design and Experience Center at Fulton Market Design Days Event
Fellowes opened a new Design and Experience Center in Chicago's Fulton Market District, showcasing its full range of WorkLife products. The 12,000 sq ft center provides a space for designers, architects, dealers and end users to collaborate and inspire workplace solutions. The center brings together Fellowes' range of products, including modular walls, furniture, air quality management, workspace products and business machines, to help customers envision their workspace with innovative solutions that unleash WorkLife potential.

Humanscale pops up Hybrid Life
Humanscale presented Hybrid Life, a pop-up exhibit featuring a selection of new solutions and design studies that address post-pandemic work life. Humanscale showcased an expression of ergonomic, sustainable, and commute-worthy designs. A series of zones displayed new product launches, launch previews and design studies.

NARBUTAS exhibited its latest products at NeoCon
Lithuanian office furniture manufacturer NARBUTAS showcased its latest products at NeoCon in Chicago, including new solutions responding to post-pandemic changes in office needs. The company's showroom featured WORKLAB, a multifunctional piece of office furniture, and the D-CHAIR and PARTHOS acoustic columns. NARBUTAS also paid special attention to executive furniture, including the ARQUS collection by Italian designer Folco Orlandini. The company is known for its European, modern design.

Kimball International Celebrated Inaugural Year of Fulton Market Design Days with New Showroom and Products
Kimball International celebrated the first year of Fulton Market Design Days with a new showroom featuring products from their various brands. The 13,000 square foot space showcases workplace, health, and learning vignettes to inspire and encourage interaction. The showroom also offers a sneak peek of two upcoming lounge solutions, Kithara and Daymora, set to launch in fall 2023. The space features a welcoming palette of jewel-toned greens and terra cotta, highlighting Kimball International's ability to create comfortable spaces that reflect personality.

Features

In the late 1990s, when mid-century modern furniture was making a comeback, interior designer Brad Dunning and his friends would excitedly call each other whenever they spotted a recognizable piece on television. Mid-century modernism, referring to furnishings designed from the late 1940s into the 1970s, is now the dominant aesthetic. Its clean lines and modest proportions often translate to timelessness, and its staying power is mostly thanks to its founding principle: high-minded design that’s also functional and widely accessible. Mid-century modernism supplanted traditional styles that dominated before World War II, making “foundational changes” to what furniture could be. It was the only American furniture era in which the designers themselves became household names. Mid-century modern pieces represent “the last great period of solid quality construction” and were affordable, high-quality, and scaled for city apartments and the smaller homes built during the postwar boom. Mid-century modernism’s enduring appeal is due to the simplicity of its designs, which makes them exceptionally adaptable, and to their durability. Mid-century purveyors have watched items go through multiple life cycles, and serious collectors are now seeking out lesser-known mid-century designers from other countries, such as Japan and Italy.
Office buildings in many cities have high vacancies, but Kastle reports just under 50% occupancy across 10 key U.S. cities. In contrast, Gensler’s research shows that while hybrid work is here to stay, the office is needed more than ever. Global office workers report that they are spending 50% of their workweek at their company’s office, but workers say they need an average of 63% of the workweek at the office to maximize their productivity. Across all nine countries surveyed, 61% of respondents said they need to spend more time in the office to maximize their productivity. The 'sweet spot' to maximize productivity is between 58% to 68% of a typical workweek at the office. Despite the rise of remote and hybrid work models, the office remains a critical space for many knowledge workers to perform at their best.
Big-name companies like BlackRock, Walt Disney, and Chipotle are calling employees back to their desks for four days a week, testing what has emerged as the post-pandemic norm of two to three days in the office and fueling the debate over remote work. Companies are gaining more power in the labor market as layoffs mount and a potential recession looms. These moves could backfire among employees who've grown fiercely protective of the work-life balance that remote work affords. While some firms like Chipotle and BlackRock have said employees must be in the office four days a week, others like Disney have made the move from two or three days previously to four days a week, shortly after the return of Chief Executive Officer Bob Iger. Most hybrid firms that set an in-office minimum opt for two or three days. Companies who increase their in-office requirements might not see an immediate exodus, but it might be the line at which employees start looking.

Workspace News

More workers prefer to socialize with coworkers during the workday than after-hours at a happy hour or party, according to a survey by corporate catering platform ezCater. The shift in preference towards day-time food-centered networking is likely driven by a range of factors, including employees prioritizing work-life balance during the return to office and the continued sober curiosity trend. Employers are beginning to ask how they can introduce the same benefits that a work happy hour brings, like employee engagement, without the actual happy hour. The answer could be a lunch hour, which is a more inclusive option, especially when alcohol use might be a trigger for workers.
Hybrid work arrangements have led to mid-week office crowding, resulting in the need for companies to retain the same amount of office space despite a reduction in attendance. Many employees prefer to be in the office on the same days, particularly during the mid-week, for social interaction and work collaboration. The momentum continues to build in the Return-To-Office groundswell, with 9% more doing so year-over-year, and major employers are shifting their attendance policies to require staff to show up at the office almost every week. As a result, most companies see the viability of maintaining the same amount of square footage as they have done when employees show up five days a week.
According to a Gallup report, U.S. employees are experiencing a mass crisis over their on-the-job responsibilities, with 44% reporting high levels of stress. The report also notes that low engagement costs the global economy $8.8 trillion and that poor management leads to lost customers, lost profits, and miserable lives. The report divides workers into three categories: thrivers, quiet quitters, and loud quitters, with the latter on the rise. Good management practices could curb low-engagement workers, while quiet quitters represent opportunities for growth and change.
As companies face economic headwinds, they are intensifying efforts to bring employees back to the office, with tactics ranging from coercion to charitable inducements. Google has warned employees that "nonattendance" will be a metric in upcoming performance reviews, and will monitor badge entry swipes to ensure workers show up on designated in-office days. Salesforce has launched a program called Connect for Good, donating $10 to charity for each day an employee comes into the office from June 12 to June 23. Other companies, including Chipotle, Farmers Insurance, Lyft, Disney, Snapchat, Meta, and Amazon, have also enforced stricter return-to-office mandates.
Despite the trend of newer trophy towers leasing up while older ones languish, most of the office buildings around Grand Central are doing well, with Grand Central leasing the most space of any submarket in Manhattan since the start of 2022. Even the older, so-called commodity buildings in the neighborhood are seeing solid demand, as many companies are driving the market for smaller, well-located, well-priced spaces. An easier commute is universally appealing, and the comparatively low rents in older buildings around Grand Central have made it feasible for younger companies to rent office space, in some cases for the first time.
Governments are leading the way in endorsing hybrid work models, with the US and Canadian federal governments urging agencies to balance in-person and remote work. New York City's largest municipal union has also agreed to a pilot program for non-essential city employees to work remotely. Private corporations should take heed and adopt flexible work policies to remain competitive and attract top talent, as flexibility invigorates employee satisfaction, productivity, and inclusivity. Companies should examine the terrain, institute guidelines, invest in digital tools, cultivate a culture of trust, and evaluate and adjust their flexible work policies regularly. The benefits of embracing flexibility are multifold, including a larger cultural shift that values work-life balance and wellness, reduced traffic congestion, improved air quality, and decreased demand for office space, leading to a more sustainable and resilient urban environment.
A survey by Cushman & Wakefield and CoreNet Global found that the key drivers of office decisions are talent, cost, and operational excellence. Companies are also placing greater importance on environment, social, and governance (ESG), with a focus on reputation in the Americas and climate change in EMEA. There has been a significant shift towards communal spaces, with the expectation that 40% to 50% of space will be communal. Most occupiers have occupancy levels below 45%, and a majority of companies plan to reduce their real estate footprints.

Design

Haworth's concept of inclusive design goes beyond accommodating disabilities to put the well-being of all users in primary focus. Inclusive design considers all aspects of a human being, including physical size and shape, mobility, age, gender, race, socioeconomic status, and cognitive abilities or disabilities. Haworth has identified several areas for attention, including providing choice in space and work equipment, accommodating remote working, and ensuring tools can be used well with minimum physical discomfort. The company's designs can aid in the integration and well-being of diverse individuals and are increasingly adaptable to divergent needs.
The hospitality sector is influencing office design as companies try to make the office a place employees are motivated to come to. Architects and designers are turning to the hospitality sector for inspiration, where the destination experience and branding are interwoven. The most successful office designs make the office a place employees are motivated to come to, and companies that pay attention to how the in-office experience impacts their team and view that experience as an extension of their brand are poised to see better employee satisfaction, retention, and productivity. Offices can borrow best practices from hotels, such as creating flexible spaces that can serve multiple uses, focusing on wellness, and offering amenities aplenty.

Trends

Publicis Groupe's Le Truc is a new kind of workspace that fosters creativity and challenges the traditional agency model. The space features fewer than 90 desks for an estimated staff of 250, with workers making use of team rooms, phone booths, sofas, and other spaces as their needs and activities change. The design is fluid and egalitarian, eschewing private offices and break rooms in favor of space that promotes spontaneous interaction. The space was completed during the pandemic and took inspiration from the pop-up spaces for outdoor dining and open-air performances that proliferated across the city during those years.

Latest Products

Chemetal has introduced Surface Mode Carve, a new mode of creating metal designs on thicker metals, resulting in stunning feature wall panels in neutral shades of black. The panels are .09” thick and can be installed without a supportive laminate backer, making installation easier and more affordable. The panels are also more easily repurposed, recycled, or freecycled because they are 100 percent aluminum. Custom opportunities are available for designers to create their own CNC designs, logos, signage, and branding messages.
AIS launched the Chelsea Task Chair at NeoCon. The chair is designed by Justus Kolberg of Germany and is the ninth model in the AIS task seating product line. It offers all-day comfort, an adjustable lumbar support, simplified finishes, and intuitive adjustments. The chair's contemporary design features a white-on-black pattern with a white frame against a black mesh. Its width-adjustable 3D arms and slim profile syncho-tilt mechanism make it a stylish option for any office environment. The chair will be available to order starting on July 15, 2023 and has toolless, quick-connect assembly.
Clear Design has expanded its EDGE casegoods line with a height-adjustable desk, laminate mobile box file pedestal, and floating shelf. These additions provide designers and dealers with increased flexibility to create unique office and reception spaces for their clients, with fast lead times and industry-leading warranties. The EDGE line includes over 20 modular casegood pieces in different finishes and sizes, allowing for unique configurations to meet specific needs.
Magnuson Group has introduced the BODEN high performance concrete outdoor bench, made in the USA and designed by QDesign. BODEN is made of glass fiber reinforced concrete, presenting a low-maintenance, strong, durable solution built to last indoors and outdoors. The product comes in two standard colors – White or Grey – while custom colors are also available. BODEN is an excellent bench for parks, urban plazas, pedestrian walkways, and other outdoor commercial settings within corporate spaces, restaurants, hospitality spaces, healthcare facilities, and retail settings.
Hushoffice presented their new line of acoustic pods, hushFree, at NeoCon 2023 in Chicago for the first time in the U.S. The line is designed to meet the needs of agile and hybrid work and offers users the freedom to choose where and how to work. The pods provide ISO 23351-1:2020, class A acoustic solutions, with flexible configurations and furnishings, making them a versatile and future-proof office solution.
Bluff, an outdoor lounge chair designed by Hlynur Atlason, is inspired by the sculptural shapes created by onshore winds and is made using post-consumer recycled materials. It features an organic shape, undulating angles, and built-in drainage to prevent sitting in rainwater.
Arcadia and IDA Design have collaborated to create Lineup, a commercial furniture collection consisting of lounge groupings, modular seating, semi-private booths, casual meeting spaces, and planters. The collection is designed to aid collaboration and productivity in modern environments and can be used individually or in combination with others. Lineup takes advantage of Arcadia's strengths in upholstery craftsmanship and woodworking to create full product families that complement each other.
Mantra Inspired Furniture introduces the EarthPly Collection, featuring sustainable materials and versatile design options for conference and meeting rooms. The collection is highly durable, abrasion and corrosion resistant, and naturally antimicrobial. It is also certified by FSC, HPD, EPD, Greenguard, and Declare, and contributes to LEED and green building points.
Swedish design studio Avolt has created the Square 1 extension cord, a cube-shaped device with three sockets and two USB-A ports. The base features a magnetic plate and comes with a separate metal plate with an adhesive strip for wall mounting. The product comes in a variety of finishes.

Other News

Did a contract furniture maker influence this? It seems a UK furniture company has created a 3D rendering of a woman named Anna to visualize the risks associated with remote work, including poor posture, weight gain, and mental health issues. The company claims to have consulted with health experts and doctors to create Anna, who suffers from "Text Claw" and a sedentary lifestyle. Remote work has become more prevalent, with 13% of workers fully remote and 28% hybrid, according to a Stanford study. Experts warn that remote work can lead to physical and emotional health issues, and that people may be at risk of aging up to 10 to 15 years due to poor ergonomics.
As remote work and hybrid work trends continue, property owners are exploring different options for vacant office space beyond converting to housing. These options include converting to hotels, lab space, self-storage, and mixed-use developments with retail, restaurants, and event space. However, each option comes with its own set of challenges and costs, and large-scale conversions may be slow-moving due to traditional office leases. Nevertheless, finding a better use for office space can benefit building owners, surrounding neighborhoods, and the environment by reducing carbon emissions.

Coworking

The Malin has opened its third members-only coworking space in New York's West Village, offering a premium service with interiors inspired by the local neighbourhood and historical building. Members can choose from communal seating, dedicated bespoke desks, and private offices, and enjoy meeting rooms, soundproof booths, and a kitchen and outdoor courtyard. The bohemian-chic design reflects the neighbourhood's past, with rustic brickwork and original wooden beams, and a hushed library named for late conceptual painter Jennifer Bartlett. The Malin is a hospitality brand, not a co-working brand, according to founder and CEO Ciaran McGuigan, who aims to create a comfortable and functional atmosphere.

Trends in Commercial Projects from Around the Globe

Glassdoor's new Chicago office was designed to reflect the company's community-driven vision and values. The space features cohesive, colorful environmental graphics and signage, a mix of colors in community areas, and cork ceilings throughout. The design elements and color palette were inspired by Glassdoor's brand assets and Chicago's vibrant character, including city-specific features like Chicago skyline murals painted by local artists. Moss worked with Glassdoor and Media-Objectives to ensure the company's principles and values were articulated in the environmental branding, and all time and budgetary expectations were exceeded.
L.L. Bean has opened a new $110m headquarters in Maine that features floor-to-ceiling windows and a central courtyard. The 390,000 sq ft building, designed by SMRT, centralises the company's offices, which had previously been spread across a number of sites. The new design also includes a showcase for forthcoming products and a testing lab, which was previously hidden away.
Cambridge Consultants partnered with SGA to design their 22,000 square foot office space in Boston's Seaport neighborhood. The space was designed to support their hybrid work model with intentional technological integrations, acoustic considerations, and a blend of coworking and private spaces. SGA also integrated the company's new logo into the design and created a sense of openness with floor-to-ceiling windows. The design process was highly collaborative and representative of ideas and opinions from entry-level employees up through C-suite, resulting in a vibrant and immersive workspace that reflects the client's brand and values.

Upcoming Industry Events

NeoCon 2024
June 10-12, 2024 | 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.  

Clerkenwell Design Week 2024
May 21-23, 2024 | London

Clerkenwell is home to more creative businesses and architects per square mile than anywhere else on the planet, making it truly one of the most important design hubs in the world. To celebrate this rich and diverse community, Clerkenwell Design Week has created a showcase of leading UK and international brands and companies presented in a series of showroom events, exhibitions and special installations that take place across the area.

Orgatec 2024
October 22-26, 2024 | Cologne, Germany

Orgatec is the International trade fair for office and property equipment. Held in Cologne, Germany.

Industry Briefing

Integra Seating Appoints Chandra Putnam as its New President
Integra Inc., a manufacturer of lounge furniture, has appointed Chandra Putnam as its new president. Putnam, who has served as director of sales and marketing for the past 19 years, will continue overseeing those functions for the immediate future, while taking on several new responsibilities including working with all company department leaders to meet the organization’s business goals, participating in product research and development, maintaining budgets, and leading Integra’s sustainability efforts. Integra is a nationally certified Women Business Enterprise (WBE) and Women-Owned Small Business (WOSB) organization.

Keilhauer Announces CEO Transition Plan
Keilhauer has announced a CEO transition plan, with Mike Keilhauer transitioning to CEO while CMO Meghan Sherwin is appointed to the role of President. Mike Keilhauer will continue as Creative Director, leading product design and designer relations, while Meghan Sherwin will oversee Brand & Product Marketing, Textiles, Sustainability, Public Relations, Showrooms, Customer Service, Warranty, and Outbound Logistics.

Landscape Forms Announces Partnership with CDm2 LIGHTWORKS
Landscape Forms has partnered with CDm2 LIGHTWORKS to represent its full lighting portfolio in British Columbia and the Yukon Territory. CDm2 LIGHTWORKS offers expertise in lighting products, controls, and smart solutions, and serves various sectors. The partnership will enhance CDm2 LIGHTWORKS' outdoor architectural lighting offering and expand Landscape Forms' international audience.

Creative Office Resources is Now a WBENC-Certified WBE
Creative Office Resources (COR) has been certified as a Women's Business Enterprise (WBE) by the Women's Business Enterprise National Council (WBENC), highlighting their commitment to diversity and inclusivity. The certification process involves a rigorous evaluation of a company's ownership, financials, and management to ensure it meets the stringent criteria. COR's certification strengthens their market presence and commitment to fostering a diverse and inclusive business environment.
Find the best Contract Furniture Industry jobs and hire the best talent.
Dear Stephen, What a NeoCon this year! While flying home from Chicago, I sat in the Delta Lounge and ran into someone I'd met in The Mart during the week. We got to chatting. They asked me what my big takeaway from NeoCon this year was.

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The Senior Regional Designer is a home-based position, reporting to the Design Manager. This position will produce and oversee print and digital creative solutions that satisfy the marketing needs of Royal Thai or client.

Mayer Fabrics, a leading commercial textile company, is seeking highly motivated and dynamic Sales Representatives and/or Rep Groups in the greater areas of Dallas, TX, New York, NY, and Toronto, Ontario, Canada to join our team.
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