Humanscale Launches a New Residential Designer Trade Program / New York Exemplifies the New Definition of Office Oversupply / Can Renovations Compete with New Office Construction? / Federal Government Cutting Millions of Square Feet in Office Space / Dupe: Browser Plug-Ins Dedicated to Selling Furniture Design Knockoffs  / 62% of Large U.S. Companies Embrace Hybrid Work, but In-Office Mandates Persist / Silicon Valley's return-to-office battle is still a hot mess / AI Companies' Office Demand Boosts Optimism for Kilroy Realty / Opinion | The office crisis isn’t big enough to trigger a global financial meltdown / CEOs Are Running Companies From Afar Even as Workers Return to Office / 3 Strategic Reasons Businesses Need To Prioritize Workplace Nutrition / Evidence Shows 4 Reasons Hybrid Work Is A Win-Win / Do We Really Have to Return to the Office for Collaboration? / and much more…


The Working Space
Monday, August 19, 2024

Industry News

Humanscale Launches a New Residential Designer Trade Program
Humanscale has relaunched its Residential Designer Trade Program to support designers in creating ergonomic and sustainable home workspaces. The program offers personalized 1:1 support, tax-exempt purchasing, trade discounts, and access to a 3D library, among other benefits. It is open to licensed interior designers and architects in the U.S. and Canada, requiring proof of professional credentials for application. The initiative aims to enhance productivity and well-being in home office design.
Dupe is a browser plug-in that helps users find affordable knockoffs of expensive furniture designs by searching the internet for similar items. While it offers a solution for budget-conscious consumers, it raises concerns regarding copyright infringement, as many of the products are blatant knockoffs.
The debate over remote work in Silicon Valley continues, highlighted by former Google CEO Eric Schmidt's critical comments on Google's flexible work policy, which he later retracted. Tensions remain high as tech leaders, including Sam Altman and Elon Musk, advocate for in-person work, while companies like Nvidia thrive without strict return-to-office mandates. The future of work arrangements in the tech industry remains uncertain as leaders struggle to align their workforce with their preferences for in-office productivity.
Dated office buildings are struggling to maintain occupancy as tenants increasingly prefer new constructions. Renovations of older buildings, once a reliable strategy, are yielding temporary rewards and diminishing returns on investment. Since 2020, buildings over 10 years old have lost significant occupancy, while newer buildings have seen positive absorption, indicating a strong preference for brand-new office spaces among tenants.

AI Companies' Office Demand Boosts Optimism for Kilroy Realty
Kilroy Realty is experiencing a boost in office demand due to tech companies, particularly AI-focused firms, gradually returning to the office and seeking larger spaces. The company reported a steady increase in leasing activity, with significant interest from over 16 tenants in the San Francisco Bay Area. While the national office vacancy rate remains high, the growing demand from AI companies is seen as a potential catalyst for recovery in the office market.
The U.S. federal government is significantly reducing its office space in Washington, D.C., cutting over 30 million sq. ft. due to the adoption of remote work policies. Agencies like the Department of State and HUD will see substantial reductions, with HUD's footprint shrinking by up to 60% by 2038. This downsizing reflects a broader trend in the federal workforce and poses challenges for the city's economy, as federal agencies represent nearly 20% of its job market. The strategy emphasizes the need for efficient space utilization and supports the shift towards flexible work environments.
The current office crisis, characterized by significant declines in office building values, particularly in major cities, is unlikely to trigger a global financial meltdown. The crisis is primarily affecting older office buildings, while newer "Class A" properties remain occupied. Unlike the rapid home foreclosure crisis of 2008, this downturn is slow-moving, allowing sellers to adapt. With potential interest rate cuts on the horizon, opportunities for converting office spaces into residential or other uses are increasing, supported by local government incentives. While challenges remain, the situation is not as dire as previous financial crises.
New York exemplifies the new definition of office oversupply, characterized by obsolete buildings and high availability rates rather than construction booms. A Savills report indicates a 20.1% overall availability rate in NYC, with 94 million square feet of available space, but the effective availability rate drops to 19.2% when accounting for buildings being converted for other uses and those deemed obsolete. Despite these adjustments, the office space per worker remains oversupplied compared to national and global metrics. Cities can take actions like zoning law changes to convert office space into housing, though challenges persist.

Workplace News

An emerging trend sees CEOs, like Starbucks' Brian Niccol and Victoria’s Secret's Hillary Super, operating from locations far from their companies' headquarters, despite employees facing stricter return-to-office mandates. This shift reflects a growing flexibility in corporate leadership, allowing top executives to commute frequently while maintaining their roles. Some CEOs, such as Boeing's Kelly Ortberg, remain based near critical operations, while others, like United Airlines' Scott Kirby, split time between different cities. Companies emphasize support for teams regardless of their location.
A significant portion of young men, 20%, are neither working nor actively seeking jobs, while college-educated young women are more persistent and flexible in their job searches. This disparity is influenced by hiring slowdowns in male-dominated sectors and a competitive job market, with many graduates underemployed. Women are more likely to accept part-time or unrelated jobs, potentially leading to better short-term employment outcomes compared to men who wait for ideal roles. Understanding these trends is crucial for policymakers and employers.
Businesses should prioritize workplace nutrition due to its significant impact on employee productivity, health, and overall organizational success. Poor nutrition is linked to decreased productivity and increased absenteeism, while healthy eating habits enhance cognitive function and job satisfaction. Implementing nutrition programs can attract talent, improve employee wellbeing, and ultimately lead to better financial outcomes for companies.
Hybrid work offers four key benefits: increased job satisfaction and employee retention, maintained productivity levels comparable to in-person work, substantial cost savings for both employees and employers, and improved work-life balance. Research indicates that hybrid arrangements reduce resignation rates, support personal responsibility management, and can lead to significant financial savings by lowering attrition costs.
Recent research challenges the belief that physical proximity is essential for effective collaboration, suggesting that social proximity—characterized by strong interpersonal ties—plays a crucial role. Virtual tools can effectively bridge gaps created by distance, enabling collaboration through regular communication and informal interactions. Organizations should focus on fostering social networks and cross-functional collaboration to enhance teamwork, indicating that a return to the office may not be necessary for successful collaboration in a hybrid work environment.
A recent poll indicates that the traditional post-work drink is declining in popularity as employees prefer daytime social gatherings. Employers are encouraged to foster inclusive workplace cultures that accommodate diverse preferences, especially for those who do not drink or work remotely. The study reveals that while many leaders recognize the benefits of a multigenerational workforce, most lack guidance on organizing inclusive events. Recommendations include rebranding social events, offering non-alcoholic options, and scheduling gatherings during work hours. IARD has introduced resources to help organizations develop alcohol workplace policies.

Trends

The repositioning of office buildings in the post-pandemic U.S. aims to create amenity-rich environments to attract people back to urban centers. This involves transforming traditional office spaces into multifunctional areas that blend work, social interaction, and community services. Key strategies include major renovations, integrating health and wellness services, and creating dynamic ground-floor spaces that connect with the neighborhood. Examples include Gensler's Willis Tower Podium and Snøhetta's 550 Madison in New York City. This trend reflects a shift towards hybrid work models and the need for spaces that support diverse activities and enhance well-being.

Design

To create a more inclusive workplace, organizations should ensure accessibility, provide quiet spaces, offer flexible break areas, allow for varied workspaces, give employees choices in their work environment, and promote movement. Involving employee resource groups in the design process can enhance inclusivity, catering to the diverse needs of a multi-generational workforce and individuals with disabilities.
Five innovative office spaces are highlighted for their commitment to sustainability and unique design: EA Studios Orlando features specialized amenities for video game production; Nihonbashi Mitsui Tower in Tokyo combines modern design with historical preservation; Microsoft's Sydney office integrates local geography and high-tech features; the Illinois Quantum & Microelectronics Park supports quantum computing with extensive resources; and 825 3rd Street in New York was transformed into an energy-efficient workspace using smart technologies.
The 2023 Education Engagement Index reveals that while there is an increasing desire for on-campus work among educators and staff, the majority still prefer hybrid or virtual workstyles. Many respondents are open to sharing office space rather than having assigned private offices, with over 40% of educators and 55% of staff favoring shared arrangements for more remote work opportunities. This suggests that campuses could benefit from exploring unassigned and shared workspaces to better utilize real estate and meet evolving needs.
Modern office design is shifting towards extremes, focusing on hyper-focus and hyper-collaboration to meet the diverse needs of contemporary work. Traditional office environments, such as cubicles and open plans, are being replaced by specialized spaces that support deep concentration and intensive teamwork. Advanced technologies, like IoT sensors and immersive tools, are being integrated to create personalized and efficient workspaces. Examples include Deloitte’s ‘The Edge’ in Amsterdam for hyper-focus and NVIDIA’s headquarters for hyper-collaboration. This trend signifies a move away from one-size-fits-all designs towards tailored environments that enhance productivity and innovation.

Flexible Office Solutions

Hyundai Motor Company has leased 19 floors of WeWork space in South Korea, totaling 74,000 square feet in Seolleung and 3,700 square feet in Gangnam Station. This move aligns with the trend of large enterprises adopting flexible office solutions to meet modern workforce demands. Hyundai will provide its employees with 1,000 WeWork All Access passes, promoting a blend of in-office and remote work. This partnership illustrates the shift towards decentralized, employee-centric workplace designs, enhancing resilience in a changing business environment.

Podcasts

Allsteel Launches Tell Me More Season Two With Episode Co-Solutioning for Sustainability
Allsteel launches season two of the podcast "Tell Me More," featuring an episode on "Co-Solutioning for Sustainability" with guests from Corral and Kvadrat. The episode discusses their collaboration on Pier Shelving, a sustainable product made from textile waste, and highlights the importance of partnerships in addressing workplace challenges and promoting sustainable materials. The podcast aims to provide insights into innovative workplace solutions that enhance productivity and well-being, available on major platforms like Apple Podcasts and Spotify, or visit the Tell Me More landing page on Allsteeloffice.com

Green / Sustainability

Kimball International’s Los Angeles Showroom Earns WELL Certified™ Platinum Distinction
Kimball International's Los Angeles showroom has achieved WELL Certification at the Platinum level, recognizing its commitment to health and well-being for employees and visitors. This certification reflects adherence to industry standards across ten core concepts related to health. The company also holds WELL Platinum certifications for its corporate headquarters in Indiana and its Dallas showroom, with plans to pursue certification for additional locations.
Somer, a low-carbon furniture system founded by William Floyd-Maclean, launches in September 2024, emphasizing aesthetics, sustainability, and accessibility. Its modular design uses local timber and promotes a buy-back scheme to encourage reuse and reduce waste, aiming to create a circular economy in furniture manufacturing and extend the lifespan of products.

Latest Product News

Landscape Forms has launched Monterey, its first cushioned outdoor seating line, which features high-quality metal craftsmanship and premium outdoor cushioning. The collection includes various seating options designed for upscale outdoor spaces, emphasizing comfort and a refined aesthetic. The cushions are made from durable, weather-resistant fabric, combining the durability of outdoor furniture with the elegance of indoor upholstery, and are available in multiple colors with customization options.
Artcobell has expanded its Curved + Linear Lounge Series by adding a round ottoman and curved tables designed for K-12 educational environments. These new products complement existing seating solutions and offer various height options and finishes. The collection aims to enhance classroom flexibility and support effective learning environments, allowing for customizable seating arrangements. All products meet industry standards for comfort, safety, and sustainability.
Knoll has launched the Lev height-adjustable table, designed for flexibility in modern workspaces. It features a streamlined aesthetic, allows users to switch between sitting and standing, and offers customizable worktop options. The table is available through authorized Knoll and MillerKnoll dealers.
The Omaha bench, designed by Brad Ascalon and Snøhetta for the Joslyn Art Museum expansion, combines timeless form, contemporary design, and comfort. Available in five sizes with solid ash or walnut bases, it supports various applications and upholstery options. Ascalon is recognized for his balanced design approach, while Snøhetta is known for its impactful architectural and environmental work.
Ethnicraft has expanded its Elements Collection, featuring unique, hand-finished items made from Microcement, including coffee tables and side tables. The collection emphasizes elegant simplicity and versatility, with a soft, minimal design that complements various materials and is easy to maintain.
The Abl lounge chair by Keilhauer features a fluid design inspired by gravity, combining elegance with practicality. It includes customizable upholstery options and is crafted from sustainable, FSC-certified materials, making it a certified Carbon Neutral Product. The chair's design emphasizes comfort and sophistication, suitable for enhancing any workspace lounge.
Carl Hansen & Son has reintroduced two iconic designs by Kaare Klint: the Spherical Bed and the English Chair. The Spherical Bed, originally launched in 1938, features precise geometric dimensions and is handcrafted over a month, while the English Chair, inspired by 18th-century designs, showcases masterful woodwork and takes a week to assemble. Both pieces emphasize organic curves and exceptional craftsmanship.
Spinneybeck celebrates the legacy of Erwin Hauer with Design 406, a modular wall panel system available in five wood species, emphasizing natural materials and continuous curves. This design reimagines Hauer's iconic work, known for its light-diffusing properties and modernist influence. Design 406 can be installed on walls and ceilings and offers customization options, including color and fire resistance treatments.
Material Matters, a new textile collection by Jeannene Doub for Jamie Stern, features sophisticated and sustainable fabrics made from natural fibers in muted tones. The collection includes six patterns inspired by timeless textures, emphasizing durability and environmental responsibility. It aims to balance elegant design with responsible material choices, highlighting the importance of fiber in textile composition.
Nemo Tile + Stone has launched the Celine Collection, a new line of porcelain tiles that mimics marble with sophisticated patterns and advanced technology. The collection features various sizes and finishes, ensuring durability and safety for both residential and commercial use. It incorporates innovative technologies like 3D Tech, SOFT 3D, and P.TECH for enhanced visual depth, smooth finishes, and superior slip resistance.
Shaw Contract has launched the Local Landscapes carpet tile collection, inspired by nature and designed to connect indoor spaces with the outdoors. The collection features three styles—Element, Landscape, and Migrate—each reflecting various global biomes and made from eco-friendly materials. It aims to create a welcoming atmosphere in workplaces and educational settings while promoting sustainability through its carbon-neutral production and recycling program. The collection is Cradle to Cradle Silver certified and emphasizes community and comfort in design.

Industrial Design

Herman Miller's OE1 Workbox, designed for hot-desk workspaces, helps workers transport their belongings in flexible office environments. It features a non-locking design with an insert tray for privacy and is made from post-consumer ABS. The Workbox draws inspiration from utilitarian janitor box-trays, catering to the evolving needs of knowledge workers.
The Magnus Heavy Duty Monitor Arm by Secretlab supports monitors up to 57 inches and 35 pounds, featuring adjustable tilt and rotation. It includes a user-friendly UX touch for adjusting the tensile spring mechanism and comes with a clear installation manual. The price is $350.

Trends in Commercial Projects from Around the Globe

Hakuhodo Gravity, an advertising agency in Tokyo, transformed a standard office into a dynamic workspace that promotes connectivity and casual interactions through a flexible, reconfigurable floor plan. The design features open areas for both independent and group work, with minimal use of walls to enhance collaboration. Key elements include shared amenities, a U-shaped layout, and furniture that reflects the company's identity, utilizing materials associated with the fashion industry. This agile approach allows the workspace to adapt to changing needs while maintaining compliance with real estate policies.
Oktra redesigned Walter Lilly's workspace in London to create a modern, open, and sustainable environment that enhances collaboration and employee wellbeing. The new layout features open-plan desking, a multifunctional breakout area, and flexible work settings, while incorporating sustainable practices like hybrid HVAC systems and reused furniture. The design reflects Walter Lilly's brand identity, celebrating their 100-year anniversary with high-quality finishes and a striking timber-slatted wall showcasing their logo.
Coca-Cola's headquarters in Warsaw, designed by BIT CREATIVE, features a vibrant interior that celebrates the brand's iconic beverages. The 59,000 square foot space accommodates 500 employees, incorporating elements like oak wood, felt, and Coca-Cola's signature colors. The design includes creative uses of materials, such as bottle caps and glass fixtures, while providing casual zones and themed meeting rooms reflecting different brands. The office aims to create a welcoming environment that balances aesthetics with functionality.
M Moser Associates designed a new 22,000 sq ft office for a confidential global gaming company in Victoria, BC, focusing on employee performance and collaboration. The project merges two company cultures into a cohesive workspace while integrating flexibility, state-of-the-art technology, and a fun atmosphere. Key features include agile work solutions, collaboration zones, and wellness spaces, all reflecting the company's heritage and future aspirations in the gaming industry.

Latest In Real Life WFH

Andrew Yeung, founder of Andrew's Mixers, has hosted over 100 events for more than 30,000 people, gaining media coverage. His workspace features items like a Jarvis standing desk and a Dell curved monitor. He follows a daily routine that includes high-priority work, gym sessions, and networking with entrepreneurs. Key challenges in organizing tech events include curating the right attendees.
Gemma B., a Community Manager and content creator from London, shares her cosy gaming desk setup, inspired by Japandi design, featuring a Samsung M7 monitor, Creative Pebble speakers, and a Vernal-UK standing desk. She emphasizes the importance of cable management, ambient lighting, and personal touches like faux plants and decorative items. Gemma's daily routine includes remote work, content creation, and family time, highlighting the benefits of working from home while maintaining motivation and communication with colleagues.

Upcoming Industry Events

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

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

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.

Large Project Leads

Citigroup Center has signed lease agreements totaling approximately 46,000 square feet, retaining four existing tenants and welcoming three new ones, including a large law firm occupying 18,781 square feet, another law firm with 6,862 square feet, and seafood company Pescanova with 2,513 square feet.
Core Spaces, a Chicago-based developer, is relocating to a new 36,000 square foot office near Goose Island, tripling its current space. This move reflects the company's commitment to in-person work despite a trend of downsizing among many firms. The new office aims to enhance company culture and accommodate its growing workforce, which has expanded to nearly 200 employees. The building, which has undergone significant renovations, is now approximately 75% leased and includes a new riverwalk. Core Spaces has also diversified into build-to-rent communities, although it faced challenges with a proposed project in Glenview.

Industry Briefing

Hightower Aims for Continued Success with Company Promotions
Hightower has announced several internal promotions, including Dr. Kibibi Springs as VP of Workplace Experience and Shawn Sowers as VP of Design, among others, reflecting the company's growth and commitment to quality service. The changes, effective July 2024, aim to enhance Hightower's reputation and support its mission as a B Corp and Women’s Business Enterprise, with a focus on sustainable furniture solutions.

Three H Welcomes Marisa Southard as the new Sales Director, USA East
Three H has appointed Marisa Southard as the new Sales Director for the USA East, bringing over 15 years of experience in brand scaling and territory expansion. Her previous roles include launching Here Now and leading sales for MillerKnoll's brands. Marisa will help drive Three H's strategic growth plan and enhance its vision to be North America's preferred laminate office furniture solution. CEO Chris Binnendyk expressed confidence in her leadership to inspire innovation and maintain the company's core values.

Chris Curley Joins NELSON Worldwide as Practice Leader, Hospitality
Chris Curley has joined NELSON Worldwide as the National Practice Leader for Hospitality, focusing on business development and project oversight to ensure client satisfaction and profitability. With over 35 years of experience in architecture and interior design, particularly in hospitality, Curley aims to leverage his expertise to support his team's success and uphold high-quality standards. His previous roles include founding practices and leading diverse project types, emphasizing his commitment to quality design and service.

Arcadia and Encore Launch 2024 Lookbooks
Arcadia and Encore have launched new lookbooks for 2024, featuring a diverse range of products. Encore's first edition showcases its full seating and table line, while Arcadia's lookbook highlights new collections from 2021 to 2024. Both lookbooks are compact, organized alphabetically, and visually focused, produced in collaboration with 5D Studio. The brands have invested in over 10 new collections this year and recently renovated their Chicago showroom. Digital and physical versions of the lookbooks are available for viewing and request.

EDmarket Announces 2024 NexGen Rising Stars
The Education Market Association (EDmarket) has announced the 2024 NexGen Rising Stars Award, recognizing young professionals under 40 in the education industry for their achievements and contributions. The awardees include individuals from various organizations, and they will be honored at the EDspaces event in Houston, TX, on November 12, 2024. This initiative promotes collaboration and mentorship among emerging leaders in education.

NanaWall Opens Call For Submissions for the 2024 NanaAwards Project and Design Competition
NanaWall has opened submissions for the 2024 NanaAwards Project and Design Competition, celebrating innovative projects using their glass wall systems. Categories include Best New Build, Best Commercial, and Best Remodel, among others. Submissions are accepted from August 15 to October 1, 2024, with public voting in October and winners announced in November. Up to $5,000 in prizes will be awarded to category winners. For more information, visit www.NanaWall.com
Find the best Contract Furniture Industry jobs and hire the best talent.
Dear Stephen, What's the big deal with ancillary furniture today? When I started my career, everyone transitioned from working at a traditional desk to a panel system. In those days, we even called them "cubicles." And suddenly, every furniture company that made panels then had a panel specialist.
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Indoff is expanding and needs experienced outside sales professionals in your area. If you’re tired of missing out on money due to low commission rates or you’re sick of quotas, then Indoff is the perfect solution for you.
We are currently seeking a dynamic and experienced Business Development Manager to join our team. The ideal candidate will have a proven track record in developing and maintaining relationships with key clients, identifying new business opportunities and driving sales growth for the company.
The Healthcare Account Manager will be responsible for representing Wieland products to the healthcare market inIndiana and Kentucky.
JSI, a design-driven furniture brand focused on building a strong, thriving business for the next generation is seeking a Vice President of Sales. 
OFS is excited to announce that we are actively seeking qualified candidates to join our team as Healthcare Sales Specialists.
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