Friday, September 30, 2022


Overall Office Space Demand Sinks for Third Month in a Row

Demand for home office furniture remains at record highs post covid

MillerKnoll, Inc. Reports First Quarter Fiscal 2023 Results

News

Companies continue to sort out how much and what kind of space they need as they emerge from the pandemic. In the meantime, new demand for office space fell for the third consecutive month in August, sinking below half of its average pre-pandemic pace, according to the latest VTS Office Demand Index (VODI) analysis.

The national VODI fell by 6 VODI points, or 11.5 percent, from 52 in July to 46 in August, its lowest level since February 2021.

U.S. manufacturing is experiencing a rebound, with companies adding workers amid high consumer demand for products.
Trends data shows searches for furniture for home working are still significantly up since the pandemic, potentially indicating that a Great Return to the office as a result of the cost-of-living crisis may not be guaranteed.
Tech offices are doing away with vaccine mandates and health surveys.

The Workplace

A casual observer of the office market may see the current situation as grim, if not downright apocalyptic. Headlines over the past two-plus years have focused on the popularity of remote work, the battle between workers and employers in return to the office, and occupiers downsizing footprints. But there is plenty of bright side to see too. Occupancy levels have surged after Labor Day to post-pandemic highs, and there is scattered good news companies expanding their office footprints.
In its new report on state of the hybrid workplace, Microsoft says successful companies are backing off of office mandates.
Leaders notice the contributions of workers more when they are in the office, a new workplace survey claims
As workers continue to adjust workstyles to fit with their new priorities, a PwC survey reveals nearly two-thirds of workers are on the hunt for a new job. Many employers are scrambling for strategies to attract top talent and retain their employees. But actively developing working culture and designing new ways to secure the best talent and look after it requires first listening and reacting to the impact the changing work landscape is having on employees’ mental and physical health, as well as understanding and prioritizing new and sought-after benefits.

Real Estate

New demand for office space in New York City fell for the third consecutive month in August, dropping by 23% compared to the month prior, according to new data from real estate software firm VTS.

Demand for office space in NYC has reached its lowest level since February 2021 and is now 44% below its pre-pandemic pace, according to VTS.

What is Flex? According to Cambridge it’s a verb that means “to bend” or “to change something slightly to make it more suitable.”

The real estate world is desperately trying to be flexible and ‘bend’ in order to retain clients. The days of buying a building and carving buildings up into sections and demanding 20 year leases is over. They’re repacking their tired product to make it “more suitable.”

Coworking

GWA tech panel experts provide unique insight into the future of coworking technology and how proptech can help coworking spaces thrive.
The Post-Labor Day push for a return to the office is heating up by at least one measure. WeWork announced its busiest four-day stretch of the year in the week after September 5th, as bookings by all-access and on-demand members spiked by 20 percent compared to the weekly average of the company’s 700 worldwide locations. WeWork reports that global keycard swipes surged more than 70 percent compared to the same week in 2021.

Makers

Firing on all cylinders, Herman Miller Wednesday reported first quarter consolidated net sales of$1.08 billion, reflecting an increase of 36.6% on a reported basis and 12.3% organically compared to the prior year. Orders in the quarter of $1.01 billion were 10.5% higher on a reported basis and decreased 11.0% organically year-over-year.

Dealers

This strategic collaboration will leverage the strengths and expertise of each organization to deliver a comprehensive suite of turnkey services to best support their customers.

Hybrid Working

Hybrid work may be here to stay, but it’s taking on a different form than many originally imagined at the onset of COVID-19.

The market is still slumping, with data from Kastle Systems from August showing that US occupancy is somewhere between 43% to 44%, a level it’s been hovering since April. That figure is below 40% in San Francisco and San Jose. And in addition to a record amount of sublease space hitting the market, nearly 243 million square feet of office leases are set to expire in 2022, representing roughly 11 percent of office inventory in the US, according to Colliers. The widespread adoption of hybrid work is expected to cause a 15% drop in office space demand nationally.

Daan van Rossum is the CEO of FlexOS and Dreamplex, both of which help companies in South East Asia connect to, launch and manage hybrid workplaces. His aim is to provide workplace experience as a service, making the transition to a flexible environment more seamless and effective.

Products

Edginess with a modern flair, the slender curved angles of Spino effortlessly balance comfort and sophistication.
The Designer Collection enhances FireKing’s fire-rated asset protection with wood grain and stone finishes to suit any room’s decor.
The 8-piece collection brings new colors and materiality to the Eames catalog, marking the first Herman Miller and HAY collaboration.

Projects

French design agency Chzon studio has added archways and fountains that reference iconic Parisian monuments to a departure lounge at the Charles de Gaulle Airport in Paris.
Driven by the goal of reimagining the future of work and establishing a sense of belonging, Gensler’s new Singapore office is designed to embrace the firm’s global perspective while balancing its uniquely local connection to Singapore culture. Spanning 8,880 feet, the new workspace is designed to foster authentic human connection and collaborative experiences among employees returning to the office.

Last Word(s)

Meghan Markle and Prince Harry house: The Duke and Duchess of Sussex’s mansion in Montecito with their children Archie and Lilibet as an epic office space.
As the return to office debate rages on around the world, a fleet of robots was unleashed in a cutting-edge office building near Seoul, South Korea, ready to assist human co-workers with coffee requests, lunch deliveries, and package retrieval. Located in the town of Pangyo, a tech hub about 14 miles south of the country’s capital Seoul, a building called 1784 was launched by South Korean tech giant Naver as a “testbed” office building with 100 service robots. “A place where humans work in harmony with robots,” Naver states on the building’s website. Along with a host of smart tech features, the building will be home to self-driving robots with 5G network capabilities and even the world’s first elevator just for robots.
Alexander Buff, founder and CEO of Interpanel, is set to change our notion of temperature control and the practice of cooling interiors. He talked with us about the potential of his unique dew-point independent radiant ceiling, and how it challenges and supersedes air conditioning, allowing for more sustainable temperature control.

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