Friday, March 4, 2022


News

If you're an office furniture manufacturer or contract dealer you probably know that tech companies are (thankfully) playing a leading role in the U.S. office market recovery. You should also know they accounted for 36 of the top 100 U.S. office leases in 2021, according to a new report by CBRE. The tech sector claimed a cumulative 11.4 million square feet of the top leases or about 37 percent. This number far outpaced the leasing activity of other sectors such as government and public administration (5.1 million square feet), finance and insurance (3.6 million square feet), and life sciences (1.8 million square feet).

“The tech sector has played a big role in office leasing activity in recent years, and it rebounded in 2021 to rival its pre-pandemic activity,” Manish Kashyap, CBRE Global President of Advisory & Transaction Services, said. “Overall, office leasing in the U.S. was up nearly 27 percent last year, and several other indicators of the market’s performance turned positive late in the year. The tech industry is the big engine there.”
Tech companies are contributing to the demand for office space, even as nationally, 45% of mathematical and computer workers work from home for at least some part of the time.
The Steelcase report, ““The New Era of Hybrid Work”” surveyed nearly 5,000 workers in 11 countries in late 2021. Many of those surveyed have returned to the office after working from home during the COVID-10 pandemic. The findings reveal 87% of people will spend at least some of their time working from the office, but 45% prefer working from home. One of the appealing attributes of home for 70% of employees is that they have a dedicated space for work, but in the office, over 50% have desks in open areas, with less access to privacy. As employers encourage people to work in the office, the office must work harder to meet these new needs.

The Workplace

Daniel Perlin of HUSH explores how to create a sustainable workplace, where we help each other and the planet thrive. What can design do?
For decades, it has been agreed that change is a constant. So, doesn’t it stand to reason that before a change or crisis happens, an organization should have the ability and resilience to transform? In the McKinsey report, The resilience imperative: Succeeding in uncertain times, resilience is defined as, “the ability to withstand unpredictable threat or change and then to emerge stronger.” In other words, it is the ability to sustain and endure. And it applies just as much to workplace resilience as any other element of the organization.
Occupancy levels are on the rise, but lag pre-omicron levels.
Are you tasked with measuring workplace metrics? Stantec’s Brad Robichaux and Stephanie Wood have a guide for you!

Trends

As we think about the future of work, consider a new workplace ecosystem — a Swiss Army knife approach to choosing the whole suite of places and spaces that provide the best environment for the work at hand.

Hybrid Working

With hybrid models tipped to be the dominant working structure for the bulk of the corporate world, leaders are under pressure to make returning to the office compelling enough for people whose adjustment to remote working has become more deep rooted.

Workplace Tech

The workplace is wherever your employees are. Matt Willmore of Modo shares 3 basic tenets of a successful digital workplace experience.

Design

Managing Director at Tétris, Stephanie Bonduelle, shares how to support clients with a truly hybrid office strategy. The ‘Great Resignation’ and labor market shortages caused by Covid-19 have created a perfect storm for recruitment.
Kirsty Shearer, development director at Agilité Solutions looks at how we can shape the sustainable future of commercial design.
Allwork.Space reports that 78% of employees say that access to natural light and views improves their overall happiness and wellbeing.
As companies restructure for an era of continuous change, they are placing new value on user experience. In the planning of new workplaces, that’s leading more designers and architects to adopt a co-creation approach.
For anyone who experienced their early career years prior to the pandemic, the formative interactions with co-workers, bosses, and mentors looked very different than for those who entered the workforce in 2020. There is a growing population whose college memories will be deprived of large lecture halls, dorm rooms, and the in-person professional experiences that shape so many U.S. workers’ memories of their early adult years.
As offices consider how to reopen after two years of disruption from COVID-19, Hoskins sees an opportunity to design better, more human-centric workspaces.

Metaverse

Since Facebook rebranded as Meta in October 2021, the word ‘metaverse’ has floated around more than ever, often leading to puzzled looks among non-gamers.
Architecture studio BIG has designed its first building in the metaverse, a virtual office for employees at media brand Vice Media Group called Viceverse.
The CRE sector weighs in on the platform in Bisnow’s first-ever metaverse survey.

Real Estate

Large employers are finally bringing workers back to the office, but that doesn’t mean smooth sailing ahead for the office market.
When they return, office workers want to come back to much improved office space.
New demand for office space in January was unchanged from December, remaining at 58 percent of its pre-pandemic level but up 75.8 percent year-over-year.

This marks the fourth consecutive month of relative stability in the VTS Office Demand Index (VODI) since peaking in summer, and falling in the second half of 2021.
Office vacancy rates in the trendy Beltline neighborhood of Calgary, Canada, currently run at nearly 25 percent, according to the latest figures by commercial real estate firm Avison Young. Stuck with empty offices, some Calgary landlords are getting the itch to convert empty spaces into other uses.

WFH

Over half of employees believe their home office set-up falls short of standard workplace amenities, a new poll claims. The study from Brita and Oktra (page includes promotions) claims to highlight the value of functional design and the impact well-designed workspaces have on employee wellbeing, engagement, and productivity.

Makers

HNI Corporation announced sales for the full year ended January 1, 2022 of $2.184 billion and net income of $59.8 million. GAAP net income per diluted share was $1.36, compared to $0.98 in the prior year. Non-GAAP net income per diluted share was $1.63, compared to $1.79 in the prior year.

Fourth quarter sales of $602.9 million were up 7 percent from year-ago levels, and fourth quarter net income was $8.2 million. GAAP net income per diluted share was $0.19, compared to $0.52 in the prior year. Non-GAAP net income per diluted share was $0.43, compared to $0.66 in the prior year.
 
Segment profitability in Workplace Furnishings declined in the fourth quarter primarily driven by unfavorable price-cost. During the quarter, the corporation took several actions to simplify its business and drive long-term profitability.
 
The corporation implemented plans to exit a small office furniture brand and restructure an eCommerce business—both moves are consistent with the corporation’s broader business simplification and margin-enhancement efforts.
 
The corporation also implemented additional price increases across its brands to address inflationary pressures. As a result, HNI expects price-cost to be neutral in the first quarter and a positive contributor to second half 2022 profitability.
Flokk, one of the leading European manufacturers of office seating and office furniture products, has acquired UK-based office furniture manufacturer Connection, expanding its footprint in the strategically important UK market and underpinning its international growth strategy. “Having Connection join the Flokk group moves us into the major league of Europe’s second-largest office seating market. We roughly double our size to about EUR 30 million in the key UK market. The transaction is another example of Flokk continuing to consolidate the fragmented European office seating market through targeted and value-creating acquisitions of attractive companies and brands,” says Lars I. Røiri, CEO of Flokk.
"We had a strong finish to fiscal 2021 as demand for our unique carbon neutral and carbon negative products continues to grow. Fourth-quarter orders increased 19% and net sales grew 23% versus the prior year period, driven by strength across all product categories. We successfully mitigated the negative impact on margins and, as promised, we materially and sustainably reduced SG&A expenses as a percentage of net sales," said Dan Hendrix, Chairman and CEO of Interface.
 
Fourth Quarter:
Net sales increased 23% versus the prior year period to $340 million
GAAP earnings per share of $0.37; adjusted earnings per share of $0.47
Orders increased 19% versus the prior year period

Fiscal Year:
Net sales increased 9% year-over-year to $1.2 billion
GAAP earnings per share of $0.94; adjusted earnings per share of $1.23
Net repayment of $56 million of debt; leverage reduced to 2.5x net debt-to-adjusted EBITDA
FY 2021 orders increased 13% versus prior year; backlog remains strong
The world was already changing; the pandemic just revved things up. Luckily, at Byrne, they already understood the power of the pivot, allowing them to not only survive uncertainty but to grow in it.

Dealers

Haworth Names Best in Class Dealers
Haworth last Friday announced the following 2022 Best In Class dealers:

Brooks Corning Co. | Business Interiors of Idaho | CCG | Christiansons Business Furniture | Cime Business Environments | Core Business Interiors | Cti Working Environments | Cultura | DBI Business Interiors | Environments at Work | Elements IV Interiors | encompas | Furniture Marketing Group | Hbi Office Plus Inc. | Interphase Interiors I |SCG | JC White Architectural Interior Products | King Business Interiors | M&M Office Interiors, LLC | Norbys Work Perks | Office Interiors | PAPSA | Peoplespace | PMC Commercial Interiors | Price Modern | RCF Group | SPACE, Inc. | turnerboone | Unisource

DBI Business Interiors, encompas, Interphase Interiors and Price Modern have each received this designation 11 times. Unisource is a first-time recipient. “It goes without saying that 2021 was one of the toughest and most unique years for our business. At the same time, the market remains highly competitive,” said Jack Cottrell, Haworth’s Vice President of Channel and Dealer Development.

“These 29 dealers have risen to challenges, contribute to their communities and play a vital role in creating great spaces."

Products

This collection of four textiles by Suzanne Tick is inspired by the origins of textile making, reinterpreting heritage weave structures and foundational fibers spanning many centuries and cultures.
The classic Task Range from British lighting manufacturer Original BTC has been a popular style choice since the first iterations hit the market.
The Simple Desk has a small footprint and inexpensive price point, making this table a stylish yet economical solution in any home, makerspace, or classroom.
Designtex launched a quartet of new wall coverings and upholstery fabrics; featuring two new products and two revamped favorites.
Darby is built to move easily and efficiently as users shift from individualized focus to group connections in a matter of minutes.
Conceived by legendary industrial designer Terje Ekstrøm, the Ekstrem chair is one of Norway’s first postmodern designs.
 
Oslo-based furniture company Varier has introduced the Ekstrem chair—one of the Nordic’s most iconic pieces of contemporary design—to its collection in a knitted velvet upholstery fabric.

Having remained almost unchanged since it was first conceived in 1984 by industrial designer Terje Ekstrøm, the Norwegian design icon has now been reimagined thanks to an innovative new upholstery technique.

Projects

Spaces & Design loved the versatile look that the infrastructure gave the Oswal Group office and hence named it the ‘White Grid Workspace’.
US furniture brand Emeco has worked with architect David Saik to convert an old sewing factory in Los Angeles into a multipurpose hub and “conversation place” with a cactus growing from the ground indoors.
BlackRock’s first vibrant workplace celebrates art, industry and spirit of southern culture all under one roof.
 
As the world’s largest asset manager, BlackRock has teamed up with global architecture firm Perkins&Will (its New York and Atlanta studios) to give their new office in Atlanta, Georgia, a bold makeover to support the company’s growing presence in the fintech space.

Noted

By understanding your body language, Google wants its products to offer you just what you want, just when you need it.
Plummeting cases of coronavirus may give many of us a glimmer of hope regarding a return to normalcy, but for the moment the pandemic continues to wreak havoc on work life.


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