Patricia Urquiola creates lofty showroom for Moroso in Manhattan / Virco Q3 Earnings Beat Estimates / Gen Z workers are not tech-savvy in the workplace – and it's a growing problem / CRE Sentiment Index Suggests Recession Will Be Shallow and Short / Office Absorption Likely to Significantly Slow In 2023 / Office Tenants Have The Advantage To Get More Demanding In 2023 / 'Remarkable And Unexpected' Backlog For Nation's Contractors Despite Economic Turmoil / The freelance workforce is becoming more highly skilled and highly educated / Modern workspaces can’t afford to be boring / and much more

* The Year End Issue *
The Working Space
Monday, December 19, 2022

Industry News

If you were worried that all the good office/showroom space has been taken in Fulton Market, don't be. NY-based developer Vista Property is planning to build three mixed-use towers in Chicago’s Fulton Market district.

The Gensler-designed towers planned for the intersection of West Kinzie and North Morgan. According to a report in Urbanize Chicago, the three towers—to be built on lots at 370, 400 and 401 North Morgan St.—would replace the Fox Deluxe building, which will be demolished.

Education sector furniture maker Virco Manufacturing Corporation posted revenues of $77.4 million for the quarter ended October 2022. This compares to year-ago revenues of $57.33 million.
 
The company posted quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.08 per share a year ago.
Moroso has opened a new showroom in Manhattan designed by Patricia Urquiola, marking the 70th anniversary of the Italian brand. The 4,300 square-foot showroom (400 square metres) has a double-height space that was previously occupied by an art gallery.
Connection, the latest brand to join European office furniture giant Flokk group have opened a bespoke designed and built manufacturing facility, housing warehouses and offices in Mirfield, Yorkshire (UK). 
 
The new 45,000 sq ft facility is furnished with a state-of-the-art design and upholstery facility as well as an advanced manufacturing line, designed with the intent to contribute hugely towards the sustainability goals of Connection and the wider Flokk group.
It turns out Gen Zers have a common secret. They're not as comfortable with new technology as older generations would typically presume. Sure, they may have grown up with instant access to information and an affinity for digital devices that older generations had to learn.
Volatility has dominated the RCLCO Current Real Estate Market Sentiment Index (RMI) lately – with distress reaching 2020 COVID-19 levels – but respondents to its most recent survey suggest that the real estate market may have hit its low or will in the coming months.

Measured on a 100-point scale, the index has decreased 26.9 points over the past six months, and more notably has dropped 80.6 points since the most recent peak, landing on a low of 8.5 at 2022’s year end.

Two Florida hotspots are the top cities for office investing in 2023, according to a new Crexi analysis.

Miami tops the list with its “robust economy, pro-business government, fantastic quality of life, and ideal geographic location,” Crexi analysts note, with an employment rate that’s ticked up 3.2% and kept office demand “solid and steady.” The city has just under 40 million square feet of inventory and overall asking rents of $47.65 per year. In addition, 3 million square feet of new leases have been signed year-to-date. On Crexi, average asking prices for Miami offices have jumped by 10.7% so far this year, while average occupancy rates have climbed almost 10% compared to 2021 absorption.

As the new normal for office usage becomes more difficult to deny, office owners and tenants alike are coming to grips with the fact that coming into the office is no longer a given, and perks need to meet the moment accordingly.
Recent research from NAIOP reveals that office sector absorption is likely to slow dramatically in 2023, with predictions for the entire year coming in just slightly higher than fourth-quarter 2022 estimates alone.

Net office space absorption in the fourth quarter is predicted to be 7.1 million square feet, and absorption for the entirety of 2023 is estimated to clock in at 8.1 million square feet, according to Hany Guirguis, Ph.D., of Manhattan College and Michael J. Seiler, DBA, of College of William & Mary. The pair forecast absorption in the first three quarters of 2024 to total 13.3 million square feet.

Commercial property tenants have gained enough of an upper hand in lease negotiations that the structure of new leases will see some significant shifts in 2023, according to CRE software specialist Quarem, a cloud-based commercial property platform that organizes and tracks lease data.
The country's construction backlog is now at its highest level since the second quarter of 2019, according to a new report by the Associated Builders and Contractors.

ABC reported that its Construction Backlog Indicator increased to 9.2 months in November, up from 8.8 months in October and 8.4 months in November 2021.

This year has signaled a high watermark for live-work-play developments under construction, with 72 such projects either delivered or close to completion as of year-end — and 2023 is on track to beat that record.

A CommercialCafe analysis of Yardi Matrix and Commercial Edge data notes that “coworking space is the new twists.” Coworking was a component in 90 live-work-play developments over the past decade, in a trend CommercialCafe analysts say caters to the rising demand for flexible workspaces. After a brief pandemic-era blip in construction, 10 new coworking spaces were integrated into LWP developments this year, with two more in the pipeline for 2023.

Next year is likely to bring a downturn for most asset classes in commercial real estate, according to CBRE's 2023 United States Real Estate Outlook, which predicts increased vacancy rates and curtailed demand followed by a rebound the year after.

“Most areas of the U.S. economy are not as overextended as in past downturns,” CBRE Global Chief Economist and Global Head of Research Richard Barkham said in a press release. “Next year won’t be pleasant, but neither will it be a disaster like the Global Financial Crisis. The economy will stabilize and start to improve in 2024. The recovery from there might surprise on the upside.”

Features

Even with the recent wave of layoffs and a recession due to appear any minute now, office workers continue to have significant leverage, and offices need to adapt to meet that new demand.

Workspace News

Concern about poor air quality in the workplace is having an impact on productivity and could slow the return to the office.
 
Approximately 74% of hybrid workers in the U.S. worry about the effect office air quality is having on their general health, with younger workers particularly anxious, according to research by smart building technology firm Infogrid. Some 20% of all employees do not believe their company’s ventilation system is adequate, and only 40% think their organization is doing enough to improve the situation post-Covid.
Four in five (80 percent) UK businesses believe that flexible working arrangements are critical to their future success, a new poll from DocuSign claims. Offering employees the flexibility of where and when they work is seen as a competitive advantage by 75 percent of businesses while the large majority (82 percent) consider it essential in attracting and retaining the right talent and meeting the demands of the future workforce.
Employers are having a hard time finding enough workers, and that may be because millions of Americans are increasingly going to work for themselves, either creating businesses or becoming freelancers. According to new data from Upwork, 26% of U.S. freelancers have a postgraduate degree, up from 20% a year ago.
As employees return to offices, they’re thinking about their physical and mental health like never before. Indeed, a recent Pew Research Center study found that 43% of workers who quit their jobs in 2021 cited not having good benefits, such as health insurance or paid time off, as a reason for leaving. Additionally, the study found that one in four workers quit a job in the past two years for the sake of their mental wellbeing. And while nearly 40% of employees want their employers to discuss mental health in the workplace, only one in five feel comfortable bringing up mental health concerns with HR.
When it comes to the tax implications of working from home, Belgium seems to be the most attractive European country. Those regularly working from home in Belgium can claim over €1,700. No other of the eleven nations examined by The Mobile Bank N26 manages to match the Belgians in this regard.

Design

An office re-design often comes with hopes of a new dawn for a company’s culture or way of working, but updates to the physical space are only ever half the story. Design can spur better productivity, collaboration and improve social bonds, but it’s unlikely that a drastic change in working environment will be immediately mirrored by changes in employee attitudes and behaviors. If businesses want to see positive change in these areas, and reap the associated rewards, they will have to do more.
Microsoft is heading the corporate charge into inclusive design. But even the company admits it has a lot to learn.
Consistency is essential for successful personal branding, and the same is true for your work environment. After all, your workspace is an extension of your brand. Whether you are working in the office or at home, or in a hybrid combination of both spaces, the more you can do to create a consistent experience for yourself and for those you’re interacting with, the more focused you’ll be.
Companies have been quick to adopt hybrid working but the pandemic has raised the bar when it comes to what staff expect from their offices.
 
“Over the last few years landlords have had to work incredibly hard to make sure that the products they’re delivering are going to make them attractive places for occupiers to want to go to work from.”

Trends

Office space has evolved more than we could have imagined in the past year. Leaders continue to grapple with how they can attract people into the office, at a time when remote working has been normalized.
Cristina Ziegler of Gensler takes a look at how designers can play a vital role in creating inclusive spaces that are welcoming of all people and all abilities.
The technology sector saw astronomical growth from 2020 to mid-2022. In the last half of 2022, however, tech headlines expressed layoffs rather than rapid growth. Looking at the long view gives perspective on tech’s future outlook, recognizing its long-term trajectory as it moves more towards A.I., Blockchain, Cleantech, and Cloud Solutions. This report gives an update on where growth is occurring and how tech companies can adjust given recent workplace trends.
Haley Nelson, Amin Mojtahedi, and Daniel J. Michaud of HGA examine how people-first design puts employees' needs at the forefront and results in a people-first, digitally led work experience.
Employees today want more 'hotel-style' amenities such as areas for socialising, state-of-the-art infrastructure, outdoor spaces, onsite cafes, air conditioning, and flexible work facilities to entice them back to offices, according to a new poll from MRI Software.

Latest Products

Bisley has introduced its Outline frame collection designed with flexibility and modern working in mind. Inspired by the need for versatile and open space environments, Outline works not only as a zone divider but also as a display and storage unit – ideal for establishing distinctive areas to work, collaborate and relax.
We've covered Amsterdam-based designer Robert van Embricqs's fantastic Rising Furniture before, here and here. Now he's back with a new piece, and unlike his previous floor-standing objects, his Flow Wall Desk is wall-mounted.
Employers now have electronic ways to detect if you're really at your desk and working. Webcam access, keystroke detection and even sensors in the chair or desk have all been rolled out.
 
Why not just solve the problem with physical design? Computer hardware manufacturer Cooler Master has. Their Orb X is a "fully immersive multi-purpose semi-enclosed station" that, in practice, makes it difficult for you to actually exit the desk.
A Simple Machine was born from the idea of changing our sedentary ways during the workday. Designed to bring movement and momentum into the workspace, the four-piece collection is one answer to creating a healthier day spent behind a desk.

Interviews

Sam Hecht: We know Thonet's products very well; the 214, for example, is one of my favourite chairs. We talked to the company about further developing the existing forms and jointly found a design that fits into Thonet's portfolio.

Other News

California materials company Checkerspot has launched a casting kit named Pollinator Series that allows designers to experiment with making components from algae-based plastics.

Case Studies from our Partners

Takeform

Project profile: Ampirical

Takeform brings graphic concept to life for energy sector business.

One Louisiana firm has made a mission of helping the energy industry power the U.S.—and Takeform helped them make their new HQ an energizing place to work.

“This project is a perfect demonstration of Takeform’s capacity to start with a loose concept rendering and take it all the way to installation and handle all the different elements,” says Hillary Misiti, Client Advisor at Takeform. “We received a design package from Greenleaf Lawson that was high-concept. Beautiful work, but it needed to be actualized.”

Trends in Commercial Projects from Around the Globe

The new On HQ and flagship retail space in Zurich is playfully conceived as a mountain with a hiking trail leading up through the 17-story building - celebrating the sportswear brand's active values and encouraging a healthy workplace Swiss sportswear brand.
Westpac is Australia’s first bank and oldest company, and today, one of Australia’s top four banking institutions. Westpac’s new workplace at Parramatta Square in Western Sydney delivers a transformative hub centered on the employee proposition. The workplace, totaling 18,000 sqm across eight floors, is designed to foster a strong connection to place with a vibrant cultural overlay.
Google offices may have slides, climbing walls, nap pods, and basketball courts, but they aren't adult playgrounds, at least not wholly. "I think that the assumptions are very surface level," Joshua Bridie, Google's director of global interior design, tells AD.

Upcoming Industry Events

NeoCon 2023
June  12-14, 2023 | 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.  

National Ergonomics Conference & ErgoExpo 2022
November 8-10, 2022 | Paris Las Vegas Hotel, Las Vegas

National Ergo 2022 returns November 8-10 bringing the Ergonomics community together for the industry's longest running conference and trade show. Learn from the Nation's top Ergonomic and Safety executives with over 40 educational sessions, keynotes and workshops.  

Milan Design Week 2023
April 18-23, 2023 | Milan, Italy

Milan design week is the biggest annual design event in the world and takes place from 17 to 23 April 2023. The week includes the furniture fair Salone del Mobile, which takes place at the Fiera Milano exhibition centre and is the largest event to take place during the week. The selection of fringe events collectively named Fuorisalone also takes place across the city.

hd expo+conference
May 2-4, 2023 | Mandalay Bay, Las Vegas

HD Expo + Conference is the largest hospitality event of its kind in the country, showcasing the latest products, services, and innovative developments from the industry’s leading manufacturers.  

Clerkenwell Design Week 2023
May 23-25, 2023 | 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.
Find the best Contract Furniture Industry jobs and hire the best talent.
WIELAND is a leading provider of patient room and seating products to healthcare facilities across the country. We are seeking a sales professional to represent our healthcare products Washington, Oregon, Montana, Idaho and Alaska. Our continued growth provides significant income potential for the right individual. This is an employee position with full benefits. 
Baresque, a leading supplier of architectural acoustical solutions for the hospitality, contract furniture, commercial and healthcare markets, is seeking an experienced Project Manager - Furniture to join our team in Garland, Texas. This position will be work directly with our customers and is responsible for interpreting architectural intent. This individual will also work closely with our design team, customer service department and third party fabricators. Excellent communication skills and a high attentional to detail are essential.
Kentwood Office Furniture is a growing employee-owned manufacturer and distributor of office furniture and interior solutions with a primary focus on small and medium sized customers. Headquartered in Grand Rapids, the company has approximately 100 employees and additional locations in Lansing,...
We are looking for a dynamic and experienced A&D Sales Leader who is looking to take their career and earnings to the next level. In this position, you will be paid a salary plus a commission. You will travel the United States to establish clients, develop relationships, and generate sales.
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