ABI January 2025: Architecture firm billings remain soft to start the new year / DIRTT Reports Fourth Quarter 2024 Sales Decline 4% / Interface Reports Fourth Quarter Sales Climbed 4.3% / Premier Tech Incubator 1871 Leaving TheMART / German Furniture Manufacturer files for Insolvency / Park Avenue Office Availability Hits Six-Year Low / Law Firm Leasing Hits Record-Breaking 10.2M-SF in Q4 / It's A Mixed Bag For Lab Leasing As Renewals Dominate / NYC Office Buildings See Resurgence as Investors Pile Into Bonds / Massive Federal Office Space Cuts Jeopardize $15.6B in CRE Loans / Office Demand for Larger Spaces is Back / More Than 700 In GSA's Real Estate Office Accept Offer To Resign / Controversy erupts over luxury office furniture order for German Ministry / DOGE Move to Slash Federal Leases Threatens Office-Market Recovery / Here are the Top US Cities Embracing Smart Infrastructure / Pedrali showcases vision for future workspaces / and much more…


The Working Space

Monday, March 3, 2025

Industry News

In January 2025, architecture firms experienced broadly soft business conditions, with the Architecture Billings Index (ABI) score at 45.6. This indicates a continued decline in billings, although the rate of decrease was slightly less severe than in December. Inquiries for new projects remained stagnant, and the value of new design contracts has decreased for eleven consecutive months due to client hesitance amid economic uncertainty. Hiring in architecture services showed some strength towards the end of 2024, with an addition of 2,200 jobs in December, despite a net loss of 1,400 positions for the year. Most architecture firms support membership dues and licensure fees for their staff, with a high percentage of firms reporting they cover AIA membership dues. Respondents highlighted the importance of professional development and networking opportunities as key benefits of staff membership in AIA. Overall, firms are facing challenges in the current economic landscape, including rising inflation and cautious client behavior.

DIRTT Fourth Quarter Sales Decline 4%
DIRTT Environmental Solutions Ltd. announced its financial results for the fourth quarter and the full year of 2024. The company reported revenue of $48.9 million for the quarter, a decrease of 4% from the same period in 2023, but a 13% increase from the third quarter of 2024. Gross profit margin improved to 35.9%, with net income after tax at $4.0 million, significantly higher than the previous year's $1.0 million. Adjusted EBITDA for the quarter was $5.5 million, exceeding previous guidance. Liquidity increased to $39.3 million as of December 31, 2024. Recent developments included the appointment of Holly Hess Groos to the Board of Directors and a normal course issuer bid for common shares. Additionally, a lawsuit against Falkbuilt Ltd. was redirected to Canada, with a trial scheduled for February 2026.

Interface Reports Fourth Quarter and Full Year 2024 Results
Interface, Inc. reported strong financial results for the fourth quarter and full fiscal year ended December 29, 2024. In the fourth quarter, net sales reached $335 million, a 3.0% increase year-over-year, with GAAP earnings per diluted share at $0.37. For the full fiscal year, net sales totaled $1,316 million, reflecting a 4.3% growth, and GAAP earnings per diluted share were $1.48. The company's One Interface strategy contributed to this growth, particularly in the Americas, where there was notable progress in product categories and strategic initiatives. The company also generated significant cash from operations and reduced debt, highlighting its improved gross profit margins and effective capital management.

1871 to Leave TheMart, Reflecting Downtown Chicago’s Shifting Business Landscape

Chicago’s leading tech incubator, 1871, is set to leave the Merchandise Mart after 13 years, marking another major departure from the historic commercial hub. The move comes amid broader changes in the city’s downtown office market, where rising vacancies and declining property values have put landlords under pressure.

TheMart, once a powerhouse for both the tech and contract furniture industries, has already seen several major showrooms shift to Fulton Market, an area now thriving with tech companies and corporate expansions. The departure of 1871 reinforces the growing appeal of Fulton Market while underscoring the struggles of traditional office spaces in the Loop.

Compounding the challenge, commercial properties in the area are failing to sell at their original valuations. Recent transactions, such as the sale of the former Montgomery Ward warehouse, have resulted in significant financial losses for owners. The broader downturn in the real estate sector reflects the uncertain future of downtown Chicago as companies continue adjusting to hybrid and in-person work models.

Despite these challenges, there is some optimism. Google’s planned move into the James R. Thompson Center is viewed as a potential catalyst for revitalization. However, whether it will be enough to counteract the ongoing exodus of key tenants remains to be seen.

A German furniture manufacturer has filed for insolvency for its five affiliated companies at the Wittlich District Court. The court appointed a provisional insolvency administrator, and discussions with management and business partners have commenced. The Conen Group, which specializes in furniture for educational institutions and office spaces, has faced significant revenue declines due to factors like a downturn in business with major US clients, delays in funding programs, and increased competition from Chinese manufacturers. Financial challenges from a previous acquisition, rising interest rates, and debt have further strained operations. Restructuring efforts were underway, but a crucial investment deal fell through when a financial backer withdrew. The group operates under Conen Holding GmbH with three divisions and employs about 225 staff, generating approximately €64 million in annual revenue.

German Minister Faces Backlash Over Luxury Office Furniture Purchase

German Minister of Economic Affairs Robert Habeck has come under fire for plans to purchase 345,000 euros worth of luxury office furniture for his ministry’s relocation. The order, which included 25,000-euro desks, was initially taxpayer-funded, sparking widespread criticism. Following media scrutiny, the ministry halted the purchase, with Habeck himself expressing surprise at the extravagant costs and advocating for the use of existing furniture instead.

The backlash didn’t just come from budget-conscious critics. Mara Benz, Chief Information Officer at luxury furniture manufacturer Walter Knoll, condemned the decision, arguing that it undervalued German craftsmanship and sustainable production. She even invited Habeck to visit the company’s facility to see the quality firsthand. However, the ministry stood firm on its commitment to fiscal responsibility, emphasizing the need for careful spending amid budget constraints.

The controversy has fueled broader debates over government procurement practices, particularly at a time when many are facing economic strain. And it’s not just a German issue—local governments around the world, including in the United States, have faced similar criticism for high-end office furniture spending. With public scrutiny growing, this episode could influence future purchasing policies within the German government and beyond.

In the fourth quarter, law firm leasing in the U.S. reached a record-breaking 10.2 million square feet, marking a significant increase from previous years. This surge reflects a 31.4% rise from 2023 and a 21.4% increase compared to the 2019 peak. The strong demand for office space indicates a recovery in the legal sector, with quarterly leasing averaging 2.5 million square feet in 2024, surpassing the 1.5 million square feet average from 2020 to 2023.
 
Notably, expansions accounted for 36.4% of occupancy changes, while downsizes increased to 33.9%. The overall footprint change from firms that expanded was 47.6%, with downsizes resulting in a -35.3% change. Despite the positive outlook, nearly half of the relocation leases signed in 2024 were for downsized moves.
 
Law firms are adapting their leasing strategies to optimize costs and flexibility, often opting for longer leases to navigate rising construction costs. Significant deals included major relocations and renewals in New York, Boston, Los Angeles, and Washington, D.C., showcasing the legal sector’s resilience and evolving needs for office space.
The availability of office space on Park Avenue has reached its lowest point in six years, dropping to 8.2 percent in the fourth quarter, according to a report from Avison Young. This decline of 280 basis points year-over-year is attributed to significant leases by major companies, including Blackstone, JPMorgan Chase, and MetLife. The trend indicates that tenants are increasingly favoring the Central Park, Grand Central, and Midtown Core areas. Additionally, the overall Manhattan office market is experiencing increased investment activity, with a notable rise in dollar volume for investment sales despite fewer transactions.
The life sciences real estate market shows mixed signals, with increased leasing activity primarily from renewals amidst high vacancy rates in major markets like Boston, San Diego, and San Francisco, where vacancies exceed 20%. Despite challenges, there are signs of stabilization and growth in leasing activity, suggesting confidence in the sector's future.
Investors are returning to the market for office bonds after a two-year hiatus, committing billions to refinance New York City office buildings. The demand for high-quality commercial mortgage-backed securities (CMBS) has surged, particularly for prime properties like the Seagram Building and the MetLife Building. However, there is still a lack of interest in lower-tier properties, leading to increased servicing costs and rising defaults. The special servicing rate for New York City office-backed mortgage bonds has significantly increased, reflecting distress in the market. While the top-tier properties are seeing strong interest, particularly from insurance companies seeking assets for annuities, the disparity between premium and less desirable office buildings continues to grow.
 
As the demand for premium office debt rises, major developers are capitalizing on this trend, leading to a positive outlook for the office market overall. Analysts expect a substantial increase in private label CMBS issuance in 2025, driven by maturing debts and renewed investment interest.
Business leaders in San Francisco plan to expand office spaces as confidence in the city's growth rises, with 75% of surveyed executives aiming to increase their office footprints and 66% expecting to grow headcount. Return-to-office mandates and the rise of generative AI are driving this trend, despite previous downsizing. Mayor Lurie encourages private enterprises to follow suit with a new four-day work policy for city employees.
Demand for larger office spaces has increased, with a third of the top 100 office lease renewals in 2024 resulting in larger spaces. The total leased area rose by 2.1 million square feet compared to the previous year. Analysis indicated an average increase of 8% in leased space, reflecting a growing comfort among companies to commit to larger offices, particularly among technology firms. Despite some companies reducing their footprint, a significant number sought high-quality spaces in vibrant, mixed-use districts, which were preferred over traditional business-centric areas. The Northeast and Pacific regions witnessed the largest leases, driven by finance, technology, and government sectors.
The office sector is facing significant challenges, with prices dropping 11% year-over-year and an increase in distressed sales. The volume of office buildings sold at a discount has risen, and the average price per square foot has decreased from $196 to $174. Class A properties experienced the steepest declines, while suburban and city center properties showed mixed trends. Despite some desirable properties maintaining premium prices, overall sales volume remains below historical norms. The national average listing rate has seen a slight increase, reflecting ongoing adjustments in the market.
The Inland Empire office market has surpassed pre-pandemic occupancy levels, showing a continued recovery according to NAI Capital. Although total vacancies increased slightly in the fourth quarter, occupied office space rose by nearly 1.4 million square feet since the economy reopened at the end of 2020. Notably, vacant sublease space declined significantly, indicating limited options for those looking to sublease. Rents also saw a modest increase, and there was a notable surge in office leases and sales, suggesting a market in transition with improving investor confidence despite high interest rates.
The Department of Government Efficiency (DOGE) has terminated leases for over 2.3 million square feet of office space as part of an effort to reduce the federal government's real estate footprint. This move is projected to save approximately $60 billion through various means, including fraud detection and workforce reductions. The majority of lease terminations are concentrated in Washington, D.C., with notable cancellations from the Department of Labor and the Federal Trade Commission. The initiative aligns with previous assertions by President Trump regarding the bloated nature of the federal government, leading to significant layoffs and an aggressive push for full-time office returns. The General Services Administration (GSA) has also initiated plans to reduce its real estate holdings, with potential impacts on up to 7,500 offices nationwide. As the list of terminated leases expands, it highlights a strategic shift toward cost reduction and efficiency, raising concerns about the long-term effects on the office market and local economies.
The recent directive from the Trump administration to the General Services Administration (GSA) aims to significantly reduce federal office leases, potentially impacting billions of dollars in the commercial real estate market. This measure could involve cutting as many as 300 leases daily, affecting approximately $28.7 billion of the $350.6 billion principal balance of CMBS and CRE CLO loans. The GSA leases represent a substantial amount of office space across thousands of buildings.
 
The decision may have far-reaching consequences, as about 13.8 million square feet of GSA leases are linked to $15.6 billion in loans. The workforce's return-to-office dynamics are unclear, with conflicting reports on federal employee work arrangements. While the Office of Management and Budget suggests a majority of federal employees work on-site, other sources indicate a much lower figure.
 
Additionally, the reduction of federal workers accepting buyouts and potential layoffs raises concerns about the overall impact on local businesses. An analysis reveals that a significant number of loans have considerable exposure to GSA leases, with several key properties in Washington, D.C. highly affected by these changes.
The Trump administration has set an April 14 deadline for federal agencies to propose relocating offices out of the D.C. area as part of budget cuts, with legislation in Congress supporting similar moves. While past attempts at relocation have been made, skepticism remains about the feasibility of mass relocations impacting the region's economy.
Approximately 725 employees from the GSA's Public Buildings Service have resigned under a deferred resignation program, representing a 13% workforce reduction. The agency is facing further layoffs and aims to eliminate over 3,500 positions, complicating efforts to cut the federal real estate portfolio by 50%.
The Trump administration's decision to terminate numerous federal leases and sell government buildings poses a significant risk to the recovery of the U.S. office market. Nearly 100 leases are targeted for termination or consolidation, with Washington, D.C. facing the most considerable impact, including 11 leases totaling 1.4 million square feet. This initiative is particularly concerning for a city where the federal government is the primary employer, and the office market has already been severely affected, experiencing a vacancy rate that peaked at nearly 23% last year.

Feature

A Brooklyn-based real estate firm, Two Trees, is focusing on pre-built offices as companies gradually return to the workplace. Their new project, The Refinery at Domino, features fully furnished, functional office spaces designed to minimize construction time. The project modernizes a historic sugar refinery using a building-within-a-building concept, allowing for high design and flexibility. The interiors include conference rooms and lounge areas, ready for immediate occupancy. The Refinery aims to create a desirable office environment that balances work and social spaces, with amenities such as access to nature, a gym, and shared areas for events. The response to the project indicates a strong demand for well-designed office spaces that promote collaboration and productivity.
As companies return to in-person work, etiquette training is essential for effective communication and collaboration, addressing topics like conflict resolution, meeting conduct, and inclusivity to foster a respectful workplace culture. Managers are encouraged to lead by example and customize training to team needs.

Workplace News

Jamie Dimon, the CEO of JPMorgan Chase, expressed regret for using strong language during a recent company town hall but defended the company's return-to-office policy. He emphasized the importance of the policy despite employee pushback, including a petition against it. Dimon acknowledged employees' rights to prefer remote work but insisted that the company would prioritize its needs over individual preferences. He highlighted the potential negative impacts of hybrid work policies on corporate citizenship and diversity efforts, stating that the firm would not alter its decision to end hybrid work arrangements.
Cities in the West Coast and Northeast U.S. are leading in the adoption of smart infrastructure and urban sustainability technologies. California has four cities—San Francisco, San Jose, Los Angeles, and San Diego—ranked among the top 10 for smart city development. Washington, D.C., and New York City are also noted for their innovative approaches to smart transit and green initiatives. San Francisco is recognized as the smartest city in 2025, boasting a high concentration of tech jobs and companies focused on artificial intelligence and the Internet of Things. The city promotes electric vehicle use through incentives and prioritizes digital equity and literacy.
New research reveals that 74,000 women are pushed out of their jobs annually in the UK due to pregnancy or maternity leave, a 37% increase since 2016. Many report negative workplace experiences, with only 2% pursuing legal action. A new law aims to enhance protections for these women.

VergeSense Reveals Findings from the 2025 Workplace Occupancy & Utilization Index
VergeSense has released findings from their 2025 Workplace Occupancy & Utilization Index, which analyzes data from over 190,000 spaces across 200 customers. The report highlights several key insights regarding workplace design and usage trends. It notes that desk spaces remain predominant, yet collaboration spaces are underutilized. Enclosed spaces like offices and conference rooms show the highest active usage rates. The report also indicates that many meeting rooms are oversized, contributing to inefficiencies as remote collaboration becomes more common. Additionally, it points out that North America has the lowest capacity usage compared to other regions, reflecting ongoing resistance to in-office mandates. The findings emphasize the need for companies to leverage data to create adaptable workspaces that enhance productivity and employee experience as occupancy levels rise.

Trends

The future of senior living design will focus on meeting the needs of middle-market seniors, integrating active adult communities, and creating mixed-use developments that engage all generations. Amenities will shift towards multipurpose spaces, and technology will enhance resident engagement and care, addressing labor shortages and resilience against climate change.

Design

Well-designed educational spaces significantly enhance learning experiences. However, many K–12 schools currently operate in environments that do not meet the needs of students and teachers. Engaging all stakeholders, including parents, teachers, and students, is crucial for successful facility enhancements. Involving students in the planning process is essential, as they provide valuable insights into what works for their learning.
 
Today's learners require adaptable environments that promote collaboration and the development of soft skills. Schools are also focusing on vocational training and incorporating specialized learning spaces to prepare students for various career paths. Creating an appealing work environment is vital for teacher retention and attracting new educators. 
Pedrali, the renowned Italian furniture brand, showcased its vision for future workspaces at the Workspace Design Show in London. The exhibition featured the company's latest collections, highlighting agile, dynamic, and functional workspace designs. Key products included the Rizz Workstation, designed by Robin Rizzini, which offers versatility and aesthetic lightness, along with the Laja 2 armchairs and the Ypsilon Connect sound-absorbing partition panel.
 
The Buddy collection, featuring sofas and ottomans with flexible layouts, was also presented, emphasizing the evolution of office environments. Lounge areas were enhanced with designs focusing on comfort, such as the Lamorisse lounge and the Héra Lounge. Additionally, Pedrali introduced functional solutions like the Buddyhub Sideboard and the Hevea partition, integrating aesthetic elements and greenery into workspaces.

Green / Sustainability

Humanscale Leads Industry with Elimination of Chrome 6, One of the Most Toxic Chemicals in Manufacturing
Humanscale has taken significant steps to eliminate Chrome 6, a toxic chemical commonly used in manufacturing, from their entire product line. Since 2015, the company has focused on creating a safer industry by replacing Chrome 6 finishes with polished aluminum, which maintains aesthetic appeal and durability while being environmentally friendly. Chrome 6 is classified as a carcinogen by the U.S. Environmental Protection Agency (EPA), posing health risks to workers and leading to environmental contamination.
 
Despite its widespread use due to cost-effectiveness, many manufacturers are hesitant to transition to safer alternatives. Humanscale, however, demonstrates that it is possible to remove harmful chemicals without compromising quality or design. The company also emphasizes transparency and safety by reviewing the ingredients of their products, eliminating various harmful chemicals, and providing ingredient labels for nearly all products. This commitment aligns with their goal of fostering a circular economy where materials are repurposed rather than discarded.

MillerKnoll Achieves SBTi Validation for Near-Term Carbon Reduction Targets
MillerKnoll has received validation from the Science Based Targets initiative (SBTi) for its near-term emissions reduction targets aimed at achieving significant sustainability goals. The company plans to reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions by 50% by FY2030, using FY2022 as the baseline. Additionally, MillerKnoll aims to source 100% renewable electricity by FY2030, increasing from 38.3% in FY2022, and to reduce scope 3 GHG emissions by 25% in the same timeframe. This milestone reflects MillerKnoll's commitment to sustainability and aligns with global climate standards.

The Mitchell Group Achieves Industry-Leading Hydrolysis Rating for Polyurethane Fabrics
The Mitchell Group has achieved the highest hydrolysis rating for polyurethane fabrics, with Sta-Kleen products demonstrating exceptional durability under moisture and heat, reinforcing the company's leadership in performance textiles for various commercial applications.

Latest Product News

Humanscale has introduced Float Micro, a compact and height-adjustable side table that combines ergonomic design with aesthetic versatility. It features an innovative offset leg design and options for glides or locking casters, enhancing adaptability for various workspaces. The table is made with environmentally friendly materials, including a formaldehyde-free tabletop, promoting sustainability. Float Micro is available in multiple finishes and colors, catering to diverse design preferences, and is now open for orders.
DARRAN has introduced "Versi," a versatile seating solution designed as a “Banquette by the Inch.” This product emphasizes simplicity, agility, comfort, and comprehensiveness, making it suitable for various applications, including customizable booth designs and overflow seating for meetings. The Versi Banquette is engineered for a tailored appearance while providing soft sophistication, ideal for hospitality and amenity spaces. The collection is available now through dealers and sales representatives. DARRAN, a woman-owned and family-operated company, focuses on creating thoughtfully designed work environments that enhance productivity and positive culture. More >
DARRAN Furniture has launched the "Felix" lounge collection, designed in collaboration with Gower + Woolf. This collection aims to enhance corporate, higher education, and hospitality spaces with its comfortable and elegant designs. The "Felix" collection features lounge chairs, settees, and sofas that combine a sophisticated aesthetic with elevated comfort. It reflects the evolving modern workplace's need for relaxed yet refined furniture. The collection is available now through various dealers and sales representatives. DARRAN is a family-operated company committed to creating thoughtfully designed work environments that foster productivity and positive culture. More >
POINT Long Island by Studio TK features versatile indoor/outdoor seating designed by Christophe Pillet, offering deep seating, thick cushions, and customizable upholstery options, along with durable occasional tables suitable for various environments.
Tom Dixon launches his first outdoor furniture collection, Groove, featuring elegant designs in durable aluminum, inspired by previous experiments. The collection addresses comfort and durability while adapting to the growing demand for outdoor living. New mobile lighting options complement the range.
Kirei introduces three new acoustic ceiling tiles—Hatch ACT, Sidebar ACT, and Gather ACT—designed for aesthetic appeal and sound absorption, made from 60% recycled materials, and customizable with high-resolution printing options. The products aim to enhance commercial spaces while being cost-effective and sustainable.
Designtex expands its DI-NOC architectural finish collection with new adhesive films featuring various textures and patterns, including quick ship options available in 3-5 business days, ideal for easy maintenance and updating spaces.
Designtex has launched three new upholstery designs—Ease, Fresco, and Limn—along with a Plaster wallcovering and expanded options for their DI-NOC architectural adhesive films, emphasizing comfort, performance, and biophilic design principles. The new products cater to hospitality and wellness spaces, featuring quick shipping options for convenience.

Industrial Design

The Bubble Stool, designed by Studio Ololoo, is a unique seating option that combines aesthetics and comfort. Initially appearing to be made of aluminum, the stool is actually crafted from painted wood with an inflated thermoplastic polyurethane seat. Inspired by the childhood game of blowing bubbles, the stool features a bubble-shaped cushion that provides both support and comfort. The design cleverly conceals all screws within its structure, leaving users curious about its assembly. While the stool has been prototyped, there are currently no production plans in place.
Cooler Master has developed a haptic feedback stool for musicians, the Throne X, which uses sound-to-vibration technology to help musicians feel the rhythm and synchronize better with their bandmates, retailing for $1,000. Feedback from musicians is sought to assess its usefulness.
Phaidon is set to release a book titled "Mid-Century Modern Designers," which features the work of 300 designers who shaped the Mid-Century aesthetic across various mediums, including furniture, glassware, ceramics, and textiles. The book provides an A-Z format that shares the stories of these designers for the first time, highlighting both renowned figures and lesser-known contributors to the movement. It includes hundreds of images of post-war designs and detailed texts about each designer, showcasing the vibrant exchange of ideas during this influential era. The book will retail for $90 and is available for pre-order, with shipping beginning on April 10th.

Trends in Commercial Projects from Around the Globe

Hendricks Transforms National HQ of Smith + Howard
Hendrick Architecture and Design has completed a transformative workplace project for Smith + Howard, a national accounting firm in Atlanta. The project focuses on creating an innovative space that supports the firm’s growth while maintaining its core culture and values. Smith + Howard sought to rethink its workplace strategy by implementing a 100% free-address system, which required redesigning their office layout to accommodate more flexible workspaces without expanding the overall square footage. The design includes smaller private "focus rooms," a variety of workstations, and collaborative spaces to encourage teamwork. Additionally, the incorporation of hospitality-driven elements enhances the client experience, fostering a sense of openness and inclusivity. The firm's brand is subtly integrated throughout the design, creating a sophisticated yet approachable workspace that reflects their commitment to both employees and clients.
Vallarta Supermarkets is developing a new headquarters in Santa Clarita, California, designed by HGA to foster collaboration and community engagement. The facility spans 51,350 square feet and accommodates over 200 employees across various departments. Key features include a home kitchen-inspired breakroom, a test kitchen, and multiple meeting spaces, all reflecting the company's commitment to innovation and cultural heritage. The design emphasizes sustainability, utilizing recycled materials and promoting wellness through healthy indoor environments. The layout balances open and private spaces to enhance functionality while creating a warm atmosphere that honors Vallarta's Latin roots. The project aims to inspire employees and support the company's growth by providing adaptable and inviting workspaces.
Duolingo's new office, designed by Rapt Studio, emphasizes individual workspaces, hybrid equity, minimalism for sustainability, and biophilic design, reflecting a sophisticated blend of brand identity and workplace culture. The design caters to neurodiverse employees and incorporates natural elements to enhance well-being.
Indeed's new office in downtown Austin, Texas, is a state-of-the-art, 10-floor workplace designed to promote employee well-being and productivity. The office features vibrant, activity-based work settings and various amenities, including a fitness center, wellness rooms, and recreational areas. Recognizing employees as their greatest asset, the design emphasizes flexibility and a connection to the local environment, incorporating biophilic elements and panoramic views of the city. Surveys conducted during the design process ensured that employee feedback shaped the workspace, which aims to inspire creativity and a healthy work-life balance. As a prototype for future offices, this innovative design sets performance standards and fosters a supportive work culture.
McDonald's Hong Kong HQ has been transformed into the 'McHappy Office' by M Moser Associates, featuring vibrant branding, digital connectivity, and a focus on employee wellbeing with adjustable workstations and natural light, promoting a collaborative and healthy work environment.
Anadolu Agency's new Istanbul headquarters, designed by BAB Architects, emphasizes natural light, greenery, and collaborative spaces to enhance communication and productivity, reflecting the agency's legacy and modern aspirations. The design integrates flexible workspaces, recreational areas, and biophilic elements to promote employee well-being and a positive work culture.

Latest In Real Life WFH

Michael Kern, Founder of Playfight, emphasizes the importance of a separate workspace from home to maintain work-life balance. His workspace is equipped with high-end tech and features art from various artists, showcasing a creative environment. Kern has collaborated with major brands like Nike and Google.

Project Leeds

TracFone Wireless, a Verizon subsidiary, is downsizing by relocating to a 51K SF lease at Waterford Business District near Miami International Airport, following the sale of its previous 145K SF headquarters for $54.5M. This move reflects a significant rightsizing for the company amid a strong Miami office market.
Netflix is considering relocating from Hudson Pacific's office buildings in Los Angeles, as indicated by recent developments. The decision comes amid ongoing evaluations of its operational needs and future strategies.
Geico is relocating its headquarters from Chevy Chase to The Wilson office building in Bethesda, reducing its space from 514K SF to 348K SF. The move, anticipated in 2026, focuses on improved infrastructure and collaboration, while the company plans to engage with the local community regarding the future of its current campus.

Upcoming Industry Events

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.

Clerkenwell Design Week
May 20-22, 2025 | London, UK

Clerkenwell Design Week (CDW) returns to London’s EC1 from 20–22 May 2025 for its 14th edition, marking its largest event yet with the addition of three new exhibition venues. These include the historic Charterhouse and Charterhouse Square featuring a new public artwork by Alex Chinneck, St Bartholomew the Great (London’s oldest parish church), and Studio Smithfield, a Grade II* listed building above Smithfield Market. Together, these new locations will create a vibrant southern district within the festival.

The Salone del Mobile.Milano 2025, themed "Thought for Humans," will take place from April 8 to 13, 2025, in Milan. This year's campaign by Dentsu Creative Italy and photographer Bill Durgin aims to highlight the relationship between humans and materials. The event anticipates over 2,000 exhibitors and will feature a dynamic layout with thematic routes, including sections dedicated to luxury design. Mayor Giuseppe Sala emphasizes the significance of the Salone in Milan's cultural landscape, viewing it as a platform for creative stimulation and reflection on current events. Highlights include an installation by Robert Wilson and various exhibitions focusing on light's role in design. Additionally, the SaloneSatellite will showcase young designers' perspectives on craftsmanship and its future. The event will also host the Euroluce International Lighting Forum, featuring masterclasses and discussions on sustainable design. It promises to be a key event for design enthusiasts, professionals, and tourists alike, fostering intergenerational dialogue and innovation in the industry.

Industry Briefing

Formaspace Introduces Free Shipping Across the Contiguous 48 States
Formaspace is implementing a new pricing model that includes free shipping on all standard LTL and full truckload orders within the contiguous 48 states, effective March 3rd, 2025. This initiative aims to streamline the sales process by removing the need for separate shipping quotes, enhancing response times and customer satisfaction. Additionally, the company has reduced list prices on many products, particularly fixed casework, to improve competitiveness in traditional lab markets. Texas customers will also enjoy extra discounts due to lower shipping costs in the region. While standard shipping is free, specialized services will incur additional charges, and customers in Alaska, Hawaii, and other territories will receive discounted rates based on actual shipping costs. Formaspace’s Chairman, Jeff Turk, noted that these changes reflect a commitment to improving customer experience and maintaining competitiveness in areas with higher shipping costs.

Poltrona Frau’s Atelier dei Saperi Training Program: Preserving the Art of Artisanal Leathercraft
Poltrona Frau's Atelier dei Saperi training program aims to preserve artisanal leathercraft by training new designers through a collaboration with local organizations, offering 500 hours of training that combines theory and practical experience, while reinforcing the company's commitment to nurturing talent and supporting local employment initiatives.

IIDA NY Celebrates 30 Years of Community
IIDA NY is celebrating its 30th Anniversary with an event titled “Party Like It’s 1995” on March 20, 2025. The celebration will take place at the Haworth NY Showroom, encouraging attendees to wear 90s-inspired fashion. The event will include a '90s-themed playlist, interactive trivia games, and opportunities to support initiatives for the Equity Council and Advocacy Committee. Established in 1995 through the merger of several design organizations, IIDA NY has grown to include over 800 members across various specialties, promoting collaboration, education, and advocacy within the interior design community. The chapter emphasizes sustainability, civic engagement, and diversity, equity, and inclusion, and offers valuable resources to its members.

Meteor Education Partners with EDmarket to Empower Women
Meteor Education has partnered with the Education Market Association (EDmarket) as a Premier sponsor of the EDmarket Bold Women Collective, a forum aimed at empowering women in the education industry. Launched in April 2024, the Collective provides a platform for female professionals to connect, find mentorship, and foster personal and professional growth. Meteor Education's sponsorship aligns with its values of inclusivity and empowerment, as stated by Pam Dempsey, Director of Partnerships. The Collective offers opportunities for meaningful discussions and will host in-person meetings at various educational conferences throughout the year. Membership is open to all female members of EDmarket.
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