Teknion Debuts [In]Studio, A Hub of Inspiration, Collaboration, and Investigation / We Discuss Why Steelcase Inc.'s CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year / Fully-Remote Companies Have Higher Turnover Rates / Surge in Remote Work Fuels Cross-Metro Employment Boom / Goldman Sachs Says Office Markets Have Bottomed / 'It's Not Getting Any Better': Contractions, Distress Dim D.C. Office Recovery Hopes / Manhattan Office Leasing Rebounds in Q2 / Bernhardt’s CEO: ‘Furniture is a fashion business’ / Feel Good Friday: The benefits of having dogs at work - OnOffice / Analysis | Downtown Offices Are Toxic. Suburban Ones Are Surviving / Knoll recolors some Bauhaus classics / and much more…


The Working Space
Monday, July 8, 2024

Industry News

Teknion Debuts [In]Studio, A Hub of Inspiration, Collaboration, and Investigation
Teknion has launched InStudio, a team led by Tracy Wymer, Vice President of Insights and Inspiration, dedicated to developing timely and authentic findings that support Teknion's client-first approach to design. InStudio aims to analyze current and emerging data to understand how people interact with the built environment and provide actionable insights to clients. Tracy Wymer, with nearly 30 years of industry experience, will drive Teknion's design leadership through proactive analysis and interpretation of industry insights.
Steelcase Inc.'s CEO, Sara Armbruster, may find it difficult to receive a pay rise from shareholders this year. While her total compensation is similar to the industry average and the company has shown decent performance, the focus of shareholders at the upcoming Annual General Meeting will likely be on the steps management will take to sustain growth. The CEO's total annual compensation of US$6.2m includes a salary of US$966.3k and a significant portion tied to company performance.
According to CBRE's tracking of office policies for over 340 U.S. companies, fully-remote companies have higher turnover rates. While most organizations expect employees to be in the office for two to four days a week, only 1% of companies work fully remote. Despite the talk of hybrid or work-from-home arrangements, 99% of companies still maintain office space.
The surge in remote work has led to an increase in cross-metro employment, with employees working for supervisors located in different metropolitan areas. ADP payroll data shows that the share of cross-metro remote workers in large US firms has grown from 23% in February 2020 to over 31% by mid-2023. This trend is seen across various industries and age groups, with younger employees aged 25 to 35 being highly sought after for remote work opportunities. While there are economic benefits such as access to a broader talent pool and reduced labor costs, there are also downsides such as the concentration of economic power in certain cities and the potential for regional inequality. The full impact of long-distance work and remote work on the labor market is yet to be determined.
Goldman Sachs analyst Caitlin Burrows suggests that the worst may be over for commercial real estate (CRE) markets, but it may take a long time for a positive turnaround. The crash in transaction volumes and the influx of capital during the pandemic drove prices and valuations upward, making it difficult to maintain. It took eight quarters after the Global Financial Crisis for conditions to improve.
The first half of 2024 has shown real momentum in the Manhattan office market, with 11% more office leases signed compared to the same period in 2023. The conversion of office spaces into residential units has helped reduce vacancy rates, and there is a shift towards relocations rather than lease renewals. However, the market still has a long way to go, with high vacancy rates and uncertainty surrounding the future of work and the economy.
The vacancy crisis in the D.C. office market is worsening, with over 920K SF of office space emptied in the first half of 2024. The average vacancy rate in District offices reached a record high of 22.4% by the end of June. The federal government is giving up space, law firms are contracting, and tenants are walking away from office space. The Class-A space has distressed buildings with landlords unable to make deals, while Class-B and C offices have high vacancy rates. The future looks challenging for landlords as leases expire and the pool of tenants shrinks.
Manhattan's office leasing market showed improvement in Q2, with a total leasing velocity of 8.7 million square feet. However, leasing volume is still below pre-pandemic levels, and if the current pace continues, full-year 2024 leasing velocity is expected to be one-third lower than 2019. The largest lease of the quarter was Bloomberg's 946,815-square foot renewal at 731 Lexington Avenue.

Workplace News

According to a recent Harris Poll, 56% of Gen Z and Millennials have taken a "quiet vacation" during the Fourth of July week, compared to 35% of Gen X and Boomers. This trend reflects a desire for work-life integration and the need for rest among younger workers. Quiet vacationing involves incorporating rest and relaxation into schedules without using PTO, often taking advantage of remote working policies. Some employees are even willing to accept reduced salary or give up bonuses for the entire week off. Giving employees more time off could lead to increased productivity and willingness to take on more responsibilities.
Keir Starmer's Labour Party's victory in the U.K. general election sets the stage for sweeping changes to workers' rights. The party's proposed policy changes include significant job creation, workplace reforms, and the introduction of the Employment Rights Bill. The bill aims to ban exploitative zero-hour contracts, strengthen trade unions, and collective bargaining. Other reforms include removing waiting periods for sick pay, updating the national living wage, and enacting the Tips Act. Labour also plans to create a national wealth fund for green energy and industry revival. However, low voter turnout and underlying workforce challenges pose obstacles to implementing these policies effectively.
Having dogs in the workplace has been found to reduce workplace stress, increase employee happiness, and improve engagement. Research shows that interacting with dogs can lower cortisol levels and increase oxytocin levels, leading to a more positive work environment. However, it is important to consider allergies and establish guidelines for pet-friendly workplaces to ensure the well-being of all employees and dogs.

Downtown Offices Are Toxic. Suburban Ones Are Surviving
According to the Wall Street Journal, as remote work continues to impact the property world, suburban offices are faring better than downtown offices. Downtown-office valuations have halved, while suburban offices have only dropped by 18%. City-center offices have been emptier than suburban locations for eight consecutive quarters, and big-city tenants are shrinking their real-estate footprints. The Covid-19 pandemic had a more dramatic impact on downtown offices, and downtown-office valuations were more vulnerable to a crash. Converting downtown offices into residential properties is one way to address the excess supply. Suburban offices, owned by smaller landlords, are more willing to work with lenders to find solutions for distressed loans. Stock investors should recognize the distinction between downtown and suburban offices.

Trends

Borderless hiring for technology jobs is gaining traction, with experts suggesting it is surpassing the conversation around remote work. The trend of global hiring is growing, driven by talent marketplaces and a digitized workforce that make it more accessible and cost-effective. Tech leaders are realizing that building a compelling culture and solving complex problems can be achieved with great talent from all over the world. The shift towards borderless hiring is seen as an opportunity to tap into talent markets beyond traditional tech hubs, with cities like Beijing, Delhi, Bucharest, Cape Town, and Nairobi emerging as tech talent hotspots. While challenges such as time zone coordination and compliance exist, organizations are finding bespoke solutions to navigate global operations. The future of work geographies and the impact of AI regulation are also shaping the landscape of borderless employment.

Green / Sustainability

Humanscale Leads in Sustainability with its New Chicago Showroom
Humanscale opened a new showroom in Chicago in partnership with Reddymade, featuring sustainable building design and compliance with ethical standards. This aligns with Humanscale's commitment to environmental stewardship and social responsibility. The showroom is also designed to comply with the standards for Design for Freedom, which ensures the elimination of forced labor in the supply chain for building materials. 
The design industry must prioritize adaptive reuse, reclaimed materials, and flexible environments to reduce carbon emissions and promote a circular economy. Energy-efficient building systems and passive design techniques can significantly lower embodied and operational carbon emissions. Designers need to fully integrate climate considerations into every project and take bold action to address the climate crisis.

ORGATEC 2024 to pave the way for circular biomaterials
ORGATEC 2024 will feature the #CircularBiomaterials Focus Area, showcasing environmentally friendly materials produced from regrowing sources that can be returned to the biological cycle. These biocircular materials offer technical and commercial benefits, increase material efficiency, and contribute to establishing closed-loop cycles. The event will present exhibits from 14 countries, highlighting the potential for climate-neutral production processes and reducing carbon dioxide emissions.

Podcasts

Alex Bernhardt Jr., CEO of Bernhardt, discusses the company's shift towards interior designers, the importance of creating an identifiable look for their designs, and the belief that furniture is a fashion industry. The episode also highlights the company's history and its focus on aesthetics and specific lifestyle aesthetics. Listen HERE

Arper Design Stories, the new podcast
Arper’s new podcast, Arper Design Stories will delve into stories of product innovation, sustainable practices, spaces and solutions, culture, and ideas, that inspire and illuminate the limitless potential of design. The podcast will feature in-depth interviews, behind-the-scene looks at their iconic designs and projects, trends, and insights. Listen to Arper Design Stories on Spotify, Apple, and YouTube Music.

Latest Product News

HOWE introduces Folding Surfaces, the largest mobile, battery-powered double-folding bench on the market, designed in collaboration with Jones & Partners. This innovative product offers unmatched flexibility for modern hybrid workspaces, allowing users to unfold a surface anywhere and stay powered up with portable batteries. It is the winner of the 2024 Best of NeoCon Business Impact Award, providing effortless mobility with four castors and brakes, stability with integrated surface levelling, and the ability to transform any environment into a productive zone.

Folding Surfaces is engineered for simplicity and sustainability, designed for disassembly to facilitate easy repair and refurbishment. It uses responsibly sourced materials, including certified wood options, and features a 100% recyclable steel frame with 20% recycled content. This product exemplifies HOWE's commitment to environmental responsibility and innovation, making it a perfect blend of mobility, functionality, and sustainability for today’s dynamic work environments.

For more information about Folding Surfaces including its full range of features and finishes, visit https://www.howe.com/folding-surfaces-unfold-your-potential/

Kirei has released the HyperFly Cloud and HyperFly Baffle, two sound-absorbing ceiling fixtures that offer innovative design and balanced acoustics. The products come in various sizes and colors, and can be custom-printed. Made from recycled post-consumer plastics, the products meet environmental standards and qualify for LEED and WELL building credits. Designers can also utilize Carnegie Acoustic Design Services for support and expert design layouts.
Pebble from Armadillo's latest New Icons collection is a unique boucle rug made from hand-spun New Zealand wool. It offers a discreetly tactile weave, organic allure, and exceptional comfort underfoot. Available in three hues - Tofu, Whippet, and Gravel - Pebble is a confident and stylish addition to any home. It is part of Armadillo's 15th-anniversary collection.

Enwork Delights Attendees with Quantum Flip Table at NeoCon 2024
Enwork impressed attendees at NeoCon 2024 with their new Quantum Flip Table, receiving Best of NeoCon Gold for Task Tables and a 2024 Innovation Award. Quantum offers innovative features such as nesting, auto-locking casters, and single-handed flip technology. Enwork's ability to respond quickly to market demands with high-performance products demonstrates their consistent leadership in the contract furniture industry.
Carl Hansen & Son has relaunched Kaare Klint's English Chair from 1931, inspired by 18th-century English chairs. The chair features wood as a decorative element, with advanced intarsia on the armrests, backrest, and under the seat. The back, sides, and seat are made of French canework, and each chair takes a skilled weaver almost a week to complete.
The Conversa Modular Lounge series by KFI Studios offers endless configurations for contract spaces. Created in collaboration with Union Design, this modular seating series provides limitless arrangement possibilities with seat and table modules. The collection allows for customization with a wide selection of upholstery options and various color combinations. Additional features include outlets for tech devices, cable management, and the option to add privacy screens. KFI Studios also launched the Atmos Pillows, which enhance comfort and utility. For more information, visit kfistudios.com.
The C9 Trolley by Watson Furniture is a unique under-desk trolley that offers storage, additional worksurface, a bag hook, and an extra seat. It can convert from a storage hub to a side table or desk extension, and it can lock in the upper position for use as a tow handle. Made of steel, it comes in various powder-coated finishes.
The Maasto Dining Armchair, designed by Ronan Bouroullec, is a humble yet strong piece of furniture made from solid pine and pine plywood. Its simple silhouette combines plywood sides for strength and reduced bulk with a solid pine seat and back for durability. The chair features an exaggerated grain Finnish plywood, giving it a unique aesthetic. The Maasto is produced by Finnish furniture brand Vaarnii.
Knoll has reimagined four famous tubular steel collections by Marcel Breuer and Ludwig Mies van der Rohe, originally designed in the 1920s at the Bauhaus. The Wassily Chair, Cesca Chairs and Stools, Laccio Tables, MR Chairs, and MR Table are now available in a palette of ultra-matte colors. The Bauhaus designers saw color as a tool for altering spatial perception and explored its psychological effects. Florence Knoll, a direct pupil of Mies and a believer in integrating art, architecture, and design, carried on this vision in her design philosophy.

Trends in Commercial Projects from Around the Globe

The new Tokyo headquarters of JINS HOLDINGS, designed by Fumiko Takahama Architects, features a nine-story building renovated with concepts of "Create space by demolishing" and "Museum x Office." The design includes an atrium with an innovative air-purifying art piece, flexible "seed benches" on the second floor, and various creative spaces like a gallery and a Finnish sauna. The renovation aims to foster creativity, communication, and a proactive work environment while minimizing new construction for decarbonization.
NELSON Worldwide designed the Minnetonka office for Channel Partners with the goal of promoting camaraderie among employees. The design prioritizes social interaction, with spaces like the Mix Lounge and Channel Hall serving as areas for relaxation, informal conversations, and group collaboration. Glass-front executive offices and strategically placed collaborative zones further encourage connectivity and idea exchange. The lighting and overall aesthetic contribute to a harmonious and synergistic environment. The project successfully created a workplace that fosters camaraderie and employee engagement.
Truliant Federal Credit Union transformed a former Macy's department store in Winston-Salem into a modern, sustainable office space as part of a $40 million expansion. The adaptive-reuse project, designed by Little, emphasizes sustainability with solar panels and energy-efficient systems. The office features flexible work environments, community-centric spaces, and wellness facilities, reflecting Truliant's core values and commitment to employee well-being.
Basics Architects designed a contemporary and functional office space for Diksha Knitwears in Ludhiana, India. The renovation aimed to create a corporate ambiance while ensuring a comfortable work environment. The design incorporated dedicated areas for reception, work hall, director cabins, and collaborative spaces. The use of neutral colors, simple forms, and indoor greens created a cohesive and inviting environment. The project aligned with the client's vision and functional needs, with furniture and products sourced from various suppliers.

Latest In Real Life WFH

That Virtual Boy is a Technical Account Manager at VMware who enjoys iOS app development and has a well-equipped workspace. His workspace includes an Autonomous Bamboo Standing Desk, a Contessa Task Office Chair, a MacBook Pro, various Apple devices, multiple displays, monitor arms, and other accessories. He also has play items like Clone Hero, Xbox Series S, and Super Nintendo Classic Mini. The most recent addition to his workspace is the EppieBasic desk lamp, which provides extra illumination. He sparks creativity by alternating between intense creative phases and downtime activities like playing drums and Xbox.

Upcoming Large Projects

Pharma giant AbbVie is expanding into Atlanta with a new office at One Phipps Plaza in Buckhead. The 13-story, 365K SF office component of Simon Property Group’s Phipps Plaza redevelopment will be leased by AbbVie. The tower is already half leased and houses companies like Novelis, Goldman Sachs, and Resurgens Technology Partners. AbbVie reported total assets of over $11.7B last year and recently announced plans to acquire Celsius Therapeutics. The specific operations AbbVie will house at One Phipps Plaza are currently unknown.

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.

Industry Briefing

Gordon Boggis, CEO of Carnegie, Named to Fast Company’s Impact Council
Gordon Boggis, CEO of Carnegie, a leader in sustainable textiles and acoustical management solutions, has joined Fast Company's Impact Council. Carnegie's Outdoor Biobased Xorel, a plant-based indoor/outdoor textile, was honored as a Fast Company Innovation by Design honoree. Boggis's vision for sustainability and innovation has led Carnegie to maintain its status as a certified B Corporation. Outdoor Biobased Xorel, sourced from sugarcane, has achieved Cradle to Cradle Gold and Living Product Challenge certifications, making it a climate-positive product.
DIRTT Environmental Solutions has announced changes to its Board of Directors, with Scott Robinson being elected as the new Board Chair, replacing Ken Sanders who retired. DIRTT is a global leader in industrialized construction, providing physical products and digital tools for high-performing, adaptable interior environments. The company's interior construction solutions offer design freedom and flexibility. DIRTT trades on the Toronto Stock Exchange under the symbol "DRT".

Minotti Opens A New Flagship Store in Kobe with Partner Sukeno
Minotti has opened a new flagship store in Kobe, Japan in partnership with Sukeno. The store concept is inspired by Zen philosophy and features a grand scenic façade, versatile furnishing pieces, and a mix of materials and colors. The store aims to strengthen Minotti's bond with Japan and cater to a discerning clientele who appreciate Italian quality and style.
Find the best Contract Furniture Industry jobs and hire the best talent.
Dear Stephen, Can I be typecast from getting hired by a better company in the future because of the company I work for today? What I mean by that is if I work for a company like #HON, #Senator, or #AIS; you know what I mean, basically a dealer oriented open line; will I be forever cast as someone...
OFS is excited to announce that we are actively seeking qualified candidates to join our team as Healthcare Sales Specialists.
Exemplis, manufacturer of SitOnIt and IDEON seating, is seeking an experienced, enthusiastic and highly motivated sales representative for our Northern California Sales Team. 
We are seeking a dynamic and motivated Sales Representatives to help us expand our presence within the architectural and design community through both aligned and non-aligned office furniture dealerships within the states of North Carolina, South Carolina and Georgia.
Sr. Account Manager Salt Lake City, Utah Full-Time At CCG. If you're looking to join a dynamic team dedicated to shaping the future of commercial interior design, CCG is the place for you. Come be a part of our journey as we continue to redefine what's possible in workplace design and make a lasting impact in the communities we serve.
At CCG, we're dedicated to transforming spaces into vibrant, inspiring environments where people can thrive and businesses can flourish. For over 35 years, we've been Utah's trusted partner in commercial interior design and furniture solutions, setting the standard for excellence in our industry.
Primary Responsibilities Design Responsibilities: Maintain skills on all software needed to assist with design and specifying.
If you're looking to join a dynamic team dedicated to shaping the future of commercial interior design, CCG is the place for you.
2/90 Sign Systems is seeking Independent Sales Reps forUpstate New York, Pacific region (excludes California), and Mountain region (includes Idaho, Montana only).   
Akers Business Solutions is expanding our team! Akers Business Solutions is one of the leading manufacturer's rep firms in the furniture industry, representing some of the most innovative and reputable brands in the market. We are expanding our team throughout the East Coast and looking for sales representatives who can work independently.
Logiflex, a well-established office furniture manufacturer is looking for a Regional Sales Director responsible for increasing sales in the Western USA Market.

Representatives must be highly energetic, aggressive and have past experience developing new business with office & contract dealers within their territory. Seeking experienced individuals and established groups within Upstate NY, NC & SC, MO, MN, and TX.

PC&A Business Environments is currently seeking a Business Development Manager in our Indianapolis, Indiana office to join our growing team and take over an existing book of business.
If you're coming to NEOCON 2024, we would love to talk to you and see if we are a good match.
A premier North American furniture manufacturer is looking for a corporate Regional Sales Manager, who can oversee their territory and support our sales representative achieving our goals.
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.
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