Lack of space continues to hold back a 'return to office / Ruder Group Rebrands as Two Point, Ushering in a New Chapter / Remote Work Is Tanking Home Prices in the Heart of London / D.C. Office Market Records Occupancy Gains For First Time In 10 Quarters / Manhattan Office Market Closes 2024 With Most Active Quarter In 5 Years / Moody’s Traffic Light Analysis Shows Retail on Top, CBD Office on Bottom / The ‘most feared’ law firm upgraded its HQ. Will attorneys return? / What are the best cities in the world for remote work this winter? / How To Transform A Traditional Office Into A Coworking Space / and much more…


The Working Space

Monday, January 6, 2025


Industry News

Workers are resisting returning to the office due to a lack of desk space, with one-fifth citing it as a top reason for avoidance. Companies like Aviva and HSBC have reduced office spaces to cut costs, leading to concerns about desk shortages. The trend reflects a shift towards prioritizing collaborative spaces over individual desks, which may have been overdone. The issue of insufficient workspace is also seen in companies like Amazon, which paused return-to-office plans due to inadequate facilities. While lengthy commutes and distractions deter employees, UK office occupancy has reached its highest rate in over three years, suggesting employees are adjusting to in-person work expectations. Many workers now view face-to-face meetings and team-building as key incentives for office attendance. However, general satisfaction with workplaces remains low, and attitudes toward full-time office work are shifting as employees become more accustomed to hybrid arrangements. The modern office is increasingly seen as a hub for collaboration rather than a space for routine tasks.

Ruder Group Rebrands as Two Point, Ushering in a New Chapter
Ruder Group, a prominent player in the Chicago commercial interiors sector for 25 years, is rebranding as Two Point, effective January 6, 2025. This change reflects their commitment to innovation and the evolving needs of clients and manufacturer partners. The name "Two Point" symbolizes their role as connectors between manufacturers and the design community while embracing future challenges with the same excellence that has characterized their history. Owner Chrissy Thompson emphasizes the company's focus on delivering value and expertise, reinforcing their core values of quality, responsiveness, and partnership within the architecture and design community. Two Point aims to be a trusted partner throughout the project lifecycle, from concept to completion.
 
Partners include: Alur, Arktura, Emeco, Halcon, Isomi, Magnuson Group, Nienkamper, Naughtone, Scandinavian Spaces, Stylex, Unika Vaev and Viccarbe.
Remote work has led to a decline in home prices in London's City, with a 10% drop in 2024 after a peak in 2022. Buyers are shifting preferences to suburban homes, while the City struggles with oversupply and rising costs for landlords, making it a challenging market for sellers like Peter Brewer.
The D.C. office market experienced positive net absorption for the first time in ten quarters, with more space leased than returned in the final quarter of 2024. Reports from JLL and CBRE highlighted a significant uptick in leasing activity, with a total leasing volume of 1.8 million square feet, up from 1.5 million square feet in the previous quarter. The full-year leasing total reached 7.2 million square feet, marking a 21% increase from 2023. A notable lease involved ArentFox Schiff downsizing to 120,000 square feet at Midtown Center, while the U.S. Agency for Global Media secured the largest lease of the quarter, adding 283,000 square feet. Government and law firm tenants dominated the leasing landscape, accounting for a substantial portion of the annual volume. The vacancy rate remained relatively stable at 22.5%, and asking rents held steady at $59.09 per square foot.
Manhattan's office market experienced a significant uptick in activity at the end of 2024, with landlords and tenants signing 10.2 million square feet of leases in the fourth quarter, marking an 18.3% increase from the previous quarter and the highest quarterly volume in five years. Total leasing for the year reached 33.3 million square feet, a 22.4% increase from 2023. The decline in office availability has prompted landlords to convert buildings to other uses, resulting in nearly 6 million square feet of office space being taken offline.
 
Demand for high-quality trophy and Class-A office space remains strong, with these categories accounting for over 79% of the leasing volume in Q4, while availability rates for trophy spaces fell to their lowest in three years. Net absorption reached 7.3 million square feet, the highest in a decade, indicating a positive trend for the market.
 
Midtown emerged as the most active submarket, capturing 77% of the leases signed despite prior doubts about its future due to competition from other areas. However, average asking rents dropped for the sixth consecutive quarter, with the overall average falling to $73.42 per square foot, reflecting the transition of higher-priced spaces being leased out and the introduction of new vacancies at lower prices.
 
Despite these developments, Manhattan's office supply remains 65% higher than pre-pandemic levels, and a significant amount of commercial mortgage-backed securities tied to office buildings is set to mature in the coming years, indicating lingering vulnerabilities in the market. Ongoing momentum will be critical for recovery in 2025.
Moody's traffic light analysis for Q3 2024 shows retail at a high Green 86, multifamily at Green 80, and industrial at Yellow 62, while CBD office improved to Yellow 45 and suburban office to Yellow 42. The hotel sector dropped nine points due to declining revenue and external factors. Overall, the market remains Yellow 62, indicating a balanced supply-demand relationship.

Feature Stories

Quinn Emanuel Urquhart & Sullivan, known as the “most feared” law firm, has upgraded its Manhattan headquarters to create a more inviting work environment. The new office features modern design elements such as frosted glass walls, high-tech conference rooms, and abundant greenery, aiming to make on-site work attractive amidst its ongoing "work-from-anywhere" policy. This policy, established during the pandemic, allows flexibility for attorneys, reflecting the firm's progressive culture. The approach appeals particularly to younger lawyers seeking remote work options, a demand that many law firms are now addressing with hybrid work policies.

Workplace News

A long video on the push back to returning to the office and ending remote work.
A study by Eskimoz identifies the top 10 cities for remote workers this winter, considering factors like temperature, cost of living, internet speed, and coworking spaces, highlighting the growing demand for warm, affordable, and well-equipped destinations.
CEOs often equate in-office presence with productivity, despite evidence showing that hybrid models can enhance engagement and innovation. Leadership demographics influence these decisions, with older male CEOs more likely to mandate in-office work. Embracing evidence-based practices is crucial for attracting talent and driving sustainable results in the evolving workspace.
Top insights for 2024 highlight the office's resurgence, the importance of sensory stimulation in design, evolving needs of young associates in law firms, and the transformation of workplace spaces to foster community and combat loneliness.
Companies are beginning to recognize the need for divorce-related workplace benefits, as divorce can significantly impact employee performance and well-being. Services like Hello Divorce and SupportPay are emerging to help employees navigate the complexities of divorce, offering legal assistance and co-parenting support while addressing the stigma surrounding divorce in the workplace.
As companies adjust to post-pandemic work environments, many are implementing hybrid models with varying in-office requirements, such as Fidelity's two weeks onsite per month and Wells Fargo's three days a week, while others like Cisco and Red Hat maintain flexible policies allowing employees to choose their work arrangements.

Workplace Videos

At Nvidia's headquarters, the AI chips that propelled the company to a $2-trillion valuation were used in custom software that helped design the space-ship-like buildings. The tech company's office in Santa Clara, California, is now one of the most sought-after places to work.

Design

The future of the workplace is evolving, shifting from a focus on efficiency to becoming a space for collaboration and connection. Experts emphasize the importance of integrating diverse work settings that prioritize flexibility and wellbeing. The office is envisioned as a clubhouse fostering a sense of community rather than just a place for productivity. The discussion highlights the challenges of remote work and co-working spaces, where social connections can be difficult to establish. Successful workspaces should reflect the organization’s values and be designed with input from a broader spectrum of collaborators, including psychologists and sociologists. There is a call for human-centric design that accommodates the varied needs of individuals while promoting a sense of belonging. Adaptability is key in designing spaces for an uncertain future, allowing for easy adjustments to meet changing needs. The role of AI is explored as a tool for personalizing environments and optimizing layouts, but it should complement human feedback rather than replace it. Ultimately, the focus is on creating workspaces that enhance wellbeing and foster genuine connections among employees.
Transforming a traditional office into a coworking space requires assessing layout, tenant needs, and market demand, along with careful financial planning. Key considerations include designing user-friendly spaces, evaluating costs, and selecting a mix of services to attract freelancers and startups.
This piece from BBC History Magazine, explores the intriguing aspects of King Edward VII's sexual furniture, addressing six compelling questions related to its function and historical significance. It delves into the design and context of these items, shedding light on their role in Edward's life and the period's societal norms. Too bad the office hadn't been invented yet. There is no telling how that furniture would have turned out.

Latest Product News

Allsteel has expanded its Structure™ meeting tables collection to enhance the experience of mixed-presence meetings. The new designs include five unique shapes—Boomerang, Tapered, Guitar Pick, Chevron, and Bulb—each tailored to facilitate different meeting dynamics while promoting inclusivity for both virtual and in-person participants. These tables eliminate traditional head-of-table positioning, ensuring all participants have optimal viewing angles and the opportunity to engage fully.
 
The designs prioritize user interaction and connectivity, with features that allow for clear sightlines and eye contact among participants. Additionally, the tables integrate modern technology, offering various power modules with USB and data ports to keep attendees connected and productive.
 
Available in multiple colors and finishes, the new shapes are compatible with existing bases, making it easy for customers to incorporate them into their current office environments. Allsteel continues to provide comprehensive workplace solutions that align with modern business strategies.

Industrial Design

Recent children's furniture designs blend whimsy and functionality, featuring playful forms inspired by animals, childhood memories, and classic literature, showcasing the creativity of designers like Gaetano Pesce, Lukas Cober, and Cinco x Cinco.

Trends in Commercial Projects from Around the Globe

An inspiring office design for Omkar Infracon in Kolkata blends vintage elements with modern aesthetics, incorporating paver blocks as functional art, restoring historical arches, and enhancing the workspace's connection to the city's heritage while promoting environmental benefits.
The new Patient Support Centre at SickKids in Toronto is a 22-storey smart building designed for education and collaboration, housing 3,000 staff. It features advanced training facilities, sustainable design targeting LEED Gold certification, and promotes interconnectivity across the campus.

Latest In Real Life WFH

Lasse Jensen, a 3D designer from Denmark, shares his workspace featuring a standing desk, ergonomic chair, and high-quality tech gear. He emphasizes the importance of inspiration for creativity and recently remodeled his workspace for a brighter, more functional design.

Project Leads

Astera Labs, a provider of connectivity chips and partner of Nvidia, is relocating its headquarters from Santa Clara to a larger office campus in San Jose, expanding its footprint to approximately 154,000 square feet. The lease is for an initial term of 90 months with options for extension, starting at a base rent of around $386,000 per month. The company’s growth is driven by the increasing demands of AI models, necessitating enhanced cloud-based platforms for data transfer.
 
This move is part of a broader trend where AI companies are signing significant office leases in Silicon Valley, which is seeing a resurgence in leasing activity. Other notable deals include Nvidia leasing a 102,000 square foot building in San Jose and Snowflake subleasing a major campus from Meta. The influx of AI firms is anticipated to aid in the recovery of the Silicon Valley office market, with local government initiatives aimed at attracting these companies and fostering startup growth through incubators.

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.

Industry Briefing

Solomon Coyle Launches YE2024 Operational Performance and Financial Benchmarking Survey
Solomon Coyle has launched a benchmarking survey for the year 2024, aimed at providing distributors with standardized performance comparisons to enhance profitability and operational efficiency. The survey is open to both aligned and non-aligned distributors, ensuring broad participation and a comprehensive dataset. Participants will receive access to valuable insights on industry trends and performance benchmarks upon completing the survey. Key points include no cost to participate, the requirement to submit one overarching survey for the enterprise, and the option for multiple submissions with a subscription. The survey process has been simplified, and participants will have access to advanced tools and guides to assist in their submissions. The deadline for submissions is April 21, and support is available from research and analytics specialists to ensure a smooth experience.

Introducing Perspective: NEWH, Inc.’s Inspiring New Series Shaping the Hospitality Industry
NEWH, Inc. launches a virtual event series called Perspective, celebrating innovations in the hospitality industry, starting with a session on January 8, 2025, featuring Shelia Lohmiller and Chris Tucker. The series will continue monthly. Registration is available online.

Find the best Contract Furniture Industry jobs and hire the best talent.


Logiflex a well-established office furniture manufacturer is looking for a Corporate Sales Representative for the  North Texas and Oklahoma USA market to expand our clientele and create strong relationships with our clients.
Logiflex, a well-established office furniture manufacturer is looking for a Regional Sales Director responsible for increasing sales in the South East USA Market. Identifying new business opportunities, developing business relations and increasing Logiflex’s visibility. 
District Manager has responsibility for sales, promotional, support, trainingand educational activities targeted to designated OFS/ Carolina dealerships, The Architect/ Design community, Commercial Real Estate community and the End User community.
This is a full-time remote role for a Sales Specialist.
Nightingale Corporation, a leading chair manufacturing company located in Mississauga, Ontario, is seeking a dedicated and enthusiastic individual to join our Corporate Sales Team.

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