MillerKnoll Announces New Global Hubs in New York and London / Virco Reports Improved Financial Position Following Record Second Quarter and First Half Results / DIRTT Announces Promotion of Richard Hunter to President and Chief Operating Officer / Study Shows Federal Coworking Program Could Save U.S. Government Millions / Increased Office Visits Don't Make Up for High Vacancy Rates / Brookfield Predicts Robust Office Recovery And Market Rebound / 64% of U.K. Companies No Longer Hiring For Remote Work / Converting Office to Industrial Space is Picking Up Steam / Mondays in the office are making a comeback, Bevi report says / WeWork Survey Reinforces the Future is Flex as Business Leaders Say the Office is Critical for Profitability and Culture / Traditional models of facilities management are no longer fit for purpose, report claims / Is Office Space a Cost Center or Value Driver? / Commercial furniture gets a makeover amid return to work policies / and much more…


The Working Space

Monday, September 16, 2024

Industry News

MillerKnoll Announces New Global Hubs in New York and London
MillerKnoll is opening new flagship locations in London and New York, enhancing its global design presence. The London hub in Clerkenwell spans 1,700 square meters, showcasing brands like Knoll and Herman Miller, while the New York location occupies 77,000 square feet, combining multiple brands under one roof. Both spaces aim to provide inspiring environments for customers and design professionals, reflecting a commitment to modern design and collaboration.

Virco Reports Improved Financial Position Following Record Second Quarter and First Half Results
Virco Mfg. Corporation reported a 9.5% increase in EPS for the second quarter and a 33.3% increase year-to-date, reaching a record $1.16 per share. The company is effectively debt-free, financing growth through cash flow, and has increased its quarterly dividend to $0.025 per share. Revenue rose 1.0% in the second quarter and 9.1% for the first half, with operating income improving significantly. However, management noted that order rates remain strong but may indicate a slowing post-pandemic recovery in the school furniture market.

DIRTT Announces Promotion of Richard Hunter to President and Chief Operating Officer
DIRTT Environmental Solutions has promoted Richard Hunter to President and Chief Operating Officer, effective immediately. Hunter, who has been COO since August 2022, will focus on corporate strategy, talent growth, and innovation. His leadership has already improved operational efficiencies and gross margins. With over 30 years of experience in operations and manufacturing, he aims to advance DIRTT's "Journey to Excellence" initiatives in modular construction manufacturing.
Recent analysis by Nick Villa from Moody's indicates that increased office visits do not significantly correlate with high vacancy rates. While national employee office visits are 27.8% lower than in July 2019, they have risen by 16.5% since July 2023. Recovery rates vary by city, with Miami and New York showing the highest recoveries at 90.6% and 89.6%, respectively.
Brookfield Asset Management predicts a strong recovery in the commercial real estate market, particularly in the office sector, due to low construction rates and limited supply. Executives anticipate increased demand, leading to a robust rebound. The firm aims to double its business in five years, capitalizing on current market stabilization and reducing barriers to capital access. Brookfield plans to enhance fundraising efforts and may relocate its headquarters from Toronto to New York.
A survey indicates that 64% of U.K. professional services firms have stopped hiring for fully remote positions, as companies shift towards hybrid work models and increase office attendance. This trend reflects a broader decline in remote job postings, with LinkedIn reporting a 13% decrease since February 2023. Companies enforcing strict return-to-office policies may face challenges in retaining talent and could negatively impact employee morale.
The trend of converting vacated office spaces into industrial use is increasing, driven by the rise of remote work since the pandemic. A JLL report indicates that 17.3 million square feet of office space has been repurposed this year alone, contributing to over 150 million square feet converted since the 1990s.
In-office attendance on Mondays has risen to 58% of pre-pandemic levels, according to a Bevi report, indicating a shift back to traditional work patterns. While attendance on Tuesdays through Thursdays is nearly back to normal, Fridays remain the quietest day. Despite increased attendance, the traditional 9-5 workday is declining, with more employees working off-peak hours. Some companies are mandating in-office attendance on Mondays to eliminate long weekends, reflecting a trend towards more structured hybrid work policies.
The CMBS special servicing rate rose to 8.46% in August, reaching a three-year high, with office loans experiencing the highest rate at 11.91%, the highest since April 2013. Significant transfers to special servicing included $1.4B in office loans, with notable cases like a $370M loan on AMA Plaza and a $335M mixed-use loan for Times Square Plaza. Overall, the special servicing rates for office and mixed-use loans increased significantly over the past year, while other asset classes also saw slight rises.

Workplace News

A WeWork survey reveals that business leaders in the U.S. and U.K. increasingly view the office as critical for profitability and culture, with 86% expecting its importance to grow in the next five years. Many companies plan to expand office space, favoring flexible workspaces, with 72% intending to increase their workspace in the next two years. The survey indicates that in-office collaboration enhances productivity and culture, with a notable shift away from fully remote work as companies recognize the value of office environments.
Traditional facilities management models are outdated and need to evolve to support hybrid working environments, according to a report by Colliers. Embracing adaptive FM strategies can optimize resources and enhance employee experience. Key findings include the importance of connected technologies for real-time workspace analysis, a shift towards flexible vendor contracts, and a focus on employee satisfaction and sustainability as critical performance indicators.
Having dogs in the workplace can significantly reduce stress and increase employee happiness by positively affecting hormone levels, such as lowering cortisol and raising oxytocin. Companies like Google and Amazon are embracing pet-friendly policies, leading to higher employee engagement and lower absenteeism. However, it's essential to consider allergies and establish guidelines for pet hygiene and behavior to ensure a successful pet-friendly environment.
Nearly half of commercial real estate (CRE) decision-makers view office space as a cost center, yet two-thirds of global business leaders expect their CRE budgets to increase by 2030. Key corporate goals include revenue growth, talent retention, and organizational efficiency, with over half planning to expand their office footprint. A significant number of organizations advocate for increased in-office attendance, with 85% requiring at least three days per week.

Trends

Law firms are redesigning their offices to adapt to hybrid work models by prioritizing flexibility, client-centric customization, efficient space utilization, and advanced technology. This approach, termed "designing for day three," aims to create dynamic environments that enhance productivity, inclusivity, and employee engagement while meeting the evolving needs of both staff and clients.

Design

Despite a decline in overall furniture sales, the return to office policies is revitalizing the commercial furniture industry as companies seek to modernize workspaces. Firms are moving away from traditional cubicles to create more inviting, flexible environments that promote collaboration and comfort, often incorporating residential design elements. This shift is seen as a competitive advantage, with businesses increasingly opting for rental solutions to maintain flexibility in their office setups.
Leaning into brand identity and culture in office design enhances employee satisfaction, promotes sustainability, and fosters collaboration. Synopsys exemplifies this by involving employees in the design process, prioritizing wellness and environmental impact, and creating spaces that reflect its innovative ethos. This approach not only boosts productivity and engagement but also strengthens the company's position as a desirable employer in a competitive tech landscape.
Workplace design plays a crucial role in combating the loneliness epidemic, which affects many employees. Thoughtful environments that accommodate diverse needs can enhance engagement and productivity. Creating joyful workplaces involves minimizing friction and fostering a sense of belonging, particularly for neurodivergent individuals. By prioritizing varied workspaces and employee well-being, organizations can improve overall happiness and fulfillment in the workplace.
Modern office design can enhance employee engagement by adopting a retail-centered approach that emphasizes branding and creates a sense of belonging. Designers should ensure spaces facilitate movement and cater to various work styles while incorporating elements like art and sound management to improve the overall experience. Corgan exemplifies this with projects like the Keurig Dr Pepper headquarters, which balances branding with functional workspaces tailored to employee needs.

Green / Sustainability

Shannon Goodman, former architect and executive director of the Lifecycle Building Center (LBC), is leading efforts to normalize material reuse in construction, significantly diverting waste from landfills. Since its founding in 2011, the LBC has salvaged over 11.8 million pounds of usable materials, promoting a circular economy and addressing embodied carbon in building practices. Goodman emphasizes community engagement, vocational training, and the development of standardized systems for material reuse, aiming to inspire broader adoption of sustainable practices in the construction industry.

Latest Product News

The Movet chair is lightweight yet robust, making it perfect for offices, waiting rooms, and communal spaces. Its seat and backrest are made from polypropylene, and it is available with closed plastic armrests. You can choose between a cantilever or four-leg base option. This dynamic chair can be stacked up to eight high. The use of neutral colors such as white, powder blue, and black allows for seamless integration into any setting, while the combination of materials like metal and plastic ensures durability and easy maintenance. Additionally, the chair can be customized with either an upholstered seat or fully upholstered options.

The Movet chair’s ergonomic features provide optimal comfort, making it ideal for prolonged sitting. The tilting backrest and sliding seat allow for personalized adjustments, enabling users to tailor the chair to their individual preferences. This ergonomic design enhances comfort and flexibility, offering superior support throughout extended use.

Overall, Movet embodies a fusion of form and function, combining practicality with aesthetic appeal. Its adaptable and dynamic spirit makes it a perfect choice for any setting, offering comfort, durability, and versatility in a sleek, modern package. Learn more >

Watch video >

Simii Design, a table manufacturer dedicated to durable functional, custom designs, announces the addition of Byrne Interlink® IQ 2.0 system to the Wake Flip Nest table line. Wake Flip Nest tables are known as one of the most functional and affordable mobile training tables on the market. The Wake Flip Nest table offers a one handed, smooth flipping mechanism which locks into place providing a sturdy work surface. The tables are affordably priced with four locking casters and ganging hardware included in the base price. Customers can add a hinged modesty panel made of eco-friendly PET and power options as an upgrade.

Wake Flip Nest power options include clamp on power or Byrne Node in surface power units in white and black. With the addition of the Byrne Interlink® 2.0, customers can now route power across multiple tables by connecting to one power source. Ideal for conferencing centers, study halls, board rooms, or anywhere where flexibility is key, the Wake Flip Nest Daisy Chain system allows for a fully interchangeable room layout with endless opportunities.

Wake Flip Nest tables can be specified in eight various laminate options which complement most interiors. Available in both 24” and 30” widths you can mix the Wake Flip Nest tables with the Wake Static line to create various configurations and room layout options. Visit www.simiidesign.com to learn more.

Scandinavian Spaces has launched BOB Biz, a customizable workstation designed to enhance creativity and productivity in hybrid work environments. The collection features versatile seating options with acoustic divider panels that create intimate, luxurious spaces. Recognized with an NYCxDesign Award, BOB Biz addresses the evolving needs of modern offices, transforming them into collaborative and community-focused destinations.
Unika Vaev has launched a new Acoustic Product Collection in collaboration with Instyle, featuring the Ecoustic® Weave Panel and Ecoustic® Bio Tile. The Bio Tiles are made from 100% plant-based materials, promoting sustainability while providing excellent acoustic performance. The Weave Panel offers superior sound diffusion and absorption with a modern design. Both products emphasize environmental responsibility and are suitable for various spaces.

BodyBilt Continues Innovation Trend with New LabPro Stool
ErgoGenesis Workplace Solutions has launched the LabPro Stool, designed to enhance posture and reduce physical stress for laboratory workers. The stool features a self-weighing mechanism for optimal comfort, is made with sustainable materials, and aims to prevent musculoskeletal disorders. BodyBilt, the manufacturer, emphasizes ergonomic design and has a 38-year history in the industry, serving various healthcare and laboratory clients.
Kettal's Pavilion O is a modular outdoor workspace designed to provide flexible office solutions by dividing spaces into separate zones. Composed of aluminum, glass, wood, and fabric, it features a 'Click & Work' system for easy reconfiguration, accommodating various functional additions like shelving and whiteboards to meet specific needs.
Paul Smith has collaborated with Artek to reimagine three classic designs: Stool 60, Screen 100, and Coat Rack 109, incorporating vibrant colors while maintaining their iconic forms. The collection emphasizes sustainability and craftsmanship, celebrating Alvar Aalto's influence on modern design. The pieces are available on the Paul Smith website and select stores.
Blå Station's new Able chair, designed by Börge Lindau and his team, emphasizes functionality and comfort over novelty, aiming to create a sustainable and adaptable piece suitable for both home and office environments. The design reflects a classic director's chair while incorporating modern elements, and it can be easily disassembled for repairs, aligning with contemporary values of sustainability and versatility.
JELL-O has launched the Jelly Collection, featuring four inflatable chairs inspired by its best-selling flavors: lemon, lime, strawberry, and orange. This move aligns with the ongoing jelly home decor trend and aims to tap into the growing demand for unique branded products. The collection is available for a limited time on Amazon for $30.
The chair "Growing up, I never wanted to be an office chair," designed by Byron Clark, challenges conventional office furniture design with its playful aesthetic. Made from sustainable materials, including repurposed foam and wood scraps, it aims to convey a message of responsibility towards the environment while evoking a sense of fun and childlike spirit.

Industrial Design

Fellowes’ Rising Monitor Arms Win Silver at IDEA Awards, Setting New Standards in Design and Functionality.
Fellowes' Rising™ Monitor Arms won the Silver Award at the IDEA Awards for their innovative design and functionality, featuring maximum adjustability for multiple screens, a tool-free assembly system, and a commitment to sustainability. The product line reflects Fellowes' dedication to enhancing modern workspaces while allowing customization for brand identity.

Interviews

Interior designer Rachel Basha-Franklin emphasizes the importance of creating neurodiverse-friendly work environments to accommodate various sensory needs. Key considerations include providing diverse sensory stimulation, prioritizing natural and adjustable lighting, implementing soundproofing measures, and offering choices for workspace control. The goal is to design inclusive spaces that enhance comfort and productivity for all individuals, regardless of their neurological differences.

Trends in Commercial Projects from Around the Globe

Arcadis' new Miami office, designed with a focus on the future workplace, features a sustainable and innovative layout that promotes collaboration, well-being, and productivity. Spanning 7,030 sq ft, the space includes various amenity areas, advanced technology, and biophilic design elements, all aimed at fostering creativity and connection among team members. The design process involved extensive employee feedback and emphasizes a hybrid work model, circular economy principles, and a strong connection to the local environment.
Gensler designed a new creative headquarters for Huge in Brooklyn's Navy Yard, emphasizing a flexible and inclusive workspace. The 50,000 sq ft facility features various amenities, including a yoga room, a beer garden, and advanced technology for collaboration. The design promotes a sense of community and sustainability, earning Fitwel 2 Stars and LEED Silver certification.
Kanpo Arquitectos redesigned the headquarters of Midegasa, a raw materials distributor in Spain, transforming the previously dark and uncomfortable space into a light-filled, nature-connected office. Key changes included the addition of skylights, improved insulation, and a fresh color scheme inspired by the surrounding greenery, enhancing both aesthetics and employee well-being.

Latest In Real Life WFH

Gilbert Pellegrom is a Scottish software engineer and co-founder of Lemon Squeezy, recently acquired by Stripe. His workspace includes a MacBook Pro, LG Ultrafine monitor, and various tools like Slack and PhpStorm. He emphasizes creativity through outdoor activities and describes his typical day as varied, balancing development and management tasks with family time. Post-acquisition, he anticipates more meetings and a shift towards a less intense work-life balance.

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.

Allsteel to Host TEDxChicago Coaching Sessions at Chicago Experience Center
Allsteel will host TEDx coaching sessions on September 18th and 19th at its Chicago Experience Center to prepare speakers for TEDxChicago 2024: Lighting the Way, taking place on September 27th. The event will feature seven local speakers discussing various topics, along with live performances and local food. Tickets are available for purchase online.

THE LATEST: ORGATEC 2024: experience the workspaces of tomorrow in person
ORGATEC 2024, taking place from October 22 to 25 in Cologne, will showcase future-oriented office management solutions in the #OfficeXperience Focus Area. The event will feature interactive exhibits, workshops, and discussions aimed at addressing productivity, sustainability, and flexibility in modern workspaces. Various companies and institutions will collaborate to present innovative concepts, creating a community focused on enhancing office building management. Additional highlights include other focus areas like #TheCircularHouse and #InspiredAugmentedOffice, setting new standards for modern work environments.

BDNY 2024: Redefining Hospitality Design With Unmatched Innovation and Networking Opportunities
Boutique Design New York (BDNY) will take place on November 10-11, 2024, at the Javits Center, NYC, featuring innovative design showcases, networking opportunities, and educational sessions. Highlights include immersive spaces by leading designers, a new Dine & Design PopUp, CEU-accredited seminars, the Platinum Circle Awards Gala honoring industry leaders, and the Gold Key Awards recognizing excellence in hospitality design.

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

Theresa Quintong new Contract Sales Representative for New York for Tuuci
Theresa Quintong has been appointed as the new Contract Sales Representative for New York at Tuuci, where she will manage relationships with hospitality and commercial clients in the tri-state area. Tuuci, founded in 1998, specializes in innovative outdoor shade and furniture products, with a commitment to design and community outreach.

Ware Malcomb Announces Promotion of Melissa Martorano in Phoenix Office
Ware Malcomb has promoted Melissa Martorano to Studio Manager of Interior Architecture & Design in the Phoenix office. With nearly six years at the firm, she has advanced through various roles and is recognized for her strong design capabilities and collaborative approach. Martorano holds a Bachelor of Science in Interior Design from Arizona State University and has participated in the Emerging Leaders Program to enhance her leadership skills.

AMQ Welcomes Rachael Mauldin as Territory Manager for North Texas and Oklahoma Markets
AMQ has appointed Rachael Mauldin as Territory Manager for North Texas and Oklahoma, bringing over nine years of furniture industry experience and a background in Interior Design. Her previous roles include positions at Steelcase, Herman Miller, and MillerKnoll. AMQ's V.P. of Sales, James Breagy, expressed excitement about her joining the team, anticipating significant growth in the markets she will oversee. Rachael resides in Dallas, TX, and enjoys Improv comedy and refurbishing furniture in her free time.

Appointment of Sara Abbad – Product Manager – Panel Systems and Metal Storage Furniture
Groupe Lacasse has appointed Sara Abbad as the new Product Manager for Panel Systems and Metal Storage Furniture, effective September 10, 2024. With a strong background in product management, Sara aims to enhance the product line and strengthen client relationships, aligning with the company's strategy to diversify its leadership team.

Caleb Slaughter Joins Office Revolution as Business Development Leader for Kansas City
Caleb Slaughter has joined Office Revolution as the Business Development Leader for the new Kansas City location. A Kansas City native with strong community ties, he has a background in commercial real estate and a commitment to community service. His experience as a Sales Executive at Vari Furniture has equipped him with a client-centric approach and a focus on creating aesthetically pleasing workspaces. Caleb is excited about his role and the collaborative environment at Office Revolution, which aligns with his passion for the city's growth and artistic integration in design. Jill Stewart, President of Office Revolution, expressed enthusiasm for Caleb's appointment, highlighting his alignment with the company's values.

FCA Welcomes Chris Parsley as Senior Design Strategist to the NYC Corporate Team
FCA has appointed Chris Parsley as a senior design strategist for its New York City corporate team. With over 15 years of experience in design across various sectors, he aims to enhance FCA's innovative approach and contribute to impactful design solutions. Parsley's background includes significant projects with firms like Troutman Pepper and McKinsey & Co., and he has a strong focus on improving employee experiences in office design.

Ben Cantu Returns to Luxxbox as VP of Business Development & Western Regional Sales Manager
Ben Cantu has returned to Luxxbox as VP of Business Development and Western Regional Sales Manager, bringing over 30 years of experience in the high-end lighting industry. He will focus on driving sales growth in the Western US, leveraging his expertise to build relationships with commercial lighting agencies and introduce Panzeri's designer lighting to the North American market. Luxxbox recently launched new acoustic lighting products and merged with Panzeri, enhancing its innovative offerings.

Luxury Swedish Brand Kasthall Introduces Mirrku Kullberg as New CEO
Kasthall has appointed Mirrku Kullberg as the new CEO, bringing extensive expertise in Scandinavian design and branding. Kullberg has a strong background in various leadership roles, including CEO of Artek and Chief Strategist for Glasshouse Helsinki. Established in 1889, Kasthall is a leading rug and textile company known for its sustainable practices and craftsmanship, operating in 30 countries while manufacturing products in Kinna, Sweden.

Contract Office Reps and Davis Contract Announce Strategic Merger
Contract Office Reps and Davis Contract have announced a strategic merger aimed at enhancing service offerings and expanding market reach in Southern California. This partnership will provide clients with a broader range of high-quality office furniture solutions and improved customer support, leveraging the strengths and expertise of both companies.

Landscape Forms Named by Fortune and Great Place to Work as a 2024 Best Workplace in Manufacturing & Production for a Fifth Year in a Row
Landscape Forms has been recognized as a 2024 Best Workplace in Manufacturing & Production by Fortune and Great Place to Work for the fifth consecutive year, highlighting its strong workplace culture and people-centric manufacturing approach. The company's leadership emphasizes the importance of employee contributions to its success and innovation.

Solomon Coyle Launches New Online Sales Leadership Program
Solomon Coyle has launched a new online Sales Leadership Program designed to enhance strategic thinking and team performance in sales organizations. The 12-week blended learning course covers key topics such as sales leadership, distributor economics, and talent acquisition, utilizing various teaching methods including videos and live webinars. Enrollment is open, with classes starting on October 14.

HON to Serve as Premier Sponsor for 2024 ISG Industry Week
HON will serve as the premier sponsor for the 2024 ISG Industry Week at the Gaylord Palms Resort in Orlando, Florida, from September 21 to 26. They will showcase office solutions at booth 300 and have products nominated for "Best Product" at the North American Office Products Awards. For more information, visit their website.

Jamie Stern Furniture, Carpet, Leather & Fabric Opens New, Larger New York Showroom and Collaborative Design Studio
Jamie Stern Furniture, Carpet, Leather & Fabric will open a new, larger showroom in New York on September 19, 2024, featuring a collaborative design space for custom furnishings and carpets. The 2,155-square-foot showroom will allow interior designers to work with the design team on projects, showcasing the company's extensive collections. This opening represents a commitment to supporting the contract, hospitality, and corporate design industries with high-quality materials and manufacturing capabilities.

IIDA NY’s Albany City Center: Flannel Fest
IIDA NY is hosting the 6th Annual Flannel Fest on October 9th, 2024, at Pruyn House in Latham, NY, from 5:00 to 8:00 PM. The event will feature food, drinks, live music, and yard games, with proceeds from raffles supporting The Common Thread for the Cure, which aids those affected by breast cancer. Tickets are $50 at the door, with limited availability.
Find the best Contract Furniture Industry jobs and hire the best talent.
Dear Stephen, I am a Sales Director for a high-end residential furniture company. We're in the process of expanding across the US. We're evolving from a "trade only" model to retail as well. Business has been brisk and we're trying to find new salespeople everywhere.
The sales director is responsible for building high-performing sales teams and achieving sales goals for each market to which they are assigned.
Are you passionate about design, architecture, and craftsmanship? Ready to be part of an iconic brand with a rich history and a bright future? We’re looking for a dynamic Contract Sales Account Executive to lead our B2B sales efforts in the Northeast.
OFS is excited to announce that we are actively seeking a qualified candidate to join our team as the National Account Director Federal in the West.
created in Publicate