Office Utilization Surges As Spring Emerge / VEL and Haworth Partner on Work Cafes / A Bleak Outlook for Manhattan’s Office Space May Signal a Bigger Problem / HOK Signals its Investment in Downtown Los Angeles with Studio Relocation to the Arts District / Virco Reports Full Year Revenue Increased 25% / Can in-office libraries help improve the work experience? / Swivel Chairs are back, plus 4 other design trends to keep on your Radar for 2023 / Evaluating Hybrid Work Models And Office Reintegration / Review: Salone del Mobile.Milano and Milan Design Week 2023 / How New Technologies are Changing the Way We Work / and much more… 


The Working Space
Monday, May 1, 2023

Industry News

Haworth and VEL are partnering to open hybrid coffee shops across the US, providing a tech-forward workspace in addition to the traditional coffee shop experience. The cafés will offer beautifully designed open and private settings, reservable spaces, private and encrypted high-speed WiFi, charging pads, and acoustic measures for quiet spaces. Haworth's Pergola will be used as an important building block for the work café concept, and additional Haworth products will be included in the cafés. The partnership will open cafés in Charlotte, Nashville, Charleston, Boston, and Chicago, scheduled to open in 2023 and 2024.
Virco Mfg. Corporation reported a 25% increase in net sales for the fiscal year ended January 31, 2023, with revenue returning to profitable levels after pandemic-related disruptions. Gross margin expanded to 36.9%, and gross profit improved 40%. SG&A expenses increased due to new business opportunities and a bonus provision. Strong order flows and record backlog pushed year-to-date "shipments plus backlog" to an all-time high of $106.9 million. The operating loss in the seasonally light fourth quarter was $4.4 million, reflecting improvements in margin and operating efficiencies that more than offset a modest decline in shipments.

Andreu World Announces New Flagship Showroom In Milan
Andreu World, an international award-winning global manufacturer, is opening its first mono-brand showroom in Milan, Italy, designed by Patricia Urquiola. The 4,300 sq ft (400 m2) showroom opened on April 17, 2023, during Milan Design Week, and showcases the brand's most recent collections, including in-house designs and products done in collaboration with international designers. The showroom is built using ecological and sustainable materials, reflecting the brand's commitment to sustainable architecture and conscious design. This is Andreu World's 30th international showroom and will serve the architecture and interior design communities, offering contemporary and avant-garde designs and resources on the brand and products.
HOK, a global design and architecture firm, is relocating its Southern California studio to ROW DTLA in the Arts District of Downtown Los Angeles. The move reflects the company's commitment to revitalizing the area and coincides with its 40th anniversary in LA. The new space offers amenities such as a wellness room, VR center, and rotating art collection, and incorporates principles of neurodiversity. HOK has partnered with United Way LA on trauma-informed design for homeless populations and donated a majority of its Culver City office furniture and accessories to non-profit organizations.
The Salone del Mobile.Milano and Milan Design Week 2023 showcased a variety of designs, including sustainable options and a focus on looking back to the roots of companies. Exhibitors emphasized the recycling of materials and showcased artistic installations. Notable designs included a compact multi-purpose chair by Norm Architects, a solid wood chair by Alberto Brogliato and Federico Traverso, and a Safari Chair-inspired armchair by Konstantin Grcic and Hella Jongerius. Sustainable stand architecture was also highlighted, and there were many unconventional showrooms. The event provided a space for creativity, reflection, and inspiration in the midst of global crises.
Office space utilization rose significantly in March, according to the latest VTS Office Demand Index. The demand for office space increased by 31.3% from February to March. VTS ranked unique new tenant tour requirements and found that the index jumped from 48 in February to 63 in March. All of the cities tracked by VTS saw office demand increase in March, with five of the seven cities reporting office demand jumps of more than 30% month-over-month. Kastle also reported an increase in its 10-city average office occupancy, with Houston and New York City experiencing the largest jumps. According to Kastle, Tuesday is the most popular day for workers to come into the office, with occupancy being almost 60% in all 10 cities, while Friday has the lowest occupancy at 32.7%.
Office building owners are hiring outside vendors to provide added-value amenities for tenants, but these relationships can be complex and raise legal issues. The structure of the arrangement, employee responsibilities, control over cash and operating expenses, intellectual property ownership, building regulations, privacy, tenant expectations, liquor licensing, key personnel, franchise agreements, and termination rights are all factors to consider when negotiating with vendors. Landlords should expect a range of negotiation approaches from different vendors and may need to step outside their usual rental practices.
Vornado Realty Trust, one of the largest publicly traded REITs in the US, and owner of Chicago’s Merchandise Mart, has suspended dividends for common shareholders through 2023, surprising analysts who see it as a sign of broader problems. The company also plans to repurchase up to $200M of its outstanding common shares through a new share repurchase program, which some analysts question given the need for cash preservation. The company may have arrived at the decision after looking at upcoming tax losses and lining up some asset sales. Vornado recently put a hold on plans to redevelop the area around Penn Station, citing the interest rate environment, and earlier this year estimated that the value of some of its properties had fallen by over half a billion dollars.
Investment in office properties in the US fell 68% in Q1 2023 to $10.7B, the lowest level since 2010, due to rising interest rates, shriveled office demand, and economic uncertainty. Sales of all property types declined, but office trades fell the furthest and fastest, with many owners selling for a loss. The sales volume for central business district office assets has dropped more than for suburban properties, and investors are more interested in nontraditional office spaces like labs, production studios, or low-rise flex spaces. Companies will invest in spaces that are suitable for life sciences and tech users.

Workspace News

Post-pandemic office occupancy has finally passed the 50% mark, and its glacial tick upward is indicative of lasting changes in the way we work. A new office existence calls for furniture products that can accommodate varied settings and uses, according to COE Distributing, a leading U.S. wholesaler of office furnishings. Flexible pieces that are easily configured and also meet technology and video conferencing requirements are key, and COE is designing for the challenge with its private label, OfficeSource. Whether creating informal gathering areas, sequestered solo workspaces or zones for collaboration, today’s offices call for a relaxed aesthetic incorporating comforts of home into the professional environment.

Learn more

A new study from economists at the Federal Reserve Bank of New York, the University of Iowa, and Harvard suggests that remote work may have a hidden professional penalty for young professionals, particularly women and people of color. The study found that junior engineers received less feedback when working remotely, and some junior engineers were more likely to quit the company. The study's authors suggest that the office plays an important role in early-career development, and mentorship and training are hard to replicate on remote platforms like Slack and Zoom.
A study by the National Bureau of Economic Research found that using AI chat tools in the workplace can benefit employees, especially those new to the job. The study focused on customer support agents and found that AI assistance led to boosts in productivity, better customer interactions, and stronger employee retention. The AI tool also helped flatten the learning curve for newer employees, who performed as well as more experienced employees when using the tool. The study concludes that AI can augment, rather than replace, human agents and improve work for employees.
Facility Managers play a crucial role in driving sustainable practices within large corporations. To successfully implement sustainable initiatives, Facility Managers should start with their own education by understanding the program objectives, learning from other organizations, defining success metrics, and identifying necessary tools. They should then take their knowledge to the streets by leading by example, building a cross-functional coalition, providing awareness, educating colleagues, making participation easy, and recognizing and rewarding sustainability efforts.
A study by researchers from the Federal Reserve Bank of New York, the University of Iowa, and Harvard University/National Bureau of Economic Research found that while remote work increases output, it decreases collaboration and training of more junior workers, particularly women and young workers, who may feel less included at the firm. The study suggests that a balance will need to be set, and it may be more efficient to have fully in-person or fully remote teams rather than hybrid teams. The findings will have great bearing on the office sector.
As hybrid work models become more prevalent, it is important for companies to evaluate their efficacy and choose relevant metrics to measure success. Metrics should include both quantitative and qualitative assessments of productivity, retention, recruitment, performance, collaboration, innovation, morale, engagement, well-being, burnout, intent to leave, quiet quitting, diversity, equity, inclusion, and professional and leadership development. By continuously reassessing and refining their strategy, organizations can successfully achieve their hybrid work model goals.
According to a report by workplace consultancy Advanced Workplace Associates (AWA), hybrid workers deliver nearly two extra weeks of work a year for their employer as well as working harder and better in a hybrid environment. The study found that employees with flexible arrangements work an additional 101 minutes, or 1.7 hours, a week, which equates to 75.6 extra hours of work, or just over 9.5 days, assuming an eight-hour day. AWA also claims that organisations that embrace hybrid working have the potential to reduce their real estate footprint by using their offices more efficiently and may have the opportunity to sublet space or move to small offices when their leases are up.

Design

Workspace libraries are becoming a popular amenity in offices, with requests for quiet areas and deep focus zones increasing. However, organizational culture needs to allow the use of these spaces before they can be effective. Design can also play a role in the success of an office library, with shared references and visual clues helping to indicate how the space should be used. Relaxed and playful interpretations of the library can also be effective, as can using the feel and function of a public library to communicate openness.
As hybrid and remote work change how employees view the office, employers can attract teams back by providing spaces that reflect a “resimercial” design – one that features the comforts of home – promoting productivity and a healthier workplace. Sustainable design elements such as natural light, outdoor spaces, and comfortable furniture rooted in employee wellbeing can enhance productivity and well-being. An environment that fosters company culture is not all about providing great amenities, but rather providing what employees need while they’re there.
A new report from PLP Labs explores how to measure and monetize the wellbeing and environmental value of biophilic office design. Biophilic design can improve employee health, creativity, productivity, and satisfaction, and the report argues that integrating biophilia into the architectural design process early can save companies money. An eight-week pilot study found clear differences between different degrees of biophilic workspace, with the immersive scenario having the highest monetary gains in terms of well-being and environmental value, but also the highest capital investment. Measuring biophilic design in monetary terms enables designers and architects to make a business case for biophilic design and understand the long-term value and potential of the well-being economy.

Trends

At the Salone de Mobile trade show in Milan, some of the big design trends for 2023 were showcased. These include the use of sustainable materials mixed with old ground-up materials, the continued popularity of midcentury modern furniture, three lighting-fixture styles (rings, blown glass, and balls), the return of the swivel chair, and the use of a sunset color palette with a twist.

Latest Products

Steelcase has launched the Karman chair, which uses new technologies and materials to go beyond traditional mesh chairs. The chair features a proprietary performance textile called Intermix, which distributes body weight evenly over the seat and back, flexing to the user's movement and creating ideal ergonomic support. The chair is also designed for sustainability, using the least number of components necessary and significantly less material than traditional task chairs. The Karman chair is available now.
Clear Design has added the Single-Monitor Arm to the Nexus Series, offering an ergonomic and space-saving solution for workstations. The arm has built-in cable management, finger-touch dynamic height adjustment, and 360 rotation. It fits monitors up to 32" and is available in black, silver, and white. Optional laptop tray is sold separately. The arm is BIFMA Certified.

LightArt Adds Marina To Award-Winning Reclaimed Ocean Plastic Pendant Collection
LightArt has expanded its Ocean Coil Collection of upcycled pendants made from 100% recycled polypropylene sourced from ocean-bound and nearshore waste. The new shape, Ocean Coil O3, is a spherical pendant that adds volume to the series, available in two sizes. The new Ocean Coil material, Marina, blends a unique mix of reclaimed ocean plastic to create a blue-greenish hue similar to sea glass. The pendants are equipped with LightArt’s Performance Lighting Core, a solid-state lighting solution delivering high-performance lighting to decorative fixtures. Each pendant diverts up to three pounds of ocean-bound and nearshore waste.
Italian homeware brand Alessi has launched the Poêle Collection, a furniture line designed by Philippe Starck. The collection includes a chair, a high stool, a low stool, and a coat stand, and is a "serious trial" in furniture for the brand. The Poêle Collection incorporates the same manufacturing processes used to make Alessi's stainless-steel cookware, including cold-press metal technology. The centrepiece of the collection is the Poêle Chair, which features a stainless-steel seat with a mirror-polished finish over a brown-dyed beech wood frame.
Serge Ferrari Group has introduced Soltis Loop Sunmate, the first-ever interior solar protection fabric made from 100% recycled materials from post-consumer wastes. The fabric provides full privacy from the outdoors, protects against solar heat, and is available as roller blinds, vertical blinds, and panel tracks. Soltis Loop Sunmate is composed of 100% recycled polyester yarns in its base and 100% recycled polymers in its coating, making it the only indoor solar protection fabric made completely from recycled materials. The product is GREENGUARD Gold certified, PVC and phthalate free, and has a reduced environmental footprint to meet the requirements of LEED, BREEAM, WELL and HQE certifications.

Other News

Advancements in technology have drastically changed the modern workplace, with innovative products and systems improving efficiency and workflow. The future of work will prioritize education and flexible schedules, treating employees as individuals. Technology is set to become more prominent, with traditional job roles being phased out in favor of digitally-enhanced positions. The modern workplace prioritizes health, well-being, and productivity, with motorized desks, voice-activated commands, and touch-screen devices. Collaboration with colleagues from all over the world in real-time is a significant benefit of technology, as is the flexibility of remote work options. However, it is crucial to find a balance between technology and human interaction to foster a healthy and productive work environment.

Technology

Architectural renderings have become increasingly commonplace in the industry, with technology making it easier and more integrated into the design process. Software like Lumion and Enscape have been developed specifically for architects, while animation is becoming a bigger part of the process. AI tools like ChatGPT and Bard are also being explored, but architects view them more as idea generators rather than replacements for human creativity.

Interviews

In an interview with Zaha Hadid Architects' Ulrich Blum, he discusses the changing landscape of workplace design and the importance of flexibility, connectivity, and collaboration. He identifies several workplace trends, such as "From Me Space to We Space" and "Natural Environments," and explains how they shape the planning of working environments. Blum also addresses the impact of the switch from the boomer generation to millennials on office spaces and the importance of inspiring places and diversity for innovation.

Green / Sustainability

"There are more than enough well designed chairs out there," writes Dutch product designer Erik Stehmann, who has several on the market himself, "so designing another new one is not an urge I have. The My Pleasure chair, however is an upcycling concept for old chairs. (And it is actually soft!)"

Podcast

In a recent podcast, Raquel Machado, Senior Associate at M Moser Associates, discussed workplace strategy, office flexibility, and the importance of involving staff in building the best office for them. She emphasized the need to understand the needs of the people who will use the office and to remain flexible in the design process. The pandemic has changed the function of the office, and a well-designed space can provide better conditions for work than working from home.

Coworking

Colette Club, set to launch in April 2023, is a coworking office designed for the wealthy, with an initial buy-in of $125,000 and annual dues of $36,000. The club will be located on the 37th floor of the Manhattan General Motors building and will offer personalized 400-sq-ft private offices with onsite staff ready to handle secretarial work, videoconference tools, and individualized climate settings. Members will also have access to other amenities in the GM building, like the fitness center and Colette's restaurant. Colette aims to legitimize coworking spaces for high-value business people who don't need a traditional office to be taken seriously.

Metaverse

Cosmetics company Coty has launched the Coty Campus, a gamified training space for its 11,000 global staff members, designed to improve collaboration and upskill employees in digital spaces. The 3D environment, created with metaverse platform Spatial, offers tools for communication, screen and file sharing, and customizable avatars. The Campus also features a reward system based on item collection, location exploration and quest fulfillment. Coty's chief digital officer, Jean-Denis Mariani, said the Campus was part of the company's digitalization strategy and a tool for testing and learning.

Trends in Commercial Projects from Around the Globe

One Wall Street, developed by Harry Macklowe, is the largest office building to be converted into apartments in New York City. The building was originally designed in the 1920s as a home for Irving Trust bank and was purchased by Macklowe in 2014 for $585 million. The building has been reconfigured to meet zoning requirements for living spaces, with apartments pushed against exterior walls and everything else pulled into the core. The building includes Whole Foods and Life Time Fitness as tenants, and a private restaurant for residents only. The apartments skew towards one-bedrooms and studios, with almost half designed with home offices, and start at just over a million dollars.
Arcedior's Ahmedabad, Gujarat, India, office design is a blend of functionality and aesthetic appeal, maximizing productivity and comfort for employees. The use of natural light, an open floor plan, and a neutral color palette with bold accents creates a bright and welcoming atmosphere. High-quality materials and state-of-the-art technology promote comfort and efficiency, and a spacious break room allows for relaxation and recharging.

Upcoming Industry Events

NeoCon 2023
June  12-14, 2023 | Chicago, IL
 
NeoCon has served as the world’s leading platform and most important event of the year for the commercial design industry since 1969. A launch pad for innovation—NeoCon offers ideas and introductions that shape the built environment today and into the future.  

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

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

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

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

Clerkenwell Design Week 2023
May 23-25, 2023 | London

Clerkenwell is home to more creative businesses and architects per square mile than anywhere else on the planet, making it truly one of the most important design hubs in the world. To celebrate this rich and diverse community, Clerkenwell Design Week has created a showcase of leading UK and international brands and companies presented in a series of showroom events, exhibitions and special installations that take place across the area.

Orgatec 2024
October 22-26, 2024 | Cologne, Germany

Orgatec is the International trade fair for office and property equipment. Held in Cologne, Germany.
The Vitra Design Museum is hosting an exhibition on the history and future of modern gardens, exploring everything from medieval enclosed gardens to urban gardening projects. The exhibition is divided into four chapters and aims to teach visitors to rethink their relationship with nature. The exhibition runs until October 3, 2023.

Industry Briefing

Designtex Appoints New Vice President of Marketing
Designtex has appointed Oriana Reich as Vice President of Marketing effective April 17, 2023. Reich brings extensive experience in creative marketing strategy implementation and brand building to the team, with responsibilities including managing internal/external creative, marketing and go-to market strategies, developing engaging marketing and branding strategies, and amplifying the Designtex brand strategy across all platforms.

Clear Design Announces Brittani Saint as Regional Vice President
Clear Design has appointed Brittani Saint as its new Regional Vice President. With experience in sales, relationship building, and business cultivation, Brittani will focus on growing key markets and advancing the Clear Design brand in the furniture market, working closely with sales and dealer partners.

Nicki Heiner Named Artcobell Director of Interior Design
Nicki Heiner has been named Artcobell Director of Interior Design, responsible for building the interior design practice within Artcobell, providing design services, training, and education to dealers, design professionals, and schools. Heiner brings two decades of experience in education, healthcare, corporate, hospitality, and institutional segments to her new role.

Interior Designer Alexandria Seimetz Joins //3877
Interior Designer Alexandria Seimetz has joined architecture and design firm //3877. With a background in residential design and a passion for storytelling in the built environment, Seimetz will bring her skills to the firm's hospitality portfolio. The firm's progressive approach prioritizes effective communication and collaboration between clients, designers, and contractors, and Seimetz's unique insight is expected to contribute to the evolution of the firm's design practice and philosophy.

Polyvision Corporation Announces Silvie Vermoote as Sales Director APAC in Hong Kong
Silvie Vermoote has been appointed as Sales Director APAC for Polyvision Corporation in Hong Kong. Vermoote will be working with the international team to grow Polyvision's strategy and sales in the Asia market. Prior to joining Polyvision, Vermoote had broad experience with KBC Bank in Hong Kong and is an avid hiker, aspiring chef, and all-around foodie.

Louis Poulsen Appoints PR & Marketing Manager, North America
Louis Poulsen has appointed Austin Durling as its new PR and Marketing Manager for North America, where he will work alongside the CEO in the newly established head office in New York. Durling's extensive knowledge of the design landscape will support Louis Poulsen's brand growth strategy through the creation and implementation of marketing initiatives in the United States and Canada. The appointment is part of Louis Poulsen's new structure for North America, with a focus on building trade, retail, and direct to customer ecommerce relationships.

IIDA Announces Winners of Two Design Competitions

The International Interior Design Association (IIDA) has recently announced the winners of two highly regarded design competitions: the 49th Annual Interior Design Competition and the 30th Annual Will Ching Design Competition. These prestigious competitions celebrate innovation and creativity in the design industry, recognizing outstanding achievements in a variety of categories such as corporate spaces, entertainment venues, public spaces, and restaurants.

The Interior Design Competition winners include projects from around the world, such as the CCD Global Headquarters Office in Shenzhen, China, the Capital One Hall in Tysons, Virginia, and the 800 Fulton Market in Chicago. Meanwhile, the Will Ching Design Competition winner is the innovative restaurant, Kann, located in Portland, Oregon, which was designed by Fieldwork, a Portland-based commercial design firm.

The finalists and winners of both competitions will be recognized and celebrated during Revel in Design, IIDA's black-tie event, at The Ritz-Carlton in Water Tower Place, Chicago on Sunday, June 11, 2023.

Scandinavian Spaces Hires Local Representative to Cover the Territory of New England
Scandinavian Spaces has hired Contract Sources as their new sales representative for the New England territory. The company is expanding across North America and prioritizes building a top-tier sales force.

Fellowes achieves Level 2 certification for nearly 70 contract interiors workspace products
Fellowes has achieved BIFMA LEVEL 2 certification for nearly 70 of its contract interiors workspace products, including the Rising™ monitor arms. The certification was granted by SCS Global Services, a leading third-party sustainability certifier, and confirms that the products meet the criteria defined in the ANSI/BIFMA e3 Furniture Sustainability Standard. 

Landscape Forms Announces First-Time Participation in LightFair in 2023
Landscape Forms, a designer and manufacturer of high-design site furniture, structure, LED lighting and accessories, will participate in the LightFair trade show (Javits Center, New York, May 21-25, 2023), for the first time. The company will showcase its diverse lighting portfolio, including the global debut of the Northport Collection lighting, at Booth #2546 in The Collective exhibitor space.

Edmarket Launches Emerging Leaders Recognition Program
The Education Market Association (EDmarket) has launched the NexGen Rising Stars Awards program, recognizing outstanding young professionals under 40 in the educational industry for their contributions and achievements. Winners receive mentorships, press, recognition, and inclusion in a network of EDmarket award winners, and are celebrated at the annual EDspaces conference in November. The call for nominations is open until May 31, 2023.

Gentile Planning to Step Down from Independent Suppliers Group
Mike Gentile, President & CEO of Independent Suppliers Group (ISG), will be stepping down from his position effective January 1, 2024. The ISG Board of Directors will begin the search for a replacement immediately, and Gentile will assist with the transition plan. Gentile expressed pride in the accomplishments made during his tenure and gratitude for the friendships he has formed.

Loll Designs’ Alfresco Collection Awarded 2023 Green Good Design Award
Loll Designs' Alfresco Bar and Counter Height collection has been awarded the 2023 Green Good Design Award by The European Center for Architecture Art Design and Urban Studies and The Chicago Athenaeum: Museum of Architecture and Design. The award recognizes Loll's commitment to sustainable design and promoting sustainability through their products.

IIDA NY Hosts Candace Doby at Annual Leaders Breakfast
The International Interior Design Association’s New York Chapter (IIDA NY) will host Candace Doby at their annual Leaders Breakfast® on May 11, 2023. Doby, an author and podcast creator, will deliver the keynote address on creating cultures of courage and empowerment within the workplace. The event celebrates design excellence and honors recent accomplishments, with a 2023 honoree to be announced. The event provides a unique networking opportunity for attendees and aims to inspire and drive the design industry to new heights.

Tayco is Continues it’s Track Record of Being a Great Place to Work
Tayco, a commercial office furniture manufacturer, has been certified as a Great Place to Work® for the third consecutive year by the Great Place to Work® Institute Canada. Tayco's exceptional workplace culture, diverse workforce, innovative workplace policies, and focus on equity and inclusion have contributed to their certification.
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