Business conditions end the year on a weak note / Flexible Office to Continue Expanding as Hybrid Work Evolves / La-Z-Boy Healthcare | Knú Comfort Names Adam Stemle President / Empowered Ventures Acquires Whitney Brothers / Behind Manhattan's Resilience for Office / Trump’s Return-To-Office Mandate Faces Pushback / Sunon Furniture Taps Fort Worth For National Distribution Center / Hotel Fundamentals Continue to Languish Amid Flat Occupancy Rate / Will Dress Shirts Return to the Office? / Remote Jobs: Employer-Employee Tensions Over Return-to-Office Far From Settled / Remote work is now the top requested workplace accommodation  / Designing for Experience: How Coworking Spaces Are Adapting to Support Older Professionals / What Offices Can Learn from Gyms / and much more…


The Working Space

Monday, January 27, 2025


Industry News

Business conditions at architecture firms weakened significantly in December 2024, as reflected by a decline in the AIA/Deltek Architecture Billings Index (ABI) score to 44.1. This decline follows a brief period of improved conditions, with many firms reporting decreased billings and hesitancy from clients to commit to new projects. While inquiries for new projects have increased slowly, the value of newly signed design contracts continued to decrease.
 
Despite the overall softness, firms located in the West experienced growth for the third consecutive month, contrasting with the conditions in other regions, particularly the Northeast. Employment in the architecture services sector has also been declining, with significant job losses since November 2023. The report indicates that construction budget issues are leading to stalled, delayed, and canceled projects, with many firm leaders citing insufficient budgets as a primary concern.
 
Overall, a majority of projects are proceeding as planned, but a notable percentage are facing delays or cancellations due to various factors, including high contractor bids and financing problems.
 
Looking ahead, most firms expect the trend of stalled or delayed projects to remain stable in the first half of 2025, though some anticipate an increase in such issues, particularly in the Northeast and Midwest regions.

Solomon Coyle 2024-Q4 Market Report shows Dealers are Optimistic
The Solomon Coyle 2024-Q4 Market Outlook Report highlights a positive outlook for the distribution channel as it enters the first half of 2025. Actual Q4 bookings growth of 3.7% exceeded previous forecasts, with dealers projecting further growth of 3.8% for Q1 2025 and 2.8% for Q2 2025. The report indicates improved sector pipeline activity in corporate, financial, and hospitality sectors, while government pipelines saw a decline. Key findings suggest optimism among dealers regarding market conditions, bolstered by increased billings and backlogs growth rates. Distributors participating in the quarterly survey receive comprehensive reports that include regional insights.
Sunon Furniture LLC has chosen North Fort Worth, TX as the location for its national distribution center, leveraging the area's strategic positioning and connection to Interstate 35, which links to its manufacturing base in Monterrey, Mexico. The company has leased 34,175 square feet at Basswood 35. This decision is part of a broader strategy to consolidate operations, as Sunon phases out third-party logistics on the East and West coasts. As one of the largest office furniture manufacturers globally, with a U.S. headquarters in Irvine, California, Sunon serves a diverse client base, including around 200 Fortune 500 companies. The new distribution center is set to open in February and provides room for future expansion as the company realigns its North American distribution channels.

Empowered Ventures Acquires Whitney Brothers
Empowered Ventures, an employee-owned holding company based in Carmel, IN, has acquired Whitney Brothers, a manufacturer of high-quality wood furniture and educational products located in Keene, New Hampshire. This acquisition, facilitated by Peloton Advisory LLC, allows Whitney Brothers to join the Empowered Ventures ESOP, reinforcing its commitment to quality and innovation. The acquisition is seen as a positive step for both companies, ensuring that Whitney Brothers' legacy and employee engagement will continue to thrive under new ownership. Empowered Ventures aims to support Whitney Brothers' growth while preserving its rich history and commitment to the educational market.
Virco Mfg. Corporation has approved a new share repurchase program for up to $10 million, starting February 1, 2025, with no time limit, allowing management to buy back shares at their discretion based on market conditions and other factors.

La-Z-Boy Healthcare | Knú Comfort Names Adam Stemle President as it Builds Foundation to Sustain Unprecedented Growth
La-Z-Boy Healthcare | Knú Comfort has appointed Adam Stemle as its new president following a record year for the company, which included the acquisition of a second production facility. Stemle, who has extensive experience in sales and marketing, has been with the company since January 2020 and successfully navigated challenges during the pandemic while growing the business. He is recognized for his strong vision and ability to adapt to market needs. La-Z-Boy Healthcare | Knú Comfort specializes in high-performance healthcare furniture and is committed to enhancing patient comfort and experience.
The flexible office sector is projected to grow through 2025, with coworking spaces increasing by 22% and suburban markets seeing a 36% rise in New Jersey. Tertiary markets also experienced significant growth, with Indianapolis and Nashville leading at 40% and 35%, respectively. Flexible office solutions are helping owners reposition underutilized buildings and are essential in reimagining urban environments to enhance socialization and collaboration.
Manhattan's office market is showing signs of recovery post-pandemic, with flat net absorption and even rent growth. Tenants are now favoring smaller, high-quality spaces, and office-to-residential conversions are increasing, with 3 million square feet already converted and more in progress. Overall, there's cautious optimism about the future of the office sector, though capital availability remains a concern.
Recent trends indicate a resurgence in downtown activity, suggesting a revival in the market. This uptick is attributed to various factors, including increased foot traffic and business investments in urban areas. The revitalization of downtown spaces is expected to have significant implications for corporate real estate, influencing future development and investment strategies.
As office values decline in Atlanta, tenants are increasingly purchasing office buildings, with 28 acquisitions in 2024, up from 14 the previous year. This trend allows companies to control properties, avoid lease escalations, and potentially benefit from future market rebounds. Banks are more willing to lend to these tenant buyers, who often pay more than traditional investors due to the cost advantages compared to long-term leases or new constructions.
Downtown Los Angeles is facing a housing shortage, prompting developers to convert empty office towers into apartments. A 32-story building will be transformed into 686 residential units, as the area seeks to revitalize amid rising homelessness and declining office space demand post-pandemic.
The former Groupon headquarters in Chicago has been sold to 3Edgewood for $88.7 million, marking the largest downtown office sale by square footage in almost three years. The property, which was previously owned by Sterling Bay and purchased for $510 million in 2018, is located at 600 W. Chicago Ave. and was about 96% leased until Groupon terminated its lease early, leaving it at 62% occupancy. 3Edgewood plans to invest in the property, enhancing amenities and creating outdoor terraces for tenants. The sale indicates a return of investor optimism in the Chicago office market as pricing expectations adjust. This acquisition is part of a broader trend, with several major office sales occurring in Chicago since the start of the year.
San Francisco's office market is showing signs of recovery, with the total number of office buildings sold in downtown doubling in 2024 compared to the previous two years combined. Data from CBRE reveals that 23 office buildings were sold for a total sales volume of $916 million, while only 12 buildings traded in 2022 and 2023, totaling $863 million. Although many transactions occurred at lower prices, the average sale price increased to $310 per square foot from $253 in 2023, significantly lower than the pre-pandemic average of $861 per square foot in 2018.
The U.S. economy is growing slowly with strong consumer spending, but many lower-income individuals face financial strain. The incoming Trump administration may implement growth-oriented policies, though challenges like inflation, rising labor costs, and geopolitical risks could create volatility in 2025.
President Trump is considering the sale of federal offices to the private sector, a move that could significantly alter the landscape of government real estate. This initiative may open up opportunities for private investment in government properties, raising questions about the implications for public resources and management.
President Trump signed an executive order mandating federal workers return to full-time in-person work, impacting the D.C. office market amid existing union agreements and low agency space utilization. This move aligns with similar trends in the private sector as companies push for in-office attendance.
President Trump has mandated all federal employees return to the office full-time, facing pushback from unions citing the benefits of hybrid work. The executive order may conflict with existing union agreements and aims to reduce the federal workforce size, potentially impacting office space needs in D.C.
The U.S. government is currently in a unique position where it relies on a landlord for its properties. This situation has raised concerns, particularly from Donald Trump, who has expressed his disapproval. The implications of this landlord-tenant relationship are significant, affecting various aspects of government operations and real estate dynamics.

Featured Video

Exploration of five iconic mid-century modern chairs: Eames Shell Chair, Jacobsen's Egg Chair, Wegner's Wishbone Chair, Bertoia's Diamond Chair, and Panton Chair, highlighting their innovative designs and materials that shaped modern furniture.

Feature Stories

Renowned designer and architect Patricia Urquiola showcased her hybrid textile installation, 'among us', at Heimtextil in Frankfurt, highlighting the future of textile design. The installation creates an immersive space that combines craftsmanship and digital techniques, featuring tapestries made with traditional methods and innovative materials. Visitors are encouraged to engage with the installation, which promotes dialogue about sustainable design and community. Urquiola emphasizes the importance of a holistic approach to design, advocating for sustainability and flexibility in processes. She believes that understanding the complexity of life and embracing new technologies while honoring craftsmanship are essential for the evolution of textile design. The collaboration with Messe Frankfurt, which has spanned nearly two decades, is rooted in mutual appreciation and shared values. Key issues for the textile industry include the need for sustainable practices and a commitment to research and innovation.
Cecilie Manz, a distinguished Danish designer based in Copenhagen, discusses her design philosophy, emphasizing the importance of functionality in every project. She highlights her journey in the design industry, noting the initial challenges she faced and the support she received from Fritz Hansen, which allowed her to explore her creativity. Manz explains how she balances her artistic vision with client expectations, using the Monolit chair as a case study of successful collaboration. She believes in the harmony of form and function, arguing against the notion of compromise in design. Additionally, she advocates for sustainable and thoughtful design practices that prioritize quality over trend-driven aesthetics.

Workplace News

Dress shirts are seeing a resurgence in office fashion due to trends like "corp-core," with a shift towards comfort and style. While their prominence has declined, modern versions are being designed with stretch fabrics, and men are now purchasing fewer but more versatile shirts for work and special occasions.
The debate over remote work continues as tensions rise between employers pushing for in-office returns and employees favoring flexibility. Experts suggest staying informed and assessing personal work values, as generational shifts may influence future workplace dynamics. Job seekers should reset expectations regarding flexibility in new roles.
A poll reveals that distraction during meetings costs the UK £20.7 billion annually, with 80% of desk workers losing focus, especially in online meetings (55% more likely to be distracted). Key distractions include boredom, tiredness, and busy minds, while 56% anticipate attending more in-person events in 2025.
Remote work requests have surged, becoming the top workplace accommodation. HR must manage these requests effectively, ensuring compliance with the Americans with Disabilities Act while balancing individual needs and organizational feasibility. Employers should engage in a thorough interactive process to evaluate requests and consider flexible solutions.

Coworking

WeWork is focusing on strategic growth post-restructuring, leveraging enterprise partnerships and management agreements to expand in 2025, while aiming for profitability amidst a competitive coworking landscape. Luke Robinson emphasizes the importance of flexibility in workspaces and anticipates tech companies will lead the return to office utilization.

Design

Recent airport renovations, like those at PDX and LaGuardia, emphasize user experience and sustainability, offering valuable lessons for office design. Key takeaways include integrating green spaces, enhancing energy efficiency, and incorporating local culture to create welcoming environments that meet modern workforce needs.
Inclusive design in the workplace is crucial for neurodivergent individuals like Jordan, who face sensory and organizational challenges. Thoughtful layouts, flexible policies, and sensory-friendly spaces can enhance comfort and productivity, fostering an environment where all employees thrive.
Workplaces can learn from gyms by fostering community, creativity, and autonomy, transforming into inviting spaces that encourage collaboration and connection rather than just places to work. Emphasizing experiences and shared rituals can make offices more appealing and engaging for employees.
Retail banking must evolve by merging physical branches with digital experiences to meet the expectations of younger consumers, focusing on personalized interactions and community engagement, especially as wealth transfers to millennials and Gen Z. Strategies include creating usable spaces, offering exclusive experiences, and understanding generational values to enhance customer relationships and brand loyalty.

Trends

Coworking spaces are adapting to support older professionals by offering ergonomic designs, flexible work options, intergenerational collaboration, wellness programs, and technology support, creating inclusive environments that cater to diverse needs and experiences.

Green / Sustainability

Michael Bloomberg's philanthropy will fund the U.S. contribution to the UN climate body after Trump's withdrawal from the Paris Agreement, ensuring the U.S. meets its global climate obligations amid a budget shortfall at the UNFCCC. Bloomberg emphasizes collaboration with states and businesses to uphold climate commitments.

Carnegie’s Xorel Cruise Receives IMO-MED Wheelmark Certification
Carnegie's Xorel Cruise wallcoverings have received IMO-MED WheelMark certification, meeting all necessary criteria for use on cruise ships, including flame retardancy and weather resistance. This achievement enhances Carnegie's suite of sustainable, customizable products for marine applications.

Designtex Is a Now a PFAS-Free Company
Designtex, a designer and manufacturer of applied materials, has announced that it has eliminated PFAS (per- and polyfluoroalkyl substances) from all its products and inventory. Effective October 1, 2024, no shipments will contain these chemicals, which are commonly found in nonstick treatments and water-repellent finishes. The company offers a variety of products without finishes, as well as PFAS-free alternatives that provide stain resistance. Designtex is committed to material health and sustainability, having also removed other harmful chemicals from its offerings. Their upholstery is now free from PFAS, flame retardants, and antimicrobial additives, while ensuring low VOC emissions through third-party certification. The company aims to provide safe, durable products that emphasize beauty and utility.

Latest Product News

Humanscale launches World Upholstered and World One Upholstered chairs, combining ergonomic design with customizable upholstered options. These chairs feature advanced support systems, sustainability certifications, and reduced parts for durability, enhancing comfort and aesthetics for both commercial and residential use.
Loll Designs introduces a new stackable seating and table collection called Keene, featuring a bistro table, dining chair, lounge chair, and bar stool, designed for various settings with options in multiple metal finishes and colors.
Bernhardt Design launches the Larkin collection featuring modern meeting tables and credenzas by Cory Grosser, designed for versatility and elegance in collaborative workspaces. The collection emphasizes functionality with integrated power solutions and customizable finishes, suitable for both formal and casual settings.
Herman Miller is introducing the Girard Flower Table, designed by Alexander Girard, to enhance its lifestyle collection. This table, inspired by a blooming flower, features a round metal top with scalloped edges and a petal-shaped base. It is available in various sizes and colors, suitable for both indoor and outdoor settings. Girard, a prominent figure in American design, created this piece for the Miller House in the 1950s. His work is characterized by vibrant colors and playful designs, blending modernism with warmth. The table represents Girard's legacy and his collaboration with notable architects, contributing to the iconic aesthetic of the Miller House. The Girard Flower Table is available for purchase through Herman Miller's retail channels starting today.
AMQ introduces enhanced ergonomic task chairs featuring upgraded Air Mesh fabric, new color options, and a 10-year warranty, all while maintaining a 12-day lead time. The chairs support up to 300 lbs and are designed for durability and comfort, reflecting AMQ's commitment to quality and design innovation.
ROOM has launched The Acoustic Lounge, a modular acoustic furniture collection designed for privacy and collaboration in the workplace, featuring customizable options and sustainable materials to enhance office acoustics and functionality.
Patricia Urquiola's Valencia Stool, created for Andreu World, is a 100% charitable initiative aimed at supporting communities affected by recent storms in Valencia. Made using sustainable 3D printing, all proceeds will benefit the RENA100DO Project, which helps local businesses recover from the disaster.
JSI introduces Anthology, a versatile furniture series designed to enhance collaborative spaces with innovative features like the BridgeLine support system, offering elegance and adaptability for various environments, from dining areas to boardrooms.
Eureka has launched the Cirra luminaire, featuring a sleek design with sound-absorbing materials, available in multiple sizes and colors. It offers various mounting options and control features, providing powerful yet comfortable illumination suitable for modern spaces.
HBF Textiles introduces three printed coated textiles inspired by classic woven patterns, designed for durability in high-traffic environments. The new materials, including Cloverleaf Print, Digital Bloom 2.0, and Air Mail Print, offer stain resistance and bleach cleanability while preserving the original designs' vibrancy and texture.
Supreen® launches new ultra-soft, eco-friendly upholstery fabrics featuring innovative patterns and a biodegradable TPU backing, combining luxury with performance and sustainability for high-end interiors and commercial spaces.
Introducing Ease, Fresco, and Limn, a collection of durable upholstery textiles from Designtex featuring handcrafted aesthetics and expressive patterns. Available in various colors, these textiles combine artful design with performance, making them suitable for both inviting interiors and high-traffic environments.
Plaster is a digitally printed, non-vinyl wallcovering by Designtex that mimics the look of hand-troweled plaster and natural materials. It features nine earthy colors, is easy to maintain, and promotes biophilic design, enhancing comfort and connection in interiors. Made from sustainable materials, it holds multiple environmental certifications.

Product Awards

tCentric Hybrid Wins German Design Award 2025
The tCentric Hybrid task chair from ergoCentric has won the German Design Award 2025 for its ergonomic design and sustainable materials, emphasizing comfort and productivity without compromising aesthetics. Designed by Terry Cassaday and Miles Keller, it features customizable lumbar support and breathability, setting a new standard in office furniture.

Industrial Design

Video: A Look at Apple's MacTable: Designed in the '80s as a desk for Apple computers, and inspired by the L-leg table design of Alvar Aalto.
The Dune sofa by Pierre Paulin has become a coveted status symbol in the music industry, gaining popularity after his family revived the designs. Known for its modular and adaptable nature, the sofa represents a blend of personal connection and avant-garde design, attracting collectors and celebrities alike, while production remains limited.

Trends in Commercial Projects from Around the Globe

The Stack in Vancouver blends work and leisure with a multifunctional rooftop space designed by M Moser Associates, featuring a wet bar, stylish furniture, and biophilic elements that enhance community engagement and provide stunning views of the city.
Renovations at 816 Congress in Austin by IA Interior Architects focus on a hospitality-driven design, enhancing the building's historical significance while creating airy, modern spaces. Key features include a bespoke reception desk, multi-use areas, and a golf simulator, all emphasizing collaboration and seamless indoor-outdoor connections.
Kinujo's new Tokyo office, designed by I-In, maximizes space with flexible layouts, featuring glass walls for natural light and a material-driven design that reflects the brand's innovation and attention to detail, fostering employee wellbeing and community.
Knownwell Clinic prioritizes health over weight stigma by providing a supportive environment for patients, offering both weight-management and primary care services without focusing on weight. The clinic has seen significant growth and emphasizes trauma-informed care, allowing patients to opt out of weight discussions during visits.

Latest In Real Life WFH

Jenny Wen, a designer at Anthropic, previously led design at Figma. Her workspace features a standing desk, MacBook Pro, and various ergonomic tools. She emphasizes creativity through idea generation and enjoys quiet mornings before engaging with her team.

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

Nevers Industries, Inc. Welcomes Jessica Wilson as Marketing Specialist
Nevers Industries, Inc. has appointed Jessica Wilson as its new Marketing Specialist. With a strong background in digital marketing and brand strategy, Jessica will oversee marketing campaigns, manage social media, and work with the sales team to enhance customer engagement. 

Henricksen Announces Beth Cass as Regional Manager for Central and Southern Illinois
Beth Cass has been appointed as the regional manager for Central and Southern Illinois at Henricksen, bringing over 25 years of experience in the contract furniture industry to expand market share in education, government, and corporate sectors while promoting sustainable solutions.

HNI Corporation Ranks in Newsweek’s List of America’s Most Responsible Companies for 2025
HNI Corporation has been recognized as one of America's Most Responsible Companies for 2025, ranking No. 36 overall and No. 3 in the Retail and Consumer Goods category. This marks the sixth consecutive year the company has made the list, which evaluates large publicly traded companies based on environmental, social, and governance performance. The selection process involves analyzing quantitative data and conducting surveys to gauge public perception of corporate responsibility. HNI's commitment to sustainability focuses on reducing operational impacts, creating sustainable products, and respecting people, with measurable goals such as reducing emissions and achieving zero waste at multiple facilities.

IIDA NY Honors Fourth Annual Hazel Siegel Scholarship Recipients
IIDA NY honors Khadeine Ali, Lydia Mudd, and Jiayin Li as recipients of the Hazel Siegel Scholarship, providing them with a trip to the SHIFT Conference and a year of membership, recognizing their commitment to inclusivity and community engagement in design.

emuamericas Releases Updated Contract Catalog, Highlighting Key Trends in the Market
emuamericas has launched its 2025 Pictorial Index and catalog, showcasing trends in outdoor work and dining spaces with a focus on sustainability. The catalog includes new collections and emphasizes the durability and recyclability of its products, available for download or print request.

Find the best Contract Furniture Industry jobs and hire the best talent.
Texting is becoming a common communication method in hiring processes, offering speed and efficiency, though it lacks the professionalism of email. Candidates should text briefly but follow up with a formal thank-you email for best practices.


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.

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