ABI October 2023: Business conditions continue to soften at architecture firms / Offices Gain Appeal Among Gen Z, Reshaping Work Norms / Studio Elk launches new home office furniture subscription concept / Landmark Decision Sparks Debate on the Future of Remote Work in Australia / Calgary is leading the way in turning empty offices into housing / Legrand and Microsoft Join Forces: Allowing for Seamless Scalability in The Future Office / How AI is influencing facilities management / Is hybrid really working? / Breaking the sound barrier: The impact of office noise on the working day / From Design Frill to a Business Essential: The New Paradigm of Workplace Strategy / and much more…


The Working Space
Monday, November 27, 2023


Industry News

Business conditions at architecture firms continued to soften in October, with declining firm billings and a decrease in inquiries into new projects. The AIA/Deltek Architecture Billings Index (ABI) score declined to 44.3, indicating a challenging market. Firms located in the West and Northeast reported the softest conditions overall. The architecture services industry also experienced job losses in September. Responding firm leaders largely expect net revenue to be flat this year, with larger firms more likely to project an increase compared to small firms. However, the overall outlook for 2024 shows a projected decline in net revenue.

Firm leaders anticipate an increase in expenses, particularly in employee healthcare costs and technology. Despite the cautious outlook, firms are implementing strategies to cope with increasing expenses, such as deferring capital investment, outsourcing services, and cutting back on office space. Work-on-the-Boards participants note a slowdown in certain market sectors and a decrease in project leads and new projects. The industry is preparing for a potentially slower 2024, with awarded projects on hold and proposals awaiting decisions.

London-based industrial designers Studio Elk have launched a work-from-home furniture subscription concept called Koru, offering a modular system of desk, chair, and accessories on a monthly subscription basis. This sustainable alternative to traditional office furniture allows businesses to easily reconfigure their workspace and reduces waste. The customizable design and flexibility of the system cater to the needs of remote workers and enhance employee satisfaction. By adopting a circular economy approach, Studio Elk aims to provide value to customers while reducing carbon footprint and waste.

Legrand and Microsoft Join Forces: Allowing for Seamless Scalability in The Future Office
Legrand and Microsoft have partnered to create hybrid conferencing spaces with Signature Microsoft Teams Rooms, combining Legrand's innovative products and solutions with Microsoft's collaboration platform. Legrand's AV infrastructure, building controls, electrical infrastructure, lighting, and acoustic solutions have been instrumental in creating immersive and inclusive meeting spaces. Key components provided by Legrand include Middle Atlantic and Chief's productivity and AV solutions, furniture power solutions, and Focal Point's architectural acoustic wall panels. This partnership allows for the seamless scalability and global deployment of Microsoft Teams Rooms.
Despite WeWork's bankruptcy and changing work patterns, the flexible office space industry is thriving. Companies like Workspace and IWG are reporting increased profits and expanding their global footprint. Competitors are capitalizing on WeWork's fallout by acquiring coworking locations. The demand for flexible workspaces remains strong, as businesses recognize the value of adaptable and collaborative office solutions.
Office stocks experienced their largest one-day rally in three years, driven by positive news on inflation. However, the long-term outlook for these companies remains uncertain due to elevated debt costs and reduced demand for office space. Despite the rally, REIT shares are still down 65% since the beginning of the pandemic. Office vacancy rates are at a record high and office properties continue to be a major source of loan delinquencies. The future of the asset class is clouded by the diminished role of the office in society and overall uncertainty in the market.
Donna Rutter is giving up her dream home in Rocky Creek Ranch to move closer to her accounting firm in Fort Worth. After working remotely during the pandemic, she has been drawn back into the workplace and wants to be closer to her clients. In Seattle, there is an increase in inquiries from clients looking to relocate closer to the city for hybrid work schedules. Google's announcement of considering office attendance records in performance reviews has also influenced employees' decisions. The demand for housing in Austin has been boosted by employees moving to work for companies like Tesla. However, the sentiment around relocating for in-person attendance is mixed. Rutter's ranchette is now on the market, attracting potential buyers due to its desirable location and proximity to downtown Fort Worth.
Calgary has become a pioneer in converting empty office buildings into housing, with over a dozen conversion projects underway. The city's downtown was hit hard by the downturn in the oil and gas industry, leading to a high office vacancy rate even before the pandemic. By using an algorithm to assess conversion potential, Calgary identified viable buildings for conversion and implemented a program to incentivize developers. The city has allocated significant funding for conversion projects and downtown revitalization. The success of Calgary's approach has attracted interest from other cities and developers. The first office-to-residential conversions are expected to be completed soon, helping to meet the city's growing demand for housing.
A landmark legal decision in Australia ruled against an employee's request to work from home 100% of the time, sparking a debate on the future of remote work. The Fair Work Commission ruled in favor of a hybrid work model, emphasizing the importance of face-to-face interaction and productivity. This decision reflects the evolving nature of work in the post-pandemic era and the ongoing global debate on returning to the office.

Features

In the quest to attract young talent, companies are embracing a new trend known as the Envy Office. These office spaces combine the comfort of a living room with the allure of a vacation, featuring colorful walls, upholstered furniture, and carefully curated coffee table books. The goal is to create a visually appealing environment that employees can share on social media, promoting a fun and enjoyable workplace. However, some employees feel that these trendy designs mask the inconvenience of space-conserving arrangements like hot desks, where workers no longer have their own assigned workspaces.

The design of office spaces has always evolved alongside changing attitudes towards work. From the cubicle farms of the past to the tech utopias of the early 2000s, office aesthetics have reflected societal values and the desire to create environments that foster productivity and employee satisfaction. While the Envy Office trend seeks to make the office an enticing destination, some workers still crave privacy and personalized workspaces. Ultimately, the ideal office is one that strikes a balance between appealing aesthetics and functionality, creating a conducive environment for getting work done.

Workspace News

As offices reopen, the impact of office noise on productivity is a concern. While more employees are returning to the office, a survey shows that many still find their home environment better for focused work. The increase in shared spaces and the need for in-person collaboration are important, but it's crucial to provide diverse spaces for different types of work. Managing noise with sound-insulating furnishings and surface sprays, as well as using soundscapes and white-noise generators, can create a better working environment. Employers should also trust their workforce and establish clear office etiquette to ensure productive use of workspace.
The concept of hybrid work is being questioned by businesses worldwide. Some companies are investing in hybrid, while others are stopping remote work. Successful hybrid adopters focus on performance drivers, balance office usage, and redesign office space to support a dynamic workforce.
Ernst & Young (EY) is considering moving out of its London headquarters as staff work from home more and the firm aims to reduce carbon emissions. EY is reviewing its More London office and wants to relocate to a more environmentally-friendly building to achieve its net zero target by 2025. The pandemic has changed working patterns, with EY implementing a hybrid policy in 2021. No decision has been made yet, and EY has not commented on the speculation.

Trends

Artificial intelligence (AI) is revolutionizing facilities management by driving down costs and supporting sustainability goals. AI-powered drones are used to map construction sites, identify defects, and prioritize repairs. Technology, such as IoT sensors and AI-driven recommendations, provides facility managers with prescriptive data and insights. Predictive maintenance, enabled by AI, helps reduce costs by analyzing equipment behavior and predicting maintenance needs. The future holds even more integrated approaches, with data democratization and the ability to reallocate savings. However, it is important to remember that AI is only as good as its programming and human intelligence is crucial in generating artificial intelligence.
Many workplace trend narratives lack detail, complexity, and expertise, resembling a child's drawing of a helicopter. While workplace trends do exist, many ideas have already been around for years or even centuries. Predictions about the future of work often reflect the current world of work and are likely to be inaccurate in the long term.
The workplace strategy landscape has undergone a significant transformation, shifting from interior design to a critical component of corporate real estate. The COVID-19 pandemic highlighted the importance of workspaces in supporting employees and prompted a strategic approach to optimize productivity and well-being. Workplace strategists now play a multifaceted role, blurring the boundaries between design and financial management. Collaboration with various service providers and a cross-functional approach are essential in creating effective workplaces. Workplace strategists are well-positioned to shape the future of work by aligning physical spaces with organizational objectives and employee well-being.

Design

The architecture and design industry is facing a decline in commercial work, prompting firms to focus on practice areas and technologies that will ensure their future relevance. The Architecture Billings Index indicates a loss of revenue for many companies. Firms are diversifying into noncyclical business and investing in recession-proof sectors. The commercial mixed-use market is struggling due to factors such as interest rates, supply chain issues, and rising costs. Firms are adapting by shifting into mission-critical sectors like data centers and aviation, and investing in emerging markets like life sciences. They are also exploring long-term building usage and management, leveraging technology and research to stay ahead. Despite the challenges, firms with a well-rounded scope of work and strong client base are expected to weather the downturn.

Coworking

Coworking company Firmspace abruptly closed its Chicago office, leaving tenants without an office space during the holiday week. Firmspace claimed it tried to renegotiate its lease with the owner and developer of the building, Moceri + Roszak, but received no response. The closure came as a surprise to the landlord. Firmspace plans to return deposits to tenants and they have a few days to retrieve their remaining property. The office, located at 145 South Wells St., was Firmspace's first location in Chicago and included private spaces and modern amenities. Moceri + Roszak is working to resolve the situation and minimize disruption for tenants.

Sustainability / Green

Steelcase 2023 Impact Report Announces Significant Progress Toward the Wellbeing of People and the Planet
Steelcase's 2023 Impact Report highlights the company's achievements in improving the wellbeing of people and the planet. They have become carbon neutral, set science-based emission reduction targets, and partnered with suppliers to establish emissions reduction targets. The report also showcases their efforts in building community, fostering inclusion, and acting with integrity through community partnerships, charitable giving, volunteering, DEI learning experiences, and inclusive design practices.

Other News

Melissa & Doug, known for their wooden toys, have sold their company and launched a new venture called Lifelines. Lifelines creates stress-relief products that focus on grounding people in their physical senses. The products include essential oils, aromatherapy blends, tactile journals, and sensory fidgets. Melissa Bernstein, co-founder of Melissa & Doug, shares that Lifelines was inspired by her personal struggle with existential despair and the need to stay present. The products aim to help individuals de-stress and find calm by immersing their senses and staying grounded in the present moment.

Latest Products

Fräsch, a Catalyst Acoustics Group company, expands its collaboration with 14six8 to introduce six new high-performance acoustical finishings. The StratoScape series offers suspended acoustic raft systems that reduce reverberation and provide visually striking design elements. These products are constructed with sustainable and recycled materials, feature built-in interlocking technology for easy assembly, and have a reduced carbon footprint. The collaboration aims to meet the increasing need for acoustic solutions in modern workplaces.
Spacestor introduces Portico, a seamless and simple single user pod for the modern workplace. Portico offers essential features such as power, lighting, ventilation, and acoustics, with step-free access and a glass door for privacy. The product is environmentally friendly and customizable, providing a cost-effective solution that meets user needs without compromise.
SilentLab introduces the SPARK FAMILY product line, including the MICROOFFICE® SPARK4 soundproof meeting room made of powder-coated steel. The SPARK FAMILY range offers mobile office concepts for different user capacities and is suitable for various environments. The products feature durable construction, efficient ventilation, functional lighting, and ergonomic design. The range is available in multiple colors and can be customized to match corporate branding. SilentLab's products have received prestigious design awards and are known for their quality, durability, and focus on creating a conducive indoor environment.
Watson Furniture has launched the Edison Workbench, a customizable solution for easily reallocating workstations in response to changing office densities. The workbench is designed to be adaptable, cost-effective, and visually appealing, with the ability to add or remove workstations seamlessly. It can be connected or disconnected without additional components and supports the addition of accessories like planters and privacy screens. The Edison Workbench is part of the Edison Collection, a modular office furniture line that offers unlimited design possibilities.
The Penguin Rocking Chair, originally designed in 1953, is a classic representation of a rocking chair that invites contemplation and playfulness. Audo has revitalized the design with modern touches, offering various upholstery options and a steel frame. The chair's history is traced back to the 18th century, and it is associated with iconic designers such as Ray and Charles Eames and Hans Wegner. The Penguin Rocking Chair is available in different versions, including an all-wood seat and back or upholstered options, making it a contemporary and stylish choice.
The Gere Easy Chair, designed by Gere Kavanaugh and released by Floyd, is a high-design, swiveling chair that represents comfort, California cool, and timelessness. Made from plywood and Sonotube, the circular chair embraces the sitter with a curving, generous back. Priced at $880, it offers accessible good design and is available in denim and eight other colors.
Swedish design studio Addi has created the Lumber seat, a minimalist and space-saving alternative to conventional waiting-area furniture. Manufactured by Mizetto, the seat is designed for "active yet anonymous spaces" and features a simple beam upholstered with a removable cover made of flame-resistant wool. It can be wall-mounted or used as a room divider, and comes with an integrated side table. Lumber is shipped flat-packed for easy assembly and disassembly, and its various components can be removed and replaced for cleaning and maintenance.
Foscarini, a benchmark brand in the international design scene, celebrates its 40th anniversary. With a focus on craftsmanship and industry, Foscarini offers a wide range of lighting collections consisting of 227 models, 63 families of lamps, and collaborations with 33 designers. Over the years, Foscarini has embraced innovation, experimented with materials, and created iconic designs such as Lumiere, Twiggy, and Caboche. The company's commitment to research and creativity is evident in projects like INVENTARIO and VITE. In 2022, Foscarini acquired Ingo Maurer GmbH to further strengthen its role in the global lighting design sector. With distribution in over 88 countries, Foscarini continues to push the boundaries of possibility and create lighting solutions that evoke warmth and emotion.
Divya Living offers six new indoor/outdoor rug designs in its 2023 collection, including three in the Quick Ship collection and three in the Limited Edition collection. The rugs are hand-woven using ecological materials and contemporary patterns, showcasing the brand's commitment to sustainability. The rugs are customizable in size and design, and the materials used ensure exceptional longevity and aesthetic appeal. Divya Living's production process follows ethical and sustainable practices, and the brand has showrooms across the US.

Trends in Commercial Projects from Around the Globe

Float Studio, a New York-based design practice, faced the challenge of designing Food52's new headquarters that encapsulates the brand's design sensibilities and community-centric ethos. The 40,000 square foot space includes five test kitchens, a prop warehouse, and flexible rooms with homey touches. The design features a muted color palette, custom furniture, and products made in collaboration with Food52's brand partners. The office includes meeting rooms, a waiting room showcasing products, and a town hall space equipped with another kitchen and bar area. Employees have a variety of work areas to choose from, including workstations and cozy seating areas.
Design studio Kin has created the office interior for Dentons in Edinburgh, featuring a communal rotunda, open-plan bar, and a homely, connected space. The interior incorporates Scottish oak, recycled plastic acoustic panels, and statement timber arches. The design aims to challenge conventional approaches to legal practice design and create an experience rather than just a business meeting.
EskewDumezRipple renovated Second Harvest, one of the region's largest food banks, to reflect their mission of ending hunger. The complex renovation involved converting warehouse space into offices and incorporating elements inspired by food and the organization's work. The renovated space includes a new entry lobby, communal employee areas, administrative offices, and a large conference room. The project required careful planning and collaboration to continue operations during the renovation. The updated workspace reflects the professionalism and efficiency of Second Harvest's work in the community.

Upcoming Industry Events


Clerkenwell Design Week 2024
May 21-23, 2024 | 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.

NeoCon 2024
June 10-12, 2024 | 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.  

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

Orgatec is the International trade fair for office and property equipment. Held in Cologne, Germany.

Industry Briefing


Elevating the Lifestyle and Amenities Market: Creative Office Resources Welcomes a New Addition
Creative Office Resources (COR) welcomes Teagan Jeffords as their new Senior Account Consultant for Lifestyle & Amenity Spaces, enhancing their commitment to exceptional customer experiences. Teagan's expertise in the lifestyle and amenities market positions COR to meet the growing demand for innovative furniture solutions. Her impressive portfolio and understanding of client needs make her a respected authority in the industry. COR looks forward to collaborating with Teagan to create exceptional spaces for their clients and further elevate their presence in the market.

HON Showcased Innovative Learning Environment Solutions at EDspaces 2023
HON showcased their innovative learning environment solutions at EDspaces 2023, featuring their versatile "Storyline" collection of curved and linear bookcases and bistro tables. They furnished the EDsessions area and hosted nearly 400 attendees at their booth space, discussing the future of dynamic learning environments. HON looks forward to a larger presence at EDspaces next year.

DIRTT and Evo Business Environments Selected for High Profile Workplace Projects
DIRTT and Evo Business Environments have been selected for high-profile workplace projects, including the interior buildout of the Arkansas Attorney General offices and the support of PB2 Architecture & Engineering's new headquarters. The combination of Evo's reputation for excellence and DIRTT's competitive lead-times and quality offerings played a key role in securing these projects, the companies claimed.

HPFi® Price Change Upcoming
Effective January 2, 2024, there will be a price increase for HPFi® products, with the surcharge being absorbed into new list prices. The increase will vary among product categories, averaging around 4%, due to absorbed increases from suppliers.

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


As a Designer you will spend your time space planning of client offices in a variety of environments.

Indoff is expanding and in need of experienced outside sales professionals in your area.
Work with our Representatives in the New York City, Philadelphia and Washington DC markets to help grow sales.
Business Development Professional will seek new business, development relationships, analyze incoming projects, strategize with their team, and follow through with client even after day two.
Conset America a leading height adjustable base and desk manufacturer is looking for representation in the following states - Oregon, Washington, Alaska, Montana, Wyoming, Colorado, Utah, Texas, Oklahoma, Kansas, Missouri, Michigan, Arkansas, Alabama, Florida.
We are currently looking for a Regional Architectural and Design Director to join our sales team. This position can be hired in Chicago, IL or Dallas, TX.
MOD, a leader in power and lighting components for furniture in the workplace, hospitality, education furniture industry is seeking an energetic and motivated individual to join our team as a Territory Sales Representative.
You will promote our solutions and services to prospective leads and convert them into new clients. You will act as the primary point of contact, identifying and nurturing potential clients and aligning our solutions with their business drivers.
As the Service Technician you will perform service and product demonstrations and/or warranty repairs as directed by client facilities personnel, or by the Service Supervisor, as required. May be assigned to report directly to client site for periods as required/requested by client. 
Pivot creates workplace environments to enable people to do their best work and as a Sales Executive, you are responsible for improving Pivot’s market position and achieving financial growth. You will promote our solutions and services to prospective leads and convert them into new clients.
Innovations is looking for a Digital Marketing Coordinator to join our Marketing Department to assist in the development and execution of marketing plans for our website, social media, and email campaigns.
As the Healthcare Account Manager, you will be responsible for the planning and management of all aspects of Healthcare Accounts, from the selling process, through design, project management, and the completion of the project, exercising discretion and independent judgment to ensure the highest level of customer satisfaction.
As the Healthcare Account Manager, you will be responsible for the planning and management of all aspects of Healthcare Accounts, from the selling process, through design, project management, and the completion of the project, exercising discretion and independent judgment to ensure the highest level of customer satisfaction.
As a Senior Designer, you will be responsible for applying Pivot’s creative expertise and design services to support new and existing clients.
As a Senior Designer, you will be responsible for applying Pivot’s creative expertise and design services to support new and existing clients.
Intelligent Office Furniture is seeking experienced individuals and established groups within the Eastern USA, Midwest, and Southern Markets who are looking to grow and diversify their portfolio.
As an On-Site Client Design Specialist, you will play a key role in partnering directly with our clients in the field at their facilities to achieve seamless moves, adds, and reconfigurations of their existing workspaces.

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