73% of companies are struggling to get workers back to offices, according to a survey by the Conference Board. Employers are offering parties, flexible work hours and relaxed dress codes, among other incentives, to get more staff back to offices. Other efforts include building new employee cafes, on-site dental and eyeglass clinics, and providing emergency on-site daycare. Employers have not walked back return-to-office (RTO) plans, but some may do so given the challenges with retention. The second trickiest task employers are currently dealing with is bringing workers back to offices, while finding qualified workers is the first. Meanwhile, a major disconnect between employers and staff over the purpose of the office and employee concerns are driving pushback. More than half of workers said they struggle to carry out their core job in the office due to distractions. Key reasons employees cited for preferring to work from home include fewer distractions and feeling more productive when working remotely. Employers said they thought the commute was the biggest reason workers aren’t keen on returning. Ultimately, even companies with sprawling, amenities-filled campuses have run into problems.

A new analysis from Trepp suggests that office property valuations may have been overly optimistic, with the average total loss ranging from 52% to 60% for pre-1950 buildings and those constructed after 2000, respectively. Of the $22.9 billion in CMBS office loans with 2023 maturities, $14.5 billion have yet to mature, with $13 billion still outstanding and current on payments. The most concerning set is the most recent one, with a 52% value reduction, indicating significant distress in the office sector, despite having the highest percentage of Class A buildings.

Vornado is restructuring its debt and selling properties amid tough economic conditions. The company is working with lenders to push out maturities and has sold five properties for $124.4M. Vornado's current liquidity sits at $3.2B, and it is working on other sales. The REIT leased just over 1M SF of New York office space in the first six months of the year, and occupancy across the company's office and retail space was essentially flat. Vornado believes in-office work is the better bet and is focused on maintaining balance sheet strength.

Boston Properties reported improved financial performance during Q2, executing 938K SF of leases and beating earnings projections. Despite challenges in the capital markets and Bay Area region, the REIT's stock price rose 3.6% and usage of its office buildings increased. However, the company is seeing headwinds in tech-heavy office markets like Silicon Valley and San Francisco, and paused construction on the first phase of Platform 16 due to market conditions.

Despite a 12.7% drop in new leasing activity in the second quarter, a report from CBRE shows that 60% of all office leases in greater Los Angeles were new leases, indicating underlying demand for office space. However, tenants have the upper hand in negotiations and are seeking flexibility in the form of termination rights, parking, and short-term options on expansion. Brookfield Properties Senior VP of Leasing, Western Region John Barganski is encouraged by reports that Amazon is urging workers to move closer to its larger, urban hubs as a sign that companies have not given up on bringing people back to the office.

Many downtown office spaces in major US cities are sitting empty as remote work becomes more accepted. As a result, building owners are facing higher debt maintenance with lower lease revenue, and small businesses in downtown areas are closing their doors. However, there are opportunities for entrepreneurs to repurpose these spaces into residences, classrooms, warehouses, and more. The cost of converting these spaces would be high, and government funding may be necessary, but businesses reliant on office workers should consider adapting their location and business model to survive.

Procrastination can be overcome by working in productive environments like coworking spaces, which offer community, accountability, and the right conditions for focus. Working from home can trigger procrastination due to distractions and feelings of loneliness. Coworking spaces provide flexibility and beautiful, stimulating workspaces to enhance productivity and wellbeing.

A study commissioned by Great Western Railway reveals generational differences in attitudes towards remote working and its impact on mental health. Over 55s struggle with blurred boundaries and prefer the office environment, while younger workers face additional financial burdens. Older employees are nearly twice as likely as 16-24-year-old workers to experience loneliness as an effect of remote working. The report highlights the importance of addressing the unique needs of different team members and implementing strategies that foster inclusivity and support employee wellbeing.

WeWork has undergone a rebranding effort, with a new campaign that takes a more inclusive and thoughtful approach to marketing itself to potential customers. The co-working firm is seeking to evolve with the changing co-working sector, focusing on customers and the evolving office landscape post-pandemic, instead of the hustle culture and entrepreneurial identity that was once its calling card. WeWork's new rebranding strategy is a step in the right direction for the beleaguered company's comeback strategy.

Cat Johnson, a coworking expert, emphasizes the importance of building a brand community in the coworking industry and establishing a clear vision for your coworking brand. Coworking spaces should be adaptable and flexible to cater to a diverse market, including large enterprises, while preserving the spirit of the coworking community. Building strong and genuine connections among community members and prioritizing participation and engagement in the community are critical aspects of a successful coworking space. A culture of ownership empowers members to play a more active role, enhancing the sense of community.

WeWork has undergone a rebranding effort, with a new campaign that takes a more inclusive and thoughtful approach to marketing itself to potential customers. The co-working firm is seeking to evolve with the changing co-working sector, focusing on customers and the evolving office landscape post-pandemic, instead of the hustle culture and entrepreneurial identity that was once its calling card. WeWork's new rebranding strategy is a step in the right direction for the beleaguered company's comeback strategy.

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.

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

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