Friday, May 13, 2022


Remote workers bag a desk at their local supermarket

Just 8% Of Manhattan Office Workers Have Fully Returned To The Workplace

Commercial Office Build-Outs Are Taking Months Longer

News

New data from The Partnership for New York shows that just 8% of Manhattan office workers have returned to the workplace full-time, indicating a permanent shift to flexible arrangements.

The analysis showed that 38% of these professionals are back in the office some of the time, but that number may jump to 49% by Labor Day, still below the over 80% seen prior to the pandemic.

While the city is seeing incremental growth in occupancy, it is abundantly clear that a 100% return to the office may not be in the cards for the region ever again.
Commercial build-out and tenant improvement projects are taking significantly longer due to supply chain and labor shortages. On average, these projects, which are typically six months on average, are now taking three months longer to complete, complicating landlord-tenant agreements on the construction project and commencement of the rent.

“Every deal is a rush right now because companies need to order materials as soon as possible,” Russ Arouh, co-chair of the industrial and warehouse industry team at Arnall Golden Gregory, tells GlobeSt.com, explaining that the delay is true for both industrial and office properties. He estimates that there is typically three months of additional delay, but can depend largely on the type of project and whether there is a relocation that requires no downtime.
Workers are increasingly expected to return to the office, but their bosses aren’t following suit, leading to frustration among employees.

The Workplace

The office is dead. Long live the office!
 
“I don't think most people even questioned what an office should be until they were denied access to them for a year,” says Ryan Anderson, vice president of global research and insights at MillerKnoll, a maker of office furniture.
In recent months, for the first time ever, architectural firms are making more income from renovation work than new construction, said American Institute of Architects Chief Economist Kermit Baker, who expects the run on retrofitting to be more than a late pandemic blip.

It is being driven in part by an “onslaught” of building renovations happening right now, according to CBRE Global Head of Occupier Thought Leadership Julie Whelan. Landlords, in a moment of record-high vacancy and looking to differentiate their properties for future tenants, are spending vast sums on major upgrades.
Leaders must fully commit to a hybrid and remote working strategy to make it a success. If the direction of travel is clear, what’s the point of having a rear-view mirror? Leaders must fully commit to a hybrid and remote working strategy to make it a success. And while a slight detour might be required here and there, dedication to the long haul will accelerate change – not least because it will inspire employees.
How Henry Kravis and other New York chief executives are urging employees back to their desks.
Facilities managers face the challenge of proving their worth in organisations that tend to notice them only when things go wrong, not right.
Slack finds that employers face a ‘wellbeing crisis’ if they push mentally and financially stretched workers back into old working patterns without proper thought.
You may need to alter the floor plan in the future but, for now, think about how you can best make use of the current space you pay good money for each month.
Depending on your business, your job and your living situation, the pandemic showed that many workers didn’t need to be sitting in a cubby farm inside a big building to get their jobs done.
If the pandemic changed the way people view their jobs, it may have also ushered in a new challenge for managers: how to keep reshaping work for years to come.

The desire for flexibility and a rethinking of workers’ relationships with their employers are likely to remain well into the future, putting pressure on employers to respond, says TS Anil, global chief executive of Monzo Bank. The online bank based in London officially launched U.S. operations earlier this year; it employs more than 2,500 people globally. Monzo doesn’t have physical banks but instead is based on a digital app that consolidates a user’s financial information and has tools like bots that can direct money into certain categories–say, saving for a future home.
The slow reopening of workplaces has proven divisive. Some employees have relished the opportunity to escape the confines of their home and to work alongside fellow humans once again. For others, the news foreshadows a dreaded return of the office 9-5 and all of its irritating minutiae.

Whatever your sentiments are on the remote work vs office debate, it appears as though workers aren't rushing to get back to their desks. According to an analysis of data by workspace booking platform Robin, US employees worked from the office an average of just 4.9 days per month in Q1 2022, with office capacity sitting at just 25% percent.

That's a lot of empty desks. But these figures don't tell the whole story.
Airbnb CEO Brian Chesky recently announced the company will let employees work remotely forever without losing pay. In an interview for Time’s The Leadership Brief, he said “the office as we know it, is over.” He also explained why he thinks the three-day in-office hybrid model is flawed.
Work wear reflects how people feel about their jobs and the economy as a whole. So it makes sense that dressing for the office is all over the place.

Trends

Shane Connell shares lessons from West Coast tech & Collegiate campuses inform the evolution of outdoor workspaces on the East Coast.
Technology is and will always be one of the biggest challenges workplace designers need to incorporate into their concepts. The challenge is how do designers keep up with all the new innovations that are being created and how do they incorporate them into their designs.

The challenge doesn’t end there; in addition, designers need to ensure that any new technology is suitable for the end user and convince business owners of the capital investment.
Even as Apple, Google, Microsoft and other large firms are moving towards variations on the three-day week at the office, Airbnb's chief, Brian Chesky, reckons that model is unrealistic in the long term.

Airbnb last month outlined its vision for the future of work for the 6,000 employees at the vacation home rental platform: staff can choose to work remotely or in the office, they won't be subject to location-based salaries, and they will have regular off-site and team gatherings.
 
Chesky told Time in an interview that "the office as we know it, is over." The office was a pre-digital relic for anyone whose job is carried out on a laptop he says, which means the office, "has to do something a home can't do".

Coworking

WeWork’s $435M net loss last quarter was down significantly from its $2B loss in Q1 2021.
Flex space operator Industrious announced two acquisitions in a $100 million deal, which add about 1 million sq. ft. of current and pipeline locations in Singapore, Hong Kong, Thailand, France, Belgium, and The Netherlands.

One of the two acquisitions is Singapore-based The Great Room, which has been operating since 2016 as a “hospitality-led premium coworking space operator.” It offers larger allocations of space for fast-growing companies or hot-desking environments for entrepreneurs.

Design

Cooper Carry’s Brian Parker explores the importance of creating spaces for work outside and how to bring the outdoors in.
Liz Wozny of CRTKL explains why promoting mentorship through design in hybrid environments will help maximize meaningful interactions.
Spotify head of design and build Sonya Simmonds explains ow the team reassessed its strategy to create dynamic, flexible and experiential workplaces.
Office occupancy has reached its highest since the pandemic began. As the return continues to intensify, business leaders are increasingly reevaluating their priorities to ensure they’re able to attend to their worker’s newfound needs. A standout question emerging is how far office spaces currently accommodate for diversity and inclusion of all employees, shifting the topic to the top of the agenda and forcing business leaders to alter their spaces accordingly.

Events

Salone del Mobile.Milano: President Maria Porro tells us in an interview which direction is now important and what visitors can look forward to. 

Real Estate

In what may be a cause-and-effect of the increasing adoption of hybrid work and flexible office use as the pandemic winds down, the availability of sublease office space increased in Q1 2022 at the same time that demand for sublease space was greater than it has been during a first quarter in six years.

According to a new report from CBRE, sublease availability increased by 3.6% in Q1 while the leasing of sublease space rose 60% YOY during the same period.

During the second half of 2021, sublease space nationally fell by 5.4% as some occupiers took advantage of economical pricing, CBRE said.
Sublease space is on the rise again, leases are expiring at historic rates and not enough sales have happened to gauge how much office buildings are worth now.
Sublease space is on the rise in Chicago’s downtown office market as Edelman and Here Technologies downsize their footprints.

Makers

The 2022 trade show season brings a new beginning for award-winning building materials innovator, 3form. This year the brand is thinking outside the box with a fresh, multifaceted approach to the traditional showroom experience that increases accessibility to customers regardless of where they live, work, and travel. 3form’s bold new strategy embraces the increasing need for digital and physical experiences with a virtual showroom, a new online visualization and specification tool, and personalized experiences at their Utah headquarters.

“We made a decision to consider the way our customers are working in 2022 and beyond,” says Karli Slocum, Vice President of Marketing. “A designer’s time is tighter than ever—we want to personalize the approach so their brand experience can be fun, and also efficiently address their project goals in the process.”
 
This year, 3form will introduce a new virtual showroom experience, immersing designers into the world of 3form and highlighting the company’s materials and capabilities, including award-winning products from 3form, 3form Elements and LightArt. It will provide numerous ways for designers to learn about each product and easily connect with the 3form team to solve their unique design challenges on the spot.
A lawsuit is an awkward way to begin a relationship, but that’s how it started between John Edelman and Alan Heller. It was 2009, and Heller, founder of his namesake brand, was furious to the point of litigation that Design Within Reach was producing a knockoff of his bestselling Mario Bellini chair. Edelman, meanwhile, was on the verge of taking over DWR as CEO.
Design Holding is acquiring a majority shareholding in Denmark-based Designers Company, which owns brands including Menu and By Lassen.

Products

The O6 Task Chair balances ergonomics and style with intuitive and streamlined adjustments for height, depth, and body position, and a wide selection of colors, finishes, and structural options.
Introducing Tulsi: a textured, winding material made entirely from Nepalese lokta paper and carefully hand-laid and made to order in Salt Lake City.

KFI Studios Announces New Umage Color and Upholstery
As the exclusive US partner of Umage, KFI Studios announced the addition of black oak to the color offerings for the Umage furniture collection. Beautifully crafted Scandinavian design, Umage furniture combines simple aesthetics with functionality and sustainability. The collection includes a lounge chair, wing chair with ottoman, coffee table, and side table. Black oak adds an even more timeless feel to an already sophisticated color palette.
Newcomer Pronta Offers Modern, Colorful Take on one of the World’s Most Common Furniture Pieces.
Mannington Commercial introduces the Revealed Collection, a modular carpet collection that offers three styles featuring rich colors with layered details that blend artistically to create unexpected moments of contrast.

Projects

I IN’s revitalization of the Cartier’s Japanese headquarters embodies the brand’s core value of luxury while ensuring a dynamic, employee-centred workspace.

The Last Word

Working from home was so 2020. This year, people want to work from their . . . local supermarket?

So says IWG, the FTSE 250 office landlord, which is opening a new flexible office space at a Tesco Extra in New Malden, south London.

The store’s upper mezzanine level — totalling 3,800 sq ft — has been fitted out with desks, co-working spaces and a meeting room. The office, which will be run under IWG’s Spaces brand, will open to workers towards the end of this month, although they won’t benefit from in-store perks or discounts.
Remote workers no longer tethered to an office are settling in mid-sized cities across the nation, creating new opportunities and headaches for real estate developers and the cities themselves. More than 12 percent of moves between April 2020 and December 2021 were caused by COVID-19, as remote workers have flocked to smaller cities with lower costs of living, lower taxes, and fewer pandemic health restrictions, according to a recent study by professors at Vanderbilt University and the Georgia Institute of Technology.


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