American Companies Hit the Brakes on Hiring / Historic loss signals turning point for Carl Hansen & Søn / Moody's: U.S. Office Vacancy Hits Another Record High / CRE Shows First Signs of Stress From Tariff Uncertainty / American furniture makers hold firm in a shifting market / Managed Offices Set For Rapid Expansion Say 92% Of Real Estate Experts / CRE Prices Slip In May, With High-Quality Assets Shedding Value Fastest / Study: Online shopping in biggest slowdown in years as tariffs disrupt purchasing / Furniture Design Case Study: Making the Table for the G7 Summit / Structured Hybrid’s Rise and the Future of Office Space / Working from home means official government stats are too flawed for economic forecasting / Microsoft’s New Vocabulary Is Rewriting The Future Of Work / and much more…

Carl Hansen & Søn, a Danish furniture group, reported a historic post-tax loss of DKK 33 million for 2024, marking the worst financial outcome in its 115-year history. This loss, which is double that of the previous year, is attributed to global uncertainty, weak sales in the US and Nordic markets, and significant investments in IT and leadership restructuring. The company's equity fell to DKK 317 million, and the workforce was reduced by half, primarily at its Vietnamese factory. Leadership changes included the replacement of the COO, CFO, and marketing director, with Morten Hai Hansen expected to take over in the future.

 

Despite these challenges, the company acquired lighting firm Okholm Lighting and furniture brand Getama, seeking to expand its lifestyle product offerings in global showrooms. Carl Hansen & Søn, known for producing Wegner classics, is now focusing on recovery and growth after what it describes as a "bottoming out" year.

The North American furniture industry is experiencing challenges, with a decline in sales from $34.5 billion in 2023 to $32.8 billion in 2024. Factors such as housing market slowdowns, high interest rates, and inflation have impacted residential firms, while commercial furniture makers face economic uncertainty and evolving office trends. Despite these difficulties, some companies, like Ashley Furniture, have invested heavily in production and supply chain enhancements, while others have grown through acquisitions. Cost-cutting measures have been announced by several manufacturers, yet there is an underlying optimism within the industry, evidenced by strong attendance at events like NeoCon and High Point Market. Key players emphasize strategic integration, design innovation, and domestic production as vital for navigating the current market landscape.

The commercial real estate (CRE) sector is beginning to show signs of stress due to uncertainty surrounding tariffs. Major firms like Blackstone have recognized the impact of tariffs on their investments, although the market has remained stable for now. Experts suggest that early indicators of trouble are emerging, as the slow nature of CRE transactions means potential fallout from tariffs may not be fully realized until later in 2025. Key metrics such as the spread between Treasury yields and corporate bond rates are signaling investor concern, while liquidity issues could impede deal-making. The impact on property income is complex, as long-term leases can mask negative effects, unlike hotels, where problems are more visible. Industry professionals are expressing increasing frustration, hinting at underlying issues not yet reflected in market metrics.

The office furniture industry is experiencing a post-COVID recovery, with a notable increase in in-office work requirements, up by 68% since 2022. However, this growth is being hindered by rising tariff costs that furniture manufacturers are trying to mitigate through price increases and surcharge programs. Companies like Steelcase and MillerKnoll are implementing strategies to offset these additional costs. 

A significant majority of real estate professionals, including landlords and agents, anticipate a surge in demand for managed workspaces over the next few years. This shift towards managed offices is driven by the need to reduce vacancy rates, boost returns, and cater to tenants seeking flexible office solutions. Managed offices offer advantages such as expedited move-in timelines and a diverse pool of tenants, appealing to both startups and established companies.

 

Despite challenges like the lack of standardization and legal complexities, landlords are increasingly exploring managed space as a strategy to attract a wider range of occupants. The focus is shifting towards operational excellence and enhancing customer experience, suggesting that managed offices could transform the commercial real estate landscape.

In May, commercial real estate prices experienced a slight decline, with high-quality assets losing value at a faster rate than lesser-amenitized properties. Despite a 1.2% increase in investment sales, the overall market values did not see a corresponding boost. Investment-grade assets are now 20% below their peak pricing. The value-weighted U.S. Composite Index has decreased for three consecutive months, being 21.2% off its all-time high from July 2022. In contrast, smaller asset pricing reached an all-time high, reflecting a 2.6% increase over the past year. Distressed property sales remained low, accounting for only 2.8% of activity in May. Weak demand contributed to the decline in property values, as landlords struggle to retain tenants, leading to a significant increase in vacant space.

The flexible office market in EMEA is experiencing significant growth, with a 4.4% increase in flexible workspace despite economic challenges. Major cities lead the trend, but emerging markets are also thriving. Demand is shifting towards higher-quality, managed environments, with 283 new flex centers opening in 2024, indicating confidence in the model and a focus on adaptability and service quality.

Online shopping is experiencing a significant slowdown, with double-digit year-over-year declines in various categories, attributed to tariffs affecting consumer purchasing behavior. While most categories, including office supplies and electronics, have seen declines of around 10-14%, grocery purchases have remained stable. Many consumers are delaying purchases due to uncertainty surrounding prices and are opting to buy more domestically produced goods.

 

Despite weak demand, service expectations for home delivery remain high, with free shipping being a major factor in purchasing decisions. Retailers are facing challenges with increased return rates and rising delivery costs, prompting them to restrict access to free shipping and modify return policies.

 

Additionally, many e-commerce businesses are diversifying their delivery options to reduce costs as they navigate the complexities introduced by tariffs and changing consumer preferences.

The G7 Summit required a significant conference table, leading the Canadian government to commission Toronto-based Teknion for its design. The table features a reconfigurable design with eight sections, allowing for flexibility in size and the ability to be relocated. Sourcing the required Canadian oak veneer posed challenges, but Teknion successfully matched two logs from Southwestern Ontario. The intricate Starburst veneer pattern was created through a careful process to ensure high quality. The table incorporates a design that accommodates current and future technology, with aesthetic power and data ports. Additionally, a decorative plinth conceals cords while maintaining the table's overall appearance. The project's success was attributed to the collaborative efforts of the Summit Management Team, who humorously credited a "magic wand" for their good fortune in overcoming obstacles.

The rise of structured hybrid work is reshaping office design, with 43% of U.S. firms adopting policies that require three days in the office. This shift necessitates dynamic environments and flexible spaces, as traditional layouts become inefficient. Despite increased mandates, actual attendance has seen minimal change, highlighting the need for engaging office experiences that enhance productivity and well-being. Large and small firms are diverging in their approaches, emphasizing the importance of tailored design solutions.

The third-richest individual in the world has an interesting backstory involving a humble beginning, where a cheap door served as his office desk. This simple item has now transformed into a symbolic award at his company, which boasts a staggering valuation of $2.3 trillion. The narrative highlights the contrast between modest origins and immense success.

A recent independent review has criticized the Office for National Statistics (ONS) for compromising the quality of UK economic data due to the prevalence of working from home. The review, led by Sir Robert Devereux, highlights that remote work practices weaken the agency's ability to provide accurate and timely statistics. Despite concerns, many ONS employees continue to work remotely full-time, leading to management proposals for mandatory office attendance, which have faced union resistance. The review points out that key labor market and inflation data have become less reliable, affecting the Bank of England's ability to assess economic conditions. Sir Robert emphasizes the need for a swift resolution to improve team collaboration in the office. The review also identifies shortcomings in ONS's planning and recruitment efforts, while the acting director general acknowledges the findings and commits to a cultural shift to enhance data collection methods.

Microsoft is introducing a new vocabulary that reflects significant changes in the workplace due to AI. The concept of "Intelligence on Tap" suggests that intelligence is now a utility, readily accessible rather than a hired resource. This shift redefines careers, teams, and leadership structures, moving away from static job titles to dynamic, outcome-based organizations known as Frontier Firms. These firms utilize "Work Charts" for project-based teams instead of traditional org charts, promoting fluidity and adaptability. The integration of AI into workflows is expected to redefine organizational infrastructure, merging HR and IT to manage both human talent and AI agents. Furthermore, there is a notable increase in leaders' comfort with AI, with many believing it will positively impact their careers.

Designing an office space that accommodates neurodiverse employees is crucial for fostering an inclusive work environment. Features such as wide aisles for wheelchair access are standard, but it’s important to go beyond basic ADA requirements to ensure comfort and support for everyone. With up to 20% of the global population being neurodivergent, including individuals with autism, ADHD, and dyslexia, creating an accommodating workplace can enhance productivity.

 

To support neurodiverse employees, companies can implement several strategies:

1. Provide Private Spaces: Quiet areas for breaks can help employees avoid sensory overload. Options include restorative rooms with calming features or room dividers to create private spaces without full offices.

2. Check Acoustics: Sensitivity to noise is common among neurodiverse individuals. Companies should examine sound systems and use sound-absorbing materials to minimize distractions in the workplace.

3. Involve Neurodiverse Workers: Engaging employees in the design process ensures that their needs are met effectively. Collaboration with employees, athletes, and their families during planning can lead to spaces that cater to diverse requirements.

 

The Snap chair, designed by Note Design Studio for Profim, emphasizes innovation and sustainability while catering to both office collaboration and home comfort. Its design features plump cushioning and a curvilinear frame, aiming to balance comfort with functionality. The chair promotes productivity through neuroergonomics, focusing on mental well-being and sensory stimulation in the workspace. Profim is committed to circular production, utilizing recycled materials and minimizing waste. The chair's design allows for easy assembly and disassembly, making it a versatile addition to modern work environments.

Encore launches Cromo, a versatile table collection designed with Claudio Bellini Studio, featuring multipurpose and meeting tables with modern aesthetics, flexible configurations, and various surface options, ideal for collaborative and tech-integrated spaces.

EF Contract launches a new carpet collection inspired by Generation Z, featuring two adaptable patterns that reflect individuality and flexibility. The collection includes vibrant, durable tiles made from solution-dyed fiber, designed to coordinate with existing products and available for quick shipping.

The design of the undermount bag hook has evolved, particularly with Sugatsune's Slide Hook HK-CS30, which features a retractable mechanism. This design addresses practical concerns by preventing taller patrons from accidentally bumping their knees against an exposed hook. The hook's flat underside enhances safety, while its visibility on the edge of the table helps users recognize its presence. This attention to detail reflects a broader design philosophy that values functionality and user experience.

The Sacco armchair, designed by Piero Gatti, Cesare Paolini, and Franco Teodoro in 1968, is an iconic piece of Italian radical design. Known for its adaptable and comfortable form, the chair has maintained its essence over the years while updating its external coverings to meet contemporary style and material demands. The latest innovation is the new Tux covering, made from a blend of cotton and polyurethane, available in vibrant colors. Sacco's versatility allows it to fit various environments, from homes to institutions, and it comes in three sizes to accommodate different needs. The chair has also gained attention in the fashion world, notably through collaboration with Bottega Veneta. Sacco remains a symbol of originality, retaining its authenticity under the Zanotta brand.

A new lift chair called the AweChair has been developed by Janet Feldman, who was inspired to create a better option after struggling to find suitable chairs for her father after his stroke. Unlike traditional lift chairs, the AweChair maintains its position on the ground while the seat lifts, providing a more graceful transition for users. With ten years of development and several patents, the chair also features a unique footrest design that prevents users from sliding out when reclining. Priced at $10,000, the AweChair aims to cater to an aging population while emphasizing aesthetics alongside functionality. Feldman hopes to expand her offerings in the future, recognizing the growing demand for well-designed products that assist the elderly.

HLW has designed a new headquarters for the fintech company Wise in Shoreditch, London, emphasizing workplace wellness. The facility features a dedicated sauna, nap pods, a fitness studio, and massage chairs, highlighting the importance of employee health and wellbeing. The new space expands Wise's footprint by 40%, offering 83,000 sq ft of adaptable workspace with natural light, breakout zones, and labs for product development. The design incorporates local art and aims to foster social connections among employees through communal areas, including a café and games room. The project also adheres to sustainability practices, reducing embodied carbon significantly.

Lord Abbett has relocated its global headquarters to the top five floors of the Goldman Sachs Tower in Jersey City, designed by HLW to prioritize sustainability, wellness, and innovation. The 178,000 sq ft space aims for LEED Platinum and WELL Gold certifications, emphasizing employee experience through biophilic design and wellness initiatives. The design integrates natural materials and technology, creating vibrant amenity areas like a game room and fitness studio. A color-coded wayfinding system enhances navigation, while collaborations with artists enrich the environment. The headquarters reflects the firm’s commitment to sustainability and employee well-being, showcasing a blend of purpose and personality.

ICG's new office in Luxembourg, designed for growth and flexibility, features a hospitality-inspired layout with collaborative spaces and a professional atmosphere, using brand-referenced materials. This project sets a benchmark for future workplace designs across ICG's global portfolio.

Kallie Plagge's home office features an L-shaped desk for work and gaming, a comfortable Respawn gaming chair, and various tech devices including Keychron and Logitech keyboards, a Dell monitor, and Bose headphones. She also enjoys Pokémon-themed decor and uses a desk bike for cardio during meetings.

MRG Southeast Expands Into Florida, Welcoming new Team Members

MRG Southeast is expanding into the Florida market, enhancing its presence in the Southeast. The company welcomes new team members, Frances and Ryan Stites, who bring significant industry experience. They will be joined by returning team member JP Polatschek and designer Gini Clark, who will help develop relationships with dealers and designers. Founded in 1998, MRG Southeast aims to be a valuable partner to manufacturers and a resource for clients. The expansion into Florida is seen as a significant opportunity by Principal Michael Gallery, who expresses enthusiasm for collaborating with the new team. “The Florida market represents a tremendous opportunity for us,” said Gallery. “I have known Frances and Ryan for many years and previously worked with Ryan when he led one of our factories. I am thrilled to work with him again! With this talented team and the support of our manufacturer partners, we’re excited to bring the MRG standard of service and professionalism to Florida.”

IIDA NY Inaugurates Chapter President for 2025-2026 Term

Elisabeth Mejia has been inaugurated as the new Chapter President of IIDA NY for the 2025-2026 term, succeeding Christin Weaver. The Annual Members Meeting on July 15 will celebrate the leadership transition and recognize outgoing and incoming board members, while Mejia aims to foster connections and community within the design profession.

Resource Furniture Announces Partnership With Humanscale Living

Resource Furniture has partnered with Humanscale to launch a curated collection of home office solutions that emphasize innovation and functionality. This collaboration aims to enhance the home office experience, especially for those adopting hybrid work models. The Humanscale Living collection features sustainable products designed for comfort and well-being, aligning with Resource Furniture's mission to provide high-end, multi-functional furnishings.

Nevers Launches Flagship Americana Collection on CET!

Nevers has launched its iconic Americana collection on CET, providing digital access to this renowned conferencing solution. The Americana line is celebrated for its craftsmanship and timeless design, featuring customizable options such as various top shapes, lengths, and premium finishes. CEO Christopher Evenstad emphasized the collection's representation of Nevers' values and its strategic integration into CET to enhance client experiences. A live virtual demo is scheduled for July 11th to showcase the Americana extension and its customization capabilities. 

A VP of Sales shares an experience with aggressive recruiting tactics from a company desperate to fill a position quickly, leading to concerns about the company's stability and decision to decline the offer. Stephen advises that such "gorilla hiring" reflects desperation and suggests candidates should be cautious while remaining open to opportunities.

As a District Sales Manager, your responsibilities would include business development, promotion, support, and training activities targeted towards designated Dealerships, A & D Firms and End Users in the Dallas market.

OFS is seeking a dynamic and experienced Market Resource Manager who will be responsible for the overall performance and operations of the showroom, ensuring a high level of customer satisfaction, optimizing sales, and maintaining the visual standard of our product displays.