IIn this issue… MillerKnoll’s mixed quarter, Tangram’s leadership transition, DIRTT financing, showroom expansion, architecture billings, and forecasts for contract and office furniture markets; an office-market check-in covering recovery in Denver and San Francisco, losses in Los Angeles, improving vacancy, looming debt maturities, and tighter AI-era leases; hybrid-work tensions around RTO, promotion visibility, retention, flexibility, suburban coworking, meeting-room costs, phone booths, home-office expenses, lighting, and workplace culture; features on Hans Wegner, design centers, Dutch “whisper spaces,” and the enduring value of physical experience; design strategies centered on ancillary spaces, adaptive reuse, circular retrofits, resilience, and modular adaptability; plus new sustainable textiles, seating, storage, lounge furniture, veneers, tables, and Ethnicraft’s fall collection.

The AI data‑center buildout is projected to consume about 3.6% of U.S. GDP each year through 2032, exceeding $10 trillion in total cost and surpassing historic infrastructure rollouts such as railroads, highways and telecoms. Financing is becoming increasingly complex and leveraged, with many projects dependent on unproven revenue streams, raising systemic‑risk concerns similar to past financial crises, while the sector still needs massive revenue growth—around 80% annually—to meet its ambitious capacity and profitability targets.

Quoatable

MillerKnoll’s Earnings Rise, but Contract Recovery Remains Elusive

Architecture Billings Remain Soft as Firms Lower Expectations

Steelcase Dealer Tangram Changes Hands as Meter Leads Management Buyout

Office Furniture Market Expected to Scale to USD $90.0 Billion

The world-wide office furniture market, valued at $67.8 billion in 2025, is projected to reach $90.0 billion by 2034, growing at a 3.19% CAGR. Demand is driven by ergonomic, smart, and sustainable furniture for hybrid work models, expanding coworking spaces, and increasing regulatory pressure on sustainability. Major players are consolidating, while Asia‑Pacific leads with a 36.5% revenue share. Seating furniture (35.3% share) and wood materials (53.2% share) dominate product and material segments. AI is shaping the sector through posture‑monitoring chairs, smart standing desks, and predictive environmental intelligence integrated with building systems. Source: IMARC Group, a leading global market research and management consulting firm

DIRTT Provides Update on Financing with BDC

DIRTT Environmental Solutions secured the full C$15 million loan from the Business Development Bank of Canada, including a final C$5 million disbursement, boosting its liquidity and financial flexibility to support ongoing transformation and growth initiatives. The financing strengthens the company’s ability to execute its strategic plans while acknowledging forward‑looking risks and uncertainties associated with future performance.

Andreu Expands Los Angeles Showroom

The Los Angeles showroom of Andreu World has been expanded to occupy the entire floor, creating an open, loft‑inspired space that showcases a larger collection of chairs, tables, and design solutions, while serving as a vibrant meeting point for architects, designers, and clients. As a certified B Corp, the showroom also emphasizes community engagement, hosting events, educational programs, and charitable initiatives that inspire creativity, foster connections, and drive positive impact.

Humanscale brings TexMesh and ergonomics beyond the desk to ORGATEC 2026

Humanscale will showcase its “Body. Planet. Materials.” presentation at ORGATEC 2026, highlighting ergonomic design that supports wellbeing and environmental responsibility, and will introduce TexMesh™—a breathable, mesh‑based back option with an upholstered finish for its Liberty, World, and Smart chairs. The company will also present flexible‑working solutions such as the award‑winning Diffrient Lounge, the eFloat Quattro Studio meeting table, and the NeatSuite ecosystem, and will host a “Beyond the Desk” event on 28 October to discuss real human behaviour in workplace design.

Office Vacancy Improves, But Troubled Markets Face New Debt Test

National office vacancy fell to 17.8% in August, with Manhattan dropping below 10%, while Western markets like San Francisco, Seattle and San Diego saw vacancies above 20%. Office rents rose 1.7% to $33.20 / sf, and sales reached nearly $43 billion across 1,850 transactions. About 14,000 properties carry $289 billion in loans maturing by 2028, many originated before 2021, posing refinancing risks in high‑vacancy markets. Construction remained limited, adding only 32.4 million sf nationally.

Half Of LA Office Deals Closed At A Loss In The Past Year

Half of Los Angeles office sales in the past year closed at a loss, especially large properties, with 79.2% of buildings over 100,000 sq ft selling below purchase price; distressed transactions include Bank of America Plaza and Wells Fargo Center North, while other markets like San Francisco and New York show lower loss rates and different demand drivers.

San Francisco Office Stands Out in CRE With Absorption at Pre-Pandemic Levels

San Francisco’s office market is rebounding, driven by AI tenants and selective capital, with vacancy rates falling to around 20% and positive net absorption of 2.19 million sq ft. Prime rents have risen above $77 / sf, while Class B/C spaces lag. Investment activity is strong, exceeding $1 billion in the first half of 2026, highlighted by a $600 million deal at 600 Montgomery St. The recovery is concentrated in premium office and multifamily assets, supported by AI‑related demand, though older properties and debt‑heavy holdings remain stressed.

NYC Office Tenants Seek Flexibility In Tight Market

Office landlords in New York are scaling back the flexible lease options they offered after the pandemic, tightening termination and contraction clauses, reducing free‑rent incentives, and scrutinizing tenant creditworthiness—especially for AI‑driven tech firms—while the market sees low vacancy rates and strong leasing activity.

Denver Office Market Stabilizes With Longer Leases

Denver’s office market is showing early signs of stabilization, with record net absorption and a 30% YoY increase in leasing activity totaling 1.7 M SF. Tenants are signing larger, longer‑term leases—often 10‑plus years—while vacancy remains high at 26‑28%. Aggressive concessions, such as high tenant‑improvement allowances and free‑rent packages, are helping attract tenants, but the market is still expected to favor tenants for the foreseeable future.

How Hans J Wegner became the ‘king of chairs’

Hans J Wegner, the “king of chairs,” created over 500 iconic designs across six decades, blending craftsmanship, ergonomics, and innovative materials; his most celebrated pieces—including the China, Peacock, Round, Wishbone, and Ox chairs—shaped Danish modern design, earned international acclaim, and continue to influence furniture makers worldwide.

Jim Druckman’s guide to a good design center

Jim Druckman, president of the New York Design Center, reflects on the building’s 100‑year history, its focus on community, tenant mix, and experiential showrooms that prioritize tactile engagement over digital shortcuts. He discusses past events, the importance of marginal details, challenges posed by AI and e‑commerce, and his vision for expanding amenities and floors while maintaining the center’s role as a vibrant design hub.

Flexibility And Tech: Dutch Office Trends

Office occupiers in the Netherlands, like Booking.com and AkzoNobel, now prioritize flexibility and responsiveness, seeking adaptable workspaces that support hybrid and remote work patterns. They value high‑quality offices with amenities and technology that optimize space use, while also emphasizing clear communication with landlords and the emerging demand for quieter “whisper” areas.

AI Is Making It Harder To Predict Office Space Needs — So Landlords Are Tightening Leases

AI‑driven uncertainty is reshaping office leasing, with landlords tightening terms and demanding stronger long‑term commitments as AI makes space‑need forecasts harder. Tenants now face lower availability, reduced free‑rent periods and improvement allowances, while flexibility is offered only to well‑creditworthy firms, reflecting a market shift toward tighter, less flexible leases.

Lighting impacts occupants’ sense of temperature: Penn State research

Adjusting light spectra can change occupants’ perceived temperature, enabling coordinated lighting and HVAC control that may reduce cooling energy use by up to 11.4%; blue‑enriched light delays thermal discomfort, while red‑enriched light makes spaces feel warmer, offering a low‑energy pathway to improve indoor environmental quality and thermal comfort.

Suburban Locations Now Make Up Two-Thirds Of U.S. Coworking Spaces

Suburban coworking locations are now accounting for about two‑thirds of all U.S. sites, growing 39% from July 2024 to July 2026 and adding 1,763 new spaces, while urban locations rose only 22%; this shift is driven by employer‑sponsored demand and a slowdown in traditional office construction, leading operators to balance rapid suburban expansion with the continued need for larger urban spaces in certain markets.

Meeting Rooms Take the Biggest Bite Out of Coworking Budgets

Meeting rooms consume a large portion of coworking budgets, accounting for about 40% of costs for teams of 10‑25 employees, while day passes can save roughly $188 per employee each year. A hybrid model—maintaining memberships for most staff and using limited day passes for the rest—often reduces expenses compared with full memberships, saving up to $1,889 annually for a 10‑person team, though meeting‑room usage alone can still cost around $15,837 per year for the same team.

People think office presence is still rewarded

Research shows that about 30 % of UK workers believe office presence influences promotions, while visibility to managers and constant availability are also seen as rewarding. Despite a rise in remote and hybrid work—from 52 % in 2025 to 64 % in 2026—employees still feel physical presence matters for career advancement, leading some to miss important decisions when not in the office. Experts argue that managers should focus on actual impact and talent rather than proximity, and that flexible‑working policies must be matched by performance assessment practices.

Barclays Workers Push Back On Expanded RTO Mandate, Demand More Pay And Flexibility

Barclays’ new return‑to‑office policy requires UK staff to work three days a week (four for senior employees), prompting the Unite union to demand a one‑time payment, childcare vouchers, subsidised meals and travel allowances, as well as exemptions for workers with long commutes, caring responsibilities or disabilities. Employees highlight the high weekly costs of commuting (£96.40) and childcare (£47.57), arguing these burdens make the mandate financially unsustainable. Barclays stresses the need for in‑office collaboration, but staff seek greater flexibility and financial support.

70% Of Canadian Executives Want To Trade Fixed Offices For Flexible Workspaces

AI-driven uncertainty and cost pressures are pushing companies toward flexible office strategies, with 87% valuing flexibility, 37% finding AI hampers space forecasts, and many seeking to shift real estate costs from fixed to variable while leveraging technology to access talent and improve productivity.

The right workplace culture can enhance trust, creativity and performance, report claims

The O.C. Tanner 2027 Global Culture Report finds that a compassionate, growth‑focused workplace dramatically boosts innovation and employee well‑being: organizations embedding empathy, development opportunities, active trust, and recognition see far higher odds of growth, lower burnout, and stronger creative performance, especially among frontline workers. Building such a culture—characterized by transparent, reliable, accountable practices and balanced support—acts as an “amplifier” that enhances trust, adaptability, and overall organisational success.

The Hidden Rent Cost Of Working From Home Can Top $500 A Month

Working from home adds a hidden rent cost, as a typical 75‑square‑foot home office can consume 7.6%‑11% of an average apartment in the 20 largest U.S. cities, translating to over $540 per month in New York and similar high amounts in San Francisco, Boston, San Jose, and Los Angeles. Downsizing to a smaller apartment can offset these expenses, with examples like Los Angeles where moving from a three‑bedroom to a two‑bedroom saves $1,210 monthly, making coworking combined with a modest storage unit a viable, potentially cheaper alternative for many renters.

Hybrid working could deliver productivity gains from staff retention alone, report claims

Hybrid working can generate substantial productivity gains by improving employee retention, attracting talent, and preserving institutional knowledge, with modelling estimating $204.7 billion for the US and £10.8 billion for the UK over five years. Surveys show most HR leaders and CEOs view flexible or hybrid arrangements as crucial for retaining top talent, attracting younger and tech workers, and enhancing productivity, especially when combined with AI.

Rethinking office space: can phone booths cut costs and free up meeting rooms?

Phone booths and meeting pods provide flexible, acoustically private spaces for calls, focused work, and small team huddles, freeing traditional meeting rooms for larger collaborations and reducing office space costs. By analyzing current meeting usage, piloting a mix of booths and pods, and iterating based on feedback, organizations can optimize occupancy, improve productivity, and achieve sustainable, cost‑effective office layouts.

Can Sustainable Workplace Design Exist Without Adaptability?

The piece argues that truly sustainable workplace design must be adaptable, emphasizing modular, reusable, and reconfigurable elements that can evolve with organizational growth, shifting work patterns, and new technologies, thereby reducing demolition waste and extending investment life. It highlights the environmental impact of demolition, proposes designing for change through movable or demountable furniture and components, and urges leaders to test adaptability by asking whether elements can move, change, be reused, repaired, or have a realistic next life, positioning flexibility as essential for long‑term sustainability.

Can Sustainable Workplace Design Exist Without Adaptability?

Holistic refurbishment enhances building value, sustainability, and occupant wellbeing by integrating circular design, adaptive reuse, and climate‑resilient strategies; organizations are increasing spending on sustainable real estate, prioritizing energy efficiency, decarbonization, health, and community impact, while retrofitting to meet regulatory and talent‑attraction goals.

5 Ways Design Helps Solve Today's Workplace Challenges

Ancillary spaces such as lounges, cafés, meeting areas, retreats, and outdoor patios enhance workplace performance by fostering meaningful connections, supporting diverse work styles, strengthening culture, improving employee well‑being, and creating environments where people want to be.

How The Past Is Shaping The Future Of Workplace Design

Adaptive reuse of historic buildings boosts sustainability by avoiding new construction emissions and waste, while preserving unique craftsmanship and cultural heritage that attracts talent. Integrating history into workplace design creates distinct, story‑rich environments that foster employee pride, community support, and a sense of continuity, making old structures valuable assets for modern offices.

Latest Products

Lacasse Introduces Bluumrise, a New Lounge Collection Designed To Enhance The Workplace Experience

Lacasse launches Bluumrise, a premium lounge collection created with designer Francesco Favaretto to enhance modern office environments. The collection blends refined aesthetics, ergonomic support, and exceptional comfort through curved silhouettes, webbing, coil springs, and multi‑density foam, reflecting Lacasse’s 70‑year legacy of quality seating and its commitment to purposeful design for experiential workplaces.

Knoll Unveils Knoll Chermayeff Storage, Reinvigorating Florence Knoll Typologies

Knoll introduces the Knoll Chermayeff Storage collection, designed by Sam Chermayeff, which reinterprets Florence Knoll’s classic credenzas through new typologies, colors, and materials, offering versatile, adaptive‑reuse storage solutions that blend modernist aesthetics with contemporary functionality.

Hightower Continues Ocee & Four Design Partnership with Share Collection

The Share Collection, a versatile seating solution co‑designed by Hightower, Ocee & Four Design, and Strand + Hvass, offers adaptable, movement‑friendly designs—including four‑leg, swivel, and wheeler bases, plus ADA‑compatible heights—while emphasizing sustainability through replaceable parts, glue‑free construction, and easy disassembly, backed by long‑term warranties and certifications.

Turn the Ordinary on Its Edge: Versteel Introduces Kya Tables

Versteel’s Kya collection reimagines a standard steel table by rotating its square tube 45°, creating a diamond‑shaped leg that adds visual interest and movement to various environments. The range includes fixed, folding, and tilting tables with customizable finishes, modular modesty panels, and optional power and data integration. Designed for flexibility, the tables support easy reconfiguration, mobility, and acoustic privacy, while maintaining durability and American‑made quality. The collection is available now and will be showcased at EDspaces in Kansas City, Oct 28‑30, 2026.

Ethnicraft Introduces the Eda Collection Alongside New Designs and Extensions This Fall

Ethnicraft’s fall 2026 collection introduces the Eda line—mahogany rack shelving, console, coffee and side tables—alongside the new Orb Pouf in fawn leather and the Merge Lounge Chair made with recycled textiles. Existing collections receive fresh sizes, finishes, and functions, including updates to the Flow, Sequence, Barrow, PI, Unda, Valet Tray, and Second Nature lines. The designs emphasize durability, versatility, and a layered living aesthetic, and are now available through U.S. and Canadian retailers.

Carnegie Introduces Five New Textiles Designed for Bold Graphics and Color Play

Carnegie’s Crush collection adds five new patterned upholstery textiles—Sculpt, Discovery, Fable, Wink, and Amp—offering bold graphics, playful textures, and expressive colors. All fabrics meet high durability and sustainability standards, are indoor/outdoor‑ready, Greenguard Gold certified, and free of PFAS and PVC. Wink incorporates Seaqual® yarn from ocean plastic, while Amp uses post‑consumer recycled and biobased content, reinforcing Carnegie’s commitment to eco‑friendly, high‑performance materials.

Introducing Mix + Match: A New Collection by Luum Textiles Creative Director Dorothy Cosonas

Dorothy Cosonas introduces Mix + Match, a sustainable collection of six coordinated textiles—including stripe, plaid, texture, and heathered solids—designed for commercial interiors. The fabrics feature innovative techniques, recycled materials, and performance attributes such as durability, stain resistance, and bleach‑cleanability, offering a versatile toolkit for designers seeking both aesthetic appeal and functional resilience.

Early Transforming Furniture: Richard Neutra's Camel Table

Richard Neutra’s 1930s Camel Table is a versatile piece that converts from dining‑height to coffee‑table height via a simple leg mechanism. Originally prototyped in 1940 and later redesigned with steel legs in 1951, the table never entered mass production but was occasionally built for clients and occasionally appears at auctions.

PUMA Oceania Offices - Melbourne

PUMA Oceania’s new Melbourne office transforms a traditional workspace into an agile, hospitality‑inspired hub that blends collaboration, wellbeing, and brand identity, featuring flexible neighbourhood zones, increased meeting spaces, inclusive wellness areas, and immersive design to support performance, client engagement, and future scalability.

New HQ designed to encourage connection, Global Partners says

The new Global Partners headquarters in Newton, Massachusetts spans 125,000 sq ft across three floors, featuring 38 conference rooms, collaboration spaces, a stadium‑style staircase, coffee bars, a 24/7 fitness center, and a large parking garage, and is about 75 % larger than the previous site in Waltham.

PrivacyPods Passed The Office Pod Test A Showroom Can’t Replicate: Real Employees

PrivacyPod’s real‑world evaluation at Rethink Electric shows the pods delivering strong acoustic isolation, effective ventilation, and flexible workspace options that improve employee productivity and comfort. The two‑person M pod works well as a spacious single‑person office, while the four‑person L pod efficiently supports team meetings, both benefiting from quick‑ship availability, durable construction, and sustainable, relocatable design.

This converted loft blurs the lines between office and apartment

A Barcelona design studio transformed an industrial building in Poblenou into a 300 sqm loft that serves as a multidisciplinary hub, blending a minimalist office with residential loft aesthetics. The space features curved micro‑plaster walls, a glass‑block kitchen island, a five‑metre communal table with designer chairs, sectional work zones, a built‑in library, private meeting rooms, and a light‑filled workshop and photography studio, creating a versatile environment for design work, exhibitions, and events.

Tristan Green — Workspaces

Tristan Green, known as Captain Sterling, showcases his upgraded workspace featuring a 6K Kuycon monitor, Gray Studio Infinite 70 keyboard with GMK Orenji keycaps, a Mac Mini M4 Pro, and various accessories that reflect his passion for tech, photography, and productivity, while sharing insights on his creative process and future plans for the setup.

A review highlights Secretlab’s 2026 office chair as the top choice, emphasizing its standout features and overall superiority in the market. 

America’s office market is entering a new phase as many empty towers face looming loan deadlines, creating pressure on the sector. While New York and San Francisco are beginning to rebound from the pandemic‑driven exodus, cities such as Chicago, Denver, and Philadelphia are at risk of long‑term decline, with their office spaces unlikely to recover fully.

OFS Promotes Rachael Kluesner to Vice President of Finance and Controller

Rachael Kluesner, a CPA with a BA in Accounting and an MBA from the University of Southern Indiana, has been promoted to Vice President of Finance and Controller at OFS after 28 years of service. Her leadership has strengthened the company’s financial processes, controls, and discipline, and she will continue to oversee financial operations and support OFS’s long‑term growth and success.

Keilhauer Names Shazia Vasdani VP of Finance & Human Resources

Shazia Vasdani, a CPA with over 15 years of finance and HR leadership experience, joins Keilhauer as Vice President of Finance & Human Resources, bringing expertise from her previous CFO role at Wellwise Home Health Care and will serve on the senior leadership team.

Pininfarina of America Appoints New General Manager, Eugenia Di Girolamo

Eugenia Di Girolamo has been appointed General Manager of Pininfarina of America, reporting to Director Giovanni de Niederhäusern, while Nicolò Morosi becomes Chief of Corporate Functions; the new leadership aims to strengthen the company’s strategic role and drive growth across the Americas.

//3877 Strengthens Its Creative Force With Three New Hires

//3877 expands its Washington, D.C. practice by hiring senior interior designers Ann Walkowsky and Kristine Svedberg, plus collaborator Eli Perez, bringing extensive experience in hospitality, retail, healthcare, multifamily, and technical design to strengthen the firm’s creative capabilities.

Kasthall Opens New York Showroom

Kasthall has opened a new showroom at the New York Design Center, creating a dedicated space for architects, designers, and clients to explore its woven and tufted rug collections, material samples, and design collaborations. The showroom showcases Kasthall’s Swedish craftsmanship, integrates Finnish furniture, and serves as a hub for project development and local support, reinforcing the brand’s growth in the U.S. market.

Manufacturers Average 55 Out of 100 on New Strategic Health Score Benchmark

Manufacturers scored an average of 55 out of 100 on the 2026 Strategic Health Score, reflecting strong differentiation but weaker marketing effectiveness. Marketing spend rose to 4 % from 2.2 % in 2025, while 85 % of respondents still rely on anecdotal research. Companies with clear differentiation, early specification, and above‑average investment are identified as the most promising. Internal alignment among multiple respondents within a firm is highlighted as a key success factor. The BE Growth Index and custom benchmark reports are available through Peopledesign.

Independent Representatives Wanted

Designer

Exterus Business Furniture a regional Teknion dealer with offices in Shelburne, VT and Portland, ME has an immediate opening for an experienced designer. CET and 2020 experience required. Great team environment with excellent company support.