ReportWire

Tag: Office Space

  • University of California poised to buy former Westside Pavilion

    University of California poised to buy former Westside Pavilion

    [ad_1]

    The University of California appears poised to buy the former Westside Pavilion, which was once one of L.A.’s hottest malls but later converted to office space for rent to companies such as Google, according to state records and two real estate sources with knowledge of the deal.

    One of the sources, who was not authorized to speak about the project, said the deal had closed.

    The 584,000-square-foot office complex, which has been renamed One Westside, sits on prime real estate in the heart of the Westside, about two miles from the UCLA campus. Officials have been looking for ways to expand the school’s capacity.

    The University of California seeks to acquire and improve three adjoining commercial properties along Pico Boulevard that make up the old mall, an environmental notice posted with the state showed. The efforts were first reported this week by the commercial real estate news site Urbanize L.A.

    UCLA spokeswoman Mary Osako declined to confirm or deny reports of what she called a “rumor” about the potential transaction.

    A purchase would mark the third major acquisition for the public university system in Los Angeles in less than two years.

    UCLA is the most-applied-to university in the nation, but its Westwood campus is among the smallest of the nine UC undergraduate campuses, leaving it limited room for growth.

    Seeking to expand its footprint, UCLA announced this summer it acquired the Art Deco-style Trust Building in downtown Los Angeles and renamed it UCLA Downtown. Just nine months prior, UCLA spent $80 million to buy two other major properties owned by Marymount California University, a small Catholic university that shuttered last year. The purchase included Marymount’s 24.5-acre campus in Rancho Palos Verdes and an 11-acre residential site in nearby San Pedro.

    Designed by prominent 20th century mall architect Jon Jerde, the Westside Pavilion was both hailed and reviled by locals who saw it as commercializing their community when it opened in the 1980s. The three-story mall buzzed with shoppers. But decades later the rise of e-commerce and changing consumer tastes helped bring a slow death that was hitting brightly lit indoor shopping centers across the country.

    Hudson Pacific Properties, a Los Angeles-based owner of office and studio properties, acquired control of the bulk of Westside Pavilion in 2018 and announced it would turn the sprawling three-story mall into offices.

    At the time, experts and elected officials touted the Westside Pavilion’s rebirth into office spaces as an example of West Los Angeles’ growing appeal to media and technology companies.

    Google signed a 14-year lease in 2019 and had plans to build out a massive campus there. Then COVID hit. Those ambitions were never realized amid a crash in the office market, and more recently an overall pullback of tech companies on real estate expansions and rising interest rates.

    Earlier this year, Alphabet Inc., Google’s parent company, announced it would cut 12,000 jobs, or 6% of its workforce, amid “a different economic reality.”

    In the environmental document, the university system didn’t say what it wants to do with the property, but states it will not make a decision until state regulation is complied with and an overall site development plan has been approved.

    At the time UCLA purchased the landmark downtown property, Chancellor Gene Block said it would offer extension classes there but it also hadn’t “precluded” the potential of undergraduate and graduate classes.

    Staff writer Teresa Watanabe contributed to this report

    [ad_2]

    Rachel Uranga, Roger Vincent

    Source link

  • ICICI Securities leases 1.9 lakh square feet space for ₹92.2 lakh/month

    ICICI Securities leases 1.9 lakh square feet space for ₹92.2 lakh/month

    [ad_1]

    ICICI Securities has taken on lease around 1.9 lakh square feet of space in Mindspace Juinagar at a monthly rent of ₹92.2 lakh, registration documents showed.

    The tenure of the lease is 144 months, starting from January 1, 2024 and the effective monthly rental rate works out to ₹49 per square feet. The rent escalates 4 per cent annually, according to the documents made available by the data analytics firm Propstack.

    The company, which provides a range of financial services right from investment banking to investments, has taken space on five floors and the terrace of the building. Mindspace Juinagar, B3, is an office building located in Navi Mumbai, part of a 55-acre campus development and has been developed by K Raheja Corp.

    The lease has a lock-in period of five years for ICICI Securities, while the entire term of the lease is locked in for the landlord. The lease also includes the use of 190 car parking slots.

    ICICI Securities is in the process of being delisted and last month, its parent company, ICICI Bank, received ‘no objection’ letters from the exchanges for the delisting. The decision to delist its shares was taken in June, with the bank saying that it would drive synergies between the two companies.

    The bank currently holds around 75 per cent stake in it and the delisting process, conducted through a share swap, will result in it becoming a wholly-owned subsidiary.

    [ad_2]

    Source link

  • Rams will move headquarters and practice facility to Woodland Hills

    Rams will move headquarters and practice facility to Woodland Hills

    [ad_1]

    The Los Angeles Rams will move their practice facility to Woodland Hills next season as part of a large-scale real estate development planned by owner Stan Kroenke that could help give the car-centric Warner Center district a more urban feel.

    The Rams officially announced the long-expected move Tuesday at an outdoor shopping center that Kroenke bought earlier this year as he assembled a 100-acre parcel for future development that will include a new headquarters for the Rams.

    The move will center the Rams, now based in the city of Agoura Hills, in Los Angeles’ Woodland Hills neighborhood. The team plays at SoFi Stadium in Inglewood on game days, but spends most of the year at its headquarters and practice facilities.

    “It’s important for us to have a foothold in L.A.,” said Kevin Demoff, chief operating officer of the Rams.

    A temporary practice facility similar to the one the team now uses at California Lutheran University in Thousand Oaks will be built on what is now a parking lot next to an unoccupied office tower the Kroenke Group bought in Warner Center in 2022.

    Kroenke plans to build a more permanent and expansive training facility and team headquarters on the site in the future, part of what is expected to be a sprawling mixed-use complex that may include stores, restaurants, hotels and residences.

    The parking lot at the former Anthem building in Warner Center will be the new location of the Los Angeles Rams practice facility.

    (Los Angeles Times)

    Work will start shortly on the temporary football compound at Erwin Street and Canoga Avenue, Demoff said. Asphalt and two one-story buildings will be removed to make way for two practice fields and a network of temporary modular trailers that will be similar to the setup the team uses at Cal Lutheran.

    The trailers will include office space and meeting rooms for coaches, players, scouts and staff, along with a weight room, a training room, a locker room, a media room and a meal room.

    City Councilman Bob Blumenfield called the facility “a great use that brings a lot of value” to the neighborhood and “not much traffic.”

    The 13-story tower on the site that was formerly home to health insurer Anthem Inc. may be part of the future mixed-use campus or could be eventually razed to make way for other uses.

    Kroenke Group is working on a new land-use design for the site that also includes the former Woodland Hills Promenade, a largely inactive shopping center built in 1973, and the thriving outdoor mall Topanga Village built next to the Promenade in 2015. The move was announced at the Village, which will remain a cornerstone of the Kroenke complex that could take many years to complete.

    Los Angeles city officials are encouraging dense mixed-use development in the Warner Center neighborhood that could include new housing, offices, shops, restaurants, hotel rooms and entertainment venues.

    The planned building boom may help Warner Center finally achieve its original purpose. In the early 1970s, planners decided that the west San Fernando Valley land, once the site of movie mogul Harry Warner’s horse ranch, should be turned into a “downtown” for the Valley.

    As it developed, however, Warner Center bore only passing resemblance to the densely built urban districts people associate with that word.

    Today, the neighborhood is mostly a mix of office towers that jut up from a sea of cookie-cutter, low-slung office buildings served by acres of surface parking lots. Apartments and stores are mostly isolated in discrete blocks, and the whole expanse is cleaved by wide, fast-moving streets that flow to freeways.

    Kroenke’s $325-million purchase of the Village in January further signaled the billionaire businessman’s intention to build a sports-centric development like the one around SoFi Stadium in Inglewood.

    In Inglewood, Kroenke controls nearly 300 acres surrounding SoFi Stadium, in what was formerly the Hollywood Park horse racing venue. When the Inglewood complex is completed, it will be 3½ times the size of Disneyland and contain a performance venue, hotel, stores, restaurants, offices, homes and a lake with waterfalls.

    With the additional 100 acres in Woodland Hills, Kroenke is now one of the largest real estate developers in the Los Angeles region, Demoff said. His company could build and operate as much as 7 million square feet of property in Woodland Hills as envisioned under the city’s Warner Center 2035 Specific Plan.

    “Stan and everybody else is a believer in the potential of Warner Center,” Demoff said. “Everything keeps growing here.”

    The Kroenke Group owns and operates shopping centers in 39 states with a combined total of 40 million square feet, the company said.

    [ad_2]

    Roger Vincent

    Source link

  • Companies are demanding employees spend more days in the office, yet they’re also reducing their office space. Here’s why that isn’t paradoxical 

    Companies are demanding employees spend more days in the office, yet they’re also reducing their office space. Here’s why that isn’t paradoxical 

    [ad_1]

    Return-to-office mandates are increasingly common, but companies are rapidly downsizing their offices and worried about whether they’ll be able to keep their current one.

    That’s the seemingly paradoxical upshot of a new survey by the Boston-based workplace strategy firm Robin, which questioned over 500 business owners and facilities managers about their office-space plans and remote-work and return-to-office policies. 

    The results show that 88% of companies now mandate that employees work a certain number of days in the office, up from 69% a year ago. Yet 75% plan to reduce office square footage next year, compared to 46% in 2022.

    “It looks like an opposing trend but it’s really not,” Robin CEO Micah Remley told the Boston Globe. “Over the past year, we’re finally seeing companies have a vision of what they want to accomplish in their office space, and they’re putting those plans into action.”

    What they want, he said, is “a flexible office space deeply focused on collaboration.”

    The survey also found that 80% of companies have already downsized their office since the pandemic, and 82% are worried about being able to keep their current one, whether that’s due to a recession or an underutilization of space.

    The results showed more companies making fuller use of their existing offices. In the survey, 56% of respondents said the majority of their employees work in the office full time, up 19% from last year. And 40% said the majority of their teams work hybrid, down 21% from 2022. Only 4% said their company was fully remote.

    Of the respondents mandating part-time in the office, the breakdown was 52% requiring four days, 26% three days, 16% two days, and 3% one day.

    Of those rejecting hybrid altogether, reasons varied, with 42% saying they’ve already invested in a new office space, 30% saying they’re unwilling to compromise their in-office culture, and 27% saying their employees are unable to work outside of the office.

    For remote workers who oppose return-to-office mandates, the survey is more bad news. In a viral TikTok video, a Gen Zer expressed her horror at the 10-hour day required to commute to an office for her first job. In Australia, an Indian investor recently told remote workers their jobs were ripe for outsourcing to his country. And ChatGPT maker OpenAI, whose CEO Sam Altman called the remote work “experiment” one of tech industry’s worst mistakes, recently sealed a deal for 486,600 square feet in new office space in San Francisco. 

    But as the Wall Street Journal recently reported, office attendance in large cities is still only about half the level seen in 2019. That’s despite a slight uptick and tough talk from high-profile CEOs about enforcing return-to-office policies.

    Lenny Beaudoin, executive managing director at real estate firm CBRE, gave Robin one reason companies are cutting office space even as they increasingly call workers back to the office: 

    “Organizations held more space in the past for contingency, and what they’re realizing is, through hybrid work and the way their employees are actually utilizing the space, they can actually reduce some of the space they hadn’t used in the past, because they don’t need it as a contingency like they once did, when everybody was coming to the office every day.”  

    Subscribe to the CEO Daily newsletter to get the CEO perspective on the biggest headlines in business. Sign up for free.

    [ad_2]

    Steve Mollman

    Source link

  • OpenAI seals deal for San Francisco office space after CEO Sam Altman calls the remote work ‘experiment’ a mistake 

    OpenAI seals deal for San Francisco office space after CEO Sam Altman calls the remote work ‘experiment’ a mistake 

    [ad_1]

    Earlier this year at an event in San Francisco, OpenAI CEO Sam Altman dismissed the idea that fully remote work could replace the value of in-office collaboration. This week, his surging company signed the largest office lease seen in the city since 2018

    In a period of doom and gloom for the commercial real estate sector, hammered by remote work and high vacancy rates in cities across the U.S., the deal offers a dose of hope. And for San Francisco, whose struggles with crime and homelessness have been well documented, it adds to a growing presence of companies involved in the burgeoning field of artificial intelligence. 

    Since kickstarting the AI boom with the release of ChatGPT last year, OpenAI has quickly become one the world’s most valuable closely held companies. Bloomberg reported earlier this month that OpenAI is in talks to sell shares an $86 billion valuation, and it reported in August that the company is on track to generate $1 billion in annual revenue.

    OpenAI is leasing two buildings from Uber, which is “right-sizing” its real estate usage, at the ride-hailing company’s headquarters campus in the Mission Bay neighborhood. An Uber spokesperson, speaking to the San Francisco Chronicle, confirmed that the deal had finally closed. (Since it’s a sublease, landlords had to give their consent, which meant longer negotiations.) OpenAI is taking 486,600 square feet in all in the four-building campus.

    The company did not immediately reply to Fortune’s request for comments.

    As the Wall Street Journal reported earlier this month, office attendance in large cities is still only about half the level seen in 2019. That’s despite a slight uptick recently and tough talk from high-profile CEOs about enforcing return-to-office policies.

    As for San Francisco, it notched a record-high 33.9% office vacancy rate—nearly 30 million square feet listed for lease or sublease—in the third quarter, as reported by the Chronicle. The paper noted that about 150,000 workers could fill all the empty office space.

    The lack of all those employees hurts local businesses, including retailers and restaurants. That combined with crime problem has prompted companies to give up on the city. In August, one of the city’s flagship retailers, Nordstrom, closed its once-vibrant store.

    As the owner of the mall that Nordstrom inhabited noted, “A growing number of retailers and businesses are leaving the area due to the unsafe conditions for customers, retailers, and employees, coupled with the fact that these significant issues are preventing an economic recovery of the area.” 

    The city’s “doom spiral” fears continue, but the move by OpenAI provides a bit of hope. And it helps that this year other AI firms have also leased office space in San Francisco.

    As the Chronicle reported, Hive AI leased 57,117 square feet in a downtown skyscraper next to Salesforce Tower. Hayden AI leased 41,196 square feet, Anthropic leased 17,735, and Tome AI 16,887. (On Friday, Google said that it’s agreed to invest up to $2 billion in Anthropic, following Amazon saying it will invest up to $4 billion.)

    That means five AI companies, including OpenAI, are leasing nearly 620,000 square feet of office space in the city. Of course, that’s still a drop in the bucket compared to amount of vacant space. 

    “There’s definitely a lot of hope and optimism that [AI] could be the catalyst for the next growth cycle not only for the office market, but for the San Francisco economy,” Colin Yasukochi, executive director of CBRE’s Tech Insights Center, told the Chronicle. But it could be years before “we see this growth cycle really explode,” if it does at all, he noted.

    As it turns out, OpenAI’s office deal closed just as another San Francisco tech company ended a return-to-office experiment. Expensify, with a market cap of about $215 million, said this week that it’s closing an upscale office lounge where employees could enjoy champagne or a draft beer while collaborating in a restaurant-style booth or working on laptops at the bar.

    In a blog post this week, Expensify CEO David Barrett described the lounge as an experiment on luring employees back into the office, and he concluded that remote work had won. “We’re just never going back to a regular nine-to-five office culture, a staple of not just our modern culture, but also the foundation of most urban planning,” he wrote. 

    For his part, OpenAI’s Altman—who has become a household name in the tech world and perhaps beyond—stressed the need for in-person collaboration and noted the shortcomings of remote work during a Stripe conference in San Francisco earlier this year. 

    “I think definitely one of the tech industry’s worst mistakes in a long time was that everybody could go full remote forever, and startups didn’t need to be together in person and, you know, there was going to be no loss of creativity,” he told attendees. “I would say that the experiment on that is over, and the technology is not yet good enough that people can be full remote forever, particularly on startups.”

    [ad_2]

    Steve Mollman

    Source link

  • L.A. City Council approves new West L.A. homeless facility

    L.A. City Council approves new West L.A. homeless facility

    [ad_1]

    A homeless housing project in West L.A., backed by Mayor Karen Bass and opposed by some neighborhood groups because of its proximity to residential homes, was approved by the Los Angeles City Council on Friday.

    The council, with exception of one member who was absent, voted unanimously in favor of the 33-bed facility on a city-owned parking lot at Midvale Avenue and Pico Boulevard, across from the former Westside Pavilion. The council also decided that the project is exempt from a comprehensive environmental review.

    Bass, Councilmember Katy Yaroslavsky and other supporters argue the project will provide relief for the area’s unhoused population. It will also help the city comply with a legal settlement that requires it to add beds.

    “The citywide issue of homelessness deserves a citywide response,” Bass said in a statement Friday. “We must continue to do all that we can to bring unhoused Angelenos inside and I thank Councilmember Yaroslavsky and the City Council for continuing the work to urgently confront the homelessness crisis.”

    Yaroslavsky spoke ahead of the vote, promising residents and business owners who opposed the project that she would secure additional parking before breaking ground and would also develop a neighborhood safety plan with the Los Angeles Police Department and local homeless service providers.

    “But let me be absolutely very clear, we need these beds,” said Yaroslavsky, who represents the area. “I know 33 beds doesn’t seem like a lot, because in all honesty, it’s not. It’s not nearly enough, considering the emergency we’re in right now.”

    Right now, Yaroslavsky said, fewer than 100 of the city’s 16,000 homeless beds are in her district.

    “What this means for my constituents, not only in Westwood but across the entire district, is that when we are trying to resolve an encampment and bring people inside, off the street and into housing, it’s nearly impossible,” she said.

    The facility, which is projected to cost nearly $4.6 million, will include “sleeping cabins” with restrooms in each unit. There will also be on-site laundry facilities, storage bins and office space, according to a report from the city’s Bureau of Engineering. It’s expected to open in about a year, Yaroslavsky told The Times.

    She said residents will have access to mental health and substance use disorder specialists, employment assistance and help finding permanent housing. There will be 24-hour security on-site. Most of the beds will be reserved for people who have ties to the area.

    The Westside Neighborhood Council voted last week to oppose the project because it would be near homes and businesses along Pico Boulevard. The group also expressed “dismay that other sites were not being evaluated as alternatives.”

    Controversy over the proposed facility ratcheted up earlier this week when Bass abruptly removed the president of the Transportation Commission days after he led his colleagues in delaying a vote on an environmental review waiver.

    At a commission meeting, President Eric Eisenberg had expressed concern about the waiver and asked for a delay so the panel could hear more about the project from city representatives.

    On Monday, Eisenberg said, he was informed by the mayor’s office that he was no longer a commissioner. Bass’ office has declined to explain why she removed Eisenberg.

    At a special meeting on Wednesday, the Transportation Commission — now operating without Eisenberg — approved the waiver.

    Bass has made reducing homelessness her top issue. Her Inside Safe initiative seeks to quickly move unhoused Angelenos into motels and hotels, and she has ordered city departments to hasten the construction of affordable housing and shelters.

    Eisenberg, in a statement he provided to The Times, said he wasn’t convinced the project should be exempt from review under the California Environmental Quality Act.

    A “project of thirty small homes, with sewage, plumbing lines, and trash disposal, [could] cause a situation, where the benefits of the project do not outweigh the hazards to the community,” he wrote.

    Barbara Broide, a neighborhood council member, urged the City Council at a committee hearing on the project earlier this month to look at different sites, including one on Cotner Avenue.

    “We’re here to tell you this is the wrong location,” Broide said. “It’s a good project for another place.”

    Broide was one of several residents who hoped to address the City Council before Friday’s vote. But the council did not allow comments until afterward.

    “I just wanted the council to know that it has shredded the faith that dozens of my neighbors have in their government,” said Meg Sullivan, who lives in the council district. “They came here today to let you know their very reasonable concerns, which I share, about putting housing on a much-needed public lot on Midvale, and yet they were not able to speak.”

    Margaret Gillespie, a member of the Westside Neighborhood Assn., spoke in support of the project.

    “I want to thank Councilmember Yaroslavsky for her leadership on this very difficult issue. It’s difficult because of all the misinformation that circulates and the false narratives about the homeless,” she said. “I support the project because 25 of the 30 units are reserved for people who live here.”

    [ad_2]

    Dakota Smith, Ruben Vives

    Source link

  • How to Determine the Best Location for Your Business | Entrepreneur

    How to Determine the Best Location for Your Business | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Some of the most successful companies in the world started off in the family garage — like Apple and Amazon, for example. For many entrepreneurs, evenings spent working on a side hustle slowly transform into days running a full-fledged business, leading entrepreneurs to a key question: Where — literally, where — do I take this next?

    Knowing where, when and how to move your business from an informal setting to a true base of operations can be daunting. There are many factors to determine the best fit — such as commercial real estate costs, building amenities, location within your central business district or office park, parking and more. Understandably, the process can be intimidating.

    While there may be headaches that come with finding the perfect space and location, here are some considerations to make the transition feel more manageable.

    Related: Ready for a Legit Office Space? Think About These 4 Things Before Starting Your Search.

    Where will your business thrive?

    Every business has different needs for the perfect location to service its clients and customers, whether that be office space, a boutique or small storefront, a workshop or even an online marketplace.

    A good starting point is to determine whether your business’s primary footprint should be a physical location or online. In a recent Bank of America survey of more than 500 small business owners, we found their top three concerns when determining the best location for their businesses are customer service, employee needs and their community’s needs. Sixty-five percent of business owners surveyed said they have a physical storefront as their business’ primary footprint, but there are many pros and cons to consider for each option.

    Today’s business owners say they are experiencing challenges with their current physical location, including high utility costs and property taxes. Many also note that they had issues finding enough physical space to satisfy their business’s needs. Contrarily, almost half of business owners who run a primarily online operation said a virtual format is more cost-effective, and nearly half also reported that an online marketplace is the easiest option for them to reach their target audience. So, ask yourself — which model will be best for my business while also providing the best service to my customers?

    Related: 10 Questions to Ask Yourself Before Choosing an Office Space

    When do you make your move?

    Beyond tactical considerations for your business’s long-term future, looking at the current real estate landscape, state of the economy and your business’s cash flow are crucial steps to determine when you should put your plan into action. While you may decide that a physical location is the perfect place for your business to flourish, there could be limitations outside of your control.

    1. Real estate considerations

    If real estate prices in your area are soaring or rapidly fluctuating, purchasing real estate may not be the best decision, and you may want to table a planned expansion until prices settle. Pricing should also factor into your decision on whether to rent or purchase space. Once you have budgeted accordingly to pay for a physical space, it’s smart to establish a timeline that feels realistic — to meet your expansion goals in a timely fashion while still managing the day-to-day realities of running a business. Depending on the products and services your business provides, and how large of a space that requires, it can take a while to get up and running.

    2. Economic impacts

    With shifting economic conditions, including cooling inflation and high interest rates, some entrepreneurs are undoubtedly wondering if now is the best time to invest in their business location. In fact, 20% of the business owners we recently surveyed said interest rates are making them more likely to not have a physical location. As you consider your own business’s primary footprint, evaluate all relevant economic impacts to ensure you are maximizing the value of your business’s footprint.

    3. Cash flow capabilities

    I’d highly recommend confirming that your cash flow is in a good position to comfortably establish your physical location or digital capabilities. If you’re unsure where to start, SCORE provides a very useful cash flow template that can help you manage your business’ expected revenue and expenses.

    Related: 5 Simple Rules to Follow When Looking for Office Space

    How do you make your move?

    Once you’ve determined the best fit for your business, it’s exciting to jump in and take the next step. However, if you realize you’ll need additional financing to move forward, you should start by looking into financing options. There are numerous options available to help make your dreams a reality, like lines of credit, Small Business Administration (SBA) loans or real estate loans, depending on your needs.

    If all of these questions and considerations sound overwhelming, maybe it’s time to take a step back and evaluate your business plan. Banks, such as Bank of America, provide resources and advice that can help you navigate the ins and outs of business ownership — whether you’re starting from scratch and need help starting your business or have determined you’d like a physical location but don’t know where to begin. If you have a relationship with a business banker, I’d recommend working closely with them throughout this process as a resource and sounding board.

    There are many outside forces that can influence where, when and how you choose to structure your business. With a solid business plan in action, you can find more clarity on the business footprint that works best, allowing you to focus on growing your business.

    [ad_2]

    Sharon Miller

    Source link

  • Back In The Office? Why Your Company’s One-Size-Fits-All Approach Is Destined to Fail. | Entrepreneur

    Back In The Office? Why Your Company’s One-Size-Fits-All Approach Is Destined to Fail. | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Many organizations adopt a broad-brush approach to hybrid work that fails to differentiate between various departments and roles. For example, Comcast told every employee to come to the office every Tuesday, Wednesday and Thursday, and work remotely Monday and Friday. Apple asked all of its employees to come in on Tuesday, Thursday, and one more day that each department gets to pick.

    Such indiscriminate treatment generally indicates the leadership of a company did not adopt hybrid work willingly. Instead, their hand was forced by employees threatening to leave without at least some flexibility. Indeed, both Apple and Comcast employees explicitly threatened to quit over the heavy-handed return-to-office plans, and some did so. For instance, the head of Apple’s AI team resigned due to Apple’s lack of flexibility.

    As a result of being dragged kicking and screaming into allowing at least some work from home, the leadership of such companies fails to optimize their approach to hybrid work, undermining its potential for a major boost to productivity, retention, and cutting costs. Having worked with 24 organizations to help them transition to hybrid work, I can attest that getting the true benefits from hybrid work requires creating a customized decision framework for different departments and roles.

    With 79% of all companies switching to hybrid work, according to the EY Work Reimagined Employer Survey, such poor decision-making around this work modality both harms the bottom lines of individual companies and also causes a harmful drag on the economy as a whole. Not surprisingly, according to the U.S. Bureau of Labor Statistics, productivity decreased significantly in the first quarter of 2022 when workers returned to in-person work environments with a drop of 7.5%; that fall marks the largest reduction in productivity since 1947. The second quarter also saw a large productivity decrease at 4.6%. By contrast, productivity increased sharply in the first two years of the pandemic, and that boost occurred specifically in the industries where much of the work can be done remotely such as IT and finance, as found by a recent National Bureau of Economic Research (NBER) study; while industries that require more in-person work fell behind in productivity measures.

    Related: Why Hybrid Work Will Win Out Over Remote and In-Person — Whether You Like It or Not.

    The basis for the hybrid work model decision framework

    The basis for the decision framework centers around two distinct questions. First, what kind of work is best done remotely, and what in the office? Second, what type of work is done in each department and by different roles within them?

    To answer the first question, we need to recognize that extensive investigations illustrate workers are fine with the office itself. What they don’t like is the commute, which takes many hours per week and costs many thousands of dollars per year.

    So the tasks that employees can easily and productively do at home should be done there. And those tasks include the large majority of what many employees do: individual-focused work, asynchronous collaboration and communication, and videoconference and phone meetings. By contrast, the office is best suited for more intense and synchronous collaboration and communication, challenging conversations, cultivating team belonging and organizational culture, mentoring, on-the-job learning and leadership development.

    Answering the first question shows the problematic nature of decreeing a fixed number of days of more than half the work week in the office for all staff, as did Apple and Comcast. Staff in various departments and roles have a different balance of the kind of work they do; their time and efforts are wasted if they do the wrong work in the wrong place, such as coming to the office and doing videoconference meetings. According to Stuart Templeton, the head of Slack in the U.K., “making a two-hour commute to sit on video calls is a terrible use of the office” and kills productivity. Moreover, it breeds staff frustration and resentment, leading to retention problems and higher costs due to replacing talented employees.

    Instead, a decision framework needs to factor in the specific kind of work done in different departments and by specific roles in each department. For example, consider the finance department. Most of the activities of individual accountants involve solitary number crunching, with occasional asynchronous communication and collaboration. However, the end of a quarter, and especially the end of the fiscal year, usually involves more intense and synchronous collaboration. Thus, my clients find that it works best to have accountants come in once every couple of weeks during much of the year. But then, for the last week of a quarter and for the last two weeks of the year, accountants come in nearly every day.

    While this pattern fits the role of most accountants, some accountants occupy more specialized roles. A case in point: auditors. They have a different pattern of work, which involves intense collaboration when preparing for and launching an audit. Next follows individual-focused work analyzing their findings. The end of an audit features intense collaboration — with some challenging conversations. That pattern demands a distinct approach to coming to the office to fit the needs of their particular roles within the accounting department.

    The sales department has its own particularities, depending on what kind of sales a company does. For one of my clients, a B2B IT service provider, sales involve frequent phone calls. My client found it helpful in developing junior sales staff to have them sit together with more experienced salespeople with both making calls. Recently hired staff learned tips and tricks from how senior staff handled sales calls; in turn, experienced salespeople listened to the calls made by newer staff and provided quick feedback on improvements. As another benefit, the kind of sales they do involves frequent rejection, which can be demotivating: having everyone make calls together provides motivation and helps everyone celebrate wins. As a result, the sales team decided to come to the office three days a week to make phone calls and spent the other two days on more individual work at home.

    For a financial management company, the analyst department found it most useful to spend the large majority of time at home. They did individual tasks such as evaluating data and preparing their own initial versions of predictions and recommendations. But then they came together once a month for several days in the office to synthesize the data, hash out differences and develop company-wide predictions and recommendations they could provide to clients about what investments to make for strong risk-adjusted returns.

    In a Fortune 500 consumer products manufacturing company, the HR department had a more differentiated approach based on specific roles. Some staff who handled back-end HR functions worked mostly from home, coming together once a week for socializing and team building. The training staff in the HR department had a more varied approach. They provided some in-person as well as remote training to different business units in that company and came to the office mostly on the days of in-person training events. For a different case in point, recruiters operated largely independently of everyone else; the department found it cost-effective to allow them to work full-time remotely. Another type of role was the HR business partner, who functioned as a support person to the operational manager of each individual product team in the company. They adopted a pattern that reflected the specifics of the department that they supported.

    How to tailor the hybrid work model decision framework

    To tailor the hybrid work decision framework to each department and role, the company’s leadership team should start by determining some broad guidelines and budgeting priorities. Thus, some of my clients closed subsidiary offices, which made it impractical for many staff members to come to the office except for truly important events; others decided to save on salary costs by hiring some fully remote staff in lower cost-of-living areas for individual contributor roles that did not require intense collaboration.

    After that, educate your staff —and especially middle managers who lead departments and teams within them — about what tasks are best done at home and what at the office. Create a broad understanding and acceptance among the management of the burden of the commute and the need to minimize it for the sake of retention, productivity and cutting costs.

    Next, each department should develop an initial plan for itself. This process needs to involve the staff as well as department leaders, to garner buy-in from all staff. According to a November Gallup survey, 46% of employees who work in a hybrid setting reported feeling engaged when their team is able to make their own decisions about when to come into the office. On the other hand, 35% said they feel engaged when leadership determines the policy for the entire team.

    Notably, only 41% of respondents indicated that they are engaged if everyone made the decision individually. This finding might seem counterintuitive. Indeed, when I run focus groups in client organizations, the large majority would prefer to make the choice by themselves. However, the result of such an approach is people coming to the office and not seeing the members of their teams and departments there. The result is disengagement since collaboration is the whole point of coming to the office and braving the commute. That problem highlights the value of coordination at the level of departments, roles and teams.

    Related: You Should Let Your Team Decide Their Approach to Hybrid Work. A Behavioral Economist Explains Why and How You Should Do It.

    Conclusion

    After developing this initial plan, treat it as a draft rather than set in stone. Experiment for a couple of months and measure the success of your decision framework. After three months, have each department reassess the initial plan and update it based on what they found worked well and what needed improvement. This customized hybrid work model decision framework most effectively combines department-level coordination with rank-and-file buy-in from those in different roles and teams, helping my clients gain the best balance of productivity, retention and cutting costs.

    [ad_2]

    Gleb Tsipursky

    Source link

  • Our Brains Will Never Be The Same Again After Remote Work — Here’s Why. | Entrepreneur

    Our Brains Will Never Be The Same Again After Remote Work — Here’s Why. | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    The shift to remote work during the pandemic has not only changed our daily routines but also had profound effects on our brains. The quiet, controlled environment of home offices has conditioned us to work in silence, free from the constant hum of office chatter, ringing phones and clattering keyboards. This shift has made us more susceptible to distractions when we return to the traditional office environment.

    The impact of working from home on our brains

    The brain is a highly adaptable organ, constantly changing in response to our environment and behavior, a phenomenon known as neuroplasticity. When we work from home, our brains adapt to the quieter, less distracting environment. We become more attuned to the subtle sounds of our home surroundings — the hum of the refrigerator, the ticking of a clock, the chirping of birds outside the window. These sounds become the backdrop of our workday, and our brains learn to tune them out, allowing us to focus on our tasks.

    However, this adaptation comes with a trade-off. As we become more accustomed to the quiet of home, our ability to filter out the louder, more varied noises of the office environment weakens. Our brains, conditioned for the quiet of home, struggle to adjust.

    Over the last five quarters, we’ve witnessed a concerning trend: a steady decrease in productivity. While there are undoubtedly multiple factors at play, one major culprit stands out — the cacophony of the office environment that accompanies the return to office.

    As employees come in after months of working from home, they’re confronted with a barrage of sounds they had almost forgotten — the incessant ringing of phones, the constant hum of office chatter, the clattering of keyboards. These sounds, once a normal part of office life, have become significant distractions, disrupting focus and hampering productivity.

    This phenomenon is not just anecdotal, as we can see from research on the negative impact of the noise distractions of the open office — and that’s from before the pandemic sensitized employees to noise. A review of over 300 papers from 67 journals found that open office layouts significantly worsen occupant productivity, with sound and acoustic strategies being crucial for office design. Similarly, another review of more than 100 studies on open offices found that the layout consistently led to lower rates of concentration and focus.

    Research from the University of California at Irvine found that employees in cubicles receive 29% more interruptions than those in private offices, leading to higher rates of exhaustion. Edward Brown, co-founder of the Cohen Brown Management Group, found that office workers lose three to five hours of productive time every day due to unwanted, unneeded and unproductive interruptions, with 93% of workers reporting being often interrupted at work.

    When companies switch from a private office to an open one, employees’ perception of health, work environment and performance decreases. Researchers from Karlstad University found that the more workers were gathered into a single office space, the less satisfied they became, resulting in lower wellbeing. This was in part because these workers felt it was harder to have a good dialogue with their colleagues due to concerns about being overheard.

    These findings underscore the challenge many of us face as we transition back to the office. Our brains, conditioned for the quiet of home, are now struggling to adjust to the noise of the office. The question is, how do we address this challenge in a way that maximizes productivity and employee satisfaction?

    Related: We’re Now Finding Out The Damaging Results of The Mandated Return to Office — And It’s Worse Than We Thought.

    The office noise dilemma

    The traditional office environment, once the epitome of productivity, has become a battleground of distractions for many employees returning from remote work. The constant hum of office chatter, the incessant ringing of phones, the clattering of keyboards — these once-familiar sounds now pose a significant challenge to focus and productivity.

    A recent Wall Street Journal article, whose subhead is “Working from home altered our brains. We need more office time to fix them” suggests that the solution to this problem is more office time to “exercise” our brains and regain the ability to focus amidst distractions. The article quotes S. Thomas Carmichael, professor and chair of the neurology department at UCLA’s David Geffen School of Medicine, who likens our brains to “flabby biceps” that need to be strengthened, and suggests the solution of “Make yourself work from the office more often.”

    This perspective raises several questions. First, is it reasonable to expect employees to “exercise” their brains in an environment that is inherently distracting? Second, is it fair to place the burden of adaptation solely on the employees, without considering changes to the office environment itself? And third, what are the potential costs of this approach in terms of employee satisfaction, stress levels, and overall productivity? After all, the forced return to office – combined with the office noise – appears to have seriously harmed productivity for the last five quarters.

    Forcing employees back into the office full-time, without addressing the issue of noise and other distractions, is akin to forcing a marathon runner to train in a swimming pool. Sure, they might eventually adapt, but at what cost to their performance? And what about the psychological stress of constantly struggling to focus amidst the noise?

    Moreover, this approach overlooks the fact that not all work is the same. Some tasks require deep concentration and are best performed in a quiet environment, while others benefit from the energy and spontaneity of a bustling office. By forcing all work into the same noisy environment, we risk hampering productivity rather than enhancing it.

    The solution to the office noise dilemma is not simply more office time, but a more nuanced approach that takes into account the nature of the work, the needs of the employees, and the benefits of both quiet and collaborative environments.

    The flexible hybrid work solution: Embracing the silence and the noise

    Given the challenges posed by office noise, it’s clear that a one-size-fits-all approach to the workplace is no longer viable. Instead, we need to embrace a more flexible, adaptable model that takes into account the diverse needs and preferences of employees. This is where the flexible hybrid work model comes into play, as I tell my clients when helping them figure out work arrangements for their staff.

    The flexible hybrid work model is a blend of remote and in-office work driven by evidence on what people do best in the office and what’s most effective to focus on at home. It allows employees to do their focused, individual work at home, where they can control their environment and minimize distractions. The office, then, becomes a hub for collaboration, nuanced conversations, mentoring and on-the-job training and socializing — activities that benefit from the energy and spontaneity of in-person interactions.

    This approach has several advantages. First, it respects the neuroplasticity of our brains and the adaptations we’ve made while working from home. Instead of forcing employees to “unlearn” these adaptations, it leverages them to enhance productivity. Employees can do their focused work in the quiet of their home office, where they’re less likely to be distracted and more likely to be productive.

    Second, the hybrid model acknowledges the value of in-person interactions. While remote work has many benefits, there’s no substitute for the energy, creativity and camaraderie that come from working together in person. By designating the office as a space for collaboration, we can harness these benefits without subjecting employees to the constant distractions of a traditional office environment.

    Related: How to Transform Your Office Into a Collaboration Destination

    Third, the hybrid model offers flexibility. Employees can adjust their work location based on the tasks they need to accomplish. If they need to focus on a complex project, they can work from home. If they need to brainstorm ideas with their team, they can go to the office. This flexibility can lead to higher job satisfaction and better work-life balance.

    Finally, the hybrid model is future-proof. It’s adaptable to changing circumstances, whether it’s a global pandemic, a personal health issue or a family commitment. By offering employees the option to work from home or the office, companies can ensure continuity and productivity no matter what the future holds.

    In short, the hybrid work model is not just a response to the pandemic, but a forward-thinking approach to work that acknowledges the realities of our changing world. By embracing the silence of remote work and the sound of office collaboration, we can create a work environment that is productive, satisfying, and resilient.

    The future of work: A symphony of silence and sound

    The future of work is not about forcing employees into one environment or another, but about finding the right balance. It’s about creating a symphony of silence and sound, where focused work and collaboration each have their place. By embracing this approach, employers can maximize productivity, enhance employee satisfaction and create a work culture that is adaptable, resilient, and future-proof.

    [ad_2]

    Gleb Tsipursky

    Source link

  • A Drab Office Environment Kills Productivity. Here Are 3 Ways to Upgrade Your Workspace. | Entrepreneur

    A Drab Office Environment Kills Productivity. Here Are 3 Ways to Upgrade Your Workspace. | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    I was at my first well-being workshop and couldn’t stop hearing the irritating drip of the coffee machine at my workplace. This was a phantom noise that accompanied me even outside of office hours. Our instructor indicated we close our eyes and picture our work environments as a haven, one where we were free to be our most productive selves. But whenever I’d shut my eyes, all I could see were sterile walls and the cheap lighting at our corporate headquarters. There was nothing peaceful or soothing about this image, to say the least.

    “Your well-being is a reflection of your environment,” the instructor explained.

    I tried to visualize an oasis instead. What would I actually want my workplace to look like? I pictured a welcoming environment with lush plants lining the walls. Sleek and vibrant furniture. Inviting colors and spaces. I figured that if I couldn’t experience all of this firsthand, I’d at least use my imagination.

    This was more than 17 years ago, back when I was a programmer for a large company in New York. It was at that point in my career that I vowed to do differently if I ever owned my own business. People would want to come to work.

    Fast forward to this year, and I’ve been CEO of my form-building company for more than a decade. The memory of that workshop remains fresh even now. And I’ve worked tirelessly to ensure that my team doesn’t have to use their “imagination” to feel comforted by their environment.

    How environmental aesthetics impacts you

    In my new book Automate Your Busywork, I talk about saving your brain for the big stuff. And that involves looking after our overall well-being, including the places we spend the bulk of our time in.

    The environmental aesthetics of our workplace has a greater impact on our mood, motivation and productivity than we know. According to Vikram Rao at The Economic Times, our environment greatly influences our performance and mental framework. More than that, it encourages us to be happier and more efficient in all aspects of our lives. “A bright and cheerful space invariably uplifts the mood and productivity, and also has a beneficial psychological impact on employees,” Rao writes.

    “A quality workspace design leads to a less stressful and more productive atmosphere,” writes Forbes contributor Alan Kohll. “Employees need to feel comfortable and calm in their physical work settings to produce their best work.”

    Research from the Fellowes Work Colleague of the Future Report found that to enjoy good health in the future, we need to broaden our health focus from just gyms and restaurants to our lives as a whole. And one of the key areas is the office.

    The researchers also noted the following: “Globally, more people work in offices than any other work environment. And yet, this setting is becoming hazardous to our well-being. Unchecked, the office is set to present a significant threat to each nation’s future health, and ultimately, its productivity.”

    Avoiding the above, then, is instrumental for our teams to be at the top of their game. Here are some ways you can create a workplace that fosters greater well-being.

    Related: Creating an Engaging Workforce Through Thoughtful Office Space

    Invest in design

    If you’ve ever stared blankly at a sea of cubicles or a floor layout full of disorganized desks, then you clearly understand the way a space can affect us psychologically. We shudder at the chaos and feel our mood instantly drop.

    This is not the kind of mindset that leads to successful outcomes. That’s why, at my company, Jotform, design takes priority. We have plenty of natural light when you first walk in and keep furniture as uncluttered as possible to create a sense of harmony.

    Since founding my business in 2006, I’ve dabbled in different office designs. And I believe that investing in the right atmosphere inspires our teams to explore their creativity and come up with more innovative solutions. A concept I discuss at length in my book is how this kind of creative thinking not only boosts our levels of happiness, but it also improves our mental health over time.

    Providing a mix of multiple workspaces — including open space — helps eliminate a sense of monotony. You can also add modern amenities like a cozy lounge and a quiet room.

    Related: Is Your Work Environment Allowing You to Thrive?

    Incorporate natural elements

    There’s a reason why some of the greatest minds in history did their boldest thinking while outdoors. Studies have shown that natural environments or environments with natural elements enhance our creative performance. Researchers find that “Dealing with the daily work process and preparing and understanding new work problems could consume our directed attention, leading to attention fatigue.”

    By incorporating plants in your workplace, however, you can help minimize these effects. “A restorative environment provides a sense of escape from the usual, recovery from attention fatigue, and the potential to generate ideas through mind-wandering.”

    Making room for beautiful succulents in the workplace offers a respite from the daily grind. Aside from creating a calm and relaxing atmosphere, plants also help to improve the air quality within a space.

    Related: Albert Einstein’s Messy Desk Highlights The Surprising Link Between Clutter And Intelligence

    Cultivate a sense of home

    Since we spend a good portion of our time at work, it’s important to build a warm and inviting space where people can feel like themselves.

    When team members close their eyes and visualize coming into the office the next day, I don’t want them to picture a sterile and drab work environment. Offering an atmosphere that nurtures their creativity is one of the most valuable investments I can make, and it will yield some of the greatest rewards for days to come.

    Related: 7 Ways To Create A Healthy and Balanced Work Environment

    [ad_2]

    Aytekin Tank

    Source link

  • Amid rising rates and vacancies, uncertainty reigns in LI’s office market | Long Island Business News

    Amid rising rates and vacancies, uncertainty reigns in LI’s office market | Long Island Business News

    [ad_1]

    A look at the most recent statistics for Long Island office real estate shows a sector still struggling to recover from a prolonged pandemic hangover.

    Much of the area’s office market is now plagued by tenants looking to shed space, which continues to fuel substantial sublease availability.

    The underlying issue of the new hybrid work environment, where employees can spend at least some of their week working from home, remains a challenge that has increased vacancies and lowered the values of many office properties.

    The second-quarter vacancy rate for Long Island office space climbed to 14.8 percent as leasing activity slowed to a paltry 243,000 square feet, 40 percent below the five-year quarterly average and the lowest amount of activity on record, according to a report from CBRE.

    At the same time, available sublease space, which brokers sometimes refer to as “shadow space,” soared to 1.37 million square feet in Q2, an increase of 35 percent from a year ago.

    “For the most part, existing office demand has shrunk,” says Paul Amoruso, veteran owner/broker of Jericho-based Oxford & Simpson Realty Services. “Expansion has only been in the medical arena as it relates to office space. The traditional type of office users have either been sold to other companies or have moved off Long Island.”

    Amoruso cited firms like Marchon Eyewear, Henry Schein, Publishers Clearing House, GEICO and Cablevision as companies with huge office footprints on Long Island that have decreased their space.

    PAUL AMORUSO: ‘For the most part, existing office demand has shrunk.’
    Photo by Judy Walker

    “You don’t need card-swipe analytics or CO2 occupancy sensors to get an overall understanding of the current post-pandemic Long Island office market,” says Ralph Benzakein, senior vice president at Cresa Long Island and vice president of the Commercial Industrial Brokers Society of Long Island. “You just need to look at office building parking lots and you’ll see what many of us already know. You will not be trampled in the return-to-office stampede.”

    And while the office market here struggles, most brokers will tell you it’s better on Long Island than it is in other places, because of the area’s limited supply.

    “Since office development has historically been conservative and moderate here, the situation is not as bad as in major U.S. cities,” said Benzakein, who specializes in tenant representation. “In Nassau and western Suffolk County, we have seen a slow and gradual overall increase in employees returning to the office in the past 18 months.”

    Besides the medical office market, which remains as healthy as ever on Long Island, Class A office properties, especially the area’s trophy buildings, are the sector’s bright spots with higher occupancy rates amid demand spurred by a flight to quality.

    “There continues to be big demand for high-end product; that’s the story in New York City and it’s consistent out here,” Amoruso said. “Class A has held its value and grown.”

    One example is the two-building Jericho Plaza complex, which Amoruso is responsible for leasing and is currently about 96 percent leased. The 695,000-square-foot, Class A property was purchased by the Birch Group about 18 months ago for $212 million, which equates to a little over $300 a square foot.

    In contrast, Class B office properties aren’t feeling the same love. GEICO sold its 236,365-square-foot office building on 20 acres in Woodbury at the end of last year for $27 million or just $114 a square foot.

    David Bahr, senior commercial appraiser at Mineola-based Standard Valuation Services, says sales are down for office properties, and they are generally worth less than they were valued five years ago.

    “At the top end where it’s occupied and you have an income stream for a few years in advance, those tend to be at least $175 a foot. Then after that I think it drops off pretty quick if you have occupancy problems and any sort of problem,” Bahr said. “For Class A buildings it takes the longest for trends to show up and they tend to be the mildest. Class B has a lot of problems.”

    And because there’s not a lot of sales activity, it’s more difficult to gauge the current value of office properties.

    “With such low liquidity it’s hard to discern a price trend or a price and there are a lot of illusions going on,” Bahr said. “They’ll rent a unit for $30 a foot but then they give them a year free, so if you average it out over a five-year term and you get a year free it’s a 20 percent drop-off so it’s really $24 a foot.”

    Despite the increase in vacancies, Long Island office rents have held steady and actually risen slightly. Overall average asking rent inched up to $29.80 per square foot in the second quarter, climbing 2 percent from a year ago.

    RALPH BENZAKEIN: ‘You will not be trampled in the return-to-office stampede.’
    Courtesy of Cresa Long Island

    “Office landlords are in a tough spot. Occupiers are expecting rents to come down, but all of the landlord’s costs have gone up, including interest rates, construction costs, labor, utilities, taxes, etc.,” Benzakein said. “So the traditional supply/demand model where prices (rents) would fall due to decreased demand won’t work. Landlords can’t operate a building that is cash flow negative, while still making mortgage payments.”

    Meanwhile, rising interest rates have thrown another wrench into the office market, creating even more doubt in a sector rife with uncertainty.

    “Office building owners usually have to refinance every five years,” Bahr said. “And now with interest rates much higher than they were, owners are going to have to put more money in or sell. So they’ll have a decision to make.”

    And while there may be more employees returning to in-person work in the near future, industry observers say the corporate office market remains stagnant.

    “We have a whole new category that allowed people to work from home with similar productivity, causing corporations to seek greater efficiencies,” Amoruso says. “That’s where we’re going in the next couple of years.”

    With Long Island’s other commercial real estate sectors experiencing growth, the office sector has the most question marks.

    “Ultimately, I think it will still be several years before we have any real answers about the future of the Long Island office market,” said Benzakein.

    c

    [ad_2]

    David Winzelberg

    Source link

  • How Your Home Office May Be Harming You — and How to Fix It | Entrepreneur

    How Your Home Office May Be Harming You — and How to Fix It | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    With the onset of the pandemic and the ensuing lockdown, we suddenly had to adapt our living spaces to create makeshift home offices. Today, 30% of Americans are still working either remotely or on a hybrid schedule. But how many of us have taken the time to ensure that our workspace enables us to do our best work — or to ensure it’s even safe?

    Your home work environment should be a well-designed space that ensures healthy, productive behavior. If you haven’t attempted to set up a clearly established home office, chances are your work-life balance is suffering.

    Related: How to Build an Effective Home Office

    How your home office may be harming your quality of life

    How many of us roll out of bed, pull on a pair of sweatpants, sit down in a chair in the bedroom, kitchen or living room and allow our work to bleed into the rest of our lives?

    Without setting clear boundaries — both physical and mental — we forget to say goodbye to our kids because we decide to respond to that one email that comes in at 7:30 a.m. Later in the day, a colleague sends a message at 8:00 p.m., and we choose to answer it rather than putting it off until the morning. We forget to shower or take lunch breaks.

    The consequences are clear: If we don’t create a routine in the same way we would when going into an office every morning, our mental health deteriorates.

    There are major benefits to working from home, particularly if you suffer from anxiety or are treated poorly in an office environment by superiors. Having the flexibility to work from home has also been a tremendous boon for families who can save time and money on child care. However, these benefits only work when we create clear boundaries and workable spaces. Thankfully, many of these can be achieved with little to no cost.

    Related: How to Perfect Your Home Office

    How to create a healthy, productive home office

    One of the simplest changes to make is with lighting. The best option is a room with a window that brings in natural light. If that’s not possible, look for lights that aren’t pure white — they tend to be harsh on the eyes and taxing on the brain. Avoid fluorescent white lights that are often found in hospitals and schools. They’re cold and sterile, ensuring only that people stay alert and focused.

    To create a calm work environment, install lights that have a warm, yellow hue. Note that LED bulbs, while efficient, produce soft, cool light. Reduce hard shadows in your space by using top-down lights or floor lights that can be placed around baseboards.

    You’re going to be sitting for long hours, so invest in an ergonomic chair that includes a footrest. Elevating your feet promotes good posture and reduces back pain. Consider a standing desk, which adjusts up and down. Take turns between sitting and standing during the day.

    Place your desk, if possible, in the middle of the room where there is space on all sides, allowing you to get up and walk around unimpeded. That will give you a sense of freedom and a reminder to take breaks. Remember to go outside, take off your shoes and stand on the grass. Breathe.

    Invest in two computer monitors, regardless of the type of work you do. They encourage you to move your neck throughout the day, and it’s also less stressful than working with a single monitor with multiple tabs open.

    Do you have a separate room for your office? If so, close the door at the end of the day to delineate between work and home life. If not, create a nook or segmented space and one with good, even airflow — you want to make it easy to heat and cool the space.

    High ceilings and long-range views will add to your mental well-being. Distant views are pleasing to the eye. It’s why our eyes get tired and sore if we sit too close to the television. High ceilings give us more space, making us feel happier and less anxious. Create a calm workspace cheaply by painting an accent wall with a pleasing color.

    If you can afford it, invest in a skylight to bring in natural light, raise the ceiling or add aesthetically pleasing touches like crown molding or wainscoting. Still, you need little to create a healthy workspace.

    The design of your office leads to the psychology of how you work. Smart, simple interior design helps you work better and more efficiently. You will experience a greater quality of life, and your employer’s bottom line will benefit as well. And while you may be hard-pressed to get your boss to pay for work-from-home upgrades, remember that a home office is a tax write-off.

    [ad_2]

    Josh Goldenberg

    Source link

  • As premium office properties stabilize, some Class B buildings face vacancies and an uncertain future | Long Island Business News

    As premium office properties stabilize, some Class B buildings face vacancies and an uncertain future | Long Island Business News

    [ad_1]

    There is a growing dichotomy between property classes in the office real estate market on Long Island.

    The latest numbers show better occupancy rates and leasing activity for Class A office buildings, as compared with many Class B properties, where occupancies continue to shrink and leasing activity wanes.

    There was 582,704 square feet of Long Island Class B office space leased in 2022, a significant drop from the 783,949 square feet of Class B space leased in 2021, according to a fourth quarter report from Cushman & Wakefield. At the same time, there was slightly more than 1 million square feet of Class A office space leased in 2022, an improvement from the 760,842 square feet of Class A space leased in 2021 and nearly double the leasing activity of Class B space last year.

    The variation in leasing activity stats suggest what brokers call a flight to quality where companies looking for new space prefer better buildings with more amenities. In addition, brokers say vacancy rates at Long Island’s top office properties pale in comparison to those in the Class B sector, where more buildings are struggling to attract and hold onto tenants.

    DAVID PENNETTA: ‘The market within itself is acting differently between Class A and Class B and C.’

    “If you look at the top 45 office buildings on Long Island, there’s like a 7 percent vacancy rate, but as you go to the broader market, it’s at 13.5 percent,” said David Pennetta, executive managing director for Cushman & Wakefield’s Long Island office. “The market within itself is acting differently between Class A and Class B and C.”

    Overall, the area’s office market is still struggling to recover from the COVID pandemic, which saw many employees forced to work from home and launched a new hybrid environment that seems to have become a new normal for certain types of office jobs.

    And though most businesses would rather have workers back in their offices full time, attracting and retaining employees in this period of high employment has prompted firms to continue to offer the option to work from home, at least for part of the week. As a result, companies have been re-thinking their real estate requirements, with many downsizing their office footprints by subleasing or selling some of their existing space.

    “Through the second half of 2022 and into early 2023, we’ve seen a whole bunch of companies say they don’t need all that space because they’re going to leave two-thirds of their workforce at home,” said Phil Heilpern, senior vice president at CBRE in Melville. “Every year we have at least 10 percent of the market turning over and as leases are rolling you have companies that are now in 60,000 square feet and some of them are saying they really only need 25,000 square feet. You don’t see a lot of companies just deal with that and not put space on the market.”

    PHIL HEILPERN: ‘We’ve seen a whole bunch of companies say they don’t need all that space…’

    In fact, Pennetta said the amount of sublease space currently available in the Long Island office market represents about 20 percent of the total overall space available. Historically, he said, the amount of sublease space averages somewhere between 5 and 7 percent.

    Some major Long Island companies have been offering some of their office space for sublease, including Publishers Clearing House, Dealertrack, Hains Celestial, Allstate and several others.

    Last month, GEICO sold its 236,365-square-foot office building on 20 acres at 750 Woodbury Road to the Christian Congregation of Jehovah’s Witnesses. Sources say the company is also trying to sublease 200,000 square feet of office space it had leased at 1 Huntington Quadrangle in Melville in 2021 but never moved into.

    In the fourth quarter of last year, the Long Island office market saw negative absorption of 234,207 square feet, pushing the negative absorption of office space to 753,175 square feet for 2022, according to the C&W report.

    Despite the negative absorption and increased vacancy rate, office rents have been holding rather steady. The overall average asking rent on Long Island was $29.28 per square foot in Q4 2022, a year-over-year increase of nearly 2 percent, according to the latest report from CBRE, which attributed the rise to landlords seeking to offset higher construction costs for tenant improvements.

    Still, the struggles for Class B office properties have created opportunity for conversions to other uses, particularly industrial.

    DAN GAZZOLA: The Newmark broker has been doing deals aimed at redeveloping single-story office buildings for industrial use.

    Dan Gazzola, who specializes in the industrial real estate market for Newmark, says he’s been successful in brokering deals aimed at redeveloping single-story office buildings for industrial use.

    “We just completed a transaction for a single-tenant office building in Hauppauge where the new tenant will be taking out half of the office space and leaving the rest as just open-ceiling warehouse space,” Gazzola said. “I have been successful a number of times with office buildings being acquired and converted into a flex or industrial use. It’s a great use and you’re generally looking at a better tenant that will generally sign a longer lease, so it’s a great play for an investor.”

    Brokers say the transformations of office buildings into other uses is also working to stabilize the office market, by trimming the amount of available office space.

    “The ongoing trend of office property conversions has helped offset some large blocks of office space,” said Adam Rochlin, principal of the Rochlin Organization. He pointed out recent conversions in both Nassau and Suffolk counties that included office buildings at 107 Charles Lindbergh Blvd. in Garden City; 600 Grumman Road in Bethpage; 125 Baylis Road in Melville; and 49 Wireless Blvd. in Hauppauge that were transformed into warehouse and distribution facilities.

    “Basically, while demand in the suburban office sector may have slowed, overall supply has also decreased, contributing to a continued healthy balance of supply and demand,” Rochlin said.

    ADAM ROCHLIN: ‘While demand in the suburban office sector may have slowed, overall supply has also decreased…’

    Among the conversions of office properties, Rochlin noted that an office building at 76 North Broadway in Hicksville is being redeveloped into rental apartments as part of a larger transit-oriented development. And there may be more redevelopment of under-utilized office buildings into residential uses on the horizon.

    The Town of Huntington has been considering creating an employment-oriented district within the confines of the Melville corporate corridor.

    “I’m on the planning board in Huntington and we’re trying to allow market-rate apartments to happen in Melville,” Pennetta said. “We started this effort about 10 years ago to solve a different problem, keeping the workforce of 20- to 30-year-olds from leaving Long Island.”

    Pennetta said several landlords who own Class B office properties are already onboard with the plan, if the town approves the zoning changes necessary. The result will be the addition of sorely needed housing and the subtraction of office space from the market.

    “I think Long Island is doing better than most areas because we’re not dealing with new supply of office properties,” Pennetta said, pointing out that other New York suburbs that have much more office space have vacancy rates of at least double the Long Island market. “I think 2023 is still going to be a tough year, but I think going into 2024 we’re going to see more companies pulling their employees back to the office and the supply of office space will still be constrained.”

    But meanwhile, the ability for businesses to have their employees work from home will continue to reduce many firms’ need for office space.

    “People that sit at workstations and enter data or do insurance claims or whatever can do that from home, so that’s leaving a lot of that Class B space vacant,” said Heilpern. “The trend and the near outlook is for
    contraction.”

    [email protected]

    [ad_2]

    David Winzelberg

    Source link

  • Tech giants are shedding workers and real estate. Employees-turned-entrepreneurs could win big—and snag sweet offices

    Tech giants are shedding workers and real estate. Employees-turned-entrepreneurs could win big—and snag sweet offices

    [ad_1]

    Tech giants are busy laying off workers and reducing office space. In the process, they might also be setting in motion the emergence of new entrepreneurs and startups—who will be able to collaborate in suddenly affordable prime commercial real estate.

    Angel investor Jason Calacanis predicted on the All-In podcast that the big business winners of 2023 will be “laid-off tech workers who choose to take control of their destiny and start companies.”

    “I think laid-off tech workers who get together in groups of two, three, or four—developers, product managers, people who actually build stuff—and start companies together are going to become extremely successful, and they’re going to make incredible lemonade from these lemons of these big tech layoffs,” he said earlier this month.

    From employee to entrepreneur

    Some of those employees-turned-entrepreneurs might come for example from Meta, which recently laid off about 11,000 workers. The Facebook owner is also shedding office space, both to reduce costs and because it’s embraced remote work. On Friday, it confirmed it will sublease office space in Seattle it no longer needs, according to the Seattle Times. It also recently gave up real estate in New York City

    Subleased office space is typically rented out at a discount, which could allow startups who otherwise couldn’t afford it to move in, noted Colliers leasing expert Connor McClain to the Seattle Times.

    It isn’t just Meta that has recently both laid off workers and let go of real estate. So have plenty of other major tech companies, among them Microsoft, Salesforce, and Twitter.

    Salesforce recently announced layoffs—about 10% of its staff—while also indicating it will shed real estate. CEO Marc Benioff said in an all-hands meeting.

    Office rents ‘will go lower’

    “This is a larger moment for cost restructuring, we want to take…somewhere between $3 to $5 billion out of the business,” he said. “When we look at how are we going to do that, real estate is going to be a major part of it.”

    The company is headquartered in San Francisco. A Jan. 7 exchange between PayPal co-founder David Sacks and Tesla CEO Elon Musk highlighted the commercial real estate situation there. Sacks tweeted, “Just got offered office space in San Francisco (SOMA) for the same price as 2009. Yikes.”

    Musk replied, “It will go lower.” 

    As it does, entrepreneurs emerging from the tech layoffs could take advantage of the cheaper real estate to house new businesses. 

    Of course, some startups might choose to save money by not renting commercial real estate and having everyone work from home. But as CEOs at large companies like Disney and Starbucks have recently indicated—while insisting remote workers return to the office—there are clear business advantages to collaborating face to face.  

    As Disney CEO Bob Iger wrote to employees in a recent memo, “In a creative business like ours, nothing can replace the ability to connect, observe, and create with peers that comes from being physically together.” 

    That might be especially true for tech entrepreneurs determined to make lemonade from the lemons of being laid off. 

    Learn how to navigate and strengthen trust in your business with The Trust Factor, a weekly newsletter examining what leaders need to succeed. Sign up here.

    [ad_2]

    Steve Mollman

    Source link

  • 10 Underrated ’90s Films You Can Watch On Streaming

    10 Underrated ’90s Films You Can Watch On Streaming

    [ad_1]

    It’s hard to believe that the 1990s were three decades ago. So much has changed since then, and that includes the types of movies being made. No matter how hard filmmakers try, it’s impossible to recapture the exact feel of a ‘90s movie. There’s the warm, grainy look of the film, the expertly-chosen soundtracks of ’90s jams, and the mis-matched, inexplicably chic outfits. Movies today understandably look and feel different, but that doesn’t mean we can’t go back and revisit that era through our TV screens.

    When you think of classic ’90s films, which movies come to mind? Is it something nostalgic like Matilda or The Sandlot, or something epic like Jurassic Park or The Matrix? Maybe it’s a film that became a pop culture phenomenon, like Clueless or Pulp Fiction. There’s no denying the quality or popularity of these titles — but they all receive credit where credit is due. Sometimes, it can be fun to watch a movie that isn’t nearly as popular, but shines in its own regard. That’s why we’ve assembled this list of ‘90s movies that are wildly underrated — so you can watch something retro that still feels fresh.

    You might not have seen all of the movies below — or if you have, it’s probably been a while. Thanks to streaming services like Netflix, Hulu, and HBO Max, it’s easy to access these ’90s gems with just a few clicks of a remote. Who knows? Maybe you’ll discover a new favorite movie out of this collection of underrated ’90s classics.

    Underrated ’90s Films You Can Watch On Streaming

    These movies don’t get the love they deserve — but you can stream them at home right now.

    90s Movies That Could Never Be Made Today

    These movies include some of the biggest of the decade — a few even won Academy Awards. But all of them would have trouble getting made today.

    [ad_2]

    Claire Epting

    Source link

  • How To Invite Your Employees Back To The Office

    How To Invite Your Employees Back To The Office

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    It was easy to go home because we had to. Now, how do we get people to want to come back?

    In 2019, less than 6% of American workers worked primarily from home. Then COVID hit, and by May 2020, 35% of workers worked completely remotely, as high as 57% among professional and management occupations.

    Now, business leaders want people back in the office. Without in-person workplace interactions, leaders see workers missing out on building vital connections that facilitate collaboration and innovation and the soft skills gained by interacting with people at various levels within the company.

    But according to Pew research, 61% of remote workers say they work from home because they prefer to. Among knowledge workers unsatisfied with their current workplace flexibility, 71% said they were open to finding another job in the oncoming year. Demanding workers come back will drive quit rates and turn off new talent.

    The best way to bring workers back to the office is by inviting them and making it an inviting place where people want and need to be.

    Related: Should You Bring Employees Back to the Office?

    Social engagement is a good start.

    A 2022 workplace trends survey found that 77% of responding organizations had adopted a hybrid model and most employed an “at-will” policy of office attendance. To encourage people to return, 88 % use incentives to draw people to the office, including exaggerated efforts, like Microsoft’s beer and wine tastings, Qualcomm’s group fitness classes and Google’s private concert featuring Lizzo.

    Many companies have made similar, less extravagant, efforts to lure people back with promises of food and social activities, which is a great place to start. According to the 2022 Microsoft Work Trend Index, 85% of employees said rebuilding team bonds would motivate them to return to the office. Other 2022 surveys also found face-to-face collaboration and socialization as the top draws of office time.

    As we come back from nearly two years of working outside of the office, a focus on building social capital is important, but the office can’t be all about parties. The benefits of improved collaboration and innovation come from a healthy culture where people are free to bring themselves to work. Socialization can get that ball rolling and be a significant draw to get people back to the office, but more efforts are needed to make it a necessary place to work.

    Related: The Case For Going Back To The Office

    Build an inviting space

    Invest in creating a physical environment conducive to a hybrid world where people need and want to be to get their best work done. Renovate office spaces to fit evolving intentions. In an Envoy workplace survey of 800 workers, 61% said their companies had changed their physical workplace to accommodate a hybrid model. Leaders at Marriot, Capital One and Spotify are prioritizing comfortability, communal spaces and more conference rooms for collaboration and dialogue.

    People don’t come back to the office to work in a cube. They come back to sit together and work with others in ways that Zoom is less effective. At Clearfield, we are creating the image of what we want our home base mothership (and we do call it the “mothership”) office to become in this hybrid world, starting with significant renovations. We kept the bright, open, well-lit space, and we did away with most of the aisles of cube farms. We built conference rooms and a lot of training spaces.

    Related: It Might be a Company-Ending Mistake to Go Back to the Office

    Invite them to learn more and grow

    In our shift to hybrid, one of our strongest considerations is a focus on training. By building dedicated training rooms, we support internal growth opportunities, incentivizing people to be at the office to gain more knowledge and grow. It also introduces social opportunities to hold recognition ceremonies at the office as people are promoted.

    Interaction among our sales organization had typically been with customers, not one another, so when we got sent home, they felt the benefits of working remotely full-time. But as we grew larger and started to train and promote people from within, the salespeople who became leads and supervisors suddenly realized the need to bring in their teams and train. From the leadership position of a growing company, it becomes easier to see what makes coming together to learn and advance so critical.

    Attract people to the office with training and opportunities to do their jobs better, and let them see room for growth within the company. I believe people want to do their jobs well and want access to information that could help them do that. Our new office training rooms give employees access to resources to improve their hard and soft skills. We’re also investing in a learning management system to help track all of our training opportunities and to get them out to more of our employees.

    Invite with expectations

    Invite people back, but with expectations. Some leaders enter into a hybrid or work-from-home model and remain unclear in their expectations. They want people in the office but let team members’ level of “hybrid” be user-led. The trend of companies allowing unlimited PTO, for example, will enable people to define the total time they take off individually. Still, unless everyone really believes they can and should be allowed to take six or seven weeks of vacation, they would probably never attempt to test those boundaries. Without expectations, so much autonomy exists in a cloud of uncertainty.

    Leaders should also set expectations around meetings and schedule them with intention. Our design engineers lead our product innovation programs and typically host weekly product reviews, but after COVID, we had to start doing them over Zoom. Once we could, these meetings were the first thing we brought back. Lead engineers needed their peers to touch the prototypes and experience them first-hand with a full range of senses, including the sixth sense — intuition — that got lost over a Zoom call.

    Inviting people back to the office is much more powerful than demanding that they come back, but that invitation needs to come with more than free food and parties — it should come with planning and clear expectations. Turn the office into a place where people want and need to go and draw them there in ways that encourage them to be more productive.

    [ad_2]

    Cheri Beranek

    Source link