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                                                                                                  BUSINESS Monday 7 March 2022
            New offices for the hybrid era? Many companies are on board




            By JOSH FUNK                                                                                                        The roughly 100 headquar-
            AP Business Writer                                                                                                  ter  workers  at  shoe  and
            OMAHA, Neb. (AP) — If you                                                                                           apparel  company  Merrell
            build  a  shiny  new  office                                                                                        moved into a new office in
            building,  will  your  employ-                                                                                      Rockford, Michigan, in Jan-
            ees show up to work in it?                                                                                          uary. The project was in the
            Many  U.S.  companies  are                                                                                          works before the pandem-
            banking on it because they                                                                                          ic  began,  but  CEO  Chris
            believe  working  in  person                                                                                        Hufnagel  said  the  compa-
            is  better  for  collaboration                                                                                      ny reworked the plan after
            and  training  young  em-                                                                                           it became clear that many
            ployees.  So  even  though                                                                                          employees would still work
            most  employees  are  still                                                                                         from  home,  at  least  part
            working from home offices                                                                                           of  the  time.  Hufnagel  said
            and  dining  room  tables                                                                                           he  believes  the  office  will
            today,  some  companies                                                                                             be the “epicenter” for the
            are willing to spend big on                                                                                         company’s work.
            showplace headquarters.                                                                                             “I  think  everyone  realizes
            Businesses  recognize  there                                                                                        that there are  parts  of our
            is  a  place  for  offices  de-                                                                                     jobs  that  we  do  better
            spite  the  fact  that  they                                                                                        when  we  are  together,”
            plan  to  give  workers  more                                                                                       Hufnagel said.
            flexibility to work from home                                                                                       And  then  there  are  com-
            and might see cost savings   Omaha Mayor Jean Stothert, left, and Mutual of Omaha CEO James Blackledge announce plans   panies that plan to largely
            from  limiting  their  real  es-  for a new Mutual of Omaha headquarters skyscraper on the site of the current downtown library,   do  away  with  their  offices
                                         Wednesday, Jan. 26, 2022.
            tate holdings.                                                                                     Associated Press  in favor of remote work. But
            In a sign of how committed                                                                                          even those firms may keep
            companies are to keeping  “The only way that works is  monitored  by  Kastle  Sys-     needs  60  desks  for  every  a small office presence.
            offices,  some  57%  of  the  by embracing remote and  tems, which tracks building  100  employees  because  Intradiem  CEO  Matt  Mc-
            more than 2,300 office proj-  hybrid work,” he said.      access-card  swipes.  That  they  will  be  shared.  But  Connell  said  the  software
            ects that giant architecture  The  number  of  people  number  has  been  creep-       he   remains   committed  company had its most prof-
            firm Gensler is now working  working  remotely  is  clearly  ing up since early January  to  a  new  headquarters  itable year ever in 2021 and
            on  were  started  last  year,  growing because so many  when  it  fell  as  low  as  23%  for  12,000  to  14,000  of  the  didn’t miss a beat while its
            in  the  middle  of  the  pan-  companies  learned  they  during the omicron surge.    bank’s   employees     be-   150 employees and 75 con-
            demic. But as they’re build-  could do it during the pan-  Mutual  of  Omaha  CEO  cause  many  tasks  will  still  tractors were all working re-
            ing, companies are tweak-    demic.  The  Society  for  Hu-  James   Blackledge   said  need to be done in person.  motely. After checking with
            ing  designs  to  reflect  that  man  Resource  Manage-   bringing  people  together  Deluxe, the company once  employees,  the  company
            offices may become spots  ment estimates the number  in  an  office  at  least  peri-  known primarily for printing  shifted  to  a  remote-first
            that workers visit primarily to  of totally remote U.S. work-  odically  will  boost  produc-  checks that now processes  plan and will let its current
            collaborate with others, in-  ers  will  double  to  roughly  tivity  and  creativity,  and  nearly $3 trillion in payments  headquarters  lease  expire
            stead of places where they  36  million  people  by  2025.  having  a  gleaming  new  a  year,  invested  $12.2  mil-  at the end of 2022.
            toil all day, every day.     But  the  CEO  of  that  trade  $433  million  office  should  lion during the pandemic in  “It’s  just  this  big,  empty
            Jordan  Goldstein,  the  co-  group, Johnny C. Taylor Jr.,  help  the  company  attract  a  new  94,000-square-foot  space that no one is using.
            firm managing principal at  said  that  will  still  only  ac-  new  talent.  Plus,  the  new  Minneapolis  headquarters  It doesn’t make any sense
            Gensler,  said  companies  count  for  a  little  over  20%  headquarters  will  likely  be  that opened last fall. When  to maintain that,” McCon-
            are  placing  a  premium  of the workforce. The other  smaller  overall  than  Mu-     they return on a more regu-  nell said.
            on  having  more  meeting  nearly  80%  will  work  in  an  tual’s current headquarters  lar  basis  later  this  month,  But  Intradiem,  which  is
            rooms  with  the  technol-   office  at  least  part  of  the  complex, but the exact size  employees  will  be  expect-  based in Alpharetta, Geor-
            ogy  to  accommodate  re-    time. Another survey done  will  be  determined  later  in  ed to be there more often  gia, will likely still maintain a
            mote  and  in-person  par-   last  year  by  CBRE  Group,  the design process.         than they work from home.    smaller  headquarters  with
            ticipants,  as  well  as  more  the  world’s  largest  com-  Elsewhere, two high profile  But  the  new  headquarters  space  for  its  IT  workers  to
            flexible  space  for  people  mercial  real  estate  ser-  projects already underway  is  less  than  one-third  the  put together equipment to
            to choose where they work  vices  and  investment  firm,  are  Walmart’s  new  head-   size  of  Deluxe’s  old  one.  send  out  to  home-based
            within the office.           showed  that  87%  of  large  quarters being built in Ben-  The company cut its overall  workers, and the company
            Mutual of Omaha plans to  companies planned to use  tonville,  Arkansas,  and  the  real estate footprint in half  will  encourage  teams  to
            build  a  glassy  new  head-  a hybrid schedule after the  new  New  York  City  home  nationwide to better reflect  occasionally  get  together
            quarters  in  its  namesake  pandemic,  with  workers  in  for bank JP Morgan Chase.   its current needs with more  in  person.  They  may  also
            Nebraska  city  that  could  the office part of the time.  Walmart  said  it  was  over-  people working remotely.  rent some space at shared
            wind up as Omaha’s tallest  And      separate    worker  due  for  a  new  headquar-   “There  are  very,  very  few  offices  run  by  WeWork
            building.                    surveys  that  SHRM  and  ters  regardless  of  the  pan-  jobs that are just individual  for  employees  across  the
            But  the  insurance  compa-  Gensler conducted last fall  demic  because  it  is  cur-  contributor  jobs  with  little  country to use.
            ny says the plans for its new  both  showed  that  more  rently spending tens of mil-  or  no  interaction  required  Modular flooring manufac-
            building  reflect  its  com-  than  half  of  workers  want-  lions  of  dollars  every  year  from others,” he said.  turer Interface just opened
            mitment  to  flexible  work.  ed to be back in the office  to  maintain  an  outdated  McCarthy, like many CEOs,  a  new  headquarters  in
            The  company  has  4,000  at least one day a week.        patchwork  of  more  than  says he believes office work  2018,  but  the  pandemic
            employees  in  the  Omaha  But  so  far  businesses  have  20  offices  in  northwest  Ar-  is  better  for  training  and  prompted the company to
            metro area but is planning  been  slow  to  bring  em-    kansas for its administrative  mentoring  younger  em-    spend $400,000 remodeling
            a  building  that  can  only  ployees back. An average  and support staff.             ployees because they can  the  building  and  investing
            accommodate       between  of  36.8%  of  the  workforce  JP  Morgan  CEO  Jamie  Di-  watch  and  interact  with  in new technology and fur-
            2,200  and  2,500  people  was  back  in  offices  during  mon  has  said  that  the  rise  their coworkers better and  niture  to  adjust  to  workers
            on  any  given  day,  Mutual  the  fourth  week  of  Febru-  of  work-from-home  might  get more immediate feed-    only being in the office part
            spokesman Jim Nolan said.    ary  in  10  major  U.S.  cities  mean  the  company  only  back on their work.        of the time.q
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