October 27, 2021
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Home offices are the hot new thing, but tech companies are still crazy about traditional offices right here in NYC
A sit down with two firms: How did Covid impact their business?
Open landscape office or private offices? Here’s what Fortune 500 companies do
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Home offices are the hot new thing, but tech companies are still crazy about traditional offices right here in NYC A sit down with two firms: How did Covid impact their business? Open landscape office or private offices? Here’s what Fortune 500 companies do

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Home offices are the hot new thing, but tech companies are still crazy about traditional offices right here in NYC

Home offices are the hot new thing, but tech companies are still crazy about traditional offices right here in NYC
  • Tech Companies Still Fight for Office Space in NYC
  • Home Offices
  • Why people are working from home, and why they want to continue doing so
  • Traditional Offices
  • Why some are still digging traditional offices
  • Differences between the home office and traditional office
  • What we can learn from the fight for office space in NYC

Many professionals have gotten a taste of the home office life, and probably want to continue working from home – but, as we have noticed, and others are also starting to notice, there are actually some quite significant advantages to having a real-life location for one’s company’s office. The tech industry is among this latter group. 

Tech Companies Still Fight for Office Space in NYC

The number of tech companies in NYC has increased by 170% since 2013. This increase can be attributed to its location being within a short distance from major universities and world-class research facilities, containing talented workforces, and providing access to attractive venture capital.

Many tech companies have therefore made plans to relocate to the city over the last few years. Tech giants like Amazon and Google are leading the charge with their headhunters scouring all of New York for space in buildings near Penn Station. This has become a fierce battle between tech companies for prime real estate in Manhattan, which costs around $1,500 per square foot.

The city’s economic boom is driving up costs and making it difficult for smaller companies to compete with bigger ones. It can be intimidating for small businesses that don’t have the money to buy up skyscrapers, and among the giants, there’s a fierce battle for space.

Furthermore, New York City is one of the most popular cities in the world. It is home to some of the most famous landmarks, companies, and people. Tech companies are fighting for office space in NYC so they can take advantage of its massive talent pool. Employers have discovered that if they want to attract the best of the best tech talents, then they need a central location for this talent to come to. 

Another reason why many tech companies are moving into NYC is that it offers a competitive price tag per square foot compared to other big cities like San Francisco Bay Area or London (which is also one of the reasons why we based our office in New York). 

The above reasons also seem to be enough to overcome the increasing tendency to move towards working from home – even after everyone’s WFH experiences in recent years.

Home Offices

The home office is not something new. From the time of the ancient Greeks, people have had their offices in their homes. Nowadays, home offices are becoming more and more popular as a necessity for creative professionals and entrepreneurs, in part because of the Covid situation that’s been raging for a couple of years now.

Why people are working from home, and why they want to continue doing so

In addition, over the past two decades, the number of people working from home has increased due to the accessibility of the internet, as well as from a significant boost under covid. Working from home is no longer just for freelancers or executives in companies that have remote positions to offer.

People are often drawn to work-from-home jobs because they can be very flexible with their schedules and work when they feel like it. Homeworkers are also able to control their own calendars, whereas traditional jobs have strict scheduling. This allows them to save up more time for themselves.

When people work from home, there are three types of spaces in particular that they have come to use: creative spaces, workspaces, and playspaces. Creative spaces might be an artist’s studio or a co-working space that provides a nice creative environment to work from home. Workspaces can be a desk or a coffee table with stacks of documents on them because one doesn’t always need to do research when working from home. Lastly, play spaces can be anything creative like painting or writing but also includes workspaces such as one’s desk and computer monitor.

Some companies are realizing that if they want to attract top talent, they need to offer this flexibility in order not only to attract individuals but also to retain them in the long run. For other companies, however, the trick to attracting talent is not to provide work-from-home opportunities, but from having a central and physical location that people can go to. We’ll go more into this now. 

Traditional Offices

The traditional office is still the standard for most businesses, and has, as seen above, gained increased popularity in the tech industry. However, on a whole, recent trends show that the traditional office is dwindling in popularity.

With the rise of remote work, freelance work, and co-working spaces, there are now more options than ever to find a workspace that meets people’s personal needs. Among these options are flexible desks, standing desks, and even home offices. Nevertheless, as we will see in the following sections – there are many advantages to traditional offices that explain tech companies’ great interest in securing a local office in NYC.  

Why some are still digging traditional offices

Not only do traditional and physical offices in the city provide companies with a solid base from which to do business; they also provide a sense of belonging and comfort among employees. The benefits are, simply, numerous. They also include socialization, collaboration, and morale-boosting activities that take place within the office environment. Moreover, it has been proven that workplace happiness leads to higher productivity levels for both the employer and the employees. 

In terms of workplace happiness, studies have shown that these offices help to reduce work-related stress as compared to other types of workplaces which have been linked with increased stress and reduced job satisfaction.

An office is, as we all know, a place where many people work in collaboration. The workplace can vary depending on the type of office that you are in. There are different types of offices like cubicle spaces and shared workspaces. The size of the office can vary depending on different factors like company size and needs. People working in offices usually share specific tasks to get the job done efficiently and effectively. What’s common to all traditional offices, is that people meet and collaborate in them; they share actual human contact and all its dynamic advantages. 

Differences between the home office and traditional office

The home office has been a growing trend in the work world. With the advent of technology, many companies have begun to adopt this flexible working paradigm. However, there are still some key differences between a home office and a traditional office that favor the latter. 

Most people have distractions from family members or kids, which makes it difficult to get as much work done as they would in an office. It’s a natural human instinct to work when others around are working; if one’s wife or family member is eating popcorn while watching soap operas, or the kids are playing with the dog, an environment is made which is not very conducive to work. 

In addition, an inner lack of focus on work-related tasks may also be detrimental to some. At home, one has so many distractions around that it can be hard to stay at work – all day long. In the end, it becomes a personal thing whether one works best in traditional offices or home offices. 

What we can learn from the fight for office space in NYC

When we look at the different advantages of both home offices and traditional offices, we stand in a better position to gleaning some insights from the tech companies’ fight for office space in New York. While there are indeed some key benefits to working from home, if one thinks business, there are some unchallengeable advantages that physical office locations bring. 

To keep up with the increased demand for office space, some tech companies are leasing their real estate to other tech companies that can offer more than just an office. This has led to tech companies having offices on every corner of the city. This way, having a location of their own may not only be conducive to the tech company’s business; if they don’t take up all the space that they own, they can rent out some offices to other industries, strengthening their financial foundation in the process.

So there you have it. While entire armies of professionals are flocking towards the homes, for various reasons, the tech industry is rather hunting for the best locations to attract talent by establishing themselves in our beautiful city, the unofficial capital of the world, New York City. 

A sit down with two firms: How did Covid impact their business?

ethernet

It’s well known that a lot of businesses have been struggling in the light of the Covid pandemic. There have been shutdowns, home offices, layoffs, bankruptcies, and a whole lot of emotional difficulties. 

What’s also becoming more and more known, is that some businesses have actually been thriving during the pandemic. And although it hasn’t all been a walk on roses, two Scandinavian companies we will feature today have been able to succeed, despite the hardships. 

IP-Only Telecommunication AB

This Swedish telecommunications company has been going strong since 1999, and offers voice and data services to large enterprises in Sweden, under their website section WAN – Wide Area Network. They now go under the name GlobalConnect, and we figured that this would be a typical company that might flourish during the pandemic. 

“Not so fast,” Ruben Jönsson from their finance department told us. “It might be reasonable to think that, since we offer communication services to people, and the demand for this has skyrocketed during the pandemic, that our business would surge to the greatest heights.” 

We were surprised at his reaction. We felt where this was going, and it was not in the direction of the ebullient enthusiasm we had expected. “Whereas most countries performed shutdowns when Covid came, Sweden decided to ‘be merry’ and let the virus tire itself out so that things would eventually go back to normal. Because of this, Sweden didn’t see the same rise in home office workers that other countries did. Our companies were still able to go to work in the usual offices.” 

Ruben did tell us, though, that they, despite no demands from the state to do so, chose to restrict the amount of physical contact, and opted for home offices. And so did many other companies, something IP-Only wrote about in their article allt fler jobbar hemma. “So I guess you’re right in the end,” he told us. “Covid did increase the demand for our services in Sweden as well.” 

Lan For Deg AS

When we turned our sights towards to Sweden’s neighbor, Norway, we found another interesting company to showcase. Lan For Deg is a financial service that specializes in loans. We were very fortunate to get access to their CEO Kjell Amund for an interview. 

“How Covid has impacted our business is an interesting question. In the beginning, we actually saw a decrease in the number of people who want to get good offers on loans, specifically personal loans (Finansering). As the national and global situation became more dire, people were more hesitant about spending or loaning money.” 

In the same way that IP-Only Telecommunication didn’t see an immediate spike in demand for their services as the pandemic rushed in, Lan For Deg experienced a similar situation. “It was alright that the demand went down a bit for personal loans, as mortgages were going stronger than ever before. We believe this happened because of the rise in home prices, but we’re ascertain about whether Covid had a part to play in this.” 

One product in particular that seems to be gaining a lot of attention at Lan For Deg these days is billige forbrukslån på dagen. It’s a personal loan that can be given on the same day, and after bumping into it several times on the website, we asked Kjell Amund to tell us more about it, to which he replied, “We have seen increased demand and inquiries about personal loans. Many of our new clients have actually reached out to us in order to get a loan fast lately, since, given the improving pandemic situation in the world and people’s optimism, more want to go on spontaneous travels before restrictions might come in again.”

The general tendency leans towards increase

Very interesting! It’s clear from these two cases that whereas the amount of business might not have shot through the roof for these Scandinavian companies, the demand for their services seems to have been edged towards an increase during the pandemic. 

Open landscape office or private offices? Here’s what Fortune 500 companies do

When you as a business leader are deciding on what office design you want, it’s important that you don’t get bogged down by the costs or what you personally want. There are upsides and downsides to both private and open offices, which have an impact on the amount of work you and your employees get done, how good the quality will be, and even how well you will be able to balance your life and work.

A lot of company owners commit the mistake of assuming they know what office plan is best for their workers. Instead of going for what’s easiest to set up or what you think your employees will like, you should perform some research and and then make a more informed decision. Taking your employees’ needs into account will be crucial point to get right.

It might not surprise you to know that open offices have been preferred by Fortune 500 companies for a really long time. In general, this office plan doesn’t have cubicles or private offices; instead, employees work quite closely with each other in one big room. What might surprise you, though, is that certain studies have found that open office plans are actually an obstacle to the effective collaboration of a team.

So choosing an office plan for your employees is not as straightforward as you might think. For more business news that are targeted towards leaders, go check out our homepage.

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