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Some Companies Are Going Remote—and Upgrading to New Offices

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Medical software provider Central Reach decided last year to grant permits to all 373 employees. Work permanently remotely.. The company then signed a flashy new office lease.

CentralReach’s office contracts are the latest sign that even companies that employ remote and hybrid work may bet on employee collaboration and need new workspaces. Benefits from normal office use..

The company will move to Bellworks Development in Holmdel, NJ in September. Central Reach occupies 25,000 square feet of space. This is the largest office footprint ever for a company with a 10-year history. The current office is in a dilapidated building near Matawan, NJ, and was almost empty during the pandemic.

CentralReach’s modern headquarters is a way to bring employees back to the office without forcing them, said CEO Chris Sullens. The common kitchen area has an island with bar chairs, and the collaborative area has sofas and armchairs. Less desks will be assigned, more furniture with wheels and more whiteboards.

“I want people to use the office, but I want them to do it in the sense that they don’t waste time commuting when they don’t need it,” Salence said. rice field.

CentralReach’s CEO says the company’s new office is a way to bring employees back to the office without forcing them.


Photo:

Inspired by Somerset development

CentralReach’s new home provides some encouraging news for office building owners who are worried about it Rise of working from home Some companies may reduce costs by dumping almost or all workspaces. Many companies are aware that they prefer mixes.

However, CentralReach’s new headquarters presents other challenges for real estate owners. Companies primarily avoid old buildings and usually require less space overall. CentralReach’s new office will be larger than the relocated office, but the company employs more staff and expects to eventually have less space per employee.

Companies say They can have a smaller office footprint Under a hybrid approach. Sullens said Central Reach would have rented two to three times as much space if all employees would come five days a week. Instead, he expects only about a quarter of the company’s local workforce to be in the office on normal days.

Ralph Zucker, CEO of Somerset Development, the developer of BellWorks, said many companies moving to the complex are downsizing from larger spaces. He said one new tenant is leaving the 350,000-square-foot office to relocate to 27,000-square-foot at Bellworks.

This integration has helped improve vacancy rates. According to the company, at the end of June, about 17.5% of US office space was unrented or subleasable.

Cushman & Wakefield

PLC, up from 13.2% 5 years ago.

Jeremy Witikko, Global Director of Smart Buildings

Cisco Systems Ltd,

He said he had about three conversations a day with a company trying to reduce office space. Cisco, which employs hybrid work, says it plans to reduce office space by about 30%.

Cisco employees in Manhattan offices are expected to move between lounges, meeting rooms, and quiet rooms, depending on the type of work, rather than sitting at their desks all day long. Bob Cicero, a smart building leader in the Americas, said.

At LinkedIn’s new flagship office, desks are no longer the main focus. With dozens of different work and meeting room settings, the company uses its office as a hub for a hybrid workforce. The WSJ looks inside exclusively.Photo: The Wall Street Journal Karl Morohan

The goal is to give a reason for more homely, collaborative and modern offices to enter the workers. “We basically believe that offices need to get commute from employees,” Cicero said.

Sullens said his vision for a post-pandemic office is similar to a university campus where students rarely work in one place, but divide time between dormitory rooms, libraries, classrooms, and lecture rooms. I said there is.

The Central Reach relocation to Bellworks Building dates back to the early 1960s, but has been redeveloped over the last decade and has many modern amenities.

The 2 million-square-foot complex, where the popular Apple TV + series “Severance” was filmed, includes shops, restaurants, Montessori School, a plastic surgery center, a beauty salon, indoor golf, and an indoor basketball court.

Write in Konrad Putzier at [email protected]

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