A new year always brings me a renewed sense of optimism & expectation – as if the slate has been wiped clean & we all get a fresh start.

       In the commercial furniture sector, my optimism is grounded in four key trends transforming our industry:

• A revival of the commercial real estate sector.
• Evolving work habits that require more flexible spaces.
• AI & other technological innovations.
• A renewed commitment to sustainability.

CRE Revival

       After two uncertain, difficult years of high vacancies & interest rates, there are signs that the commercial real estate market is stabilizing. A recent global survey of 880 commercial real estate owners & investors by Deloitte found 88% expect revenues to increase going forward compared to 60% who expected declines last year.

       The market is shifting in other ways too.

       Rural & suburban centers continue to gain traction as companies follow talent.

       And it’s not just geography that’s shifting.

       We’re seeing new opportunities in high growth sectors, like manufacturing & data centers, as well as healthcare & education.

Evolving work habits

       Despite well-publicized demands from some companies to return to the office full time, hybrid work continues to be the norm.

       58% of all American workers are offered remote work at least part of the week, according to McKinsey.

       Adapting to hybrid work requires more comfortable, flexible workplaces that can be used for a variety of activities – a far cry from the cubicles we used to build everywhere.

Tech innovations

While still nascent, I expect we’ll see growth in the use of Artificial Intelligence & other technologies to design, inventory & manage furniture, fixtures & equipment.

We’ve only begun to consider the many ways these new technologies can help the A&D community, facility managers, CRE firms & others increase productivity.

Sustainability

Although federal sustainability reporting requirements are likely to be delayed by the incoming Trump administration, state efforts & European requirements are moving forward.

California is expected to issue its climate disclosure rules this summer, while New York and Illinois have introduced climate disclosure bills into their legislatures. An ambitious Oregon program to reduce emissions from fossil fuels 90% by 2050 begins this month. These four states represented more than a quarter (27%) of the United States’ Gross Domestic Product in 2024. 

Furniture manufacturers and Fortune 500 companies are renewing their commitment to sustainability to test & learn real world solutions through initiatives like Installnet’s Ecoserv Net Zero (ENZO) program.

They’re exploring new business models like furniture as a service that move away from a linear economy to a more circular, sustainable model.

Together we are working toward global standards for measuring and reporting our impact on the environment and community in meaningful ways.

To date Installnet’s Ecoserv program has diverted more than 54 million pounds of waste from landfill through resale, recycling, reuse or donation to more than 3,200 communities.

Together, we’re getting zero done.

Here’s to a prosperous, sustainable & healthy 2025!