Bill Cunningham and his team at IAT Insurance Group recently unveiled a multimillion-dollar “investment in the workforce,” with a completely renovated space in Cheshire that aims to foster a more comfortable and collaborative workspace as companies increasingly return to the office.The roughly 25 employees plus executives recently moved into a renovated 24,000-square-foot building at 1157 […]
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Bill Cunningham and his team at IAT Insurance Group recently unveiled a multimillion-dollar “investment in the workforce,” with a completely renovated space in Cheshire that aims to foster a more comfortable and collaborative workspace as companies increasingly return to the office.
The roughly 25 employees plus executives recently moved into a renovated 24,000-square-foot building at 1157 Highland Ave. It is one of several IAT offices nationwide, with the Cheshire and Raleigh, North Carolina hubs housing most of the company’s top executives along with workers and training facilities.
The $2 million building purchase plus several million dollars more invested for a complete renovation created a comfortable, inviting and collaborative space for IAT, making it “a place people want to be,” said Cunningham, the company’s CEO.
It’s a trend among companies in the post-pandemic era as they look to make the return to brick-and-mortar office life successful. It also comes at a time when Greater Hartford continues to contend with office vacancy rates not seen in three decades.
IAT’s goal was to bring employees back in after remote work became the norm during the pandemic.
Many executives and industry professionals agree that when committing to a return to office, it’s imperative to upgrade from the traditional corporate model of sitting at a desk seven to eight hours a day.
Commercial real estate services and investment firm CBRE said in its real estate market outlook for 2022 that “the shift to hybrid work will prompt more occupiers to redesign their spaces to enhance collaboration and employee well-being.”
Homey feel
New Jersey-based commercial real estate firm Avison Young started on the new IAT space in February by gathering input from every employee on what they want to see in a new office.
They created stand-up desks, amenities like coffee stations and restaurant-style break areas, communal spaces with couches and televisions for a more homey feel.
Numerous collaboration spaces throughout the building were a key component to the redesign, giving staff more room to work together and maximize the benefits of being back in the office.
Chris Ostop, managing director of JLL Connecticut commercial brokers, said “by and large most companies and most leaders want to see workers back in the office,” while knowing “it’s never going to be at pre-pandemic levels.”
CBRE calculates that the average U.S. office employee will spend 24% less time working in the office, and a survey showed that 87% of large companies plan to adopt a hybrid work approach, according to its outlook report.
Companies are creating new work environments to encourage in-office work, while understanding that the current hybrid option is likely here to stay.
Ostop said the remote work model on a national scale showed a fall off in production and collaboration.
The benefits of getting back into the office include better communication and collaboration, with workers engaging more with senior leaders who are knowledge sharing. Going back to the office allows the ability to work together and talk in person, Ostop said.
The “new normal” of hybrid, however, offers workers the benefits of both work from home and in-office collaboration. The tightness of the labor market may be what’s keeping many employers from demanding a full return to the office, Ostop added.
Commutes can also be a detriment to worker morale and productivity, and that time may be better spent working from home.
When employees do head into the office, typically two to three days a week in a hybrid setup, they want to see a more inviting workspace that makes time spent on a commute worthwhile.
CBRE said activity-based workplaces will become the new planning standard for companies to enhance employee productivity and wellness.
“Amenities that meet the daily needs of employees, help them establish and maintain relationships and offer experiences that represent the company’s brand and values will become more important,” the outlook report reads.
Steven Lyons, a preconstruction manager for Avison Young, said as the working world transitions back to the office, companies are looking to create “a home away from home.”
“People have become used to hybrid, so they want to get up and take calls away from their desks, take a break. A change of scenery is good for productivity,” said Avison Young Construction Director Alyssa Wright.
Less space, sometimes
Companies are also trending toward downsizing their office space.
However, that wasn’t the case for IAT, which expanded from its old 15,000-square-foot space because it needed room for a growing workforce. The specialty insurer, which has found a niche serving the long-haul trucking and moving and storage industries, now has close to 30 employees in Cheshire with room for up to 50.
Areas like Blue Back Square in West Hartford are seeing high demand for office space with their downtown feel and walkability from offices to shops, restaurants and amenities, Ostop said.
“The workplace needs to be worthy of a commute,” Ostop said. Employers are “trying to create the experience where you want to come in. The bottom line is, it’s all about productivity.”
