Food for Thought: December Reflections and 2025 Insights
December is always a great time to take stock and place some bets on how the new year will shape up in terms of challenges and opportunities. As we contemplated the track of the commercial real-estate industry in 2024, and the direction it will take, it was timely to see this article from Costar detailing an inflection point as corporate tenants are back on the market and looking to lock up space.
It is a good news story:
“A burst of office leasing that included larger average deal sizes, propelled in part by more employers requiring workers to return to the office, helped drive strong revenue and profits for the largest commercial property brokerages.” The article goes on to quote some encouraging stats around growth at some of the largest brokerage houses including JLL, CBRE, Cushman & Wakefield, Colliers International and Newmark.”
And buried within the story are even more nuggets of a bright outlook for the future:
“Among these leases being signed, there’s a lot less downsizing activity,” [Jacob Rowden senior manager for U.S. office research at JLL] said. “Earlier in the pandemic, tenants were cutting their footprints pretty substantially in some cases. That’s now starting to normalize as more folks are in the office, and [tenants are] starting to realize they need to hold [on to] more of that space.”
This is just one example in the corporate real estate media that there is movement, new leasing activity and indications that back to the office work policies are fueling interest, especially in prime spaces.
But balancing cost reduction while maintaining amenities and workplace experiences for returning employees is a key to making these leasing investments in Class A Prime buildings work, as they are snapped up by reinvigorated corporate tenants. And in build outs, office furniture is a huge part of the cost of occupying these new spaces and keeping them under control is an increasingly urgent priority.
It is not unrelated that we are seeing other indicators that the circular economy will be part of the game plan of many of the world’s largest companies in 2025. In an article by Forrester Research entitled “Sustainability Drivers Shift from Regulation to Efficiency and Saving”, Senior Analyst Abhijit Sunil shared the following prediction:
“More than a third of Global Fortune 100 firms will commit to circular economy goals…
Companies that go beyond compliance and embrace opportunities in reducing, reusing, repairing, refurbishing, and recycling will stand out. By 2025, implementing lifecycle assessments will help both employees and customers understand the environmental impact of their product choices.”
And the reasons are revealing. He goes on to say:
“Operational efficiencies and financial benefits will eclipse regulations as key drivers…
Companies advancing in their sustainability strategies, particularly those achieving operational excellence, are finding significant cost savings through improved efficiency and reduced resource consumption. The time of measurable, positive financial impact is here!”
Our predictions for 2025
At TFX, remanufacture and resale of high-end office furniture is what makes us different. So, our predictions for 2025 are based in part on the ecosystems for demand we see day in and day out, from our clients.
Whether it is retrofitting and upgrading a space that is renewed, or managing the decommissioning and moving to new workspaces, we are seeing a renewed focus on circular solutions from all our clients, for the very reasons Forrester cites - for sustainability and, as important, for economic reasons.
The best kept secret about circular solutions to office furniture management challenges is they are Good for Business!
good for the planet,
good for employees’ comfort and amenities, and
good for the bottom line!
We can therefore be bullish about our business in 2025. And here are a few quotes from clients and partners who share our perspective.
"As we look toward 2025, the commercial real estate landscape looks promising, with sustainability and resource efficiency taking center stage. Partnering with The Furniture X-Change has been a key part of aligning our operations with these forward-thinking goals." - Director at CBRE
"Heading into 2025, we’re thrilled to see sustainable solutions gaining traction in commercial real estate. The Furniture X-Change leads the way in remanufactured furniture and is the ideal partner for Rheaply as we work to give every workplace asset a second life through sustainable decommissioning and donation matchmaking. Together, we’re driving innovation, cutting waste, and shaping a circular future for our clients." - Emma Hopson, Director of Sustainability & Strategic Partnerships at Rheaply
"Partnering with TFX to complete our first project in 2024 was one of the best decisions we made this year. Their expertise and seamless execution exceeded our expectations. We’re excited to continue this partnership and look forward to working with TFX on three additional locations in 2025." - Director of Real Estate at Financial Firm
In closing, a huge thanks to our clients and colleagues who have helped TFX realize our vision for this past year and given us a NorthStar for 2025 – to continue to be one of the leading providers of circular solutions for the corporate office furniture market.
Ready to learn more about how TFX can support your goals in 2025? Get in touch today, inquiry@tfxfurniture.com!