It's Return to the Office. Opportunities For Success.

Challenges and Opportunities for the Tenant Finishes Industry.

It wasn’t that long ago that it looked like remote working would be the wave of the future. Not so fast. More companies are now requiring workers to be physically present in the office. Companies like Amazon, Citigroup, Dell, Goldman Sachs, and many others require employees to return to the office for a full 5-day workweek. Others, like Apple, Google, KPMG, and Nationwide, have adopted a hybrid model of 2 -3 days in the office. And, of course, the federal government has implemented its back-to-the-office policy.

The “Return to the Office" (RTO) trend hasn’t quite caught up in Denver, however. As of January 2025, a 17.2% vacancy rate of commercial real estate in downtown Denver is one of the highest in the nation. That might be due to the more prominence of remote and hybrid work models of high-tech sector workers who have led the way in flexible working. But sooner or later, RTO is bound to catch up. The challenge is improving the RTO environment's appeal and the impact on office design and tenant improvements.

How Return to the Office Can Be More Productive and Profitable

There are strong arguments on both sides of working from home (WFH) versus returning to the office (RTO). Either way, the pendulum has swung to an RTO or hybrid model for the immediate future. However, employee expectations about what RTO looks like have changed from just a few years ago. The traditional office of 2019 is being rethought. The goal is for employees to look forward to returning to the office rather than being forced to.

“Employees won’t just be pushed to return—they’ll feel the pull of smarter design and want to come back because they know the office is where they’re set up to do their best work.” Fast Company

The key priorities for today’s office present new challenges for the designer and the contractor. Physical and psychological well-being are equally important as productivity and efficiency. There are many things to consider, but three challenges rise to the top.

1. Privacy Reduces Stress

The open office has, and continues to be, a prominent theme in office design. It facilitates collaboration and positive culture. However, there are disadvantages that present challenges. An open office plan limits the physical environment and the ability to accommodate different functional needs of employees. One of the most common complaints is a lack of privacy. This can impact both communication and concentration. Design solutions include access to break-out rooms, conference rooms, and various types of “privacy rooms.” But noise and sound distractions hinder the ability to focus and concentrate in an open office.

However, what can’t necessarily be solved through design can be addressed through technological advancements in sound management. Companies like BlueWave Audio specialize in solving sound and noise issues. This will become a priority in addressing the ideal RTO environment.

2. Healthy Environments Increase Productivity

Today’s office has to be more than functional. It has to be healthy. Both employees and employers are more aware of the importance of a healthy environment.

Design can play an essential role in promoting a healthy workplace. Natural lighting, materials, furnishings, sound management, and air quality offer some solutions for creating workplace health. Interestingly, plants can have a more profound effect on office health than you might expect. Plants are more than decorative. For example, they can increase the relative humidity when the air might otherwise be dry. They can reduce excessive CO2 levels. Research has shown that plants can even help reduce noise levels. Plants can also affect the perception of room temperature.

“The physical environment is known to influence mental health, with impacts on productivity and workplace culture; having an impact not only on employees at a personal level but also on the organization’s productivity as a whole, suggesting that time and resources focused on creating an environment that promotes well-being would benefit employers in multiple ways.” University of Rochester Medical Center

A healthy workplace is a productive workplace. Today, there are more opportunities to create and sustain a work environment that supports the worker’s well-being.

“Plants contribute to a higher satisfaction, positive mood, less perceived stress, greater concentration, and fewer health-related complaints.” National Library of Medicine

3. Engagement Improves Profitability

Employee engagement is the degree to which employees are involved in, motivated by, committed to, and passionate about their work and the organization they work for. It’s about the emotional connection employees have to their workplace. It is the foundation of what makes collaboration work, creates a healthy work culture, and generates greater company performance.

“Organizations with the highest levels of engagement were 22% more profitable and 21% more productive than organizations with low engagement. Most impressive is that organizations with engaged employees outperform organizations without high engagement by 202%” The Value of Employment Engagement

Design that considers employee engagement can be simple solutions that motivate collaboration and inspire innovation. Incorporating natural light, ergonomic furniture, communal break areas, and dedicated private spaces can boost employee mood and productivity. Natural elements like plants and organic materials reduce stress, increase creativity, and foster overall well-being. Even color can be strategically chosen to influence mood and energy levels, creating a more positive and engaging work environment.

Design is an opportunity to create a sense of belonging and shared purpose, resulting in higher employee engagement.

Meeting the Challenges

Owners, Architects, Engineers, and Contractors will continue to collaborate closely to ensure that the priorities of the “Return-to-the-office” environment can help motivate employees to return to the office. More importantly, employees should feel good and productive about returning to the office.

Our role at PMG is to make sure we are doing all that we can to bring the architect’s and designer’s vision of the office to life. This year we've teamed up with BlueWave Audio on many projects to help actively solve sound management challenges. We are excited that we are finding new ways to make the office experience healthy and productive.

At PMG we look forward to the opportunity to collaborate with architects, designers and our other partners to make returning to work is something that employees can look forward to. For more information on how we can help reach out to me, Jason, at Jason@pmgconstruction.com.

Challenges present opportunities. Opportunities inspire progress.

Google Fiber's New Headquarters - Project Profile

PMG Construction brings the Google Fiber headquarters to life

Offices Don't Look Like They Used To

Today's office design underscores the importance of adaptable, inclusive, and inspiring spaces that prioritize employee well-being as much as functionality. Offices are taking cues from hotels and homes to create more welcoming, experience-led environments. Research has also shown that incorporating natural elements reduces stress and boosts productivity. Plants, green walls, natural materials, warm lighting, and comfortable furniture inspire creativity. These are just some of the many considerations shaping the office experience of today and tomorrow. Some of these ideas inspired Google Fiber's new office design for which PMG Construction was engaged to fulfill.

Google Fiber's New Colorado Headquarters

New Office Lounge Area

Google Fiber (GFiber), is the high-speed internet infrastructure arm of Google. It currently serves 19 metro markets nationwide, including Atlanta, Austin, Chicago, Kansas City, Miami, and more. It's new offices in Denver, Colorado, are part of its continued expansion and will serve as the central hub for Google Fiber's network installation and management across Colorado. This consolidates its Thornton and Denver Webpass teams in Lakewood's Belmar Plaza.

The 13,000-square-foot offices, designed by Stantec Architects, took 6 months to build out at a budget of $3 million. The scope of work included offices, common workspaces, conference and training rooms, and employee break areas. A key design objective was to create an engaging and distinctive space that would reinforce a commitment to their employees well being. And to incorporate a Colorado feel that would complement Google Fiber's branding.

It was essential to select a contractor who could bring to life the design concept as intended. It was equally essential to find a company that could work with the design team as a collaborative partner.

PMG Construction: The Right Fit

Google Fiber selected PMG Construction as the tenant finish contractor for the project. This was based on PMG's personalized and collaborative approach to budget and schedule management. PMG's value engineering skills was another factor which was essential to ensuring that any design challenge could be met with creative problem-solving.

PMG worked as a team with the client and architect to maintain the integrity of the design intent across key features and amenities. It was equally important to adhere to budget and scheduling constraints. For example, the fireplace was originally specified as gas. However, PMG proposed an electric water vapor fireplace to save the high costs of gas supply and venting. The floor was intended to be polished concrete. But, because of the poor floor condition, a luxury vinyl tile (LVT) solution was employed to achieve the same look and feel without any increase in budget. This is one of the many reasons that PMG was selected as the project's Trusted Resourceful Partner.

Google Fiber Office Key Features

The architecture and interior design elements of the Google Fiber offices are best conveyed through several key features. These are what make the space distinctive and unique to Google Fiber. PMG's responsibility was to ensure the design intent of these features was fully executed. These kinds of unique features require careful attention to the details and craftsmanship that make them special. And its craftsmanship that PMG is known for and one of the many measures of a project success and progress.

Employee Lunch Area

The use of a distinctive open ceiling, natural materials, provisions for plants, and furniture contributes to an engaging and inviting common eating area. Wall sconces and ceiling lighting were especially important in creating a soothing and relaxing environment. The industrial-like detailing provided a foil against which wood and natural materials stood out. PMG had to pay careful attention to every detail particularly important in a design with this many special features.

Break Area

A large-scale mural, created by the national and international artist Chad Bolsinger, is a key feature of the Google Fiber offices. The Colorado-themed mural incorporates mountains, fishing, and a nod to Lakewood, where the office is located. A Google Fiber service van is featured in the foreground. Industrial fixture detailing and contemporary furniture help set the stage for the eye-catching mural.

Huddle Room

"Huddle Rooms" provide privacy as well as comfort. Colors and textures make the room especially inviting. PMG's craftsmanship was especially important in the execution of the natural feature element of Aspen tree trunks that reinforced the Colorado roots of the design. The Colorado theming carried through in the name of the room - Aspen. Naming all of the conference rooms followed the same approach.

Conference Room

A baffled ceiling is the main feature of conference rooms. It helps manage sound and achieve an acoustically rated space. Colors, textures, lighting, contemporary furniture, and the use of technology add to the function and a sophisticated ambiance of the room.

Time Out

The Google Fiber office also features more intimate areas. It's a way to take a little time out. The use of wood, plants, an open ceiling, patterned carpet, and unique task lighting add to a personalized and engaging environment. Native American wall art further reinforces a Colorado-inspired ambiance.

The Finished Experience

Flexibility and collaboration were instrumental in the project's success. The Design Team particularly appreciated PMG's willingness to make changes on the fly without impacting the overall schedule. Weekly Owner-Architect-Contractor (OAC) meetings, progress photos and documentation, and weekly updates on material procurement kept the project on track. PMG even secured a Certificate of Occupancy (TOC) to allow Google Fiber to occupy the space in advance of outstanding long-lead finish items.

Upon completion, the Design Team emphasized how much the end product exceeded all expectations. Exceeding expectations is an important measure of Progress.

"The experience working with PMG was very positive. Our team has already discussed including them in future projects. I feel confident they would provide the same collaborative, communicative, hard working team and quality of work." Project Manager, Working for CBRE/Turner & Townsend at Google Fiber

A Contractor’s Challenge is to Manage the Unexpected in Tenant Improvements

What Contractors Worry About

From a contractor’s perspective, there’s already enough to worry about when everything is going right. In construction, the one thing you can be certain of is that there will always be something unexpected. This is particularly true in tenant construction when the work is in an older building. A lot of things can go wrong. And many of them are outside your control. That makes worrying about them just part of the process. This brings us to the Three S’s of what to worry about – Surprises that you might uncover in the course of a project, Supply chain issues that can impact product availability, price, and schedule, and the Safety of the workers who may be exposed to a variety of dangerous conditions.

1. Surprises

You pull up the old flooring only to find your first surprise – asbestos tile. Not a good day. The older the building, the more likely you will find these kinds of surprises behind walls, in ceilings, or under the floor. Switching out “Life” for “Renovation” Forst Gump might put it this way:

“Renovations are like a box of chocolates – you never know what you're gonna get."

Asbestos and lead paint are only one of the many headaches to be uncovered in working on a tenant improvement project. Structural issues, outdated electrical systems, code violations, and hidden water damage can throw a wrench into any project. The problem is that many of these stay hidden until after the demolition exposes them. This can add to additional expenses and delays in the construction process. Some you might be able to anticipate, while others can be completely unexpected. It’s just one more thing that could go wrong.

2. Supply

What a disappointment to find that the great feature light fixture specified has been discontinued, put on back order, or is delayed somewhere in the supply chain. The pandemic was a major hit to the supply chain which has been taking time to normalize. But significant challenges remain. Labor shortages, material availability, shipping logistics and costs, import tariffs and other factors are straining supply chain effectiveness. A 2022 study by CBRE illustrated the impact on key construction materials.

CBRE Supply Chain Disruption

This study was done in 2022, and there has been evidence of improvements since then. However, the supply chain remains fragile, and any number of things can cause disruption. The best line of defense is for the architect to check availability when preparing the specifications. If there are availability issues, that can then factor into more realistic pricing and scheduling. However, things can change quickly, so it’s always wise to be prepared if there are supply chain challenges.

3. Safety

The last thing any contractor wants is for someone to be injured on-site. Accidents happen. However, construction industry professionals have the highest injury rate of any profession. According to the Bureau of Labor Statistics, construction has experienced the most fatalities of any other industry. Construction accounts for 21% of all deaths among US workers. Falls (including slips and trips) are among the most frequent causes, followed by struck-by incidents, electrocution, and an assortment of other injuries. And injuries can last beyond the work. 56% of construction workers have hearing impairment by the time they reach retirement age. And, of course, there is the cost.

“$7.87 billion is the cost of workers’ compensation direct costs from the top five injury causes in construction.” Bureau of Labor Statistics

Of course, most construction companies have invested in worker safety programs. There’s nothing more important than the health and well-being of the construction team. Unfortunately, accidents will happen. Good training and on-site work practices can minimize the chances. This is the kind of thing you don’t want to go wrong.

Expect the Unexpected

There is only so much that you can plan for and anticipate. The trick is how you manage situations that you didn’t plan for. And overcome those things that go wrong. That’s where collaboration with the other stakeholders comes in. In most cases the owner, architect, and others understand to expect the unexpected and work together to reach a fair and reasonable solution. It’s just a fact of construction life.

Working together we can overcome the unexpected. That’s how we move forward and make progress regardless of the challenges.