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Commercial Real Estate Cover Story

Improving on the Model

Chris Orszulak, left, and Bill Laplante

Chris Orszulak, left, and Bill Laplante at the Modern Workspace facility they are building in East Longmeadow.

 

Before going into some detail about the new co-workspace initiative he’s part of in East Longmeadow, Chris Orszulak first wanted to talk about another project he partnered on in the town next door.

Specifically, he referenced restoration of the historic Brewer-Young mansion in the center of Longmeadow and, even more specifically, conversion of its third floor into what has become known as 734 Workspace, to match the mansion’s address on Longmeadow Street.

He started there because it was success in that endeavor that ultimately inspired the East Longmeadow project and, before it, something similar on the Cape.

Indeed, when they conceived the new co-work facility in Longmeadow in the year before the pandemic, Orszulak, a financial planner by trade, and partners Andrew Lam, Henry Clement, and Jason Pananos were not exactly sure what they would find.

What they found — and it took a while for things to fully shake out because the pandemic hit just after they opened, and it changed the dynamic in many respects — is that there are professionals, and a healthy number of them, who don’t want to work in a large office, but also don’t want to work at home — at least all the time.

Many need a place where they can bring clients; where they can access reliable, high-speed internet; where they can have some privacy; where they can get some work done; and where they can have their mail sent.

“What this has turned into is the evolution of working from home and remote work that is permanent now in the workforce, post-pandemic.”

And, yes, 734 Workspace became that place — a place where there is remote work, but with some twists and some style. There are 17 small offices there, all of them are leased out, and there is a good-sized waiting list, Orszulak noted.

“What I found attractive about the model, pre-pandemic, was simply its flexibility,” he explained. “When you have a membership with us, it’s month to month, and we include everything with your membership. But what this has turned into is the evolution of working from home and remote work that is permanent now in the workforce, post-pandemic.

“And the reasons why people would join a place like ours are what you might expectm” he said. “You can’t get everything you want to get done at home; you’re distracted by your pets, your kids, your husband, your wife; you need a change of scenery — you’re not productive at home.”

Brewer-Young mansion in Longmeadow.

Modern Workspace was in many ways inspired by the success of an earlier venture on the third floor of the Brewer-Young mansion in Longmeadow.

This model, this change of scenery, has worked so well that Orszulak, partnering with Pananos and East Longmeadow-based luxury homebuilder Bill Laplante, moved with confidence and optimism to create something similar in a commercial condominium in Chatham on the Cape.

Further inspired by success there, they are moving forward aggressively with construction of a unique co-working space on a small lot owned by Laplante in East Longmeadow that will be branded Modern Workspace — a name that will eventually go on all the facilities in the portfolio.

Unique — and modern — for several reasons, starting with energy efficiency. Indeed, this will be a net-zero building, said Laplante, adding that it features a solar array on the roof that will provide 100% of the electricity for heating, cooling, and hot water; a car-charging station; and more.

It also features 24 individual spaces across two floors; multiple conference rooms; printing, scanning, and copying equipment; 24/7 access; and more, said Orszulak, adding that the doors are expected to open late in the spring of 2024.

There has been considerable interest in the East Longmeadow facility already, said the partners, adding that results there will help determine if and where this concept might go next.

Indeed, Orszulak stressed that Modern Workspace is certainly scalable, but the model will likely work only in communities like Longmeadow and East Longmeadow, which don’t have existing co-workspace but do count large numbers of professionals among the population base.

The partners are considering Wilbraham and some communities in Northern Conn., such as Suffield and Simsbury. But for now, they are focused on the new East Longmeadow facility, getting it off the ground and on a path to success.

“We’re really excited to see how it does here in East Longmeadow,” Laplante said. “And if does well, and we expect that it will, we’ll see where we can go from there.”

For this issue and its focus on commercial real estate, BusinessWest talked with Orszulak and Laplante about this latest venture in the broad and ever-changing co-work realm, and what it might lead to down the road in terms of further expansion.

 

Right Time, Right Place

As he talked about this expansion of the model forged in Longmeadow, Orszulak first addressed the larger topic — the elephant in the room, if you will — of remote work and its long-term future.

And he was direct in his opinion that there is a large degree of permanence to what is being seen in most workplaces in terms of not simply flexibility, remote work, and hybrid schedules, but also the notion that, for many professionals, there will be a need for a place that isn’t home and isn’t the office, at least in the traditional sense.

“The hybrid model is the model of the future, where there’s partial work from home, and you also work from an office space,” he explained, adding that, in his estimation, this office space will not be in an office building or office park, but a smaller space in a co-working facility that will be used a few days a week, often with the employer reimbursing for space rental.

Chris Orszulak, left, and Bill Laplante

Chris Orszulak, left, and Bill Laplante say Modern Workspace was conceived and designed to reflect changes in the workplace they believe are permanent.

“This is a permanent thing,” he went on. “We’re in the very early innings of complete generational change to the way people work; it will never revert back completely.”

It is with this mindset, as well as the high degree of success recorded at the Brewer-Young mansion, that Orszulak and his partners are moving forward with the facility in East Longmeadow, which is quickly taking shape.

As they offered a tour of the work in progress, Orszulak and Laplante pointed to rows of studs outlining future individual offices and other facilities, such as a conference room and common space, and gestured to where flat-screen TVs, standing desks, and storage would be in those offices.

“You can basically come in with your laptop and immediately work,” said Orszulak, adding that he expects some tenants will come in several days a week, others a few, and still others maybe just one.

He expects this new facility will attract roughly the same demographic as the Brewer-Young mansion, which includes several lawyers, a few financial advisers, several entrepreneurs with various types of small businesses, and other professionals. There are men, women, both younger and older professionals — “it pretty much appeals to everyone.”

Also appealing are the various levels of membership — from simply having a mailing address to a 10-day membership, to a ‘common-space membership,’ which enables members to come in as many days a week or month as they want to use a common space that includes soft chairs, high-top tables, and stand-up desks and use of the conference room; from a ‘dedicated common-space membership’ (a member has his or her own desk) to rental of an office. The rates vary accordingly, from $150 for a mailing address to $850, on average, for office rental.

The lawyers within the membership base provide an effective snapshot of the type of client the partners are attracting there, and expect to attract at the East Longmeadow facility.

“In many cases, it’s attorneys who had office space, but they didn’t require as much office space as they had rented,” Orszulak said. “Some of them might be winding down the practice, but they don’t want to stop working, so they’ve reduced the size of the practice, and this facility gives them an area they can go to, one that gives them a great deal of flexibility.”

Like the 10-day membership, which, as that name suggests, enables members to use the various facilities 10 days a month.

“There are many people who permanently work from home, but they would prefer not to have their home be the place where they meet clients,” he explained. “So they’ll just use our conference room for meetings, and we have a really simple app on your phone where you can book time and meet clients. There’s a handful of attorneys that just do that; they’ll use the conference room half a dozen times a month.”

Meanwhile, some members just want a business address, he went on, adding that there are mailboxes for these individuals, as there will be in East Longmeadow.

 

Getting Down to Business

Overall, each of the successful elements of the model created in Longmeadow and followed in Chatham — where the partners have found a strong market for co-work space among permanent residents, professionals with summer homes in that area, and even those on vacation for two weeks who need a place to take a Zoom meeting — will be used in East Longmeadow, where the setting will be decidedly different.

Indeed, while the Brewer-Young mansion is more than a century old, historic, and in most all ways energy-inefficient, the facility under construction in East Longmeadow will be anything but.

“This will be a net-zero project; we will not be purchasing any electricity or gas — there will no gas to the property,” Laplante explained, adding that the building will be ultra-modern in many other ways as well, from reliable, high-speed internet to the car-charging stations.

And while they proceed with construction of the East Longmeadow facility, the partners are already thinking about where they might go next with the concept, although they obviously want to see how this space does before expanding further.

Overall, they believe it will work in mostly residential communities with many working professionals, scenarios where people can live and work in the same town, but not necessarily in the same place.

“We don’t see someone from South Hadley jumping in the car and going to the Brewer-Young mansion for their co-working office space,” said Orszulak, adding that several members at the facility actually bike or walk to the ‘office.’

Elaborating, he said there are co-work spaces that people can get on a highway and drive to, but there is an increasing need for something right around the corner.

Given those patterns, the concept could work in other area communities in Western Mass., such as Wilbraham, as well as Connecticut, he went on.

“We think Simsbury in Connecticut is a great market,” he noted, adding that other communities in that area, such as Suffield, may be attractive landing spots as well. “The towns are very similar to Longmeadow and East Longmeadow, and we see great potential there.

“We want to be smart about where we grow; I think we’re learning more as we talk to more people, and we’re learning a lot here,” he said, adding that there are certainly challenges to expansion, including finding appropriate locations and building facilities, often from scratch. “It’s a scalable model.”

For now, though, they are laser-focused on opening the doors in East Longmeadow. They said they have already received a good amount of interest and expect there will be much more as the facility starts to take shape.

Co-working is not a new concept, per se, but it continues to evolve, and this model represents what would be considered state-of-the-art.

It represents work in progress — in every sense of that phrase.

 

 

Opinion

Editorial

 

“I think that ship has sailed.”

That’s what JD Chesloff, CEO of the Massachusetts Business Roundtable, said in response to a question from the Boston Globe recently about why companies, even those like Google, Meta, and Amazon, who have made headlines with stringent return-to-the-office policies, are not asking employees to come in five days a week.

He’s right: it has sailed. The hybrid work schedules that so many companies have adopted, not out of choice, but more because they don’t really have a choice, are now the new norm and, from all accounts, will be the norm for at least the foreseeable future.

Indeed, it appears to be time to stop asking when everyone is going to return to the office and realize that not everyone is going to return to the office. And for many reasons.

Most of them have to do with the current labor market and the fact companies remain far too desperate in their efforts to attract and retain talent to make demands on where people can work. In some cases, employees are simply more productive working at home. And in still other cases, companies have been able to dramatically reduce their square footage (and, therefore, their annual costs) by having some or most of their employees working remotely.

Add it all up, and what we’re seeing in the workplace now is what we’re going to be seeing, unless some of those factors above change dramatically in the near term, and we just don’t see that happening. In short, employees who have been given a taste of remote work, like what they’ve tasted, will not want to go back to the office five days a week. And if employers try to force them to, they’ll find a new employer that won’t. Meanwhile, business owners will continue to be reasonable and cost-conscious, traits that, at this moment, don’t lend themselves to forcing people back to the office.

So instead of asking when workers will return the office, employers, managers, property owners, and leasing agents alike need to adjust.

Employers and managers need to find new and creative new ways to build teamwork and employee engagement, such as by requiring all employees to be in certain days of the week and then maximizing that time together.

As for property owners, the adjustment is more difficult. They may have to find other uses for their square footage other than office, a real challenge at a time when retail is also in retreat and conversion to residential is expensive and, in some cases, not realistic.

But adjustment, on the part of all those concerned, is necessary, because Chesloff is right.

That ship has sailed.

Employment Special Coverage

Home Sweet Home

Make no mistake, Meredith Wise says — employers miss those bustling offices where all their employees used to come to work.

And after almost three years of remote work — during which the practice evolved from a temporary necessity to a ubiquitous reality — businesses are definitely grappling with what it all means, and whether they can slow the remote train down.

“A lot of businesses would like to have people back in the office,” said Wise, president of the Employers Assoc. of the NorthEast. “They’re struggling a bit with communication, with employee relations, and with staying in touch with people and knowing what’s going on with them.

“The idea used to be that people would come in, and you’d get a sense of how their night went, how their morning was going,” she added. “With Zoom communications, you just don’t get that same feeling. A lot of companies are feeling like they’re losing that personal connection with employees.”

Even some of the largest employers feel that way, as Walt Disney Co. workers found out in a recent internal memo from CEO Bob Iger, who is calling on all workers to spend at least four days a week in the office, starting March 1.

“In a creative business like ours,” Iger wrote, “nothing can replace the ability to connect, observe, and create with peers that comes from being physically together, nor the opportunity to grow professionally by learning from leaders and mentors.”

Still, Wise noted that many local companies seem to be moving in the opposite direction, by continuing to embrace hybrid schedules. “They’ve found productivity can be better when working from home remotely, where people don’t have any of the distractions of being in an office, and I think that hybrid model is going to stay.”

Amy Roberts, executive vice president and chief Human Resources officer at PeoplesBank, agreed.

“A lot of businesses would like to have people back in the office. They’re struggling a bit with communication, with employee relations, and with staying in touch with people and knowing what’s going on with them.”

“We implemented a flexible work-arrangement policy in the midst of COVID, and we still have a lot of people working hybrid, with some time in the office and some time working from home,” she told BusinessWest. “It really depends on the area a person works in and what the business needs are. We have a couple fully remote workers; we actually hired a person out of Illinois who works fully remotely.”

Like Wise, Roberts said it’s easy to see why remote work is appealing, from the elimination of commuting time to creating a focused work environment. “I think the flexibility of it is really helpful to people in terms of work-life balance. Or they might say, ‘I really need to get X done, and doing this particular work is best done when I’m home, so I can focus more.’”

Roberts said many companies are starting to pull everyone back into the office — especially businesses that stress a collaborative culture or require plenty of face-to-face work with customers — but not all. “I do think the hybrid model is here to stay, though I don’t think it works for everyone.”

Seth Stratton, managing shareholder with Fitzgerald Law in East Longmeadow, noted that, like many small businesses, his firm never fully left the office during the pandemic, and these days, everyone has been back for some time. But they have continued to use communication tools, like Zoom, that became popular when employees at most companies were at home.

“We were forced to embrace some technology and ways of working that carried over and make work more flexible, even though we’re back in the office.”

Stratton understands the value of remote work in some situations, drawing on examples from his own career.

“During the peak of the workday in the office, there are a lot of interruptions, and a lot of times, when I’m focused on revising a lengthy contract or drafting a legal brief to submit to court, I need time to focus mentally on what I’m doing, so historically, a lot of that will be done early in the morning or later in the evening, after the phone stops ringing,” he said, noting that working from home can create more time and space for such work.

Seth Stratton

Seth Stratton says remote work can reduce distractions, but also hinder communication and collaboration.

On the other hand, someone in a home office can’t just walk into the next room to tap someone else’s expertise.

“You can do that remotely, but it’s harder to get on the cell or set up a Zoom meeting; it’s not as seamless as walking 10 feet away. That affects you from a collaborative standpoint.”

And collaboration happens outside the office, too.

“In Western Mass., probably moreso than other markets, when it comes to business generation, marketing, and client development, this is a parochial business community; a lot of business is conducted through personal relationships, personal connections,” Stratton explained. “I might be having lunch at the Fort or at Nadim’s and see someone I know — ‘oh, I’ve been meaning to call you; let’s schedule a call. Or do you have a minute now?’

“It’s harder to make those connections when you’re fully remote,” he went on. “Being available, I think, is a hallmark of business development in Western Mass., at least in my experience.”

 

Successful Experiment

While it may have eventually surprised employers how effective their teams could be at home, Wise recalled the challenge of those first few weeks in March 2020.

“When it first started, nobody really had the computer setups or the communication tools to be able to work remotely from home,” she said. “Now, people are more able to work at home and be productive.”

These days, “while we have found some companies saying, ‘we want all employees in the office Monday through Friday,’ those are few and far between. Instead, what a lot of employers are saying is, ‘you know what your job requires; work with your manager on what days you need to be in the office and what days you can work at home.’”

As a Baby Boomer, Wise said, she understands the old-school mentality of employers who have always been able to see their employees at work, and may be hesitant to give that up.

“It can be a hurdle to get over that perspective that ‘I can’t see you, so are you working?’ Part of the communication piece is doing a better job as organizations to define productivity and what needs to happen on the job. And it’s been good for leaders and workers to tighten up some of the parameters — ‘you know what’s expected of you, and you and I need to set that ahead of time, because things can easily get out of hand if you’re not here every day.’”

It makes sense to put those parameters in writing, said John Gannon, a partner with the law firm Skoler Abbott in Springfield. “The accountability policy needs to be clear. I’ve seen policies that say, ‘we need to see proof that your children are in daycare.’ I’m not sure if I’d recommend going that far, but certainly the supervisors need to be paying attention to their employees when they’re home.”

Zoom meetings help, he said, but employees are still unmonitored for the vast majority of the workday. Some companies have even installed technology on home computers that logs keystrokes per hour.

“If they have employees working remotely, even in a hybrid fashion, in another state — which is not uncommon given Springfield’s proximity to Connecticut — they have to be cognizant of which state’s employment laws apply.”

John Gannon

John Gannon

“I don’t like that, personally,” Gannon went on. “But it’s an option for employers if they have concerns that the hybrid model results in less productivity. I wouldn’t recommend it unless an employer is having problems, because it is a privacy issue, and a lot of this comes down to trust; you want to trust your employees, and you don’t want to set up a model that says you don’t trust them.”

Wise has heard of keystroke monitoring as well, and said most employers in this region aren’t looking to go there. But they’re also still in an experimental stage when it comes to remote and hybrid schedules.

“A lot of organizations are still feeling this out — ‘let’s try this for six months; I know we did it during the pandemic, but let’s try it in the new year and see if it works out, or whether we need to make adjustments to it.’ Handbooks and policies are still catching up.”

And if employers have employees working remotely in a different state, Gannon added, they need to update that handbook to make sure employees in those states are getting a handbook with laws applicable to that state, and also make sure the company is registered to do business in that state.

“If they have employees working remotely, even in a hybrid fashion, in another state — which is not uncommon given Springfield’s proximity to Connecticut — they have to be cognizant of which state’s employment laws apply,” he explained. “If they’re working from home three or four days a week and coming in one or two days a week, their primary office is their home, and if that’s in Connecticut, they’re subject to Connecticut employment laws and Connecticut employment taxation.

Those laws touch on everything from paid family medical leave and sick time to injuries on the job.

“It may sound crazy, but you may have to address workers’ compensation,” Gannon said. “If you’re walking down your stairs in the morning to go to your home office, that’s not covered, but in your home office, if you fall out of your chair and hurt yourself, that may be covered.”

 

Losses and Gains

Roberts agreed that there’s an interesting dynamic at play now, with some employers worried they don’t have eyes on their employees, while others fret about losing office culture and the ability to keep workers engaged.

“How do they know if they’re happy, if they’re productive, if they’re getting what they need from their career development? If you don’t see them all the time, how do you mentor? There’s a lot of questions managers are grappling with when it comes to this new style of work.”

That said, employers who embrace remote and hybrid schedules are able to cast a wider net in recruitment, at a time when talent is difficult to come by.

“We’ve been able to advertise positions as hybrid, which certainly brings more candidates our way,” Roberts said. “People are looking for that flexibility, and if you’re able to offer a fully remote situation, you can hire someone from anywhere; you have the ability to get the best available talent. Unfortunately for us, a lot of our positions are hybrid or in the office or banking center; we don’t have the luxury of large companies that are fully remote — but we’ve increased the candidate pool for sure.”

Stratton said the tools of remote business has helped his firm expand its client base beyond Western Mass.

“It allows us to reach out geographically with clients because clients are used to working by Zoom meeting and don’t feel that same compulsion to meet in person that they used to,” he said. “That’s given us more flexibility to actually grow our footprint a little more.”

And grow it into regions where legal services cost more than they do in the 413, he added. “We always had a pricing advantage over areas like Eastern Mass. and Southern Connecticut, and we can more easily use that pricing advantage to our benefit by expanding our footprint and working farther outside Western Mass.”

Though hybrid work may be here to stay, Stratton said, most of his firm’s clients are small to medium-sized businesses, and the majority of them have emphasized getting workers fully back in the office, though some are embracing hybrid work schedules and remote-work tools.

“A lot of large, national corporations, you see fully remote, where a lot of their workers are in different offices anyway, so it’s less impactful to be spread out,” he added. “But small to medium-sized businesses in this area, in my experience, are generally pushing toward being back and find it more effective, which is consistent with our experience as a small business.”

There’s no one-size-fits-all model, however, and Roberts said everyone is still grappling with the new work styles and how to make them effective.

“We need to figure out how to mourn the loss of the old way and transcend to a new way of working. It’s not the same as it was 15 years ago, maybe even 10 years ago, where you were identified by the office you worked in, and you had celebrations and events, things happening there. It’s different now; people are looking for a different way of working, and employers have to think differently.”

Commercial Real Estate Special Coverage

Building the Portfolio

 

Vid Mitta acknowledged that the emergence of remote work and its impact — still to be determined in many respects — on the region’s inventory of office space was certainly a consideration when he and business partner Dinesh Patel were deciding whether to submit a proposal for the purchase of the 1550 Main building in downtown Springfield.

But ultimately, this was just one of many considerations, he told BusinessWest, adding that the others — as well as his firm belief that business owners and managers will always see value in having people working together in one place — convinced the two serial entrepreneurs to move forward and answer the request for proposals sent by the property’s now-former owner, MassDevelopment, early last year.

Mitta and Patel eventually prevailed in the bidding to acquire the property — formerly occupied by the U.S. Federal Court and currently home to tenants ranging from Baystate Health to the Springfield School Department — for $6 million.

As he talked about its prospects for the future, Mitta focused on those other considerations that played into this decision, especially that age-old axiom when it comes to commercial real estate — location, location, location. Beyond that, though, the current tenant mix, the timeline on current leases, and the good overall condition of the building also played a factor in generating a green light.

“These properties are connected, and they are the two best buildings in Springfield’s downtown for class-A space.”

“Remote work is the main thing that comes to anyone’s mind when we talk about office spaces today,” he acknowledged. “But look at the location — this is what we were looking at, as well as the maintenance and good condition of the property. These factors led us to see this as a good investment. When vacancies arise, people have choices, and they’re going to move into the best building possible.”

Thus, another chapter has begun in what would have to be called a developing story, in every sense of that phrase. That would be the expanding portfolio of properties now owned by Mitta and Patel, either individually or collectively.

That list includes Tower Square and its recently renovated hotel, which has re-earned the Marriot flag, as well as several other hotels, 99 Restaurant & Pub locations, a Walgreens, three McDonald’s franchises, adult day-care facilities, early-education facilities, and more. These collective investments and entrepreneurial gambits earned Patel and Mitta BusinessWest’s Top Entrepreneur award just a year ago.

Mitta told BusinessWest that 1550 Main St. was a common-sense addition to the portfolio, one that gives the partners a property that is essentially full (97% occupancy), with a stable tenant base that also includes the Internal Revenue Service, U.S. Immigration and Customs Enforcement, regional offices for U.S. Sens. Elizabeth Warren and Ed Markey, the law firm Alekman DiTusa, and an attractive, well-maintained property in the heart of the central business district.

“These properties are connected, and they are the two best buildings in Springfield’s downtown for class-A space,” he said of 1550 Main and Tower Square. “With these properties, we’ll be well-positioned to attract new tenants looking for quality space.”

The property that has come to be known as 1550 Main was acquired by MassDevelopment from the federal government in 2009. At that time, it was roughly 70% occupied, said a spokesperson for MassDevelopment, adding that, after achieving all its stated goals for the property, the agency decided to put the property up for sale through a disposition process to allow it to refocus its efforts on other projects.

Dinesh Patel, left, and Vid Mitta

Dinesh Patel, left, and Vid Mitta, who together orchestrated a stunning turnaround at Tower Square, believe 1550 Main St. is a logical addition to their growing portfolio of commercial real-estate properties.

That includes an initiative in Greenfield, where MassDevelopment is partnering with the city and the Community Builders in the acquisition and redevelopment of the former Wilson’s Department Store property in the heart of the community’s downtown. The redevelopment will create roughly 65 mixed-income rental units and reactivate prominent first-floor and basement retail spaces through the relocation and expansion of Franklin Community Co-ops’s Greenfield store, Green Fields Market.

Referencing 1550 Main, MassDevelopment President and CEO Dan Rivera said, “working with tenants, partners, and the city of Springfield over the years allowed us to cultivate this property to its best and highest use. This type of focused teamwork is how long-lasting redevelopment takes root. It is what makes converting an old federal courthouse into a stunning multi-tenant office building possible.”

The property went on the market in the spring of 2022, and the request for proposals issued by MassDevelopment attracted a number of bids.

Moving forward, Mitta said several of the leases of current tenants will be expiring over the next several years. He expressed optimism for renewals, but also for new tenants looking to take advantage of the property’s location and other amenities.

“Tenancy is not a permanent thing — tenants come and go; we know that,” he said. “Some leases are going to expire over the next few years, but we know how to market, and we have a very strong team here.”

“Even those working at home still go to the office — businesses prefer the hybrid model. They need a place where people can collaborate, meet, greet, that kind of thing. That need is still there, and I don’t know if it will ever go.”

Elaborating, he said this team is hoping to attract some current occupants of class-B space to properties that are not much more expensive but bring a number of amenities that class-B properties do not, including parking garages, lighting safety, and that aforementioned location in the heart of downtown.

The property at 1550 Main differs from its neighbor, Tower Square, to which it is connected by a skybridge, in many respects, said Mitta. He noted that Tower Square required significant investment and “re-imagining,” a word he and Patel use often, such as with new tenants that include the YMCA of Greater Springfield. The newer 1550 Main will not require much of either, he said, which is another of those considerations that prompted interest in the building.

As for the trend toward remote work and hybrid work schedules, Mitta acknowledged that there is likely permanence attached to these trends, but, ultimately, he anticipates that there will still be strong demand for office space, especially in the class-A category.

“Even those working at home still go to the office — businesses prefer the hybrid model,” he explained. “They need a place where people can collaborate, meet, greet, that kind of thing. That need is still there, and I don’t know if it will ever go.”

For evidence of this, Mitta points to Tower Square, where he acknowledged that the number of people in the office tower on any given day may be lower than it was prior to the pandemic. But overall, space needs have not changed to a great degree, and new leases continue to be signed.

“Overall, rent is a comparatively small item on the P&L statement,” he said, adding that, for this reason, he has seen few if any tenants at Tower Square downsizing.

Franklin County

Getting Reconnected

Jeremy Goldsher (left) and Jeff Sauser

Jeremy Goldsher (left) and Jeff Sauser say the Business Breakdown is just one of many new ways Greenspace CoWork is forging connections within the business community.

 

While the past two years haven’t exactly been kind to co-working spaces, Jeff Sauser said, the long-term view is much rosier.

“COVID has really accelerated the trend toward remote work,” he explained, noting that the business world was already taking steps in that direction, but at a much more gradual pace. “One silver lining from COVID is that co-working spaces and other shared spaces are seeing a golden age moving forward.”

Jeremy Goldsher, who opened Greenspace CoWork with Sauser in downtown Greenfield several years ago, agreed. “We’ve managed to keep everything afloat during the last few years. Its definitely been a challenge, but Jeff and I have both developed a lot of creative avenues through the co-work model that we might never have considered.”

Specifically, the pair wanted to do more to connect the Greenfield business community, and one way is through a new monthly series of networking events called Business Breakdown.

The idea came out of internal conversations about how to bring people back together and give them a chance to reconnect, Goldsher said.

“I know I’ve spent the better part of two years isolated, and I was excited to find a good reason to be in person with my peers and understanding all the challenges everyone else is going through.”

In addition, he noted, “a lot of new businesses have opened up during COVID, and there hasn’t been much opportunity for anyone to present themselves. We wanted to give a platform for new businesses to come down Main Street and meet fellow business owners and market themselves and speak to the community.”

“Our model is to be more of a resource to our community, rather than just our membership.”

Each Business Breakdown session, which takes place at Greenspace, on the third floor of the Hawks & Reed building on Main Street, begins with an informal presentation from a new local business. The sessions also explore topics like transparency, resource sharing, and recovery in a disruptive climate; the challenges business people face both professionally and personally amid the pandemic; and inventive ways they can overcome those challenges.

The sessions meet the first Wednesday of every month. The April 6 event will take place from 5:30 to 7:30 p.m.

“Our model is to be more of a resource to our community, rather than just our membership,” Goldsher said. “It’s something we’ve thought about a lot over the past couple years, as the world changed.”

With Greenspace membership back to pre-pandemic levels, Sauser said, “events like these are symbolic for us — people are opening their doors back up, and we’re seeing a lot of good interactions from the business community. They’re anxious to get back together. It’s been tough psychologically for business owners.”

The guest speakers for the inaugural Business Breakdown last month were the head brewer and taproom manager at Four Phantoms Brewery. “They spoke at length about how local flora and fauna have really influenced their ingredients, and how they use local artists for their cans,” Goldsher noted. “It was spectacular.”

Future sessions will collaborate with Cocina Lupida, a restaurant on the first floor of the Hawks & Reed building, which houses Greenspace CoWork. That includes April’s session, which will feature the partners from Madhouse Multi-Arts, which offers collaborative, accessible art spaces on Main Street and helps aspiring artists and musicians access resources and skills they need to reach their creative and professional goals.

“We’re very excited to have them. It’s a new business started by two young Hampshire College grads. They’re very much in the vein of our co-work space, but focused more on the arts,” Goldsher said. “We’ve watched as they took a historical building on Main Street that had been dormant for many years and brought it back to life.”

He added that the event series is “definitely evolving,” and that participation and feedback will help determine what future events will look like. But for now, he and Sauser are encouraged — and excited to hear what Madhouse brings to the table.

“How do you take arts and crafts and turn it into a business? How do you make a living doing those things? We have so many creative people around here — how do you take art and turn it into your livelihood?” Sauser asked. “We want to get a good variety of different business perspectives, not all of which are bricks-and-mortar companies.”

“It’s amazing to shift the process away from being a tradititional co-working operator to take a more in-depth approach to supporting local businesses and business leaders.”

Greenspace is also working with Greenfield Community College and the Franklin County Community Development Corp. on a pilot series they hope to launch this spring, Sauser said, a handful of workshops on topics like how to start a business, how to write a business plan, getting financials in order, obtaining a bank loan, and more.

“We’re not reinventing resources that don’t exist, but providing an additional outlet to do them,” he explained. “We’ll gather data while we’re doing it and, moving forward, may evolve that into something more substantive and cohort-based, with classes you can go through, a program like LaunchSpace in Orange. We’re looking at opportunities to grow something similar here. We’re thinking about Franklin County holistically.”

And the region’s business owners could benefit from that kind of collaborative approach to growth, Goldsher added.

“A lot of people are just not communicating openly with each other — it’s almost like people forgot how to be honest, and they’re a little bit unsure about how much they’re willing to discuss about their trials and tribulations. But it’s amazing to shift the process away from being a tradititional co-working operator to take a more in-depth approach to supporting local businesses and business leaders.”

Sauser agreed. “This was something we always wanted to do, and if not for COVID, it might look a little different. I’m excited — it feels like we’re emerging from this situation and responding to what the community needs. We want to have an impact on Greenfield’s revitalization, so we’re looking at it through that lens. And we believe it can be a model for other communities.”

 

Joseph Bednar can be reached at [email protected]

Special Coverage Technology

Strong Signals

By Mark Morris

When the pandemic arrived early last year and many companies adjusted to remote work for their staff, it was IT professionals who got everyone up and running from their homes.

Now, as the world begins to move away from the pandemic and companies begin bringing employees back to the office, the demand to hire IT pros is even higher than it was before COVID-19 emerged. And that poses challenges for employers.

In a normal year, said Delcie Bean, CEO of Paragus Strategic IT, the company sees about 10% turnover of people leaving and new staff being hired. During the pandemic, there was no turnover, as every one of the 50 Paragus employees stayed in their job.

In the last four months, however, as the economy has improved and COVID restrictions have eased, Bean has seen a “tremendous transition” among the IT labor force.

“Many of those who are leaving are pursuing remote-work opportunities that didn’t exist before the pandemic,” he said. “Most of these companies are not local and would never have interviewed or offered jobs to these workers in the past.”

Bean cited a number of reasons for the high demand for IT talent. During the pandemic, nearly every company increased their use and dependence on technology, which requires more people to keep systems up and running. As the economy improves, companies are pursuing more projects and thus increasing their need for IT talent. The pandemic also made it acceptable to hire people who work only remotely, creating even more opportunities for IT pros.

“With the increased dependence on technology, an improved economy, and the ability to work remotely, we’re seeing employers do things they would not have done before,” he said.

Joel Mollison, president of Northeast IT Systems, noted that, unlike others in IT support, his 18-person company does not have high worker turnover. He credits that to attracting IT staff who enjoy working with Northeast’s varied client list, which covers sectors from insurance and healthcare to manufacturing, municipalities, and even cannabis.

“Many of those who are leaving are pursuing remote-work opportunities that didn’t exist before the pandemic. Most of these companies are not local and would never have interviewed or offered jobs to these workers in the past.”

One notable challenge to retaining his workforce involves companies such as banks, manufacturers, and other industries that are looking to bring their IT support in-house, he said. “As a service provider in Western Mass., we’re competing against much larger institutions in the region who can pay IT professionals more.”

As security issues receive prominent news coverage, companies worry more about ransomware attacks and similar threats. Mollison believes this is part of the reason firms are increasingly looking for in-house IT staff.

“The larger the business, the more complex their systems are, and the more they need IT professionals to manage them,” he explained.

Bean agreed that IT security issues have increased the pressure for companies to be proactive in preventing major disruptions, pointing out that much of the job growth is the result of companies expanding their internal IT staff both regionally and on a national level.

Delcie Bean says an IT workforce that was remarkably stable in 2020 has entered a time of “tremendous transition.”

Delcie Bean says an IT workforce that was remarkably stable in 2020 has entered a time of “tremendous transition.”

“All these companies are doing this because the growing economy gives them a little more money and it can be a luxury to have your IT support in-house.”

Jeremiah Beaudry, owner of Bloo Solutions, agrees, but believes that, after companies build up their internal IT staffing, they usually return to outsourcing with an external service provider once they realize that internal IT is less cost-effective.

“Instead of paying full-time employees to show up every day, companies can hire an IT firm that knows all the technical details and address specific problems when they arise,” Beaudry said. “It would be similar to bringing a plumber on staff. Why would you do that?”

In fact, he predicts that the hiring surge for internal IT will shake out to one or two positions to oversee the main systems augmented by an outside IT service provider.

Bean said it’s common for companies to have an internal person handling technology issues as well as an outside IT service company. “Our biggest source of new business right now involves partnering with internal IT departments to round out what they are doing and give them supplemental assistance.”

 

Here and There

Like many industries right now, technology is grappling with a job market that significantly favors job seekers. Bean told the story of an employee who had previously worked in the defense-contracting industry 10 years ago.

“Because this employee’s name was still in the defense system, a contractor called him to make a job offer, sight unseen and without an interview,” he said. “They literally e-mailed him an electronic salary offer without meeting him, and it was for $35,000 more than he was making here.”

A company located in a large metro area interested in hiring remote workers will offer salaries that are competitive in their market. This can often lead to small-market workers getting big-city paydays.

“If you’re at home and take five minutes between tasks to turn around to pet your dog or do the dishes real quick, that time becomes meaningful and helpful in your life.”

“Usually, when someone makes a salary that’s attractive in Boston, it comes with the high cost of living in the metro Boston area,” Bean said. “When someone with a Western Mass. cost of living makes that same amount, they can see a 30% net increase in their salary.”

Indeed, more companies than ever are embracing remote or hybrid workforces (see related story on page 25). That means IT service providers face the same dilemma confronting many of their clients: continue to work from home or go back to the office.

Mollison tells a slightly different story. Before COVID, he said, Northeast IT was outgrowing its space in Westfield, so he suggested that staff work remotely as a short-term solution. He was surprised when almost no one wanted to work from home.

“Nearly everyone wanted to work in the office,” he recalled. “We have a kind of think-tank environment where our staff enjoy working on problems together.”

However, the pandemic forced nearly everyone to work from home for the last 16 months, a situation Mollison called stressful because many felt less connected to their co-workers. He added that a change in venue is coming. “We purchased a building in West Springfield and will be moving in at the end of August. We’ll have plenty of space to bring everyone back with social distancing; our people are really looking forward to returning.”

At Paragus, employees have been ramping up their return to the office by coming in one day a week in June, two days a week in July, and three days a week starting in August. Bean said he won’t require more than three days a week in the office, but felt that some time in the office was important.

“We have intentionally designed our office to promote collaboration,” he said. “We don’t have walls or offices, so people can listen to each other and overhear what’s going on. You can replicate some of that online, but it’s not the same as hearing what’s going on around you.”

At Bloo Solutions, Beaudry has allowed his four full-time and several part-time employees to stay remote except for occasional trips to the office or when visiting a client’s location. Collaborative messaging tools like Slack and Microsoft Teams allow him and his staff to stay in touch with each other and stay on top of client concerns.

Jeremiah Beaudry says even companies that have built up internal IT

Jeremiah Beaudry says even companies that have built up internal IT staffing often come to see the value in outsourcing that work.

“We have channels dedicated to each client so any one of us can jump in and take care of any concerns,” he said. “Because we all have access to these messages, the same information is available to all of us without being next to each other.”

Whenever possible, Beaudry makes working from home an option for his staff.

“If you’re at home and take five minutes between tasks to turn around to pet your dog or do the dishes real quick, that time becomes meaningful and helpful in your life,” he said. “When you are in the office and not near anything you need to do, that same five minutes is wasted.”

Therefore, as long as his staff are productive, he doesn’t care if they work from home or at the office.

Another reason Bean cited for having people in the office at least some of the time is to help with their professional development and to identify when a staff member might need help. He worries that IT professionals who have chosen full-time remote work won’t have the same chance to grow or develop their careers.

“They will probably be fine doing the job they were hired for, but they will be relatively unengaged and potentially stagnant,” he said. “I don’t see how they can grow or develop much in an environment where they never see their co-workers or be around other people.”

Mollison credits his low staff turnover to seeking out people who like variety in their work and have an interest in personal and professional growth.

“Because IT folks tend to be introverts, we try to help them grow personally so they can become more comfortable working with clients and developing relationships with them,” he said.

While finding people in Western Mass. with technical skills isn’t so tough, Beaudry makes his hiring decisions based on a candidate’s emotional intelligence.

“I’ve learned over time that clients would rather feel good about a conversation they had rather than having an expert solve the problem who makes them feel bad about themselves,” he said.

 

Change Can Be Good

Another reason the demand for IT professionals is increasing has to do with the growing economy. Bean said the sales pipeline for new projects has never been fuller. “In terms of new business, we’re booking clients out to October because we only book so much at a time.”

In addition to hiring temporary contract workers, he has found another way to make up worker shortages: acquisitions. Paragus recently acquired one IT-support company in Worcester and is looking at two other acquisitions.

“In the past, the goal of an acquisition was to acquire clients and market,” he said. “Now it’s about acquiring talent.”

Would Bean like to see less disruption in the labor force? Sure. He also understands that this time of transition is part of the bigger picture.

“Everybody is moving around, so we’re on the receiving end of this as well,” he told BusinessWest. “The good news is we haven’t seen a shortage of any new résumés coming in.”

While it’s tempting to dwell on the employees leaving, however, Bean has gained some perspective.

“After some reflection,” he said, “we realized that a lot of the innovation and fresh approaches we get are driven by new people coming in with new ideas.”

Special Coverage Technology

Bringing a Message to Life

From left, Kathryn Taccone, Karen Webb, and Will Colón discuss a project.

From left, Kathryn Taccone, Karen Webb, and Will Colón discuss a project.

Will Colón, Kathryn Taccone, and Karen Webb all took different paths to a career in animation, but when the opportunity arose to launch their own company, they were certainly of one mind. That’s because they’re believers not only in the potential of animation in the business and nonprofit worlds, but that it’s still an underused tool, with plenty of room to grow. Four years after its inception, Open Pixel Studios is proving their conviction to be true.

Remote work might be all the rage right now, but it’s nothing new to the three partners at Open Pixel Studios.

“The future of work is working remotely, having the systems to do that, working with multiple people across different disciplines across the same project — all in a remote environment,” said Will Colón, co-owner of the animation studio he, Kathryn Taccone, and Karen Webb opened in 2017. These days, they work with freelancers across the U.S. to create content for business and nonprofit clients.

“We were doing the remote thing for quite a while before the pandemic hit,” Colón added. “The pandemic really raised the stakes on whether we were doing this correctly — it put us to the test a little bit. But there was almost no shift; our business did not waver at all.”

In some ways, COVID-19 actually provided more opportunity.

“What ended up happening was more people asked us for more work,” he went on. “Normally, a production requires filming and video and people in a studio or on a production set. Those roles diminished overnight, and everyone said, ‘what else can we do? Instead of having people on a screen, or talking heads, let’s do animation instead.’ It was a really big boost to our company.”

And it’s not all remote, even during the pandemic, Taccone was quick to note. “We pride ourselves on being able to communicate with clients in a way that’s comfortable for them. Sometimes clients prefer to be in person, and sometimes it’s totally fine sending e-mails. We try to match how the project is managed, and the way we communicate, to their personalities, so everyone is comfortable.”

Using animation for marketing and messaging is nothing new, Colón said, citing the well-known example of Walt Disney producing animated shorts for every branch of the U.S. military during World War II, putting beloved characters to work rallying support for the war effort.

“I don’t think the things we’re doing are much different than Walt Disney creating content during World War II. Those were ‘explainer videos,’ talking through the points the military wanted to talk about. So this isn’t new technology. What’s new is the application.”

Meaning, while animation has been a mainstay during the internet age — as part of websites, mobile games, and in movies and television — it remains underused by businesses. Colón, Taccone, and Webb are hoping to change that.

At one of Open Pixel’s production stations, well-communicated concepts become animation.

At one of Open Pixel’s production stations, well-communicated concepts become animation.

“A lot of businesses haven’t realized they can do amazing things,” Colón said. “Our job as a studio is to introduce businesses to animation for the first time.”

And do it, for the most part, remotely.

“We have 20 freelancers across the country, and I’ve met only a few in person,” he noted. “We’ve always been remote, always done Zoom calls, always done projects managed through cloud-based solutions. It’s been a breeze, and that’s a testament to our process. We were one of the first ‘pandemic industries’ pre-pandemic. We were ready for it.”

Now, they’re ready to move the needle even further when it comes to the power of animation in the business world.

 

Crossing Paths

Colón’s journey to the world of animation began at Hampshire College, where, during his first year in 2009, he tried to get into an advanced computer animation class, but was rejected by the instructor, Chris Perry, because he had no experience.

But after Colón excelled at an introductory course in the field, Perry — a Pixar veteran who served as a technical director on A Bug’s Life and Finding Nemo — accepted him into the advanced course.

“As I moved from the basics to more advanced stuff, I didn’t know how much I would love it, that I’d lose myself in the work, forget about time, and really enjoy the process more than the results,” Colón recalled. “I knew this was something I could go into.”

After college, he returned to the Boston area and worked at special-effects company Zero VFX, but desired a move back into animation, and landed a job at Anzovin Studio in Florence in 2013.

Characters created for a piece on Behavioral Health Network’s Crisis Healthline.

A project for Amherst College’s bicentennial

Animated messaging advocating for changes in tobacco laws

Webb, who had attended the School of Visual Arts in Manhattan and worked for a time in Los Angeles and San Diego, eventually moved to Western Mass. to work at Perry’s independent studio, Bit Films — and later started working at Anzovin Studio, where she met Colón.

Their company took shape after Anzovin decided to shift his business model into animation tools, while the production team, where Colón and Webb worked, was spun off into a separate entity. The pair then decided to go in a different direction, by launching their own studio.

Taccone’s passion for animation was sparked by a high-school trip to Pixar Animation Studios in California. She later studied animation at UMass Amherst and met Colón while taking class at Hampshire, where he was the teaching assistant. After a stint at HitPoint Studios, she worked at Anzovin from 2014 to 2016, then moved to California to work in the games industry, for EA and Toys for Bob. But in 2017, she returned to Western Mass. to help Colón and Webb launch Open Pixel.

“We decided to go into a different realm, building something new that was going to be ours,” Colón said. “Kathryn came back from California, and that was the beginning of our journey.”

Speaking of journeys, hearing Taccone describe the process of moving a concept to a finished product, it’s striking how much work happens before the actual animation begins.

“A client will come to us with an idea of the message they’re trying to send; typically they’ll have a call to action associated with that message,” she explained. “We take this from the initial script phase — whether we write it ourselves or the client provides it — and bring it into an audio-visual script, which allows us all to be on the same page with what will happen with the story.”

This all happens before visuals are actually created, she added. In other words, clear communication is key — not just with the target audience, but between all the players in creating the animation, and at every stage.

“We make a choice at the concept stage whether or not something should be represented through iconography, text, characters, or just backgrounds,” she added, noting that just using animated words can often be as powerful as talking characters. “Often we’ll use a blend of those things.”

Once the concepts are established, next comes discussion of style, tone, and other elements. Then storyboards are created, laying out the content from start to finish — again, so everyone involved can envision the final piece and make changes before the actual animation begins.

“When we do the animation,” Taccone said, “we hire voice-over artists, we do music and sound effects — again, depending on the client’s needs, but all serving the purpose of matching the tone and style and direction to the story we’re trying to tell.”

While many corporate clients rely on Open Pixel’s work in their employee training videos and modules as well as marketing, a particularly feel-good part of the team’s mission is working with nonprofits on messaging that will draw more attention and support. Nonprofit leaders aren’t always natural salespeople, Colón noted, and he and his team can help them hone their message and educate the public.

“They’re trying to make the world a better place; that’s their mission,” he said. “We’re helping them close the gap between the audience and their mission. We use animation to explain what they’re doing.”

In the end, Taccone said, even the most eye-catching animation isn’t a success if it doesn’t meet the client’s needs. “In a way, the communication is sometimes more important than the art. We’re trying to make sure everyone is on the same page.”

 

Mission Accomplished

For Colón, such work is especially gratifying considering that, early in his career, he never thought about running a business. But his former employer, Raf Anzovin, encouraged that growth — and, in fact, encouraged him and Webb to branch out on their own.

“I feel like the people I met along the way influenced me in continuing this work. If those people weren’t there, we wouldn’t be around,” Colón said.

Achieving the studio’s goals in Western Mass. — a region that has been steadily growing its reputation for innovation and technology — is especially satisfying, he said. Clients run the gamut from large corporations to small outfits, and the remote nature of the work allows Open Pixel to take on projects from Boston to the West Coast.

He’s also particularly proud that the company is certified as a majority women-owned business. Noting that the history of animation has not always been a friendly one for women, he hopes Open Pixel inspires other women to pursue this field.

Through it all, he, Taccone, and Webb hope to continue to expand the work they do, but also become a destination to start a career.

“In the future, we want to be a jumping-off point for folks getting out of college,” he said, noting that it’s natural for talented graduates to depart the Five Colleges and look for jobs in New York, Los Angeles, or Boston. To encourage them to start their careers closer to home, Open Pixel has developed a pipeline of interns from Amherst College and Hampshire College. “Not only can you learn the tools here, this can be an entry point into the field.”

As for those tools, they’re much more affordable and accessible than they once were,” Colón said. “You can get a license and run a studio from your home office. But what makes us special is our process and our back end, our ability to push animation further than where it currently is right now.

“So much of it is in entertainment — games and movies,” he went on, “but we’re seeing a shift toward companies creating advertising campaigns utilizing animation because it’s so limitless. You can create anything you like. That’s what we see — unlimited creative expression.”

And always in the service of the client, Taccone added.

“We pride ourselves on being a studio that takes time to understand the balance between the client’s needs and our artistic identity. That way, we all enjoy the process as we go through it.”

 

Joseph Bednar can be reached at [email protected]

Special Coverage Technology

Making Connections

After a chaotic start, the pandemic has proven to be good for business in the IT world, where professionals were deluged with requests from clients to set up remote networks for their employees, not to mention a flood of new clients seeking network services for the first time. More than perhaps anyone, these IT pros have seen first-hand how COVID-19 has changed the way companies are doing business. And some of the changes, they say, may be here for the long term.

 

By Mark Morris

As the world begins to emerge from the pandemic, many businesses that survived are trying to understand what the new landscape will look like.

Right now, many business owners are trying to figure out when and if their employees should return to the office or continue to work from home. Either way, access to technology plays an increasing role in getting the job done.

For example, said Delcie Bean, CEO of Paragus Strategic IT, before the pandemic, many businesses were getting by with outdated communication and collaborative tools and depended on e-mail and phones to support their working environment.

“When the pandemic hit, they had to suddenly adopt new technologies like Zoom, Microsoft Teams, or other virtual platforms to keep doing business. Almost overnight, we had to set up about 4,000 people to work remotely who weren’t previously set up to do so.”

“When the pandemic hit, they had to suddenly adopt new technologies like Zoom, Microsoft Teams, or other virtual platforms to keep doing business,” Bean said, noting that, as employees in many industries were sent home to work remotely, local IT firms saw a huge influx of work. “Almost overnight, we had to set up about 4,000 people to work remotely who weren’t previously set up to do so.”

Delcie Bean

Delcie Bean

Sean Hogan, president of Hogan Communications, said the last time businesses experienced this much disruption was October 2011, when a surprise snowstorm knocked out power for thousands across the region. This time, the disruption has had a more profound and lasting impact.

“The pandemic woke up a lot of people and forced them to understand they’ve got to change the way they do business,” Hogan said, explaining that, while the pre-Halloween storm a decade ago encouraged investments in backup generators, the pandemic has shown many the importance of storing data in a remote data center, commonly known as the ‘cloud.’

In Bean’s estimation, the idea of a business keeping a server at its facility to host its network is already a legacy model that was on its way to being phased out in the next five years.

“COVID dumped gasoline on that timetable and made converting to the cloud a much higher priority,” he said. With cloud-based technology, employees can more easily access their company’s network from multiple locations and devices.

Resistance to change comes natural to New England business owners as many prefer to keep their data on a server in their office. Hogan often explains to these reluctant clients that cloud-based data centers have spent millions of dollars to make sure there is a disaster recovery set up, as well as backup systems for power, internet and HVAC.

“The average business owner couldn’t afford to make that type of investment to keep their data safe,” Hogan said. “So when people say they don’t trust the cloud we point out how much more reliable it is compared to their office.”

BusinessWest spoke with a number of local IT providers about what several of them called the ‘roller-coaster year’ we’ve just had and what’s on the horizon. As business owners themselves, they, like their clients, have had to figure out how to keep things running during a pandemic and anticipate what that means in the long term.

“I’m looking at the service tickets we’re completing while working remote, and they are right on par with where they were when we were in the office. In fact, we might be a little more efficient.”

As an IT-services vendor, Bean believes firms like his should be a little ahead of the curve so they can test new technologies before they recommend them to clients. For example, Paragus employees have been on the cloud and set up to work from anywhere since June 2019.

“So when the pandemic struck, moving our staff remotely was pretty seamless,” Bean said. “About 80% of our people work remotely, and 15% to 20% come into the office on any given day.”

Jeremiah Beaudry, owner of Bloo Solutions, said his employees are working so well from home, it’s not necessary to come into the office. He noted that productivity has not suffered, and employees have less stress.

Jeremiah Beaudry

Jeremiah Beaudry

“I’m looking at the service tickets we’re completing while working remote, and they are right on par with where they were when we were in the office,” Beaudry said. “In fact, we might be a little more efficient.”

One important thing businesses have learned from the pandemic, according to Charlie Christianson, president of CMD Solutions, is that it’s OK to work from home.

“We can do a lot more than we thought we could outside of the office,” he said. “People are far more open to remote work, and there’s no mystery to it anymore.”

 

Change of Scenery

While some of Hogan’s employees have always worked remotely, the percentage has grown, and their efficiency allows them to escape the daily commute. “They don’t need to be behind a windshield for an hour and a half each day just getting to and from work,” he said.

When companies first sent workers home, IT providers spent most of their time helping clients integrate employees into their respective networks. While they suddenly had a huge amount of work, IT professionals did not see much revenue because many clients had contracts to cover this extra work. Increased revenue soon followed, however, as many new clients sought these services.

“We signed more new customers in 2020 than the previous two years combined,” Bean said, adding that much of the new business came from companies that found their dependence on technology had suddenly increased and their IT capabilities couldn’t meet these new demands.

In addition to new clients coming on board, Christianson explained that many of his current clients, who at first only wanted a “down-and-dirty” setup for remote access, were now looking for a more permanent solution for their network.

“We can do a lot more than we thought we could outside of the office. People are far more open to remote work, and there’s no mystery to it anymore.”

“Those of us in the IT industry are very fortunate,” he said. “We have done well during this time and were not hit hard like so many other industries were.”

With the end of COVID in sight, businesses have begun looking at what comes next. Those we spoke with agree on one thing: it will not be business like it was before or even during the pandemic.

“Most of our clients want some hybrid between those two options, where there is more in-person interaction than during the pandemic, but probably not as much as there was before,” Bean said. Once people started learning videoconferencing and Microsoft 365, he noted, they saw how helpful these tools can be even when everyone is in the office.

As IT providers continue to transition their clients from premise-based servers to the data cloud, they also predict other big shifts on the horizon. For example, with so many companies using smartphones and laptop computers to make calls, the company phone system may soon be a thing of the past.

“A few years from now, the idea of having both a computer and a phone on your desk at work is going to be a very strange concept,” Bean said, especially when companies consider the economics of supporting two systems that make phone calls.

While the demise of the office phone seems inevitable, office space itself could be in for a big reduction, Christianson added. “We’ve seen a lot of instances where people are moving from bigger spaces to smaller ones. They are making the calculation that some people are not coming back.”

Charlie Christianson

Charlie Christianson

Even if it’s in a smaller space, Hogan asserted that an office presence is still vital. “I don’t think we’ll go back to the way it was before, but many people still want to return to their offices, even if only for collaboration and camaraderie.”

Because Zoom and other virtual platforms make it easy to meet with people anywhere, companies have begun to look more closely at their business travel budgets, too. CEO clients have told Beaudry they will not eliminate business travel, but will look to reduce it to only what is necessary.

“One CEO who used to travel 40% of the year said he plans to move most of his meetings to virtual platforms,” he said. “He figures to be 10 times more efficient and save his energy from traveling all over the country.”

As much as Bean would like to see some of the fatigue and expense of travel go away, he also admits that important interactions happen in person that just don’t occur in a virtual setting. He gave an example of logging on to hear a keynote speaker versus attending the event in-person.

“Oftentimes, the person sitting at my table is more valuable to me than the keynote speaker,” he said. “That person might lead to a great networking opportunity where they need my services, or maybe they have a service I need.”

 

Safe at Home

While working at home can provide many benefits for employees and their companies, IT providers say it comes with a whole new array of challenges. Looking at a business with 30 employees, Beaudry gave an example of how quickly technology issues change when working remotely.

“If half the employees work from home,” he said, “the company has gone from managing one network to dealing with the struggles of 15 home networks.”

Common issues when working at home include internet signal strength and the different types and capacities of home modems. Topping all those concerns, however, is the increased vulnerability to a company network getting hacked.

All it takes is one employee to click an attachment in a suspicious e-mail, and the whole network can be damaged by a cyberattack. When working from home, Beaudry said, employees are less likely to ask the simple questions when they confront something that looks suspect.

“You don’t have someone turning to their co-worker, saying, ‘hey, did you get this e-mail? It looks weird,’” he said, adding that he encourages his clients to call whenever they see anything suspicious. “If you take 30 seconds to call and ask, it can save you a week of losing your computer.”

Christianson said cybersecurity is a never-ending battle. “Hackers are always looking for ways into your network. They only have to be right once; we have to be right all the time.”

That’s where IT service providers come in. While today’s technology tools are better than ever, Bean said IT pros can set up a company’s system to make it work best for its needs and stay current on all the security threats.

Beaudry compares his work to that of a plumber. “People need computers for business just like they need water in their home and business,” he said.

And, just like plumbing, if security on a computer network isn’t handled properly, you can have a real mess on your hands.

Opinion

Editorial

Nearly five months into the COVID-19 pandemic, one of the biggest issues — and questions — to emerge involves remote work and its future.

Indeed, while many people have returned to the office over the past several weeks, large numbers of employees continue to work from home. And the longer they do that — with generally positive results when it comes to productivity and overall satisfaction among managers and workers alike — the more people ask the $64,000 question: is this the future of work?

The answer right now is, by and large, ‘we don’t know — but we’re certainly looking at it.’ And the reasons for this are obvious. Having large numbers of people working at home could save companies considerable amounts of money on real estate, office design and accommodations, and other expenses. And from some of the early reports, they can do this while making employees happier — most of them enjoy working from home and not commuting — and perhaps more productive, partly because, again, they’re happier and they’re not commuting.

But this goes well beyond real estate, and that’s why this issue deserves the attention it is now getting. Remote work has the potential — the potential, mind you — to perhaps level the playing field when it comes to urban and rural areas, and also perhaps change the landscape when it comes to downtowns dominated by office buildings — and the businesses that serve the workers in those buildings.

That’s perhaps. We’re getting a little ahead of ourselves, but not really. These are the kinds of questions — and scenarios — that are already being talked about.

As that talk goes on, so does the discussion about remote work itself. As noted earlier, most of the early returns are positive. Companies do talk about how they miss the in-person interactions and a loss of the some of the collaborative spirit that comes with having everyone working in the same space.

But generally, they also talk about how productivity has not been impacted by people working at home, and how much employees appreciate these new arrangements. Some companies, like Google, have already told employees (most of them, anyway) they can and will work at home until roughly this time next year.

Whether these arrangements are being made, tolerated, and even applauded purely because of the pandemic remains to be seen. Maybe, when there’s a vaccine, everyone will return to the office and things will be as they were in February 2020.

But that now seems unlikely. COVID has, in many ways, shown the world that working from home is a viable option, one that could bring benefits for employers and employees alike. And this opens up a number of possibilities.

Indeed, individuals now living in Boston won’t have to live in that area to work for companies located there. They can live in Western Mass., where the living is cheaper, the air is cleaner, and the roads are less clogged (for now). Speaking of roads, do we have to worry about them being clogged again?

Meanwhile, people living in Western Mass. won’t have to work for companies located in Western Mass. Some of them don’t anyway, but now more can enjoy that option.

And what about high-speed rail? Will we still need it if far fewer people will need to travel across the state to work? Seems like the playing field may be leveled without it.

While in some respects these seem like questions for another day, they are appropriate to ask right now. And if the pandemic lingers and people continue to work from home successfully and productively into next year, these questions will be asked more and more — and the answer might well become obvious, if it isn’t already.

There have been many stories to emerge from this pandemic, but remote working may be the biggest of them all. There are many questions still to be answered and research to be done, but this may just be the future of work — or a very big part of it. And the impact could be enormous.