Office Pods: A Cost-Saving Alternative to Traditional Meeting Rooms

A recent study has revealed that office pods offer a more cost-effective solution than constructing new meeting rooms. This finding could have a profound impact on the many underprepared office spaces across the United States—potentially saving the industry over $30 billion by 2030.

For the second time since 2019, Framery partnered with commercial real estate services firm CBRE Finland to compare the total costs of one, four, and six-person Framery soundproof office pods against the expense of building meeting rooms of similar sizes in Europe, North America, and Asia. Once again, the report provides valuable insights that equip office tenants and managers with essential information to make strategic decisions regarding office design and layout.

The Changing Needs of Modern Offices

Workplaces worldwide are recognizing that they are not adequately equipped for the evolving needs of today’s workforce. Meetings are becoming shorter, and 90% now include at least one virtual participant. As a result, modern offices require quiet spaces for calls and small meetings. However, well-equipped meeting rooms are in short supply—especially in open-plan offices, which gained popularity in the pre-pandemic era. Now, companies must decide: should they invest in building more meeting rooms or opt for flexible office pods?

Rising Demand for Private Office Spaces

Businesses everywhere are striving to accommodate the increasing need for private spaces, as they compete with the convenience and amenities of remote work. Office occupiers are increasingly investing in flexible and adaptable spaces to attract employees back to the office post-pandemic. 

Updating office environments comes at a significant cost. According to a Cushman & Wakefield study, over 41% of office spaces in the U.S. require refurbishment—equating to 2.6 billion square feet of vacant or inadequate office space that does not support the needs of hybrid work and productivity. Constructing new meeting rooms in these spaces would cost over $85 billion.

Additionally, the Cushman & Wakefield study notes that the average square footage per office employee has dropped from 190 to 165 square feet post-pandemic. This translates to roughly 15.7 million employees utilizing these spaces. Pre-pandemic recommendations suggested one phone booth for every 15 employees, one small meeting room per 20 employees, and one mid-sized meeting room for every 20 employees.

The Cost Advantage of Office Pods

Using data from CBRE’s 2023 cost study, the estimated cost of constructing meeting rooms to accommodate the insufficient U.S. office spaces would total $85.8 billion. In contrast, office pods offer a significant cost reduction—the expense of building meeting rooms is, on average, 55% higher than the cost of Framery pods. The same level of private space could be achieved with Framery pods for approximately $55.5 billion, resulting in potential savings of $30.3 billion by the decade’s end.

Office Pods: A Flexible and Sustainable Solution

Beyond cost savings, office pods provide a modular, flexible, and environmentally friendly alternative to traditional meeting rooms. “As a culture, we are shifting to a more flexible way of working. That is where office pods come in,” says Framery CEO Samu Hällfors. “Pods are compact and make better use of existing space. They allow for greater flexibility in rearranging and reconfiguring offices. And they can be moved to a new location when needed. That all greatly reduces the lifetime costs associated with running an office, especially in larger cities with high-priced real estate.”

Additionally, soundproof office pods benefit both employers and employees. Workers increasingly expect private spaces for focused work and virtual meetings. “One of the most in-demand building offerings is phone booths and private suites, where workers can take phone calls or remote meetings alone or in small groups,” notes Niemistö. Companies are responding by incorporating enclosed spaces like Framery pods, which support both concentration and collaboration.

Growing Market Demand for Office Pods

Framery pioneered the office pod market with the introduction of its Framery O model—the world’s best-selling pod. Today, major corporations such as Microsoft, L’Oréal, and Tesla utilize Framery pods, with demand expected to rise significantly in the coming years. “In 2013, the global market for pods was roughly 1,000 units. Now it is tens of thousands of pods. We’ve seen over 200 manufacturers pop up globally since we created the market in 2010,” says Hällfors.

CBRE’s global research highlights that access to private, focus-oriented spaces is now the most desired office amenity—ranking even higher than private offices in employee preferences. “The increasing demand for these office pods isn’t coming so much from management as it is from employees themselves,” Hällfors adds. “Innovative, cost-effective solutions like these are key to encouraging employees to return to the office.