Flex workspace tech firm essensys eyes US, APAC expansion

The UK-based company raised $46M; BlackRock now ranks among its largest investors

National /
Aug.August 04, 2021 02:00 PM
essensys CEO Jeremy Bernard (iStock)
essensys North America CEO Jeremy Bernard (iStock)

Armed with fresh funding, the flexible workspace software provider essensys is expanding its presence in the U.S. and Asia.

The U.K.-based firm, which listed on the London Stock Exchange in 2019, raised $46 million in a primary share placement and plans to use the funds to double its U.S. workforce in the coming year, Jeremy Bernard, the firm’s North America CEO, told The Real Deal.

The company also will expand in the Asia-Pacific region, having recently appointed Eric Schaffer, who will be based in Hong Kong, to run the region as CEO, Asia Pacific.

“We had a lot of our existing investors participate in this round, and we brought in some new strategic investors,” Bernard said, adding that BlackRock is now one of the company’s largest backers.

Flexible workplaces became mainstream during the pandemic, and many landlords now view them as an essential offering as employers begin to return to their physical offices, Bernard said. Tenants will sign a long-term lease, but as part of the deal they want access to flex space and amenities at other buildings, and they want secure, frictionless access and data continuity wherever their employees open their laptops. Bernard called it the “campus effect.”

“This is an employee-driven marketplace right now,” he said. “The name of the game is, how do you attract and retain the top talent? If you can’t offer a hybrid structure to your employees, they’re just going to go to [another employer].”

Founded in 2006, essensys works with institutional landlords like Tishman-Speyer and public REITs as well as major flex workspace operators like Industrious. The company services more than 20 million square feet across more than 170 cities globally, according to its website.

essensys has operated in the U.S. for five years, mainly in New York, Los Angeles and San Francisco. The company plans to grow in those markets and follow its tenant base into other U.S. cities, Bernard said.

The pandemic shifted landlords’ focus to keyless access, sensor technology and environmental controls that promote health and sustainability -— and they are relying on portfolio-wide digital infrastructure to achieve those aims.

“We’re really witnessing a digital transformation of the office at the moment,” he said. “That’s not just short term. That’s permanent.”






    Related Articles

    arrow_forward_ios
    Deal of the Art: Chen gets $31.5M for Hollywood gallery
    Deal of the Art: Chen gets $31.5M for Hollywood gallery
    Deal of the Art: Chen gets $31.5M for Hollywood gallery
    Kidder Mathews taps CIM Group exec to lead LA operations
    Kidder Mathews taps CIM exec to lead LA operations
    Kidder Mathews taps CIM exec to lead LA operations
    808 S. Broadway and Steve Needleman of Anjac Fashion Buildings (Google Maps, Getty)
    Downtown LA’s biggest rentals set for Fashion District
    Downtown LA’s biggest rentals set for Fashion District
    LTC Properties CEO Wendy Simpson (Getty)
    Senior housing mortgage REIT puts $46M into Q3 deals
    Senior housing mortgage REIT puts $46M into Q3 deals
    PS Business Parks CEO Mac Chandler and new CFO Adeel Khan (PS Business Parks, LinkedIn via Khan)
    PS Business Parks taps former Rexford exec as CFO
    PS Business Parks taps former Rexford exec as CFO
    (Unsplash / Marty O’Neill)
    LA County office availability hits 10-year high
    LA County office availability hits 10-year high
    Councilmember Joe Busciano and Council President Nury Martinez (Getty, Busciano)
    LA delays vote on strict vaccine requirement for indoor spaces
    LA delays vote on strict vaccine requirement for indoor spaces
    SoLa Impact founder and CEO Martin Muoto, whose firm plans an apartment complex in Park Mesa Heights (Google Maps, SoLa Impact)
    SoLa Impact plans 195-unit rental complex in Park Mesa Heights
    SoLa Impact plans 195-unit rental complex in Park Mesa Heights
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...