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Density, which is a company that provides occupancy-tracking sensors, announced this week that it has just completed a $125 million funding round at a ~$1 billion valuation. This is their Series D. Official announcements, here and here.
On a practical level, the company provides workplace space analytics. They offer sensors that allow companies to anonymously measure how people are using their offices.
How long people are at their desks for (possibly weird), which conference rooms are most used, where people socialize, and so on. With the idea being that if you measure it, you can then optimize it. It's about how to best use your real estate.
But their overarching mission is "to measure and improve out footprint on the world." Their ambitions seem to go beyond just office space. It's about how we occupy our cities, and using analytics to more efficiently design and build them going forward. And that's pretty interesting.
I'm not intimately familiar with the company, but I thought I would share the news with all of you in case you'd also like to check them out.
Peggy Noonan argues, in this recent WSJ article, that the world has changed forever. A human habit was broken during this pandemic and city life, including office life, will never be the same in New York City. She qualifies this by saying that some people will return to offices, potentially in significant numbers. (People like being around other people.) But that things will never be what they once were. We've learned that we can decentralize and still get work done.
As many of you know, I am bullish on cities and I am bullish on offices. So I found myself disagreeing with many of her arguments. But Peggy does raise some valid concerns: How are cities going to pay for what just happened over the last 12 months? According to the Partnership for New York City, the city lost about 500,000 private-sector jobs since March 2020. About 300,000 residents from high-income neighborhoods also filed for a "change of the address" during this time period.
Given that the top 5% in New York represent about 62% of the state's income tax base, the movement of people to low-tax states (and warmer places) is something to watch. It's also a trend that existed well before this pandemic.
At the same time, I'm not necessarily convinced that (at least some of) these fleeing rich people aren't coming back. I was speaking with a real estate agent over the weekend who is based in a popular US resort/recreation market and while he told me that, yes, he's seeing a massive influx of people from expensive coastal markets, these people are largely choosing to rent. They want to take the lifestyle for a test drive and they are also waiting to see what happens with the world once city life returns.
There will be real financial challenges coming out of this. But as I've said time and time before, cities are remarkably resilient. And as Jack Shafer argued in this recent article about "memorializing the pandemic," humans tend to have short memories, especially when it comes to bad things. The Spanish Flu has been regarded by many as a forgotten pandemic. We moved on and the same will happen this time around.
Density, which is a company that provides occupancy-tracking sensors, announced this week that it has just completed a $125 million funding round at a ~$1 billion valuation. This is their Series D. Official announcements, here and here.
On a practical level, the company provides workplace space analytics. They offer sensors that allow companies to anonymously measure how people are using their offices.
How long people are at their desks for (possibly weird), which conference rooms are most used, where people socialize, and so on. With the idea being that if you measure it, you can then optimize it. It's about how to best use your real estate.
But their overarching mission is "to measure and improve out footprint on the world." Their ambitions seem to go beyond just office space. It's about how we occupy our cities, and using analytics to more efficiently design and build them going forward. And that's pretty interesting.
I'm not intimately familiar with the company, but I thought I would share the news with all of you in case you'd also like to check them out.
Peggy Noonan argues, in this recent WSJ article, that the world has changed forever. A human habit was broken during this pandemic and city life, including office life, will never be the same in New York City. She qualifies this by saying that some people will return to offices, potentially in significant numbers. (People like being around other people.) But that things will never be what they once were. We've learned that we can decentralize and still get work done.
As many of you know, I am bullish on cities and I am bullish on offices. So I found myself disagreeing with many of her arguments. But Peggy does raise some valid concerns: How are cities going to pay for what just happened over the last 12 months? According to the Partnership for New York City, the city lost about 500,000 private-sector jobs since March 2020. About 300,000 residents from high-income neighborhoods also filed for a "change of the address" during this time period.
Given that the top 5% in New York represent about 62% of the state's income tax base, the movement of people to low-tax states (and warmer places) is something to watch. It's also a trend that existed well before this pandemic.
At the same time, I'm not necessarily convinced that (at least some of) these fleeing rich people aren't coming back. I was speaking with a real estate agent over the weekend who is based in a popular US resort/recreation market and while he told me that, yes, he's seeing a massive influx of people from expensive coastal markets, these people are largely choosing to rent. They want to take the lifestyle for a test drive and they are also waiting to see what happens with the world once city life returns.
There will be real financial challenges coming out of this. But as I've said time and time before, cities are remarkably resilient. And as Jack Shafer argued in this recent article about "memorializing the pandemic," humans tend to have short memories, especially when it comes to bad things. The Spanish Flu has been regarded by many as a forgotten pandemic. We moved on and the same will happen this time around.
This is one of the great debates of the pandemic but, as I mentioned in my 2021 predictions post, I think it's overblown. The longer I work from home and spend my entire day on video calls (only to start actual work in the evening), the more I become convinced that this is a suboptimal arrangement for productivity, collaboration, personal motivation, employee morale, and talent retention (among many other things).
We have complete conviction around great offices in the right locations. That's why Amazon and whoever else continue to build. They're rightly looking past this period of dislocation (12-24 months of suck). Again, this is not to say that there won't be some changes and that certain pre-existing trends haven't been accelerated, because they have been. But I believe that humans will continue to cluster for work.
In fact, it's hard to disentangle cities and offices. Cities are labor markets. It's where agglomeration economies take hold and where people come to improve their socioeconomic standing in the world (as well as meet people and have fun). To say that we no longer need to come together in person for work is to say, in a way, that we no longer need cities. We can all decentralize.
That is not a bet that I am prepared to make.
For more information about Capital Point and to register for the project, click here.
This is one of the great debates of the pandemic but, as I mentioned in my 2021 predictions post, I think it's overblown. The longer I work from home and spend my entire day on video calls (only to start actual work in the evening), the more I become convinced that this is a suboptimal arrangement for productivity, collaboration, personal motivation, employee morale, and talent retention (among many other things).
We have complete conviction around great offices in the right locations. That's why Amazon and whoever else continue to build. They're rightly looking past this period of dislocation (12-24 months of suck). Again, this is not to say that there won't be some changes and that certain pre-existing trends haven't been accelerated, because they have been. But I believe that humans will continue to cluster for work.
In fact, it's hard to disentangle cities and offices. Cities are labor markets. It's where agglomeration economies take hold and where people come to improve their socioeconomic standing in the world (as well as meet people and have fun). To say that we no longer need to come together in person for work is to say, in a way, that we no longer need cities. We can all decentralize.
That is not a bet that I am prepared to make.
For more information about Capital Point and to register for the project, click here.
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