January 22, 2007

The "race" for London office space

London's booming residential market seems to get the most press attention, the WSJ recently highlighted the capital's tight race for office space amongst hedge fund operators:
The proliferation of hedge funds and private-equity firms has sent rents skyrocketing and vacancy rates plunging in London's Mayfair district -- home to many of London's largest and best-known financial firms. Some buildings are being snapped up even before they are finished. In the past year, prime rents have jumped 22% to nearly $180 a square foot for the best space in Mayfair ... [but] the party could crash amid a market meltdown or large scandal involving hedge funds. Roughly 1,300 hedge funds have liquidated in the past two years, according to Hedge Fund Research.

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