The West End is still the number one office destination for hedge funds in Europe, a report by Jones Lang LaSalle claims.
Hedge funds paid some of the highest rents in London last year, and there have not been mass relocations to Switzerland, which some had forecast in 2010, according to the agent’s “Hedging the risk” report.
The number of West End transactions was lower than previous years, but this was partly because of limited stock and limited development in the pipeline.
Andrew Barnes, director in Jones Lang LaSalle’s West End agency team, said: “There has been a definite change in where hedge fund managers will consider looking, with some now prepared to consider alternative locations to keep occupational costs in check, particularly if the building has a high profile. However, for some, Mayfair will always remain the premier choice despite costs.”
Cushman & Wakefield recently claimed hedge funds are beginning to exit Mayfair owing to soaring rents.
joanna.bourke@estatesgazette.com
