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12/01/2009
West End rental prices 'collapse' |
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Rents for prime offices in London's West End have slid amid the woes of hedge fund managers, according to reports.
Property consultancy NB Real Estate has found that rents in the area fell by around 30 per cent last year, from a high of £120 per square foot at the end of 2007 to £85 at the same time in 2008.
James Gillett, director of Central London markets at NB Real Estate, said: "Investment banks and commercial banks have had it tough, but hedge funds are having an even tougher time."
Mr Gillett that the boom in the hedge fund sector meant they "paid scant regard" to the costs of the property they were taking on and they were prepared to outbid any competitors to secure prime properties.
However, the downturn has forced hedge funds to cut costs and renegotiate rental deals down.
Hedge fund Permal Investment Management Services holds the record rent of £140 per square foot in the West End for offices based at St James's Square, it has been reported.
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