According to Reuter’s reporter Ilaina Jonas, hedge funds are driving up commercial rents in Manhattan. The reason? Apparently because hedge funds need especially plush surroundings.
Reutersâ€™ Ilaina Jonas writes: “Many hedge funds are not only able to pay top dollar for their offices, but they need to do so to impress and retain both clients and staff. Like a magnet, hedge fund rents have pulled up other rents across the market.”
“Rents surpassing $100 per square foot â€” shocking just a year ago â€” were too numerous to count,” Ms. Jonas wrote.
The actual work of hedge funds doesnâ€™t take a lot of space (although some of them do have sizable trading floors), but they still typically tend to rent 10,000 to 20,000 square feet because they need views (often of Central Park) and other accoutrements to impress clients (and, in some cases, themselves) such as gyms, kitchens, and private rest rooms.