Belt Tightening in the West End:

Back in February we reported the increasing trend for the luxurious Georgian building of Mayfair and St James’s to be converted back into private residences (http://propertyforum.blogspot.co.uk/2012/02/home-office.html)

A recent report from our friends at Cushman & Wakefield now confirms this, and also raise an interesting question with regard to perceptions in these straightened times.  It would appear that now only 50% of hedge fund managers are based in the area, compared to over 70% 5 years ago.  The exodus away from the area to the more affordable and less extravagant Marylebone, Soho and Knightsbridge (really?) is continuing, they say.  With hedge funds losing 3% of their value last month alone, investors are, apparently, less impressed with the lavish offices and wish those managing their funds to have a more frugal presence.

One of the effects of this is to place upward pressure on the market in the area.  Rental levels on refurbished space in Mayfair are already breaking the £100 per sq ft level and, with a narrowing range of choice as new developments hit an all time low, there will be continual upward pressure on the limited vacant space available.