Regulation forces financials out of Central London

London UKHedge fund and private equity firms are dominating office leasing in core areas of London among the non-banking financial services sector, according to research.

The figures, published by property consultants Cushman & Wakefield, show financial services firms rented 240,000 square feet of office space in the first quarter this year, with hedge funds and private equity firms accounting for 41% of this total – or 23% and 18% respectively.

However, while the figures indicate financial services occupiers currently pay some of the highest rents in London, cost-conscious firms are increasingly seeking better value for money, locating outside core West End areas.

Cushman & Wakefield suggested this change could be attributable to the rising cost of regulation, and the added cost of hiring staff and purchasing to boost compliance and governance capabilities.

In the West End alone in 2015, there was an overall 53% increase in take-up from non-banking financial services firms last year.

Looking forward, while demand continues to outstrip supply, the firm expects demand to slow in the second quarter of this year as the ‘Brexit’ referendum on June 23 approaches. Once the plebiscite is complete, it will accelerate again.

©2016 fund europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST