In the commercial real estate industry, hedge fund clients are highly favored. This is because they will pay extreme prices for the space they want their offices in. Brokers, interior decorators and landlords are eager to do business with them. Often, they are paying $100 plus per square foot to rent and over $400 for each square foot to be decorated. The luxurious additions they want include gourmet kitchens and private health club facilities.
The down side to renting to the hedge fund clients is that they want only specific space in specific buildings. There are only a small number of addresses they feel are prestigious enough for their offices.
These locations include 9 West 57th Street, 375 and 390 Park Avenue, 767 Fifth Avenue; and the brokers they are willing to deal with are expected to know everything about these buildings. For example, what is the competition that resides in office space in the buildings.
Some demands they make include adding executive showers to an office suite. Later on, that may pose a problem for the landlords, such as after the hedge fund owner vacates. This is a distinct possibility since the aftermath of the industry crisis leaves hedge funds in a position of possibly collapsing.
Other locations are being looked at by hedge fund clients. However, the prime locations remain most in demand. Brokers naturally favor clients who are willing to pay an average of one hundred to over one-hundred fifty per foot of space. When compared to the Midtown average of approximately sixty dollars, it is easy to see why.