Mayfair To Feel Effects of Credit Crunch

Mayfair has long been the home of London's hedge fund community. Many of these slightly secretive, sophisticated financial vehicles have taken a real hammering as a result of the global economic crisis, and this sector could be facing closures on a large scale.

The hedge fund community collectively have accounted for a major slice of Mayfair's commercial property tenants, and they paid premium rents. We're talking super prime rates which put even the City of London in the shade. They could afford to do this because, frankly, there was huge amounts of money sloshing about.

But as many firms close down or move out, and demand for office space set to fall with companies unwilliing or no longer able to afford previous rates, office landlords in Mayfair can look forward to a period of markedly reduced rental income and unlet space.

More on the effects of the Credit Crunch on Mayfair's hedge fund community in the Telegraph.

Gap Between Mayfair and City Office Prices Widens

A new report by CB Richard Ellis has found that the difference in prime office space costs between the West End and the City is at its widest ever level . Within the West End, the headline figure is actually skewed upwards by two sub markets which demand prime rentals of £120.00 per sq ft - Mayfair and St James's.

Prime rental costs in the City stands at only £65.00 per sq ft. The City faces competition from Docklands and new developments on the South Bank, whilst West End tenants are less likely to look at other areas. The research says "top prime rents of the West End are being driven by a relatively small number of tenants that have strong preferances for very specific locations in the West End".

Read the CBRE Report

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Mayfair Serviced Offices