If they’ve got no business why do they need to be paying expensive rent?
Greenwich Time: Some hedge funds in the region are looking to sublease their office space as they downsize or shut down in the lagging economy.
John Goodkind, managing principal of Greenwich-based commercial real estate firm Newmark Knight Frank, said about 20 per cent of Greenwich hedge funds are considering subleasing all or some of their office space to cut their expenses. He said he expected about half of them to do so in the next six to nine months.
“It’s the immediate wave of the future because the Greenwich hedge fund market is not immune from a meltdown,” Goodkind said, adding that space is being offered at 20 per cent to 30 per cent less than the original lease. “Fairfield County, with Greenwich being the nexus, is in for a very difficult period of time for tenants that are subleasing space.”
From 70 per cent to 80 per cent of office space in Greenwich is devoted to financial service firms, including hedge funds, Goodkind said.
“It’s a bit of a one-horse town,” he said.
Well, actually, we do know of another industry that’s expanding in Greenwich.
Hat Tip: For What It’s Worth