Hedge funds are on the hunt for a record amount of premium office space in London as top-performing managers expand headcount and prepare for further growth following a stretch of outsized returns, according to a report by Bloomberg citing data from real estate consultancy Knight Frank.
Hedge funds are currently seeking 474,000 sq ft of office space in the UK capital – the highest level since tracking began in 2019. The boom underscores the sector’s rapid expansion following bumper returns in 2024 and a strong first half of 2025, with many multi-strategy funds outperforming despite global market shocks triggered by renewed Trump-era tariffs and escalating Middle East conflict.
With demand for hedge fund strategies soaring — and some large firms returning capital to protect performance — top players are scaling up operations, boosting hiring, and seeking larger workspaces to accommodate growth. Some managers are leasing more space than currently needed, opting to sublet the excess to maintain flexibility and secure room for future expansion.
While traditional hedge fund hubs like Mayfair and St James’s remain in high demand, space in these districts is increasingly scarce. Just 870,000 square feet of new inventory is expected to come online in these neighbourhoods through 2027, driving some firms to look eastward.
Citadel has pre-let at least 250,000 square feet at 2 Finsbury Avenue in the City of London’s Broadgate campus, while Squarepoint Capital has agreed to take 400,000 square feet at 65 Gresham Street — both among the largest office deals in the hedge fund sector.
