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September 2014
Hedge Fund Index
The New York City hedge fund index tracks 24 trophy buildings in Midtown Manhattan which have a high concentration of boutique hedge fund, investment
management, and related financial service tenants. Since our last update, pricing among the top tier buildings has trended upward consistently. The high asking
rent for direct space is above $100 per square foot in all but one of these signature properties.
Hedge fund
in todays changing market
August 2014
Hedge fund activity
in todays changing market
September 2014
$95
$160
$65
$60
T
e
m
p
o
r
a
r
i
l
y

o
f
f

m
a
r
k
e
t

$55
$130
$115
$125
$160
$165
$135
$140
$150
$87
$185
$125
$110
$140
$135
$115
$110
$225
$120
$103
$90
$86
$95
$120
$125
$98
$70
$165
$73
$65
$60
$110
$80
$90
$138
$100
$165
$110
Lowest Sublease Rents Highest Direct Rents Lowest Direct Rents
$65
$150
$97
$135
Hedge Fund Index - Low Asking Rent

The overall "low asking rent in the index of buildings averages at $89.71 per sq. ft. This is an 8% increase from mid 2013, when the low average was $83
per sq. ft. Clearly sublease space is tightening, indicating fewer below market options for tenants seeking value space. Eight buildings have sublease space as
the low rent option, representing a decrease from last year. 660 Madison Avenue is the one trophy building with only sublease space available. Sublease space
is often discounted due to factors such as shorter remaining term length, condition of the space itself, encumbrances, lack of landlord privity, and general risk often
associated with sublandlord credit.

Historically, sublease space in Midtown is offered at an average 25% discount to direct space. Currently in the index trophy buildings, the discount is larger with
sublease rents, offering an average discount of 48%. This seems to indicate that with a relative dearth of high-end direct space, trophy building Landlords
may be patient in waiting for rents. However, tenants who are disposing of space and in a position of being a sublandlord are more incentivized to set lower
pricing expectations in order to hasten the process. Historically, discounted, shorter-term sublease options have proved to be valuable options for hedge funds
who are seeking built and furnished units in the higher-quality buildings.

Hedge Fund Index - High Asking Rent

The direct "high asking rent shown in green has increased slightly or remained steady in two-thirds of the buildings on the survey. Four of the trophy buildings
that now have direct space available offered only sublease space in 2013. However, several buildings showed a relatively large increase in asking rents namely
9 West 57
th
Street and 520 Madison Avenue. As a result, the overall high asking rent average is $137.95 per sq. ft., an 8% increase from mid 2013.

9 West 57
th
Street remains the highest-priced building in New York, and while the building does not officially quote asking rents, the peak rent is approximately
$225 per sq. ft., followed by 667 Madison Avenue at $185 per sq. ft., and both 375 Park Avenue and 650 Madison Avenue at $165 per sq. ft. After having only
sublease space available for several years, the GM Building at 767 Fifth Avenue has direct space available on the 26
th
floor asking $135 per sq. ft.

Forecast

While the overall midtown vacancy rate is 10.7% , the average vacancy rate among trophy assets is 8.5%. 9 West 57
th
Street, 280 Park Avenue and 1330 Avenue
of the Americas remain the three trophy assets with the highest vacancy rates, at 40%, 36% and 30% respectively. However, 19 buildings are currently at less
than 10% vacancy and may constrain tenants with a decreased inventory available to accommodate expansion.

In the past year, 65 East 55
th
Street, 450 Park Avenue and 650 Madison Avenue were sold at prices per square foot ranging from $1,217 to $2,150, peak pricing
even by New York City standards. As such, expectations are that taking rents will rise sharply to justify these purchase prices.




September 2014 August 2014
Hedge fund activity
in todays changing market
September 2014
Building Photo



Building 156 West 56
th
Street 152 West 57
th
Street 1441 Broadway
Address Between 56
th
& 57
th
Streets Between 56
th
& 57
th
Streets S/W/C West 41
st
Street
Ownership Tishman Speyer TF Cornerstone Inc. LH Charney & Associates
Floor / RSF Partial 20
th
Floor / 2,472 rsf Partial 9
th
Floor / 4,336 rsf Partial 24
th
Floor / 4,236 rsf
Asking Rent $68 $55 $55
Term Through June 2016 2-10 years Through April 2021 or 3 years min.
Sublandlord Rosemawr Management DSA Platinum Properties
Comments Hedge fund space with two windowed,
glass-front offices, a conference room,
and eight workstations. Furniture is
available.
Space is built and furnished with 6 glass-
front offices, a large conference room,
reception and open area.
The space is built with an above standard
installation with 4 class offices, a large
conference room, and workstations for 35
people. Phones and furniture are
available.
Floorplan








Newly Available Sublease Spaces
April 2011
May 2013 September 2014 August 2014
Hedge fund activity
in todays changing market
September 2014
Building Photo



Building 767 Fifth Avenue 767 Fifth Avenue 650 Madison Avenue
Address Between 58
th
& 59
th
Streets Between 58
th
& 59
th
Streets Between 59
th
& 60
th
Streets
Ownership Boston Properties Boston Properties Vornado Realty Trust
Floor / RSF Partial 19
th
floor / 8,945 rsf Partial 46
th
floor / 10,652 rsf Entire 20
th
floor / 12,861 rsf
Asking Rent $100 $135 $97
Term Through September 2020 Through March 2016 Through April 2020
Sublandlord Perry Capital Citigroup Ranieri Partners
Comments High-end installation with 2 executive
offices, 12 private offices, trading desks
for 12 people, 12 cubicles and a large
conference room.
High-end installation with 4 offices, 3
workstations, a large boardroom and a
conference room.
The space is built with 15 offices, 12
workstations 1 large conference room
and 1 meeting room.
Floorplan




Newly Available Sublease Spaces
April 2011
May 2013 September 2014 August 2014
Hedge fund activity
in todays changing market
September 2014
Building Photo



Building 712 Fifth Avenue 555 Madison Avenue Buchmann Tower
Address S/W/C West 56
th
Street S/E/C East 56
th
Street 680 Fifth Avenue
Ownership Paramount Group Rodney Corporation 680 Fifth Avenue Associates, L.P.
Floor / RSF Partial 45
th
floor / 3,160 rsf Partial 12
th
floor / 7,500 rsf Partial 26
th
floor / 4,783 rsf
Asking Rent $125 $62 $84
Term Through January 2018 Through September 2022 5-10 years
Sublandlord Merchants Gate Further Lane Securities Direct space
Comments The space is newly built with 5 windowed
offices with Central Park views. Furniture
may be available.
Space is built with perimeter offices, a
large conference room, several meeting
rooms, and a large open area with
trading desks. Space is completely wired
and furnished.
The space will be pre-built with 4 offices,
open space for workstations, and a
conference room. Space will be delivered
October 2014.
Floorplan




Newly Available Sublease Spaces
April 2011
May 2013 September 2014 August 2014
Hedge fund activity
in todays changing market
September 2014
Building Photo



Building 400 Madison Avenue 400 Madison Avenue 99 Park Avenue
Address Between 47
th
& 48
th
Streets Between 47
th
& 48
th
Streets Between 39
th
& 40
th
Streets
Ownership ASB Capital Management ASB Capital Management OSL Shipping & Development Inc.
Floor / RSF Partial 15
th
floor / 2,564 rsf Partial 4
th
floor / 3,740 rsf Partial 19
th
floor / 8,527 rsf
Or divisible to 4,500 rsf & 4,027 rsf
Asking Rent $70 $65 $49
Term Through September 2016 Through May 2016 Through September 2020
Sublandlord VR Capital Edge Industry Funds Management
Comments The space is built with a high-end
trading installation with 3 offices, a
conference room and 6 trading desks.
The space is fully wired and furnished.
The space is built with a mix of
conference rooms, offices and two
open trading areas.
The space has a new installation with 10
offices, 3 conference rooms, and bench
seating for 30 people.
Floorplan




Newly Available Sublease Spaces
April 2011
May 2013 September 2014 August 2014
Hedge fund activity
in todays changing market
September 2014
April 2011
May 2013
Recently Completed Transactions Financial Service Firms
For further information, please contact:
Cynthia Wasserberger at 212.812.5816 or cynthia.wasserberger@am.jll.com
Renewal/Expansion Jennison Associates 237 Park Avenue 166,000
Renewal FactSet Research 90 Park Avenue 102,000
Sublease Fortress Investment Group 1345 Avenue of the Americas 48,345
New Taconic Capital 280 Park Avenue 39,850
Expansion Guggenheim Partners 330 Madison Avenue 36,000
New Fair Oaks Capital 152 W 57th Street 34,775
New KLS Professional Advisors 1325 Avenue of the Americas 30,862
Renewal Banco de la Nacin Argentina 230 Park Avenue 23,407
Expansion Mizuho Bank 1251 Avenue of the Americas 23,234
New Lew Frankfort 3 Columbus Circle 21,342
New Audax 320 Park Avenue 19,274
Sublease Allied Irish Bank 1345 Avenue of the Americas 18,573
Renewal/Expansion SEI Investments 777 Third Avenue 18,412
Sublease Novus Partners 200 Park Avenue 18,375
New Atlas Capital Management 375 Park Avenue 17,519
Expansion American Realty Capital 405 Park Avenue 16,353
New Federal Home & Loan 717 Fifth Avenue 14,784
New China Merchants Bank 535 Madison Avenue 14,765
New Odyssey Investment Partners 590 Madison Avenue 14,230
New Apple Tree Life Sciences 230 Park Avenue 14,169
New Litespeed Partners 745 Fifth Avenue 14,044
New PJT Partners 40 W 57th Street 13,500
Sublease J.F. Lehman & Company 110 E 59th Street 13,284
Renewal PennantPark 590 Madison Avenue 12,836
Expansion Bessemer Trust 630 Fifth Avenue 11,835
Expansion Deerfield Asset Management 780 Third Avenue 11,300
Expansion American Century Investments 666 Third Avenue 11,238
New W Capital 400 Park Avenue 10,692
New Searchlight Capital Partners 745 Fifth Avenue 10,408
Renewal Gagnon Securities 1370 Avenue of the Americas 10,270
Type Tenant Address
Square
Feet
August 2014
Hedge fund activity
in todays changing market
September 2014
Hayley Shoener
Associate
(212) 812-6535
Hayley.Shoener@am.jll.com
Jonathan Schifrin
Senior Vice President
(212) 812-5832
Jonathan.Schifrin@am.jll.com
Cynthia Wasserberger
Managing Director
(212) 812-5816
Cynthia.Wasserberger@am.jll.com
Cynthia has been actively involved in providing real estate services to financial service clients over the past 18 years. She assists key prime brokerage groups
and focuses on transaction work for numerous boutique hedge funds and investment management firms. She has completed over 100 deals in this arena.
Cynthia holds a business administration degree fromUniversity of Florida, and a Master of Science in Real Estate Finance fromNew York University. She is
an active member of The Real Estate Board of New York and the New York University Real Estate Alumni Association. She is also involved with The Doe
Fund organization in New York, and was recognized in 2009 as a Woman of Valor by the Capuchin Food Pantry / St. Francis of Assisi.


Jonathan Schifrin is a senior vice president in JLLs New York Office and is a tenant representation specialist. Mr. Schifrin has more than eight years of
experience in the commercial real estate industry. Mr. Schifrin holds a master of science degree in real estate fromNew York University and a bachelor of arts
degree fromEmory University. He is actively involved with Israel Bonds and serves as a vice chairman of the New Leadership Cabinet.




Hayley Shoener is an associate in JLLs New York office and specializes in tenant representation. Ms. Shoener focuses on business development, market
research, transactional support and financial analysis. She also worked as an intern at JLL in both the Research and Brokerage departments in 2012. Ms.
Shoener graduated cumlaude fromBoston College in 2013 with a bachelor of arts degree in History and a minor in French. She is a member of the Real Estate
Board of New York.



August 2014
Hedge fund activity
in todays changing market
September 2014