London's hedge funds and private equity firms are racing to secure prime offices in the West End as competition intensifies amid unprecedented levels of limited availability, according to a report from Knight Frank.

Active requirements from niche financial occupiers reached 1.8m sq ft at the end of Q2 2026, up 5.9% year on year. This includes 252,000 sq ft from hedge funds and 235,000 sq ft from private equity firms.

Only 19% of this is under offer or in negotiations, leaving 1.5m sq ft searching for space, prompting a race for the rapidly shrinking pool of prime Mayfair offices.

Knight Frank reported that new-build vacancy in Mayfair and St James’s has fallen to 0.4%, compared with 1.5% across the wider West End, and at the end of Q2 there was no immediately available new or refurbished space capable of satisfying an 80,000 sq ft requirement.

This scarcity is changing behaviour, with financial firms increasingly starting office searches earlier, widening searches into neighbouring submarkets and securing expansion capacity ahead of need. Recent reported moves by QRT, D.E. Shaw and Citadel underline the trend.

The report flagged that supply shortages are only set to worsen, with the pipeline behind 2026 falling sharply. It states that the 2027 pipeline is already being absorbed ahead of completion – around 1m sq ft of West End core space is due to complete in 2027, but circa 40% is already pre-let.

Earlier this week, JP Morgan Asset Management secured quantitative trading firm and liquidity provider Jane Street on a 465,000 sq ft pre-let at One Spitalfields in the City.

Beyond 2027, supply in the West End drops even more sharply, with only 184,054 sq ft currently scheduled for 2028–30, of which 111,379 sq ft is already pre-let, leaving only around 73,000 sq ft uncommitted.

Acting earlier could offer firms a financial advantage, as Knight Frank forecasts prime West End core rents will rise from £192.50/sq ft in 2026 to more than £230/sq ft by 2030.

Julian Woolgar, partner, head of West End tenant representation at Knight Frank, said: “Demand from hedge funds and other specialist financial firms remains resilient. What has changed is how far ahead businesses need to plan to secure the right building.

“New-build vacancy in Mayfair and St James’s is only 0.4%, and the pipeline becomes extremely thin after 2027. Waiting until 12 or 18 months before a lease event is increasingly too late. The companies achieving the best outcomes are looking several years ahead and securing capacity for future growth before they need it.”