The VIX, which measures volatility in the stock market, is currently at historical lows. However, the turmoil in the hedge fund industry is increasingly high. As a result, some financial firms are downsizing or closing their doors. When the firms downsize, they assess their office operations and often seek to sublease some or all of their space. This presents other hedge funds, broker dealers, and money managers with an opportunity to save money by leasing new space when the sublets hit the market.
Financial firms with many traders and computers have extensive infrastructure needs such as: supplemental air conditioning, ample voice and data wiring, built-in trading desks, and high-end furniture and phones. Given these IT and HVAC requirements, their spaces often need costly build-outs to ensure smooth trading operations.