Article: Financial firms energize market with small deals; Fast-growing hedge funds snap up posh spaces; larger moves needed for rebound.(Real Estate)(commercial real estate market)

Byline: christine haughney

The commercial real estate market continues at its sluggish pace, but smaller financial services firms are making moves, fueling a mini-recovery.

The firms, many of them hedge funds started in the past two years by refugees from the big investment banks, are snapping up offices as they move out of their startup phase. Because they need sophisticated computer systems and central locations, they are willing to pay for posh space in places like the Plaza district.

"There's a small market user that is creating substantial demand,'' says Bruce E. Mosler, Cushman & Wakefield Inc.'s president of U.S. operations. "This ...

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