NEW YORK CITY—Hedge funds are paying in excess of $100-per-square-foot for prime properties in Manhattan and for the pricier assets are forking over more than $200-a-square-foot.

According to a report by brokerage firm JLL on hedge fund activity in New York City, the direct average "high asking rent" for hedge funds and financial service firms is $147.19-per-square-foot, which is a 2% increase from its last hedge fund index report released in April. JLL tracks 24 trophy buildings in Manhattan that have a high concentration of boutique hedge fund, investment management and financial services tenants.

JLL's latest report, authored by managing director Cynthia Wasserberger, states that the high asking rent for direct space in those buildings is above $100-per-square-foot in all but one of those properties. The overall low asking rent in the buildings averages at $88.36-per-square-foot.

Average rents at Midtown trophy buildings are down 18% from their peak in 2007 to $120-per-square-foot. Historically sublease space in Midtown is offered at about a 25% discount to direct space. JLL states that in the buildings reviewed for its hedge fund index, sublease rents are on the market with an average discount of about 35% as compared to average direct asking rents. In its previous report in the spring, JLL reported that sublease discounts in the buildings included in its hedge fund index were at a 66% discount as compared to direct asking rents.

However, there is one notable exception. The available sublease at Boston Properties' GM building at 767 Fifth Ave. is on the market for $250-per-square-foot. The 15,360-square-foot sublease by Banco Itau is priced so high because of its prime location on the 50th floor as well as its impressive views of Central Park and other locales to the north, east and west, JLL states. The hedge fund report states that the space is to be delivered demolished and the sublandlord will provide $60-per-square-foot in work and 10 months free rent.

JLL explained that the large cut in the discount for sublease space "seems to indicate that with a shrinking supply of steeply discounted sublease spaces, tenants in need of relatively short-termed furnished options are acting quickly to secure sublease space as it becomes available. Discounted short-term sublease options have proved to be valuable options for hedge funds (particularly for nascent funds) who are seeking built and furnished units in the higher-quality buildings but do not want to commit to a long term."

The property taking the top spot for direct high asking rent in the JLL hedge fund index is 9 West 57th St. Although the report notes that the building ownership does not officially quote asking rents, the peak rent for the tower floors there is approximately $220-per-square-foot. Other pricy properties include 667 Madison Ave. at $195-a-square-foot and 767 Fifth Ave. at $185-a-square-foot.