City office rents will fall 40%

City offices in London will see their rental value fall 40 per cent from their peak prices, an investor told the Times.

Chris Bartram, investment fund manager, told the paper there are international investors with "a lot of cash" ready to invest in UK commercial property.

The Times reported he said the current fall will not be as lengthy as the period of commercial property price falls in the early 1990s.

Mr Bartram thinks Land Securities will cut back or delay some of it construction and shift tenants to separate accommodation.

Much of the current business in commercial property sales is going to ‘cash rich’ investors, looking to catch the market at its lowest and return themselves a healthy profit.

Land Securities recently sold Turnstile House on High Holborn to The Ascott Group. Despite falling values, commercial property in London remains in demand with buyers hoping to negotiate deals.