‘Cheesegrater’ delayed by a year

Leadenhall Tower, nicknamed the ‘Cheesegrater’, which is to be situated at the heart of London’s financial district, is to be delayed for up to one year due to a falling demand in office space.

British Land who own the project said that the rising cost of construction was also a factor. The building will now be completed in 2012 - when the effects of the downturn should have subsided.

More ominous news emerged from the company who revealed that the value of its property portfolio had fallen 5%. Rental values have also been hit by weaker demand said the company. The main occupiers of office space in the city, financial institutions, are reigning in the size of their office requirements.

This development is indicative of the City office market at the moment. It was also revealed yesterday that US Investment giant JP Morgan would be moving out of the city to Canary Wharf.

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