The UK commercial property market will face difficulties until 2012, according to the Royal Institute of Chartered Surveyors (Rics).
Employment cuts at leading banks would worsen the situation and values are set to fall a further 16 per cent next year, it predicted.
“We are only halfway through the price correction in the commercial property market with values set to fall through 2009 and 2010 as rental declines gather pace,” commented senior economist, Oliver Gilmartin.
City offices will be hit hardest by the downturn, according to Rics. It said capital values were expected to fall more than 30 per cent.
Despite difficulties, redevelopment work continues across the capital. Minerva, for example has been given permission for its planned overhaul of Young’s Ram Brewery in Wandsworth.