Report Oh "clucking Bell" in House prices and the economy Posted May 25, 2009 Where's the cashflow if nobody's going to rent it?Further to fall. Most of British Land’s office buildings are in the City of London, where rents are expected to fall back to 1991 levels by the end of this year, according to analysts at London-based broker King Sturge LLP, as job losses and a mistimed building boom depress prices. The City of London now has enough empty space to hold two- thirds of Canary Wharf, its rival financial district 1 1/2 miles to the east. About 9 million square feet (855,000 square meters) are available in the City and that may climb to 12 million by the end of 2009, according to CB Richard Ellis Group Inc. Rents that reached a high of 65 pounds per square foot in mid-2007 are forecast to fall to 40 pounds by the end of this year, according to King Sturge. British Land’s rental income, excluding acquisitions and sales, increased by 2.7 percent in fiscal 2009, the statement showed. Tenants accounting for 1.8 percent of the rental income at March 31 have gone into administration, the company said. There were signs that “rents were under pressure across the board,” Grigg said in today’s interview. British Land Has $6.1 Billion Loss on Property Slump The smart money moved out of the City two years ago; rents were simply too high.