Who moved my Cheesegrater? By postponing sine die a City of London tower that would have been the tallest in the financial district on completion in 2011, British Land is bowing to the inevitable. Even as cranes clear ground for a new generation of skyscrapers, demand is evaporating. Many of the most publicised pre-credit crunch projects, among them Land Securities’ Fenchurch Street “Walkie Talkie” and now also the so-called Cheesegrater of Leadenhall, may not be built anytime soon.

A year into the downturn, City of London office space is living up to its reputation as the most cyclical of all property classes. After peaking at £65 per sq ft in July last year, rents have been tumbling for 12 months, a decline sharpened by JPMorgan’s decision this month to abandon the square mile for the easier planning environment of Canary Wharf. City vacancies may be running at just 5 per cent but this will rise as employment wilts and 4.5m sq ft of new space floods the market.