Russell Lynch: Developers are missing out on the City property bonanza

It may have been tin hats on in the financial markets in 2016, but there are few sweating brows on London’s commercial property scene.

City investment agents are rushed off their feet. After a minor blip last autumn, when sellers got too greedy and the odd deal fell through, there are buyers scouring the Square Mile and the West End, but there are few bargains.

The industry chatter is that Japanese buyers are looking around buildings as the nation’s huge $65 billion (£45 billion) Government Pension Investment Fund plots a push into property, following a wave of Chinese money.

The Iranians are also sniffing around on the London scene, hunting for a safe home for the oil cash coming in since sanctions were lifted last year.

And why wouldn’t they? When interest rates are zero or even negative, a City office yield of around 4%, or even the 3% on offer from West End property, looks handy.