City of London Developers Start Skyscrapers as Rents End Slide

The 64-story Pinnacle is currently the only major office project scheduled for completion after 2012 in the City, the capital’s main financial district.

That may be about to change.

Brookfield is seeking a site to build another office tower, this time as developer. Land Securities Group Plc, the U.K.’s largest real estate investment trust, is preparing to revive a skyscraper project it shelved two years ago.

City of London real estate is becoming attractive again to companies like Toronto-based Brookfield after the worst recession on record stopped most development. A shortage of prime office space may push rents back to their 2007 peak in three years, according to King Sturge, a London-based broker. That’s encouraging other companies to follow Brookfield’s lead.