The European commercial property market is finally hauling itself out of recession. Investors are finding pockets of opportunity across the continent, and as banks shed their non-performing property portfolios and liquidity becomes more freely available, many are whiffing the rich scent of good value. But the specter of bad loans still haunts the sector and every opportunity is shrouded in a heavy mist of risk.

The first tentative signs of a potential revival in commercial property came on a brisk winter morning in mid-January, when two of the UK's largest property developers got together to stage a rare photo-shoot. Traditionally seen as fierce rivals, Land Securities Group, the UK's biggest listed property company, and the Canary Wharf Group, the developer behind the financial district in London's Docklands, appeared in front of the press for a "breaking of the ground" ceremony. The event was organised to commemorate the joint construction of a new 37-storey skyscraper - nicknamed the 'Walkie Talkie' - on Fenchurch Street, in the City of London.