Demand for commercial property has fallen to its lowest level in more than a decade, intensifying pressure on landlords who are facing demands to rip up rental agreements in the tough economic climate.
The RICS says today that the outlook for commercial property has not been worse since it started its survey a decade ago, with weaker retail sales, frozen expansion plans among the big banks and plentiful office space.
The survey measures the gap between the proportion of its members reporting a fall in demand for commercial property and a rise. That gap between pessimistic and optimistic surveyors now stands at 50%, compared with 31% in the first quarter.
Confidence in the retail sector has been hit hardest, with 64% more surveyors reporting a fall than a rise in demand.
Financial Times, Daily Telegraph