Demand for commercial property has fallen to the lowest level in ten years, according to surveyors.
In the second quarter of this year, 50 per cent more surveyors reported a fall in demand than a rise, the Royal Institution of Chartered Surveyors (Rics) has reported.
Simon Rubinsohn, chief economist, said the fall in tenant demand was "indicative of the increasing pressure on business".
"Rental growth is on a down ward spiral and evidence suggests that the levels of inducements are on the increase as landlords attempt to keep property occupied," he observed.
One benefit of recent commercial property market problems is increased choice for companies looking to move office in London.
Rics found available office space in London rose at the fastest since its records began again 50 per cent of surveyors reported a rise rather than a fall in availability.