Demand for commercial property in the UK has dropped for the first time in 12 months, according to the RICS
The RICS UK Commercial Market Survey for the second quarter of 2010 shows that lettings for business property slipped back after a positive first quarter and tenant demand declined for the first time in a year, particularly in London.
Surveyors are reporting that uncertainty over public spending cuts are affecting the appetite of businesses to take up new space.
Neil Prince of Matthews & Goodman said: “The occupational market in the West End seems to have stuttered since the austerity measures were announced.
“The money that is to be taken out of the economy will take time to filter through to demand, but will mean downward pressure on rent and growth.”