According to the Royal Institution of Chartered Surveyors (RICS) demand for commercial property is falling faster than it has for a decade. Retail property has been hit hardest but landlords of office and industrial property are also suffering.
In contrast to the domestic property sector demand for rental of commercial properties has been badly affected by the credit crunch. This is perhaps not surprising as everyone needs a home even in a recession so people who might otherwise buy are being forced to rent but this is not a good time for businesses to expand or open new outlets.
All regions of the country and all business sectors have been affected but the central London office market and the retail market nationwide have been hit hardest.
In Brighton & Hove the shortage of good quality office stock has kept demand more buoyant than in other parts of the UK especially for sub 10,000 sq ft units. The digital media industry, which to a certain extent is riding the recession, also has unmet demand for floorspace in the city.
The Business Forum monitors retail vacancy in the city centre and will be publishing a report on the local situation in next week's alert.
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Royal Institute of Chartered Surveyors