Office demolition causes first decline in commercial space
An increase in the number of offices being demolished has led to the amount of available commercial space shrinking for the first time since records began in 1998.
The surge in office demolition is thought to be due to 'empty rates', a tax placed on unused commercial property.
From 1 April 2008 to 31 March 2009 the amount of available commercial space in Britain diminished by 1.2 million square metres. These figures, released by the Valuation Office, are thought to be caused by landlords having no option other than to demolish their property when faced with the fees incurred to have the space remain empty. The tax is seen by landlords as an unfair penalty placed on them for not being able to secure tenants in a period of economic downturn.
The rates were introduced by Alistair Darling in April 2008. They have been described as "a tax on hardship and a levy on business failure brought on by Gordon Brown." this is according to Liz Peace, chief executive of the British Property Federation.
The reduction in the amount of commercial property available is equivalent to nine times the size of the Westfield shopping centre in London - Europe's largest shopping centre.
