Demand for business office space has fallen at the fastest level on record, according to research conducted by the Royal Institution of Chartered Surveyors (RICS).

More than 70% of RICS members reported a fall in demand in the last quarter of 2008, compared to the previous quarter when just over 50% saw a decline in demand.

Small business owners who have a lease that is set to expire are being advised to make the most of the current economic climate and negotiate with their landlord to extract the best terms possible.

The RICS also reported that the value of inducements - such as cash incentives - is rising at a very high rate as landlords seek to attract and keep existing clients.