Despite signs that the economy is slowing, occupiers of commercial property expect to expand their property portfolios on the back of continuing growth in output and employment over the next six months, according to the Confederation of British Industry (CBI) and GVA Grimley Corporate Real Estate Survey.

The twice-yearly conducted survey revealed 43% of firms expect to expand their amount of property space in the next six months, while 22% plan to reduce it.

In addition, most firms (82%) believe that changes to the empty rate relief being introduced in April will have a negative impact. The Government will scrap the 50% relief on business rates from which all non-industrial firms currently benefit three months after a property has become empty.

Whether or not the change has the desired effect of encouraging landlords to make more efficient use of empty properties, the cost to business is estimated to be nearly £1bn a year and the decision could have other negative consequences.

Karen Dee, the CBI’s head of infrastructure, said: “The higher cost of owning an empty building could make regeneration less viable and demolitions are likely to increase. Businesses can also get caught in leases, which make them liable for empty rates even when the property is no longer suitable and they cannot pass the property on.”