Almost a third of commercial developers recorded a fall in work in August after a Savills report showed commercial work contracted by its sharpest level for 11 months.
The decline in public sector activity accelerated slightly, to the fastest since March while private sector commercial development decreased for the first time in five months.
Although 29 per cent of commercial developers registered a fall in activity, 17 per cent registered an increase in work.
The Total Commercial Development Activity Index, a net balance monitoring the overall performance of the UK commercial property sector, decreased to -12.1 per cent in August, from -7.4 per cent in July.
Uncertainty over the stability of economic conditions and continued concerns regarding the level of bank lending were cited by panellists as the main contributors to negative sentiment.
Seven of the nine sub-categories of commercial development registered lower levels of activity in August including industrial, retail and office work, however refurbishment and private new build registered slight increases.