TESCO is considering its next move after its plans to build a supermarket at Edginswell in Torquay were rejected by councillors.
The company's planning application was thrown out by Torbay Council and the store must decide if it wants to carry on the fight at appeal or walk away.
Meanwhile, the developer acting on behalf of the Hawkins Trust, which sold the land to Tesco, says the decision by the council means the business park might not develop to its full capacity for a number of years.
Tesco had promised to build three new offices as part of its scheme.
Richard May says businesses were lined up to take up space, but will probably now withdraw, with Exeter their most likely destination.
Mr May said: "I'm disappointed because we can't now build other offices at the business park. Tesco was going to help fund that and it certainly isn't fundable in any other way.
"I've got people who want to go in two of those buildings. One was from outside the area and another from inside in a priority sector the TDA wants to support.
"But Exeter has some very good offices which are very cheap just up the road.
"The Hawkins Trust will now sit and wait, but there won't be any obvious development in the near future."
The 12-acre site at Edginswell is currently home to a small number of companies, and is located in a prominent position close to where the new Kingskerswell bypass will end.
The foundation stones were laid in early 2009 and the first three-storey blocks completed in 2010.
But the economic downturn has made it difficult to attract companies and part of the site is still undeveloped.
Members of the council's development management committee voted unanimously against the planning application to make Tesco the main presence on site.
Despite Tesco offering to create 200 jobs councillors thought it was inappropriate for the 'gateway' site, and would take trade away from the town centre.
They rejected a change of use allowing a supermarket, saying it should be restricted to office development.
They said the Town Hall car park in Torquay was more suitable site for a supermarket.
Simon Petar, regional corporate affairs manager for Tesco, said a decision about an appeal will made by the company in the next few weeks.