All this must seem like a real bummer David, but I would rationalise it as meaning that it just wasn't meant to be.
I suspect that you may have had a lucky escape. I can't think of a worse time to be starting a business than at this point in the economic cycle. Yet in a couple of years time it may well be the perfect time - after a few competitors who have grown fat and flabby during the good times have gone bust.
I would bide my time, save as much cash as possible, and plan on launching in 2010. I suspect that there will be plenty of suitable affordable premises available to choose from by then.
Cheers
Dan