A PLANNED £2m office and industrial development in York has proved so popular that 11 of the 12 industrial units have been sold even before detailed planning approval has been given.

The 22,000sq ft Pyramid scheme, comprising 16 small office and industrial units, by York property developers The Helmsley Group, is being developed in response to a growing trend from small owner-managed businesses to purchase, rather than rent, work space.

On the site of the former R&R Donnelly print works at Ouse Acres, just off the A59 Boroughbridge Road, in York, the single-storey industrial units are between 1,100 and 1,600sq ft.

Ian McAndrew, of The Helmsley Group, which is behind a number of office developments in York, including the £60m Monks Cross North business park, said: "There has never been a better time to purchase commercial property. Small owner-managed businesses are taking advantage of the low-cost of borrowing and investing in their own business premises either directly or via their pension funds. Property is an excellent long-term investment, which is an attractive alternative following the disappointments and scandals in the pensions market.

"If owner-managers invest in commercial property now, they have the potential to reap the rewards of capital growth when they sell the business or when they retire."

Isis, a second phase development that will comprise four, two-storey office buildings of between 1,000 and 1,250sq ft, is also planned on the site and developers say it is already receiving high levels of interest from York businesses.

Richard Flanagan, from property consultants Lawrence Hannah and Skelton, said: "The fact that small businesses are willing to invest in their own premises is excellent news for the York economy and reflects the high confidence within the business community. Pyramid and Isis are being developed to a high standard by an experienced team and will enjoy the benefit of a great location."

Published: 21/09/2004