EVEN as the steelwork goes up on a huge multi-million pound speculative development for seven new industrial units on York Business Park, property agents are fielding serious inquiries.

The response to the 30,500sq ft Nether Poppleton scheme by Evans Property Group, owner and developer, speaks volumes about the huge demand for industrial space in the outer ring road area of the city.

It also suggests that the moment that the buildings are ready to lease in September, a second phase will begin the building of six more industrial units consisting of another 28,000sq ft.

Between them, the two projects could generate about 100 jobs.

Richard Flanagan, of Lawrence Hannah Skelton, of York, which with King Sturge has been jointly appointed as agents, said: "I am talking seriously to two parties, but many have shown interest, ranging from technology-based businesses to those who want to use the spaces for old-fashioned warehouses.

"Should the demand justify it and I think it will then phase two will kick in."

Rentals will range from about £20,000 per annum for 3,200sq ft units to £36,000 for 5,500sq ft spaces equivalent to £6.50 per square foot.

"Yes, that is a healthy level but it reflects demand and supply," said Mr Flanagan.

"There are very few sites allocated for employment purposes around York and this is one of them.

"On the ring road Northminster Business Park is developed out, Clifton Moor has reached its capacity and Monks Cross will be dedicated to science-based ventures."

Ross Dixon, lettings manager at Evans Property Group, said: "There is a limited supply of high-quality warehouse accommodation within the York area.

"York Business Park is fast becoming one of York's success stories and demand for high-quality units is such that we expect these to be snapped up prior to completion in the autumn of this year."

Other speculative developments successfully built by Evans on the 80 acres it acquired at Nether Poppleton include the Hudson Court industrial scheme of seven units and an office project, called 10 White Rose Way, all of which are fully occupied.

York Business Park sits to the north west of the city, next to the York outer ring road at Nether Poppleton and within easy reach of the A59 and A19, providing access to the A1, M1, the north east and Leeds.

More information can be found on the website www.yorkbusinesspark.co.uk or by phoning 0113 271 1888.