A first tenant in new offices built speculatively in York is said to be paying a record rent.

A sales office of Aberdeen-based Measurement Devices Ltd, which manufactures laser and quarrying equipment, has moved out of the Castle Howard estate and into a new development at Maple House, Northminster Business Park, at Upper Poppleton, for a rent of £15 per square foot - a record for new out-of-town offices in York.

The previous high for similar offices was £14.50 per sq ft, according to Alastair Gill, senior surveyor at King Sturge, agents for the site.

The rise reflects a massive increase in business demand for commercial property throughout the North of England, as well as the greater cost to Northminster Properties of speculatively developing smaller, rather than larger offices.

Demand for commercial property in the north shot up in the three months in December at the fastest pace since the peak in the stock market in 2000, according to the latest survey by the Royal Institution of Chartered Surveyors.

"We think this is a record," said Mr Gill. "There aren't many smaller units immediately available.

"It was occupied on a ten-year lease with a five-year break clause. The high-spec offices with raised floors, suspended ceilings, modern lighting, glazed entranceways and dedicated car parking dictate the price."

Other new units there of the same size are also being sold freehold for £245,000, although leases can be negotiated.

A new phase of speculative building at Northminster - Cherry Tree and Blackthorn House - will be completed in April, each offering 2,327 sq ft of accommodation and finished to the same specification as Maple House. They will be up for sale at £385,000, or leases will be considered.

Two further plots have been set aside by Northminster Properties to build tailor-made offices to suit requirements. They are capable of accommodating 5,500 sq ft and 6,000 sq ft buildings.

A trend towards relatively short-term leases is also thought to be one reason for office rents increasing.

Richard Flanagan, of Lawrence Hannah and Skelton of York, who is soon to market Horizon Court, an eight-office, two-storey development at Clifton Moor, when it is finished in March, said: "It is the fashion to have shorter-term leases and to pay a premium for that.

"We are moving more and more towards US-style agreements of about five years. I am in serious discussions with a number of parties attracted by shorter-term leases, who are prepared to pay a premium on top of the normal market rent."

Updated: 12:01 Friday, January 28, 2005