A CITY centre retail unit has gone on the market for the first time since it was built in the 1970's with an asking price in excess of £3.4 million.

The freehold of numbers 63 to 77 Goodramgate is being marketed by York-based Waterhouse Commercial Surveyors on behalf of owners Town Centre Securities, which originally built the property in the later 1960's/early 1970's.

With an annual rental income of £232,000, the building currently has four tenants, with 80 per cent of the income generated from national retailers Tesco and Bon Marche.

Tesco's lease runs until 2032, and with the earliest lease expiring in 2020, the property offers an investment yield of 6.5 per cent.

David Waterhouse, of Waterhouse Commercial Surveyors, based in Bootham, said: "If you walk around the city centre of York there will be very few buildings that haven't changed hands for decades like this.

"It has been on sale for a couple of week, through us in York and through joint agents in London, and we have already completed a number of site viewings.

"We've had good levels of interest, and I expect the property will sell soon to a property company, family trust or high net worth individual."

Speaking more widely about York's commercial property sector, Rosie Crux, from York chartered surveyors Barry Crux, said: "Retail lettings have improved over the last 12 months, although many enquiries are still coming from restaurant, cafe and bar operators who are seeking empty units to convert.

"The city has lost some national operators over recent months, but we are seeing many independent retailers starting to see York as a opportunity which is encouraging.

"Generally, the office market in York city centre is struggling and we are still finding there to be a low level of enquiries in respect of lettings, and many landlords have been considering conversion of office space into residential.

"The investment market continues to be fairly buoyant in the city centre and there is a good level of demand which is keeping prices solid. York continues to be seen as an attractive market for property investors."