A "small business paradise" is about to arise on the outskirts of York.

Work begins on April 18 on two projects in Audax Road on the Lancaster Park estate of Clifton Moor, both designed to meet a huge demand for affordable offices and warehouses - and together are expected to generate a total of nearly 200 jobs.

Evans Property Group will build eight self-contained two-storey offices for long lease sale, ranging in price from £245,000 to £356,000 on three quarters of an acre. Ultimately the total sales value is expected to be £2.25 million.

Next door is a £500,000 project by Evans Easyspace - half owned by the property group and half by the Kodak Pension Fund - to build five small warehouses and three offices on nearly half an acre.

The 9,000 sq ft will be let to small and starter businesses on flexible "licensed leases".

Already Richard Flanagan, partner in York commercial property agents Lawrence Hannah and Skelton, reports big interest in both projects.

He said: "The notion of being able to buy an office for little more than a four-bedroom house on a commercial mortgage is very attractive and there is a massive shortage of small workshop or warehouse space.

"We plan to release the first five of the eight offices for sale at an early stage of construction. Proprietors of small businesses will be able to reserve them for £1,000."

Denise Dodd, operations director of york-england.com, the recently expanded inward investment board, described the prospect of accessible high-quality work spaces in York as "exciting."

She said: "There is a growing local demand for 'virtual' freehold and small workshops. They're bound to find buyers and tenants quickly. This is a further endorsement of York as a city with a vibrant economy where outside businesses are keen to invest."

Ian Frostwick, of Evans Easyspace, said the Clifton Moor project, which should be completed by September, was the first since Evans and Kodak announced its joint venture.

He said: "We want to encourage businesses to start up and grow by providing the kind of property service that supports and simplifies the process."

Leeds-based Evans Property Group, which owns Lancaster Park, has already completed its first phase there, including the Fitness First Health Club, Happy Jays children's nursery and a 7,500 sq ft office block sold to City Electrical Factors 18 months ago.

Updated: 11:04 Monday, April 05, 2004