DEMAND for empty shops and cafes for small businesses is high in York, despite the pandemic, with city bosses saying the situation is "very positive" for retail and tourism to bounce back.

Larger empty shops may need to be broken down into smaller units, as spaces of 15,000 sq ft or more are not proving to be as popular, suggesting the city could become a hub for small and medium sized companies.

Business leaders are courting companies from elsewhere in the country and trying to get them to move to York or open branches in the city.

Sean Bullick, managing director of Make It York, told a council meeting: "There is some very positive movement on the property front, with high levels of interest in properties, particularly retail but also more widely around larger developments. So that's good to see and would suggest we would be in a reasonable position to bounce back."

He added: "I had a conversation with the retail forum and they were talking about the demand levels for small properties in York, which remains very high, so small independent small and medium enterprises are looking to set up in York.

"Once you get over about 15,000 sq ft, there is less demand for property, so the question then becomes how do you split those properties up? Can you put them to other uses? Can you combine uses? Can you make them flexible?

"We, like all other cities, need to look at what the city centre is for. But I do feel optimistic about that for York."

York Retail Forum has set up targeted support to showcase properties in the city, mentor anyone who wants to open a business and actively approach companies looking to move to the region.

Chair of the forum Phil Pinder said: "It's a mix of independents and bigger chains and they all want smaller shops.

"We need to convert some of our larger shops and split them into smaller spaces."

He said national businesses are looking to move to Yorkshire and the forum is trying to ensure companies consider York as an option.

Mr Bullick updated the council's shareholder committee on Make It York's work, which includes planning a calendar of Covid-safe events to boost the city this summer.

Cllr Paula Widdowson asked Mr Bullick about the organisation's strategy to attract companies, inward investment and new employers to the city. These could be businesses in specialist industries outside tourism and hospitality.

He said he has been having discussions with the council and the local enterprise partnership about what elements each should focus on, adding: "We're working out the plan really of how, for example, at one end of the continuum you get York as a place on the radar of a Chinese investor who may never have heard of York, all the way through to how you get an investing business to sign on the dotted line, hand over the keys to the premises and employ the staff.

"Across that range the different skills and experience we have in the city will be able to contribute to that continuum and development of a pipeline of economic growth."

For more information about business mentoring visit yorkretailforum.co.uk/opening-shop-in-york