A travel business has agreed a deal for office space at the Hudson Quarter development in York.

Listed property investment company Palace Capital has let 11,300 sq ft of grade A office space to Great Rail Journeys.

The tour operator has leased the fourth and fifth floors, including the top floor terrace, of the HQ building on a ten-year lease with a tenant’s option to break at the end of the sixth year at an average headline rental of £26 psf subject to a short rent free period.

The company has also taken ten car parking spaces at an additional £22,500 per annum, which is index linked annually, taking the ultimate rent payable to £315,787 per annum.

Neil Sinclair, chief executive at Palace Capital, said: “The latest letting we have secured at Hudson Quarter, York reflects the renewed demand we are seeing among occupiers for high quality, well connected office space, as well as the higher levels of office returns in the regions.

“When we launched HQ, it was the first grade A office space to be available in the York market for over 15 years and with constrained supply and an additional 3,600 sq ft under offer, we are pleased with the progress we are making against this market backdrop.”

JLL acted for Palace Capital & Sanderson Weatherall acted for the tenant.

Nick Dyson, head of commercial property at Blacks Solicitors, represented Great Rail Journeys.