Two new industrial will be built on commercial land at the Witham Point Business Park on Wavell Drive in Lincoln.
The 4,000 sq ft units will be developed by Radford Holdings’ building division, Thomas Long & Sons of Nottingham, with the potential to help create more local jobs.
The investment was agreed upon by city chartered surveyors Banks Long & Co alongside Pygott & Crone.
The new properties will offer tenants quick access to Outer Circle Road and the Lincoln bypass.
Once completed, the units will be offered for sale freehold or a leasehold basis.
Banks Long & Co Director William Wall said: “There is pent-up demand for this type of trade counter unit and Witham Point is part of the well-established Allenby Road Industrial Estate, which is already popular with a wide range of firms.
“Since 2007, the first two phases of units built on the Wavell Drive site have gradually become occupied.
“But we are definitely seeing a pick-up in business vitality locally and the developer has been encouraged to invest further in this location, by creating another 8,000 sq ft of accommodation for medium-sized businesses.”
Radford Holdings Property Director Philip Attenborough added: “There seems to be a lot more confidence in the Lincoln area and we believe there are good reasons to look at building two further 4,000 sq ft units.
“These will be ideal for firms looking for light or general industrial storage and distribution space.”
Already on site are a mix of mid and end-terrace units, alongside a detached unit with a self-contained yard.