Firms in the district wanting to increase profits should get rid of unwanted commercial property before sacking staff.

Research by the Royal Institute of Chartered Surveyors has revealed many firms do not understand the importance of property assets.

It also found that the district's chartered surveyors need to be doing more to raise the property issue in company boardrooms.

It found firms often forget about property, which in many cases can be the second highest cost after wages, and that by cutting out waste space, trading profits can be raised up to 13 per cent.

Francis Brown, director of professional services at Chesterton Leeds, said: "This is a very serious issue. Many companies do not have accurate assessments of their property costs.

"Too often, when companies wish to increase profits they lay off staff at great cost to the business and to the individuals concerned.

"We are challenging companies to lay off under-utilised or inefficient property rather than people.

"It is far less painful and can often generate capital as well as save on running costs."