A fire broke out at a vacant building in central Wellington, sending smoke billowing out around the area.
The blaze on Ghuznee Street is next to the popular cafe Customs in Te Aro.
Police said staff were notified of reports of smoke coming from the building around 2:35pm.
The fire was now contained and did not spread to other buildings.
A welfare centre has been opened for residents of a neighbouring building.
Fire and Emergency assistant commander Martin Wilby said because of the earthquake risk, firefighters had to battle the blaze from the outside.
FENZ staff would remain on site overnight to make sure no squatters tried to enter the building.
Wellington City Council said no injuries had been reported.
Environmental officers are testing the surrounding area for asbestos, but council said there was no evidence of it at this stage.
Witnesses said young teenagers were seen at the area before the fire broke out.
This witness, who works nearby, saw about six young teenagers running out of the building mid-afternoon.
It is not yet known whether anyone was inside the building when the fire broke out.
"We were walking back down about 2.30pm, already quite a big crowd had gathered because there was smoke pouring out of the ceiling," a witness who lives around the block said.
She said it was an old building and "it wasn't surprising to see it's ended up catching fire". It smelled like "old wood and a really big bonfire".
Another witness said: "The fire alarm went off in my flat around the corner and I came out to see billowing smoke and a chrysanthemum of flame. It was quite spectacular."
Logan, who was also in the area when the fire broke, said he could smell and taste smoke for about 30 minutes.
Police are speaking to those who were in the area at the time to determine the cause of the fire.
The road is closed where Ghuznee Street intersects with Cuba Street and Taranaki Street.
Foot traffic and motorists in the area are being diverted and are advised to avoid the area.
Fire and Emergency said the blaze is under investigation and businesses in the area will be able to go back to work Monday.