The Toomath's Building in Wellington, which caught fire on Sunday, is set to be demolished.
The building is heritage-listed, but as engineers found it to be a danger to public safety, the Wellington City Council has ordered its demolition.
It said the owners were in the process of securing a contractor to do the work.
Meanwhile, there was still no southbound traffic access down Ghuznee Street, and the cordon remained in place from Marion to Cuba Streets, meaning rubbish needed to be taken outside the cordon for collection, and three bus stops were closed.
The council's chief planning officer, Liam Hodgetts, said while the situation might be frustrating, public safety was the priority.
"We advised the owners of the building of the absolute urgency in getting the work completed to address safety concerns and the need to reopen the road, and they are complying with our requests."
Council environmental health officers had tested for asbestos and confirmed there was no evidence of asbestos risk in the area.