FIRE has caused ''significant damage'' to a building in Hobart's CBD this morning.
The fire, which was reported at 3.16am, at the Bridges Brothers Toy Store on Bathurst St.
The building contained offices and a stationery shop.
Police say, initial estimates of the damage are $10 million.
The cause of the fire is considered suspicious.
Hobart Detectives and the Tasmanian Fire Service Fire Scene examiner are currently at the scene.
Any person with information that may assist police is encouraged to contact Crime Stoppers on 1800 333 000.
Bathurst Street between Elizabeth and Argyle Street will remain closed until further notice.
Business owners in the affected area are encouraged to contact Tasmania Fire Service for further information.
Due to the presence of smoke, residents of the inner city area are requested by the Tasmanian Fire Service to remain indoors with doors and windows shut and those who suffer from breathing difficulties should avoid the city altogether for the next few hours.