UPDATE 2.45pm: Charles Street has been reopened to traffic.
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Tasmania Police is investigating the incident.
EARLIER: Police and fire crews were called to a fire at the old C.H Smith Marine building in Launceston on Friday afternoon.
While there were no flames visible from the outside, emergency services appeared to be targeting the single-story section of the dilapidated Cimitiere Street building.
Tasmania Fire Service crews are using a cherry picker to access the building.
The fire was reported just before 1.30pm.
Tasmania Police has closed Charles Street to traffic between Cimitiere and William streets.
Motorists are asked to avoid the area.