Danny Blair of Colliers Hawke's Bay, who is overseeing the development, said no spaces had been snapped up but he had received a lot of interest.
"Once the Albert [Hotel] physically comes down, we'll start to secure tenants."
A growers' market run by the Hastings City Business Association will also take place on two blocks of Heretaunga St East, including the hotel site, every Saturday starting this weekend.
City centre manager Susan McDade said the market would run from 7am to 10.30am and was part of an initiative to revitalise the east end of town.
The Albert Hotel is Hastings' oldest inner-city building and was built in 1882 by William Dennett, an Australian immigrant who became mayor of Hastings.
The two-storey wooden building withstood the 1931 Hawke's Bay earthquake and was given category two protection by Heritage New Zealand because of its cultural and aesthetic value.
Hastings councillor Kevin Watkins said he was saddened by the hotel's demise.
"It's sad to say goodbye to a little bit of history, but there's no other option."
Mr Watkins was just 11 years old when the Hastings fire brigade used fire hoses to deter an angry mob outside the historic hotel during the Blossom Festival Riot - otherwise known as the 1960 Battle of Hastings - which happened when the annual Blossom Festival Parade was cancelled due to wet weather.
