Earlier, Fire Service spokesman Jaron Phillips said businesses surrounding Lahood had to be evacuated because of smoke billowing across Mt Eden Rd.
Neighbouring business owner Martin Howard said the fire started in a back office and quickly spread throughout the entire building.
The blaze became so hot that paint outside the building started blistering and catching fire, Mr Howard said.
He had to evacuate his shop Mt Eden Coffee after the toxic smoke billowing out of the building starting affecting his employees.
"The whole building just caught fire and I think there's been a floor collapse inside. The smoke was very very bad...
"I didn't completely understand what was going to happen. Within four to five minutes it was just huge."
Mr Howard spoke to Peter Lahood, who owns the building, after his staff were evacuated.
"He said he was insured, but he also was saying things like 'jeez, I've lost everything'."