"It is a commercial building with a shop downstairs and flats upstairs," he said.
"The building has suffered a fair bit of damage. The police and fire service are both here ... there are two fire trucks.
"Police and fire are keeping us back [from the scene].
"But the fire looks reasonable well advanced . . . the damage goes through to the outside walls. But it is under control. There are ladders [from the fire crews] up to the second floor."
"The fire was reported about 8:25am. It is reported there are people currently trapped on a balcony," police said.
A later update said everyone inside the building had successfully escaped.
The fire was not thought to be suspicious and a Fire and Emergency investigator was heading the scene.
A witness said the fire was closing in around some flats and a Salvation Army store.
State Highway 60 is now closed at the intersection with Greenwood St.
Motorists are warned to expect delays and to use an alternative route.
