Mr Cook said the development was a good example of what was possible under the Rotorua District Council's new District Plan rules.
About 20 people are expected to be employed during the construction phase.
Big Save Furniture managing director Tom McKimm said the new development would see the floor size almost double and mean at least two new jobs.
Mr McKimm said the need for a bigger location came after good growth in business in Rotorua over the last three to four years.
He said they looked at expanding the current Fairy Springs Rd site, but were excited about the move closer to town. Mr McKimm said Fairy Springs Rd had become quite a commercial zone and the Lake Rd site offered better opportunities with store front exposure.
"We've spent the last three years looking at sites."
Mr McKimm said the bigger floor area of the new store would mean a better shopping experience with the company able to set up better displays and increase its product range.
"It will be a much better environment and look a lot more professional."