The £16m office development in Hull is being built by local contractor PDR Construction.
Work includes construction of a 350-space multi-storey car park, for corporate and public use.
The start of building work represents a milestone in the £80m rejuvenation of the waterfront Fruit Market area, which is being led by Wykeland Beal, a regeneration company formed by commercial developer Wykeland Group and house-builder Beal Homes, as part of the Fruit Market LLP joint venture with Hull City Council.
Wykeland Beal has worked with Arco to develop the scheme and enable the company to relocate. Arco’s existing head office in Waverley Street has been bought by Hull City Council to support regeneration and investment in the city centre.
Wykeland Group managing director Dominic Gibbons said: “This development is enormously significant for Hull and the wider region. There hasn’t been a new office building of this size in Hull for a single user for more than 50 years and the development will see a showpiece facility of exceptional quality and prestige occupying a key, strategic site. The new multi-storey car park is also much needed to support Arco and its staff and the Fruit Market community.
“We’re delighted one of the city’s most successful and respected businesses has chosen the Fruit Market for the next chapter in its rich history.”
The new head office will see family-owned Arco return to its roots in the Fruit Market where the business opened its first shop in Queen Street, just yards from the development site, in 1893.
Hessle-based PDR Construction is expected to complete construction of Arco’s 58,500 sq ft, five-storey building by the end of 2020.
Arco managing director David Evison said: “This is a significant step forward for Arco, as we continue to invest in the growth of the business. The new head office will provide us with the facilities and the work environment to meet our needs into the future.”