Closed and unused since 2016, the Urban Factory nightclub is set to be demolished and turned into a car park.
The Dunedin City Council has granted resource consent to allow a 37-space car park on the Great King St site.
The property is owned by Bona Lau.
Dunedin man Robin Floyd, who helped manage the property for his god-daughter, said no consideration had been given to re-establishing a night club on the site since it closed.
``It's just the way of the world, I'm afraid - makes better business sense parking cars than it does selling drinks.''
Mr Floyd said his god-daughter had spent thousands of dollars on sound-proofing, lighting and music systems, but students no longer spent money in bars so there was no commercial sense in running a nightclub outside the Octagon anymore.
An increase in the demand for parking spaces in the city meant the new car park was almost certain to do well, he said.
``We've already had plenty of commercial interest in the parks and, with the council getting rid of all those parks for cycle lanes, it just made sense.''
When the building, which takes up most of the 0.8ha site, would be demolished had not yet been decided, but with the consent now granted it was unlikely to be standing for much longer, he said.
``There's a lot of costs associated with the upkeep of an empty building of that size so I would say it won't be there much longer.''
