The building was constructed in 1908 and was the home of The Southland Times for 100 years. The newspaper moved to a new home at the corner of Don and Devron Sts four years ago.
Invercargill Central Ltd communications manager Amy Hibbs said the demolition took two and a-half days.
Contractors would be lifting debris over the weekend and an archaeology investigation would then begin.
The inner-city redevelopment will result in the demolition of the entire block bordered by Dee, Tay, Kelvin and Esk Sts, to construct a new centre comprising retail, food and beverage, offices, apartments and more.
More than 9000sqm of buildings on the block have come down to date.